Europe’s sweeping rules for tech giants set to take effect: a breakdown of how they work

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London. As Europe gears up for a significant shift in regulating the operations of Big Tech companies, including Google, Facebook, TikTok, and others, a comprehensive effort to enhance online content safety and curb harmful content is about to commence. The European Union’s groundbreaking Digital Services Act (DSA), part of a series of tech-focused regulations, is set to roll out its first phase this week. Here’s a breakdown of how these rules will work and the changes they entail:

Key Highlights:

  • Scope of Application: The DSA will apply to major digital platforms and services that have a substantial user base within the European Union. Notable platforms, including Facebook, TikTok, Twitter, YouTube, Amazon, and Google Play, are among those subject to the initial rollout. The rules will also extend to online marketplaces, search engines, and content platforms.
  • Objectives: The DSA aims to ensure users’ online safety by preventing the dissemination of illegal or harmful content, including hate speech, misinformation, and harmful products. It seeks to safeguard fundamental rights like privacy and free speech.
  • Compliance: Companies failing to comply with the DSA may face substantial fines, with the largest platforms facing the highest level of regulation. Notably, companies with over 45 million users or constituting 10% of the EU’s population will be subject to stricter regulations.
  • Operational Changes: Platforms are already making changes to their systems to meet the DSA’s requirements. These include the establishment of new reporting mechanisms for users to flag illegal content and products. For example, Amazon introduced new channels to report suspected illegal products, while TikTok provided additional reporting options for various types of illegal content.
  • Content Moderation: Platforms will establish specialized teams of moderators and legal experts to evaluate flagged content and determine its compliance with regulations. Content that violates platform policies or legal standards will be removed, with explanations provided to both the content creator and the flagger.
  • Personalization and Ads: The DSA prohibits targeted advertising aimed at vulnerable groups, such as children. Platforms like Snapchat and TikTok have made adjustments to their advertising practices, particularly for young users. Personalized recommendations on TikTok can be turned off, and Snapchat will limit personalization tools for teen users.
  • Challenges and Impact: Some companies, like German online fashion retailer Zalando, have challenged their inclusion in the DSA’s list of largest online platforms. However, the impact of the DSA is expected to be far-reaching, potentially influencing global changes in digital platforms’ operations.
  • Enforcement and Penalties: Violations of the DSA could result in fines up to 6% of a company’s global revenue or even a ban from operating in the EU. Enforcement will focus on assessing whether platforms have appropriate processes in place to minimize harm caused by their recommendation systems.
  • Global Implications: Europe’s regulatory changes could have a global ripple effect, influencing digital practices beyond the EU’s borders. Platforms like Wikipedia are also making adjustments to their policies on a global scale.

As the DSA’s first phase takes effect, tech giants and digital platforms operating within the EU are poised to implement these new rules and operational changes, fostering a safer and more accountable online environment for European users.

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Carlo Juancho FuntanillaFrontend Developer, WordPress, Shopify
Contributing Editor
AMA ACLC San Pablo