April 27, 2022
On the 23rd of April, the European Parliament and the EU Member States have reached a political agreement on the DSA proposal (proposed by the Commission in December 2020), which is now in the final legislative process, subject to formal approval by the two co-legislators.
The DSA sets out a framework for content moderation and a new standard for accountability of online platforms regarding illegal and harmful content.
Once formally adopted by the European Parliament and Council, the DSA will be directly applicable across the EU fifteen months after entry into force, or from 1 January 2024, whichever later. Furthermore, regarding very large online platforms and very large online search engines, the DSA will apply four months after entry into force. None-compliance with DSA’s requirements endangers online intermediaries to fines of up to 6% of global turnover and a ban on operating in the EU in case of repeated violations.
The DSA will force tech companies and specifically social platforms to enforce obligations of removing illegal content and goods more quickly and actively, to be transparent to the users and explaining to users and researchers how their algorithms work, and taking stricter action on the spread of misinformation.
The DSA shouldn’t be confused with the Digital Markets Act (“DMA”), which was agreed upon in March. Both acts affect the tech world, but the DMA focuses on creating a level playing field between businesses while the DSA deals with how companies moderate and regulate content on their platforms. The DSA will, like the DMA, distinguish between tech companies of different sizes, placing greater obligations on bigger companies. The largest firms, those with at least 45 million users in the EU, will face the most scrutiny.
The fundamental requirements of the DSA include the following:
We will post additional information getting closer to the effective date.
APM Technology and Regulation Team