The European Union has introduced new laws to restrict targeted advertising and content algorithms

The Digital Services Act could reshape the internet.

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Author | Lu Jieping

On April 23, the European Union agreed on new digital regulations that would force tech giants such as Google and Meta to more aggressively regulate illegal content on their platforms or risk billions of dollars in fines.

The European Parliament and EU member states reached an agreement on the Digital Services Act, a landmark piece of legislation designed to allow platforms to quickly remove illegal and harmful content.

Margrethe Vestager, head of competition at the EUROPEAN Union and lead architect of digital reform in the EU, said the deal was "better than the proposal we made in 2020".

Margrethe said in a video posted on social media: "Offline illegal things should also be seen and dealt with online, which is no longer a slogan." ”

"The DSA will upgrade the basic rules for all online services in the EU," she said, "and it will ensure that the online environment remains a safe space that protects opportunities for free speech and digital business." ”

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What is a DSA?

A key part of this legislation is that it will limit how digital giants can target users through online advertising. The DSA will prevent platforms from using algorithms based on data such as gender, race or religion to target users, and will also prohibit ads for children.

And so-called dark modes — deceptive tactics that try to push people toward certain products and services — will also be banned.

Tech companies will be required to implement new procedures aimed at removing illegal content such as hate speech, incitement to terrorism and child sexual abuse. Under the new rules, e-commerce marketplaces such as Amazon must also prevent the sale of illegal goods.

The law also includes forcing tech giants to provide more transparent instructions about the algorithms they use to recommend users. Another provision requires online platforms and search engine giants to take certain measures in times of crisis, such as the Russian-Ukrainian conflict.

Failure to comply with these rules can result in a fine of up to 6% of its annual global revenue. For companies like Facebook's parent company Meta, that could mean fines of up to $7 billion, based on 2021 sales figures.

The law now needs formal ratification by EU agencies and is expected to come into force as early as 2024.

The DSA is independent of the Digital Marketplace Law, approved by EU agencies last month, and both are accompanied by hefty fines. The Digital Marketplace Act seeks to curb the market power of big tech companies, and the DSA aims to ensure that platforms are quickly weeded out of toxic content.

The law will affect sites that rely on user-generated content such as Facebook, Instagram, Twitter, YouTube and TikTok.

A Google spokesperson said it wanted to work with EU policymakers "to ensure that the remaining technical details are correct to ensure that the law applies to everyone." ”

"We agree with the DSA's goal of making the Internet more secure, transparent and accountable, while ensuring that European users, creators and businesses continue to benefit from the open web," the spokesperson said. ”

A Twitter spokesperson said the company looked forward to a detailed review of the regulations.

"We support sensible, forward-looking regulation to balance the need to address online harm with protecting the open Internet — and also believe that a one-size-fits-all approach fails to take into account the diversity of our online environment," the spokesperson told the media. ”

"Ensuring people's online safety and protecting the health of public conversations is a top priority for Twitter, and in the Digital Services Act, we welcome the EU's increased focus on a healthier digital space."

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The European Union and tech giants

The European Union has long asked internet giants to address issues such as monopolies and data privacy.

The European Union has fined Google a total of 8.2 billion euros ($8.8 billion) for violating antitrust laws and has actively investigated companies such as Amazon, Apple and Meta.

In 2018, the European Union introduced the General Data Protection Regulation, a comprehensive set of privacy rules designed to give consumers more control over their information.

New rules for European tech giants come as policymakers in Washington grapple with how to rein in the power of big tech companies and get them to clean up harmful content on their platforms.

On Thursday, former President Barack Obama called for reforms to Section 230, a law designed to combat the spread of disinformation online.

But how the EU will implement its new rules is unclear. Critics say implementing such measures would place a technical burden and raise questions about whether online speech is acceptable.

In the UK, new laws aimed at tackling unsafe content have been heavily criticized by some tech companies – notably for large tech platforms – for its vague description of "legitimate but harmful" content.

Critics argue that this could severely restrict free speech online. For its part, the Uk government said it would not demand the removal of any legitimate freedom of expression and that content that was "of democratic importance" would be protected.

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