New EU law will force Big Tech to regulate online content - update
The European Union has agreed the final form of the Digital Services Act, placing unprecedented restrictions on online content.
The Digital Services Act (DSA) is the second part of the bloc's initiative to regulate tech giants and social media platforms, along with the Digital Markets Act (DMA). The DSA intends to combat hate speech, disinformation, the sale of unsafe products, and other abusive online behaviour like the spread of revenge porn.
The new Act, which lawmakers agreed on Saturday, will make Big Tech companies like Google and Meta liable for any unlawful content uploaded to their platforms, and push these firms to more actively police their platforms over such content.
It comes about a month after the EU enacted the Digital Markets Act (DMA), as part of the bloc's largest revamp of laws controlling the world's biggest tech companies in more than two decades.
The Digital Services Act will establish guidelines for how Big Tech should protect people online. Children, for example, will be subject to additional protections, which will require platforms like YouTube or TikTok to explain their terms and conditions in a way that a minor can easily understand.
In addition, companies like Meta will no longer be permitted to advertise to children.
The legislation will also prohibit the contentious practise of targeting consumers online based on their gender, ethnicity or sexual preferences. It will also ban 'dark patterns', deceptive practises that cause individuals to unwittingly click on some content.
In light of Covid-19 and the crisis in Ukraine, regulators will ask digital platforms to incorporate an emergency mechanism to disclose the steps they are taking to combat disinformation or propaganda.
EU Commission vice president Margrethe Vestager said, "With today's agreement we ensure that platforms are held accountable for the risks their services can pose to society and citizens."
"The time of big online platforms behaving like they are 'too big to care' is coming to an end," added EU internal market commissioner Thierry Breton.
While most of the DSA's requirements apply to all businesses, it includes additional requirements for 'very large platforms,' defined as those with more than 45 million active users in the EU.
Apple, Google, Meta, Microsoft, Amazon, Twitter, TikTok and Booking.com are expected to be on the list of very large platforms. These firms will be required to assess the risks associated with the use of their services and be more transparent about their data and algorithms.
The European Commission will conduct annual audits and be able to issue fines of up to six per cent of the firm's annual sales if they repeatedly violate rules.
Following the EU's announcement of the DMA last month, tech giants like Google and Apple criticised the new law for being harsher than expected.
Apple is concerned that several aspects of the DMA might expose its customers to needless security and privacy risks. For its part, Google said that - while it supports many of the DMA's goals in terms of consumer choice and interoperability - it was concerned that the law could impede innovation and choice for its customers in Europe.