The European Union (E.U.) has passed a landmark piece of legislation that will overhaul the responsibilities of big tech companies like Google
"With the DSA, the time of big online platforms behaving like they are 'too big to care' is coming to an end," E.U. Internal Market Commissioner Thierry Breton said.
The new law received a "swift political agreement" between Parliament and the Member States, according to the E.U. Commission. While this agreement is unlikely to be overturned, it will still need further ratification by both Parliament and the Member States before it will come into effect, with the earliest possible introduction date being January 1 of 2024.
"With today's agreement we ensure that platforms are held accountable for the risks their services can pose to society and citizens," said E.U. Commission Vice President Margrethe Vestager.
Alongside stricter moderation rules, the law will also ban the use of advertising aimed at children, as well as advertising that targets users based on their sexual orientation, religion, or ethnicity. Tech companies will now also be required to disclose data on their platforms and algorithms "to ensure greater scrutiny and accountability," Amnesty International wrote in a report on the DSA.
"Today's agreement on the Digital Services Act represents a watershed moment in the history of Internet regulation. The DSA moves us towards an online world that better respects our human rights by effectively putting the brakes on Big Tech's unchecked power," Claudia Prettner, Legal and Policy Adviser at Amnesty Tech, said. "For too long, our most intimate data has been weaponized to undermine our right to privacy, amplify disinformation, fuel racism, and even influence our own beliefs and opinions."
Fines for noncompliance could reach up to 6% of a company's global revenue with repeated noncompliance potentially being met with a ban from the E.U.
The E.U. has been relatively proactive when it comes to regulating tech companies, especially in contrast to the U.S. where lobbying efforts have kept laws against big tech from gaining traction in Congress.
While multiple antitrust suits have been filed by the Justice Department and Federal Trade Commission against Google, Facebook, and Apple
Following the contentious 2016 election in which Russia used social media platforms to influence voters, platforms like Twitter and Facebook pledged to crack down on misinformation. However, with the spread of the COVID-19 pandemic, "fake news" increased on the platforms once again.
The new law will require that platforms provide an "easy and effective way" to flag hate speech, scams, misinformation, threats, and other incitements to violence.
Tech companies have been reacting to the news in largely positive ways. TikTok, Google, Twitter, and others released statements saying that they welcomed the new rules and the new expectations of transparency. Previously, regulators had little access to the inner workings of big tech companies.
The rules don't apply to users in countries outside of the E.U., but experts expect governments around the world, including the U.S., to introduce similar legislation of their own in the coming years.
