Tech Industry Readies for EU Digital Services Act

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Facts

  • Starting Friday, 19 of the largest digital platforms in Europe will face further legal scrutiny following the EU's implementation of the Digital Services Act, which imposes regulations concerning moderation, user privacy, and transparency.1
  • Platforms affected include Facebook, TikTok, Twitter, Youtube, Instagram, LinkedIn, Pinterest, Snapchat, Amazon, Booking.com, Alibaba, Zalando, Google Play, Apple's App Store, Google's Search, Microsoft's Bing, Google Maps, and Wikipedia.2
  • In February 2023, all 19 companies were given the status of either "very large online platforms" or "very large online service engines," each containing over 45M monthly active users — comprising 10% of the EU's population.3
  • The Act requires companies to report and remove illegal content, explain moderation policies, ensure seller legitimacy and advertisement transparency, protect children online, and multiple other regulatory measures.4
  • European Commissioner Thierry Breton said the "real test begins now," while promising to "fully use our new powers" to "investigate and sanction" noncompliant platforms — potentially leading to fines worth up to 6% of a company's worldwide revenue.5
  • The Act, initially introduced in 2022, will be rolled out in stages until early 2024. Both Amazon and Zalando have appealed to the EU over their statuses, arguing that as retailers, they should not be considered the same as companies like Facebook and Wikipedia.6

Sources: 1Reuters, 2Euronews, 3Euractiv, 4TechHQ, 5Associated Press, and 6The Register.

Narratives

  • Narrative A, as provided by Le Telégramme. The Digital Services Act allows the EU to wield a new tool against the many wrongs often witnessed on Big Tech platforms. The regulations are a necessary step as Europe begins to strengthen its soft power approach toward major private corporations. Although the internet should not be expected to transform overnight, the new digital borders imposed by the EU will be a net positive in the pursuit of a safer online community.
  • Narrative B, as provided by Just Security.  This Act is unlikely to have a profound effect on the darker corners of online platforms. This legislation contains gaps in its ability to target online extremism, constrain dangerous resources, and moderate the growing influence of social media stars. Furthermore, smaller companies wrapped up in the same box as Meta will lack the resources for efficient implementation. The EU must continue tweaking its law to achieve fairness and consistency.