Europe agrees new powers to fine and ban large online platforms for illegal content

EU member states have agreed the new Digital Services Act (DSA) that allows large online platforms to be fined up to 6% of global turnover for hosting illegal content. The EC will now have powers to fine social media platforms, search engines, internet providers and marketplaces. It will also be able to impose an EU ban for repeated breaches of the rules. Companies designated as very large platforms and search engines will be subject to independent risk management audits to ensure they are doing enough to prevent misuse. Under the DSA, social media platforms, including Facebook and Twitter, will no longer be able to carry adverts aimed at children or use data based on religion, gender, race or political leaning. In addition, they will have to introduce effective reporting mechanisms so users can flag illegal content. Amazon and other online marketplaces will also be expected to introduce reporting mechanisms for illegal products, such as counterfeits or unsafe products, and meet new obligations on traceability of business users. The rules come into effect in 2024 but will apply to very large platforms earlier than this date. They will apply to companies four months after their designation. The DSA will also open up legal mechanisms for users to challenge moderation decisions by online platforms and seek redress through dispute mechanisms, or through the courts. Companies under the scope of the act, largely US tech firms, will have to pay a fee of 0.05% of annual revenue to cover the costs of regulating compliance with the act. Online platforms will also have to open up access to key data and algorithms behind content and products recommended to users, which have been at the core of previous antitrust actions and litigation. Margrethe Vestager, executive vice-president of the EC, tweeted that the final agreement on the DSA took 16 hours. The European Parliament hammered out the details two years after the rules were first proposed by the EC. “The Digital Services Act will make sure that what is illegal offline is also seen and dealt with as illegal online – not as a slogan, as reality,” said Vestager. The EC welcomed political agreement on the DSA, which it said sets an “unprecedented” new standard on accountability for online platforms that host illegal or harmful content. President of the EC Ursula von der Leyen said: “The DSA will upgrade the ground rules for all online services in the EU. It will ensure that the online environment remains a safe space, safeguarding freedom of expression and opportunities for digital businesses. The greater the size, the greater the responsibilities of online platforms.” Thierry Breton, European commissioner for the internal market, added: “The time of big online platforms behaving like they are ‘too big to care’ is coming to an end. The DSA is setting clear, harmonised obligations for platforms – proportionate to size, impact and risk.” Breton said the new sanctions available to the EC in supervising large platforms would be “dissuasive”.

Europe agrees new powers to fine and ban large online platforms for illegal content

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