The European Union's Digital Services Act (DSA) has officially come into effect, compelling major tech companies to adhere to a new set of stringent regulations starting last Friday, August 25, 2023. The law, which was adopted by the European Parliament in July 2022, imposes significant responsibilities on global tech giants, including Amazon, Apple, Alphabet, Meta, TikTok, and others. Platforms with less than 45 million active users will have to comply with the DSA rules starting from February 2024.
After over a year of deliberations, the European Commission's Digital Markets Act (DMA) and Digital Services Act (DSA) have been enacted as law. These landmark regulations target tech industry practices deemed anti-competitive and content dissemination that goes against EU standards. The DMA particularly focuses on the behavior of digital 'gatekeepers,' aiming to prevent monopolistic practices and stimulate competition.
The DSA classifies platforms with over 45 million monthly users in the EU as Very Large Online Platforms (VLOPs) or Very Large Online Search Engines (VLOSEs). These companies, including Alibaba AliExpress, Amazon Store, Apple AppStore, Facebook, Google, and others, are required to comply with stringent rules. Failure to do so could result in fines reaching up to 6 percent of their annual turnover, potential suspension of services, and other penalties.
Under the DSA, tech firms are obligated to address a range of concerns, including illegal content dissemination, sale of illicit goods or services, public security, gender-based violence, consumer protection, and more. Additionally, the law prohibits targeted advertising based on profiling children, necessitating the revision of advertising practices.
Notable tech companies like Amazon and Zalando have raised challenges against their classification under the DSA. Despite legal challenges, many firms, including Amazon, have initiated efforts to comply with the law, such as establishing mechanisms for reporting illegal content. The DSA mandates the sharing of algorithm details with regulators and facilitating data sharing with independent researchers.
The EU's Digital Services Act is set to reshape the operations of major tech firms worldwide, as they restructure their practices and procedures to adhere to the new regulations. The comprehensive approach of the DSA aims to create a safer and more competitive digital environment for users across the European Union.
For more information please visit: The Digital Services Act package
