The internet is a vast and complex space, where billions of users interact with each other and with various online platforms every day. But who is responsible for ensuring that these interactions are safe, legal, and respectful? And how can users protect their rights and privacy in the digital world? These are some of the questions that the European Union (EU) has tried to answer with its new Digital Services Act (DSA), which has just officially come into effect on August 25. The DSA is a landmark legislation that aims to regulate the online activities of tech giants like Google, Facebook, Amazon, and more, and to create a safer and more transparent internet for everyone. In this article, we will explain what the DSA is, why it was introduced, which online platforms are affected by it, and what impact it will have on the digital sphere. What is the Digital Services Act? Passed by the European Parliament in July 2022, the Digital Services Act (DSA) is a new set of rules that aims to make the online world safer and more transparent for users in the European Union. It applies to online platforms that offer goods, services, or content to EU citizens, such as social media, e-commerce, or cloud services. The DSA requires online platforms to take measures to prevent and remove illegal or harmful content, such as hate speech, terrorism, child abuse – or those that promote illegal goods. Alongside this, DSA also requires that platforms give users the means to report this type of content. The Act also prohibits online platforms from using a person’s sexual orientation, religion, ethnicity, or political beliefs as criteria for targeted advertising. It also protects children from being exposed to excessive or inappropriate ads by imposing restrictions on ad targeting. Furthermore, it mandates online platforms to disclose how their algorithms operate and influence the content they display. The DSA has stricter rules for very large online platforms, which are those that reach more than 10% of the EU population (about 45 million users) per month. These platforms have to share data with researchers and authorities, cooperate with crisis response requirements, and undergo external and independent audits. While smaller platforms aren’t being asked to comply with these regulations just yet, large ones are being asked to comply within 4 months following the agreement on the Act, which was in April. Why is the Act important for India and other non-EU regions? The DSA may have been implemented by the EU for the EU, but its effects may stretch far beyond those continental bounds. EU hopes that the Act will serve as a standard for effective intervention for the protection of fundamental rights online. “It preserves a balanced approach to the liability of intermediaries, and establishes effective measures for tackling illegal content and societal risks online. In doing so, the DSA aims at setting a benchmark for a regulatory approach to online intermediaries also at the global level,” states EU’s official website. Moreover, platforms tend to favour consistent policies that are easier to implement and maintain. As a result, the DSA may prompt the platforms to adopt changes that will affect not only the EU, but also other regions. For example, the upcoming iPhone 15 series is likely to feature a USB Type-C port worldwide, even though it is only mandated in the EU. Why has the DSA been implemented? According to the European Union’s official website, the DSA has been implemented due to the major changes platforms have undergone over the past 20 years, rendering the Electronic Commerce Directive outdated. The EU acknowledges that while online platforms have created significant benefits for consumers, they are “abused for disseminating illegal content, or selling illegal goods or services online.” Additionally, the EU says that “some very large players have emerged as quasi-public spaces for information sharing and online trade.” These platforms “pose particular risks for users' rights, information flows and public participation.” Building upon the previous e-commerce directive, DSA aims to lift legal burdens due to different laws, “fostering a better environment for innovation, growth and competitiveness, and facilitating the scaling up of smaller platforms, SMEs and start-ups.” Which online platforms are affected? The EU defines very large online platforms as those that have more than 45 million monthly users in the EU. A total of 19 platforms have been identified and are listed below: - Alibaba - AliExpress - Amazon Store - Apple App Store - Booking.com - Facebook - Google Play - Google Maps - Google Shopping - Instagram - LinkedIn - Pinterest - Snapchat - TikTok - Twitter - Wikipedia - YouTube - Zalando - Bing - Google Search How are online platforms complying? Google is expanding its Ads Transparency Center and data access to researchers to provide more information about how its services work and what ads are shown to users. It will also improve its transparency reporting and analyse potential risks of illegal content or harm to fundamental rights. Meta is working to expand its Ad Library, which will display and archive all the ads that target users in the EU and the parameters used to target them. It will also allow users to view content chronologically on Reels, Stories, and Search on both Facebook and Instagram without being subject to its personalisation engine. Snap will give users in the EU the option to opt out of personalised feeds on its Discover and Spotlight pages and has also published reports on how it ranks the posts on these feeds. It will also no longer serve personalised ads to European Snapchat users aged 13 to 17 and will give them more control over the ads they see. What happens in case of non-compliance? If online platforms fail to comply with the DSA, they could face hefty penalties of up to 6 percent of their global revenue. Moreover, the Digital Services Coordinator and the Commission will have the authority to demand immediate actions from platforms that pose serious risks to public order or security. In extreme cases, platforms that repeatedly ignore the DSA could be temporarily banned from operating in the EU.
