Online Companies To Make Huge Changes As EU Passes Laws For Safer Digital Spaces

This week, the European Parliament officially voted for the Digital Services Act (DSA) and Digital Markets Act (DMA), two landmark laws that aim to make online companies more accountable while promoting a safer internet. 

Digital service providers, such as social media sites and marketplaces, will now have to make big changes and adhere to the new regulations outlined by the DSA, including having to tackle illegal content, disinformation, and other risks to society. 

Apart from strengthening traceability, increasing transparency, and banning misleading advertising, large platforms with more than 45 million monthly users will be held to even stricter standards, and will be subject to independent audits from regulators. 

On the other hand, the DMA will outline rules for “gatekeepers,” otherwise known as dominant online platforms, to create a fairer business environment for consumers online. 

This includes allowing third parties’ users to exchange information without being restricted to a single platform, giving businesses access to data they generate, and stopping the practice of ranking their own products more favorably. 

If a platform is found to not be compliant with the new laws, the Commission can impose hefty fines of up to 10% of the company’s worldwide turnover, or even up to 20% for a repeating offender. 

“For too long, tech giants have benefitted from an absence of rules. The digital world has developed into a Wild West, with the biggest and strongest setting the rules,” explained Christel Schaldemose. 

“Now rules and rights will be strengthened. We are opening up the black box of algorithms so that we can have a proper look at the moneymaking machines behind these social media platforms,” she added.

The DSA will be enforced 15 months after being officially adopted, or from January 1, 2024 (whichever comes later), while the DMA will start to apply six months following its entry. 

[via Gizmodo and European Parliament, cover image via Marc Bruxelle | Dreamstime.com]