EU Regulations Shake Up Tech Giants: Facebook, Apple, Google Hit With New Digital Services Act
Several major tech giants, including Meta’s Facebook and Instagram platforms, Apple’s online App Store, and certain Google services, are set to face new regulations in the European Union (EU) as part of the comprehensive Digital Services Act (DSA). This act, which focuses on content moderation, user privacy, and transparency, puts these global internet behemoths under unprecedented legal scrutiny.
Starting from Friday, the new regulations will require these internet giants to adhere to guidelines aimed at combating the spread of harmful content, restricting certain user-targeting tactics, and sharing internal data with regulators and researchers. The aim is to ensure a safer online environment for users and greater accountability from these digital platforms.
The EU has positioned itself as a global leader in digital regulation, evidenced by the introduction of other significant legislations like the Digital Markets Act and the AI Act. The successful implementation of these regulations will likely shape similar legislation worldwide, making the EU’s approach crucial in setting the standard for content moderation, user privacy, and transparency.
While the tech giants prepare to comply with the DSA, researchers have raised questions about whether these companies have done enough to meet the requirements set by the law. The regulations initially apply to 19 major online platforms with over 45 million users in the EU. However, starting in mid-February, the laws will extend to all online platforms, regardless of their size.
Non-compliance with the DSA could result in severe penalties for companies, with fines of up to 6% of their annual global revenue. Persistent violators even risk being completely barred from conducting business in Europe, highlighting the EU’s commitment to maintaining a stricter digital landscape.
When asked about the changes implemented to meet the DSA requirements, many companies, including Facebook, Apple, and Google, declined to provide specific details and instead referred to their public blog posts on the matter.
Amazon and German fashion retailer Zalando, in particular, have taken their fight against early regulation to court, protesting their inclusion on the list of companies subject to the DSA. They argue that larger competitors in their respective industries have not been similarly targeted. However, no designated firms have been found in non-compliance with the DSA thus far.
To ensure readiness for the DSA, the European Commission has conducted stress tests using the 19 platforms over the past six months. These assessments focused on evaluating the platforms’ ability to identify, address, and mitigate systemic risks such as disinformation. Companies like Facebook, Instagram, Twitter, TikTok, and Snapchat have participated in these tests. The Commission stressed the need for further efforts to align with the DSA guidelines based on the outcomes of these tests.
However, recent research conducted by the nonprofit organization Eko reported that Facebook continued to approve advertisements with problematic content moderation even after the regulations came into effect. This finding raises concerns about the effectiveness of the platforms’ content filtering mechanisms.
Considering the potential impact of the DSA on their fundamental business models, platforms are likely to fiercely defend their policies, according to Kingsley Hayes, director of data and privacy litigation at Keller Postman.
As the EU leads the way in digital regulation, industry stakeholders and observers worldwide will closely monitor the implementation and outcomes of the DSA, along with other forthcoming legislations. Their success or challenges will determine the path of digital regulation globally, shaping the future of user privacy, content moderation, and transparency in the digital realm.
In conclusion, the Digital Services Act represents a significant shake-up for tech giants operating in the EU. The introduction of stricter regulations underscores the EU’s commitment to safeguarding user privacy, ensuring responsible content moderation, and promoting transparency in the digital sphere. As the world looks on, the effectiveness of the DSA and its impact on the global digital landscape will be closely monitored.
