More than a dozen of the world’s biggest tech companies face unprecedented legal scrutiny, as the European Union’s sweeping Digital Services Act (DSA) imposes new rules on content moderation, user privacy and transparency this month.
Across the EU, a host of internet giants – including Meta’s Facebook (NASDAQ:META) and Instagram platforms, Chinese-owned video app TikTok and a handful of Google (NASDAQ:GOOGL) services – are adapting to the new obligations, including preventing harmful content from spreading, banning or limiting certain user-targeting practices, and sharing some internal data with regulators and associated researchers.
The EU is seen as the global leader in tech regulation, with more wide-ranging pieces of legislation – such as the Digital Markets Act and the AI Act – on the way. The bloc’s success in implementing such laws will influence the introduction of similar rules around the world.
But researchers have raised questions over whether these companies have done enough to meet lawmakers’ expectations.
For now, the rules only apply to 19 of the largest online platforms, those with more than 45 million users in the EU. From mid-February, however, they will apply to a variety of online platforms, regardless of size.
Any firm found in breach of the DSA faces a fine worth up to 6% of its global turnover, and repeat offenders may be banned from operating in Europe altogether.
Reuters asked each company designated under the DSA to discuss changes they had made. Most pointed to public blog posts on the matter, declining to comment further, or did not respond at all.
Two of the companies singled out for early regulation – e-commerce giant Amazon (NASDAQ:AMZN) and German fashion retailer Zalando – are currently challenging their inclusion on the list in court.
“We can expect that platforms will fight tooth and nail to defend their practices,” said Kingsley Hayes, head of data and privacy litigation at law firm Keller Postman. “Especially when new compliance rules encroach on their core business models.”
