The nineteen largest online platforms and search engines will have to comply with broader obligations under the new Digital Services Act (DSA) from the end of August 2023. For example, they need to target illegal content and disinformation in the EU, adapt their recommendation systems and be transparent about online advertising through their services.
Instagram Facebook, Twitter, Apple, Google, Meta (Facebook and Instagram), Twitter, and the platforms AliExpress and Google are among the biggest digital services designated by the European Commission this week. Booking.com.
They have an average of more than 45 million monthly active users in the EU. These platforms and search engines must conduct annual assessments of the risks of harmful online practices on their services. For example, when it comes to illegal goods or content and spreading disinformation. They also get checks on their used algorithms.
If these major platforms and search engines do not comply with the DSA, the European Commission may impose fines of up to six percent of their annual global revenue or periodic penalty payments of up to five percent of their average daily revenue.
The DSA will also apply to other online marketplaces, social networks, search engines, cloud providers, internet service providers and platforms for sharing content such as video platforms and online travel and accommodation platforms widely used in the Netherlands and Europe.
For example, online marketplaces must obtain and publish more information about the companies (traders) on their platform. Also, digital services, among other things, should explain in more detail the rules for deleting information or user accounts to users. By 17 February 2024, all services and platforms must fully comply with the EU-wide DSA.
The Netherlands has argued for various parts that have ended up in the DSA. For example, online marketplaces will soon have to obtain more information about the companies (merchants) that sell products or services via their platform. This should help to discourage and identify rogue traders, eliminate unfair competition and make it easier to get your due as a consumer.
The DSA will also soon oblige digital service providers to take into account the fundamental rights of users when moderating content and to inform them more extensively about this. They should also have easily accessible and user-friendly complaint procedures for consumers.
Through the DSA, online platforms are prohibited from personalizing advertisements for any longer on the basis of, for example, religious belief or sexual orientation. Minors will also be extra protected against personalized advertisements. This should help prevent them from seeing inappropriate advertising.
In addition, the DSA also provides an opportunity to better protect citizens from disinformation, fake news and violations of fundamental and human rights. The largest online platforms and search engines must take measures to reduce risks to their services for society and democracy, among other things. In addition, the DSA promotes transparency. By better regulating reporting obligations and access to data for researchers, we gain more insight into how large platforms work.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.
