The European Union’s Digital Services Act, aimed at preventing the spreading of illegal goods, services or content online, originally governed only very large online platforms reaching 10% or more of the E.U.’s population. That is now changing with all but the very smallest businesses coming under the jurisdiction of the Act.
Businesses with fewer than 50 employees and less than 10 million euros in annual revenue will continue to be exempt. Otherwise, the Act will now constrain the activities of almost all online platforms operating within the E.U.
Why we care. The E.U. continues to be at the forefront of regulating the internet. From GDPR to the legislation discussed here, it has prioritized the privacy, safety and rights of citizens over the freedom of private enterprise. Because of the very nature of the internet, its actions reach beyond European borders. Brands in North America, for example, need to be cognizant of this legislation if they are reaching European citizens in Europe, just as they have needed to be cognizant of GDPR.
Dig deeper: An updated guide to GDPR
Key parts of the legislation. Here are some of the elements of the legislation that now apply to all but the smallest businesses with an online presence in the E.U.:
- Mechanisms to be provided for users to flag illegal content.
- Greater transparency for moderation decisions.
- Opportunity to opt out of personalized content.
- No advertising to minors.
- No targeting based on categories such as ethnicity or sexual orientation.
- Age verification measures and protection for children.
- Measures to protect electoral integrity.
- Traceability of businesses using online marketplaces.
More details can be found here.
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The European Union’s Digital Services Act (DSA) is now being enforced for all businesses operating within the EU, except for the smallest ones. The DSA is a set of regulations that aim to create a safer and more accountable online environment for users, by holding digital service providers accountable for the content they host and the services they provide.
The DSA applies to all digital service providers, including social media platforms, online marketplaces, and other online intermediaries. It requires these companies to take measures to protect users from illegal content, such as hate speech, terrorist propaganda, and child sexual abuse material. Companies must also take steps to prevent the spread of disinformation and to ensure that their algorithms do not discriminate against certain groups of people.
Under the DSA, digital service providers must also be transparent about their content moderation practices and provide users with clear information about how their content is being handled. They must also provide users with the ability to appeal content moderation decisions and to seek redress if they believe their rights have been violated.
The DSA also includes provisions to protect the rights of users, such as the right to privacy and the right to freedom of expression. Companies must ensure that their terms of service are clear and easily understandable, and they must provide users with the ability to opt out of targeted advertising.
The DSA is being enforced for all businesses operating within the EU, except for the smallest ones. Small businesses with fewer than 10 employees and an annual turnover of less than €2 million are exempt from the DSA’s requirements. This exemption is intended to ensure that small businesses are not unduly burdened by the new regulations.
The enforcement of the DSA is a significant step forward in the EU’s efforts to create a safer and more accountable online environment. It is expected to have a major impact on the way digital service providers operate within the EU, and it is likely to set a precedent for other countries around the world. Businesses operating within the EU will need to ensure that they are in compliance with the DSA’s requirements, or risk facing significant penalties.
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