Introduction

The Digital Services Act (DSA) was passed by the European Parliament in July 2022, aiming to enhance online safety and transparency for users within the European Union (EU).
While initially applying to major platforms like Facebook and TikTok, the DSA now extends its regulations to all platforms except the smallest ones.

Understanding the Digital Services Act (DSA)

Purpose: The DSA seeks to create a safer and more transparent online environment by regulating platforms offering goods, services, or content to EU citizens.
Key Provisions:

1. Removal of Illegal Content: Platforms are required to prevent and remove illegal or harmful content such as hate speech, terrorism, and child abuse.
2. User Reporting: Platforms must provide users with mechanisms to report illegal content.
3. Ad Targeting Restrictions: Criteria like sexual orientation or political beliefs cannot be used for targeted advertising, with additional protections for children against excessive or inappropriate ads.
4. Algorithm Transparency: Platforms must disclose how their algorithms function and influence content display.

Stricter Regulations for Large Platforms: Platforms reaching more than 10% of the EU population are subject to additional requirements, including data sharing, crisis response cooperation, and external audits.

Global Standard: While implemented by the EU, the DSA aims to set a global benchmark for online intermediary liability and content regulation, potentially influencing policies in other regions.
Consistency in Policies: Platforms may adopt DSA-compliant changes universally to streamline operations, leading to broader effects beyond the EU.
Example of Impact: The DSA’s influence extends beyond the EU, as seen in the standardization of features like USB Type-C ports on devices like the upcoming iPhone 15 series.

Addressing Evolving Platform Dynamics: The DSA replaces outdated regulations to address the changing landscape of online platforms, emphasizing the need for improved consumer protection.
Tackling Risks and Abuses: Major platforms have become quasi-public spaces, posing risks to users’ rights and public participation, prompting the need for stricter regulations.
Fostering Innovation and Competitiveness: By creating a better regulatory environment, the DSA aims to promote innovation, growth, and competitiveness while supporting smaller platforms and start-ups.

Large Platforms: Identified platforms like Facebook, Google, Amazon, and others must comply with DSA regulations.
Compliance Initiatives:
- Google: Enhancing transparency reporting and expanding data access to researchers.
- Meta: Expanding its Ad Library and providing users with control over personalization.
- Snap: Offering opt-out options for personalized feeds and limiting personalized ads for younger users.

Non-compliant platforms face penalties of up to 6% of their global revenue.
The Digital Services Coordinator and the Commission have authority to demand immediate actions from non-compliant platforms.
Repeat offenders could face temporary bans from operating in the EU.

The implementation of the Digital Services Act marks a significant step toward enhancing online safety and transparency within the EU.
While initially targeting major platforms, its implications extend globally, setting standards for intermediary liability and content regulation.