EU to impose strict regulations on tech giants.

Get⁣ ready, because the world’s largest tech giants are ‍about to face some major changes. New European Union regulations are coming into effect this week, and they will have a broad impact on these companies’ global operations.

Starting on Aug. 26, the sweeping EU Digital Services Act (DSA) will bring about significant changes in social media content moderation, user privacy, transparency, and the fight against counterfeit goods sold online.

The EU law also aims to prevent ‌the spread‌ of harmful content or disinformation, restrict certain user-targeting advertising practices, and require companies to ​share internal data with regulators.

Big ‌Tech Platforms Face EU Regulatory Deadline

But that’s not all. The ⁤DSA is the most ambitious effort to regulate the tech industry, and companies will need to implement major software changes or face massive fines.

Any company found in breach of the new act ⁢could be fined up to 6 percent of its global turnover, and repeat offenders may even be banned from operating in the EU​ altogether.

Some online platforms have already taken steps to avoid these hefty fines. Although the DSA was passed last year, big tech companies⁢ have had until this ‍week to⁣ prepare for its enforcement.

The expiration of the compliance period has put pressure on tech platforms, as⁣ they now have⁢ to​ ensure that over 45 million users in the EU follow the obligations set out in the​ legislation.

The new rules will initially apply to 19 companies, including Amazon, Apple, Google, Meta, Microsoft, Snapchat, X, TikTok, and many‍ others. However, platforms like⁣ eBay, Airbnb, Netflix, and even ⁤Pornhub were ‌not included in the list, but they may be added later ⁣on.

Pornhub, for example, has faced scrutiny for hosting illegal and violent content, and it will face ​fewer obligations than other platforms for now. However, by February 2024, the DSA will be applied to all online platforms⁤ providing digital services to Europeans, regardless of size.

The European bloc has been at the ⁢forefront of tech regulation, and more laws are ⁢on​ the horizon, such ‍as the Digital Markets Act and the AI Act. These laws ‍are expected to influence similar regulations for tech firms worldwide.

According to Brussels, the DSA aims “to establish a level playing field to‍ foster innovation, growth, and ⁤competitiveness both in the European Single Market and globally.”

European policymakers have long been concerned about the power of Silicon Valley and the wider tech industry. They want to ensure the protection of Europeans’ fundamental rights ‌to privacy‍ and freedom of speech.

However, ‍some​ civil liberties advocates worry that the new law may ‌be used by⁢ authorities in Brussels to​ suppress⁣ unpopular⁣ views‍ instead of safeguarding free speech.

“Who will get to define what actually constitutes mis/disinfo? Surely, it will be the job of an [independent] regulator/judicial authority with clear⁤ procedural parameters and ​minimal conflicts of interest. But no. The ‍ultimate decider will be…the EU Commission,” said one European commentator in a post on​ X.

European Commissioner Thierry⁢ Breton emphasized that “the real test begins now” and vowed to ‍thoroughly enforce the‌ DSA and use new powers to investigate and sanction ​platforms where necessary.

Amazon and Zalando Challenge Inclusion

Meanwhile, two platforms on the list, Amazon.com and German fashion retailer Zalando,⁣ are currently contesting their inclusion in court.

Amazon, with its 181 million EU‌ users, filed a legal challenge in July, arguing that it was unfairly singled out compared to its larger rivals who were not designated.

Despite the​ legal challenges, Amazon has ⁣stated that⁢ it will comply with ⁢the DSA while awaiting a final decision from the EU General Court in ⁢Luxembourg.

Amazon will introduce DSA-compliant ‍features, such as a new channel for users to report incorrect product information.

Zalando, on the other⁤ hand, argues that it has⁤ only 31 million European visitors and “zero risk of⁣ illegal content” due to its⁤ model. Nevertheless, it will make the necessary changes to ‌comply with the law.

“Generally, Zalando⁤ doesn’t pose systemic risks like other platforms. That’s why we don’t think we fit in that category,” said ‌Aurelie Caulier, Zalando’s head of public affairs for the⁢ EU. She also⁤ acknowledged that the DSA “will bring‌ loads of positive changes” for consumers.

Tech Platforms Race to Become Compliant

To ensure‍ compliance, the European Commission offered‍ “stress tests” to the 19 listed firms a few months ago.

These stress tests assessed whether the ⁤platforms could effectively detect, address, and mitigate systemic risks like⁣ disinformation.​ Facebook, ⁤Instagram, Twitter, TikTok, and Snapchat⁢ accepted the ​offer and participated⁢ in the tests.‍ However, it was found that more​ work needed to be done by these companies ​to comply with the DSA.

The 19 platforms have already implemented various ⁢changes to meet the new rules.

The DSA’s prohibition​ on targeting vulnerable groups, such as children, with ads has forced platforms like Snapchat and TikTok to