European Union officials clinched the agreement in principle on the Digital Services Act after lengthy final negotiations. The law will also force tech companies to make it easier for users to flag problems, ban online ads aimed at kids and empower regulators to punish noncompliance with billions in fines.
The Digital Services Act, one half of an overhaul for the 27-nation bloc’s digital rulebook, helps cement Europe’s reputation as the global leader in efforts to rein in the power of social media companies and other digital platforms.
“With the DSA, the time of big online platforms behaving like they are ‘too big to care’ is coming to an end,” said EU Internal Market Commissioner Thierry Breton.
EU Commission Vice President Margrethe Vestager added that “with today’s agreement we ensure that platforms are held accountable for the risks their services can pose to society and citizens.”
The act is the EU’s third significant law targeting the tech industry, a notable contrast with the U.S., where lobbyists representing Silicon Valley’s interests have largely succeeded in keeping federal lawmakers at bay.
While the Justice Department and Federal Trade Commission have filed major antitrust actions against Google and Facebook, Congress remains politically divided on efforts to address competition, online privacy, disinformation and more.
The EU’s new rules should make tech companies more accountable for content created by users and amplified by their platforms’ algorithms.
The biggest online platforms and search engines, defined as having more than 45 million users, will face extra scrutiny.
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