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A new DSA era: VLOPS and VLOSE'S beware!

On Friday, Aug. 25, 2023, the strictest regulations of the new EU Digital Services Act (DSA) went into effect for the 19 very largest online platforms (VLOPS) and search engines (VLOSE). From now on, these platforms are obliged to comply with several requirements, including tackling illegal content, fighting disinformation, updating their recommendation systems and providing transparency about online ads.

28 August 2023

News press release

News press release
 
On Friday, Aug. 25, 2023, the strictest requirements of the new EU Digital Services Act (DSA) went into effect for the 19 very largest online platforms (VLOPS) and search engines (VLOSE). From now on, these platforms are obliged to comply with several requirements, including tackling illegal content, fighting disinformation, updating their recommendation systems and providing transparency about online ads. The goal of the DSA is to create a safer and more competitive digital environment, balancing the need to tackle illegal online content with the fundamental rights of European citizens (such as the right to freedom of expression). The law is based on a layered regulatory approach, meaning that stricter rules are imposed on larger online intermediary services on top of basic obligations that also apply to smaller players. The EU Commission, which has exclusive powers to oversee VLOPS and VLOSEs, had given these companies, including Apple, Google, Meta, X (formerly Twitter), as well as Amsterdam-based AliExpress, Booking.com and Snapchat, a 4-month cooling-off period to comply with the new obligations. This period is now over. While the principle of intermediary neutrality inherited from the previous e-commerce directive remains formally intact, the DSA requires that VLOPS and VLOSEs will play a more active role in fighting illegal content and disinformation. These platforms are also now required to improve the transparency of their terms, algorithms and ads they display to users. One strikingly intrusive measure is the absolute ban on personalized ads aimed at children or based on processing sensitive personal data. In addition, platforms are required to conduct annual reviews to evaluate harmful online practices and are audited on the use of their algorithms. Violations of the DSA can result in significant charges. The European Commission can impose fines of up to 6% of their annual turnover or periodic penalty payments of up to 5% of their average daily revenue. From February 2024, the other rules will also apply to other online services and platforms, such as online marketplaces, social networks, cloud providers and content-sharing platforms that do not fall under the definition of VLOPS and VLOSEs.

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