Will EU’s stricter rules for big tech work?
EU’s Digital Services Act has formally been in force since last autumn but a step-by-step implementation means that it is from now that stricter rules for big tech are in place. “With the DSA, the time of big online platforms behaving like they are “too big to care” is coming to an end, EU Commissioner Thierry Breton said when the Parliament and the Council agreed on the DSA. Markets are now waiting to see if that really is true and how the implementation of stricter rules for big tech will work.
From August 25, the 19 biggest platforms have to comply with the DSA that includes to remove illegal content, more transparency around algorithms and protection of minors.
A number of court cases can be expected when big tech companies challenge to EU’s new stricter rules.
Big tech companies have announced changes saying they mean that the companies will live up to the new rules that are the strictest in the world. Google announced several adjustments including more transparent content moderation. Meta said it is stopping targeting of ads for teenagers based on their app activity.
Fines for violating the rules are up to 6% of a company’s global annual revenue.
The European Parliament says there are more than 10 000 platforms operating in the EU but more than 90% of them are small and medium sized operations.
The DSA stricter rules are for the most dominating platforms. After an investigation based on user data, the EU has announced that they are 17 Very Large Online Platforms and 2 Very Large Online Search Engines that reach at least 45 million monthly active users. These are:
Very Large Online Platforms:
- Alibaba AliExpress
- Amazon Store
- Apple AppStore
- Booking.com
- Google Play
- Google Maps
- Google Shopping
- Snapchat
- TikTok
- Wikipedia
- YouTube
- Zalando
Very Large Online Search Engines:
- Bing
- Google Search
Digital Services Act, a short summary
- Aims to create a safer online space for users, stricter rules for platforms
- The DSA establishes a “notice and action” mechanism, as well as safeguards, for the removal of illegal content.
- Online platforms must be transparent about how algorithms work and platforms should be accountable for decisions they make.
- Measures to counter illegal products, services and content online, including clearly defined procedures for removals
- Mandatory risk assessments and more transparency over “recommender systems” to fight harmful content and disinformation
- Online platforms should be prohibited from using deceiving or nudging techniques to influence users’ behaviour through “dark patterns”
- Targeted advertising: the text provides for more transparent and informed choice for all recipients of services, including information on how their data will be monetised and to better protect minors from direct marketing, profiling and behaviourally targeted advertising for commercial purposes
Moonshot News is an independent European news website for all IT, Media and Advertising professionals, powered by women and with a focus on driving the narrative for diversity, inclusion and gender equality in the industry.
Our mission is to provide top and unbiased information for all professionals and to make sure that women get their fair share of voice in the news and in the spotlight!
We produce original content, news articles, a curated calendar of industry events and a database of women IT, Media and Advertising associations.