Introduction
The digital world has grown exponentially in recent years, with more and more people turning to online platforms for information, communication, and commerce. However, as the online world has grown, so too have concerns about the power of very large online platforms, the spread of illegal content, and the protection of fundamental rights.
The European Union proposed two new sets of legislation, the Digital Services Act (DSA) and the Digital Markets Act (DMA), in December 2020 to update the regulations governing digital services within the EU. A political agreement was reached on the Digital Markets Act on March 25, 2022, and on the Digital Services Act on April 23, 2022. These two acts will work together to establish a unified regulatory framework across the EU that aims to promote a more secure and accessible digital environment.
The Digital Services Act (DSA) goes into effect
The Digital Services Act (DSA) became officially effective on November 16th, 2022, and will begin enforcement on February 7th, 2024. The DSA aims to safeguard the basic rights of EU citizens online and to ensure the proper functioning of the internal market. It also intends to protect personal data and the freedom of information and expression for those online. As a result of this new act, businesses worldwide, particularly those in Europe and the US, must be prepared to meet the new standards that will be imposed on online platforms. Additionally, online platforms will be required to share their algorithms and how they work and put in place processes to quickly remove illegal content and take necessary action against users who spread misleading information.
Digital Services Act
The Digital Services Act is a proposed set of rules that will govern the activities of online platforms and search engines operating within the EU. The DSA builds on the e-Commerce Directive, which has been in place since 2000 but updates the rules to account for the digital world’s rapid changes over the past two decades. The Digital Services Act will apply to many online services, including online marketplaces, social media platforms, app stores, and large online search engines. The DSA aims to create a level playing field for all online services and ensure that the online world remains open and accessible to all. The DSA will be directly applicable to all online platforms, regardless of their size, and will be enforced by national authorities. The Digital Services Act will also include a crisis response mechanism to be activated in case of serious incidents. DSA will ensure that all online intermediaries, including hosting services, advertising systems, and algorithmic systems, take appropriate measures to protect users from illegal online activities.
Very Large Online Platforms
The Digital Services Act will particularly emphasize regulating very large online platforms, defined as those with average monthly active recipients of more than 45 million EU users. These platforms will be subject to new obligations, including the appointment of a digital services coordinator to monitor their activities and an independent audit to assess their compliance with the DSA. The digital services coordinator will ensure that the platform complies with the DSA and will be empowered to take action against the platform in case of non-compliance. The independent audit will be conducted by an independent body and will be designed to ensure that the platform complies with the DSA. Very large platforms will also be required to conduct an annual risk assessment and implement a crisis response mechanism in case of a serious incident. This risk assessment will identify potential risks associated with the platform and ensure that the platform takes appropriate measures to mitigate these risks. The crisis response mechanism will be activated in case of serious incidents. It will be designed to ensure that the platform takes appropriate measures to address the incident and protect users.
Large Online Platforms
Large online platforms, defined as those with average monthly active recipients of more than 10 million EU users, will also be subject to new rules under the Digital Services Act. These platforms must appoint a digital services coordinator and conduct a risk assessment. Still, they will be subject to a different level of independent oversight than very large platforms. The digital services coordinator will ensure that the platform complies with the DSA and will be empowered to take action against the platform in case of non-compliance. The risk assessment will identify potential risks associated with the platform and ensure that the platform takes appropriate measures to mitigate these risks.
Online Platforms
Regardless of size, all online platforms will be subject to new rules under the DSA. These include restrictions on illegal content, targeted advertising, and algorithmic systems. Platforms will be required to remove unlawful content quickly and to provide users with clear and transparent information about how their data is used. They will also be subject to new data being used. They will also be subject to new rules on targeted advertising and algorithmic systems designed to ensure that these systems are transparent and accountable. The Digital Services Act will also include data protection regulations, ensuring that users’ personal data is used transparently and responsibly. Platforms will also be required to provide users with clear and easy-to-use mechanisms for controlling the use of their data, including the right to be forgotten. Additionally, platforms will be required to conduct regular assessments of their algorithms and recommender systems to ensure that they are not biased or discriminatory.
Illegal Content
The Digital Services Act will also include new rules on illegal content designed to ensure that online platforms take responsibility for the content they host. Platforms will be required to remove illegal content quickly and to provide users with clear and transparent information about how their data is used. They will also be subject to new rules on targeted advertising and algorithmic systems designed to ensure that these systems are transparent and accountable. The DSA will also include rules on the removal of terrorist content and illegal online trade, including the sale of unsafe or counterfeit goods. These rules will be enforced by national authorities, who will be empowered to take action against platforms that fail to comply. Platforms will also be required to appoint a dedicated content moderation team responsible for removing illegal content and ensuring compliance with the DSA.
Creating a Trusted Online Environment
The DSA will also include measures to create a trusted online environment. This will include new rules on content moderation designed to ensure that online platforms take appropriate steps to remove harmful content, including hate speech and discrimination based on race, gender, or sexual orientation. The DSA will also include rules on advertising, which will be designed to ensure that online advertising systems are transparent and accountable. Platforms will also be required to appoint a dedicated team of moderators, which will be responsible for removing harmful content and ensuring compliance with the DSA. Additionally, platforms will be required to conduct regular assessments of their content moderation practices to ensure they effectively remove harmful content.
Ensuring Fundamental Rights
The Digital Services Act is being developed to ensure that fundamental rights, such as freedom of expression and privacy, are protected online. The DSA will include measures to ensure that online platforms take appropriate measures to protect these rights and that users are able to seek redress in the event of harm caused by the platform. The DSA will also include rules on non-discrimination, which will be designed to ensure that platforms do not discriminate against users based on race, gender, sexual orientation, or other protected characteristics. Platforms will also be required to appoint a dedicated team of moderators responsible for ensuring compliance with the Digital Services Act and protecting users’ fundamental rights.
Conclusion
The Digital Services Act (DSA) is a comprehensive set of rules that aims to create a trusted and safer online environment for all EU citizens. The DSA will apply to a wide range of online services, including online marketplaces, social media platforms, app stores, and large online search engines. It will place particular emphasis on regulating very large online platforms, which will be subject to new obligations such as the appointment of a digital services coordinator, an independent audit, and regular risk assessments.
The DSA aims to protect the fundamental rights of EU citizens online, such as freedom of expression and privacy, by regulating illegal content, targeted advertising, algorithmic systems, and data protection. It will ensure that online intermediaries, including hosting services, take appropriate measures to protect users from illegal and harmful content and that they are held liable for illegal activities on their platforms. Business users will also be held accountable for due diligence and harm caused by online platforms.
The DSA will protect children online, personal data, competition, consumer rights, national laws and regulations, and intellectual property rights. It will play a critical role in shaping the online world’s future and will significantly impact how online platforms and search engines operate in the European Union. Overall, the DSA is a comprehensive and ambitious set of rules that aims to create a trusted online environment for all while also protecting users from illegal and harmful content, encouraging fair competition among online platforms, and ensuring that fundamental rights, like freedom of expression and privacy, are protected online.
