EU Regulations Impacting Tech Giants: Navigating the Digital


Tech giants and search engines are feeling the reverberations of the European Union’s (EU) Digital Services Act (DSA) – a set of rules designed to safeguard user interests. This legislation, enacted on November 16, 2022, aims to ensure compliance from some of the largest online platforms, such as Facebook and TikTok. The DSA’s strict stipulations encompass child protection, prevention of election manipulation, and hefty penalties for rule violations.

Evolving Landscape: Changes Under the Digital Services Act

As the EU Digital Services Act becomes entrenched, 19 prominent platforms are poised to adhere to its rigorous provisions, necessitating robust safeguards for minors and defense against electoral interference. This move is in stark contrast to the UK, where the Online Safety Bill is gradually making its way through parliamentary channels. Companies were afforded a grace period to align their systems with the DSA’s requisites.

Scope and Applicability of the DSA

The DSA’s reach extends to colossal online platforms boasting over 45 million EU users. This grouping, which includes Alibaba, Amazon, Apple, Facebook, Google, Instagram, and more, must urgently conform to these stringent guidelines. The legislation even covers search engine giants like Google and Bing. While these behemoths were given a mere four months to comply, smaller tech entities will only be required to adhere next year.

Consequences of Non-Compliance: Penalties Loom

Breaching the DSA mandates carries severe consequences, with potential fines amounting to 6% of a company’s turnover. Moreover, suspension of services is not off the table. To mitigate these risks, substantial platforms and search engines must not only evaluate potential hazards they pose but also furnish regulators with comprehensive reports and implement corrective measures.

Diverse Risk Assessment Under DSA

The DSA mandates a comprehensive assessment of various risks, spanning illegal content, individual rights like freedom of expression and consumer protection, public security, and gender-based violence. Crucially, targeted advertising that profiles children is now off-limits. Additionally, a transparency drive requires these entities to divulge algorithmic workings, ensuring accountability and providing data to independent researchers.

Industry Response: Striving for Compliance

Industry players have attested to their concerted efforts to meet DSA guidelines. TikTok and Meta reveal that over 1,000 personnel across their organizations were dedicate to ensuring compliance. Evident change has already emerged, often focusing on personalized advertising and content curation:

  • TikTok ceased showing personalized ads to European users aged 13-17 based on online activity.
  • Meta’s platforms, Facebook and Instagram, terminated global ads to users aged 13-17 relying on app activity.
  • Snapchat curtailed personalized ads for European users aged 13-17 and initiated an EU-specific ad library.
  • Google pledged more data access for those seeking insights into their services’ functionalities.

Varied Approaches: Challenges and Adaptations

Not all companies have divulged their adaptations to the DSA. While some, like Twitter (now X), expressed confidence in meeting compliance deadlines, others, including Amazon and Zalando, initiated legal action contesting their categorization as very large online platforms. Despite this, Amazon took steps to conform, introducing mechanisms to report potentially illegal products. Wikipedia, although undergoing modifications due to DSA, maintains its commitment to user experiences, expressing concerns about certain aspects of the UK’s online safety bill.

A Glimpse Ahead: Envisioning Regulation’s Impact

The Wikimedia Foundation, which backs Wikipedia, views the DSA as a favorable regulatory model compared to the UK’s online safety bill. The foundation emphasizes that the DSA acknowledges the diverse internet ecosystem and strives to protect open, secure online projects. Phil Bradley-Schmieg, legal counsel at the Wikimedia Foundation, voices hope that legislators will draw inspiration from the DSA, fostering a digital realm that is both safe and liberating.

In the ever-evolving digital landscape, the EU’s Digital Services Act marks a significant step toward safeguarding user interests and ensuring accountability from tech giants. As companies navigate the intricacies of compliance, the impact on user experiences and the broader regulatory landscape remains a subject of ongoing observation and discussion.