The European Union agreed on new digital regulations on Saturday that also will force tech behemoths like Google and Meta to more aggressively police illegal content on their platforms or face multibillion-dollar fines.
Ursula von der Leyen, President of the European Commission, called the law “historic.”
“The DSA will improve the ground rules for all EU online services,” von der Leyen said. “It will ensure that the online environment remains a haven for free expression and opportunities for digital businesses.” It puts into practice the principle that what is illegal offline should also be illegal online. The greater the platform’s size, the greater its responsibilities.”
A vital component of the legislation would limit how digital behemoths target users with online advertisements. The DSA effectively prohibits platforms from targeting users with algorithms based on their gender, race, or religion. Advertising to children will also be banned.
Dark patterns, or deceptive tactics used to steer people toward specific products and services, will be prohibited. Noncompliance with the rules may result in fines of up to 6% of a company’s global annual revenues. Based on 2021 sales figures, a company like Meta, Facebook’s parent company, could face a penalty of up to $7 billion.
The DSA is distinct from the Digital Markets Act, approved by EU institutions last month. Both are punishable by hefty fines. However, unlike the DMA, which seeks to limit Big Tech firms’ market power, the DSA is concerned with ensuring that platforms quickly remove harmful content.
The law will impact user-generated content platforms such as Facebook, Instagram, Twitter, YouTube, and TikTok. Brussels has a long history of calling out internet behemoths for anti-competitive behavior and data privacy violations.