Impact of Europe’s Big Tech crackdown on the US
The European Union’s Latest Internet Regulations: Implications for Big Tech and Beyond
The European Union (EU) has recently enacted the Digital Services Act (DSA), a comprehensive law that sets guidelines for how technology companies handle speech, transparency, and user data. This legislation, along with its sister bill, the Digital Markets Act, is considered one of the most thorough pieces of regulation to date regarding Big Tech. While primarily aimed at Europe, these regulations may have far-reaching implications, including in the United States.
“The Europeans are trying to become the Big Tech companies’ regulatory overlords,” said Shane Tews, a senior fellow at the American Enterprise Institute.
Key Provisions of the DSA
The DSA, passed in September 2022, introduces several important regulations for internet platforms. It prohibits targeted advertising towards children and the use of sensitive data related to ethnicity, sexual orientation, or religion. Additionally, it holds tech companies accountable for “harmful and illegal” content, requires greater transparency in content moderation and algorithms, and strengthens the tracing of traders on online marketplaces.
The DSA affects 19 companies, including Meta, Google, Amazon, and others, that have more than 45 million active users in the European Union.
Challenges and Adaptations for Big Tech
Big Tech companies have been adapting to comply with the DSA’s demands. They have introduced new features to provide users with more options, increased transparency efforts, and tested their ability to respond to requests to combat misinformation on their platforms. The DSA now requires platforms to remove content related to disinformation, election manipulation, cyber violence against women, and harm to minors.
However, implementing region-specific content removal based on speech policies alone is challenging, as the internet transcends borders. James Czerniawski, a senior tech analyst at Americans for Prosperity, highlights that the DSA seeks to export a more censorious regime of regulations surrounding user-generated content, which would not be allowed in the US due to First Amendment protections.
Implications for Speech Online and Global Impact
The enforcement of the DSA by the European Union has the potential to limit speech online worldwide. US companies may implement more restrictive guidelines on user speech to avoid increased regulatory scrutiny and potential fines. Compliance failure with the DSA could result in companies paying up to 6% of their annual worldwide turnover.
While the EU frames these policies as an expansion of its values into the digital world, critics argue that it is an unnecessary expansion of regulation. The restrictions may also impact product efforts, as companies may need additional time and resources to ensure compliance with the regulations.
It remains uncertain whether products developed to comply with EU law, such as Meta’s chronological feed, will be exported beyond European borders. Tech companies often make product or policy decisions tailored to specific countries, depending on demand.
Controversies and Lawsuits
Not all companies have welcomed the DSA. Amazon, for instance, filed a lawsuit claiming unfair treatment due to its size. Similarly, the German online fashion retailer Zalando filed a suit citing unequal treatment resulting from the absence of a clear and consistent methodology.
Overall, the DSA represents a significant step in internet regulation, with potential implications for Big Tech and global online speech.
Click here to read more from the Washington Examiner.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
Now loading...