by Laura Fannin December-22-2023 in Commercial & Business, Technology

 

What is the Digital Services Act?

The Digital Services Act (DSA) regulates online intermediaries and platforms including social networks and content sharing platforms. The main objective of the DSA is to prevent illegal and harmful activities online, as well as the spread of misinformation to create a fair and open online platform environment.

 

Which providers are covered under the DSA?

The DSA will apply to all platforms from the 17th February 2024 however, since the end of August 2023 the rules have applied to designated platforms which have more than 45 million users in the EU (10% of the EU’s population). Among the list of VLOPs, companies such as X, Youtube, Facebook and Snapchat are included.

 Under the DSA, Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) are recognised as posing particular risks regarding the dissemination of illegal content and societal harms.

 

Why has the European Commission launched an investigation into ‘X’?

X has become the first online platform to have formal DSA proceedings launched against it, after the platform has been accused of disseminating illegal content, among other violations. The proceedings will focus on:

  • The compliance with the DSA obligations on countering the dissemination of illegal content in the EU.
  • The effectiveness of measures taken to combat information manipulation on the platform, notably the effectiveness of the community notes system used by X.
  • The measures taken by x to increase the transparency of its platform.
  • A suspected deceptive design of the user interface relating to blue check marks on the platform.

 

The potential Repercussions if found guilty of DSA violations?

 If found guilty of DSA violations, X may face fines of up to 6% of its global annual turnover and periodic penalties of up to 5% of its global turnover if it fails to comply with remedies or interim measures.

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About the Author

Laura Fannin
Laura Fannin

Laura is a partner in the Commercial & Business team at Hayes solicitors. Laura advises clients on a diverse range of corporate and commercial matters and regulatory requirements. She is an experienced adviser on terms and conditions of sale and purchase, IT issues, data protection, product liability, advertising and promotions, intellectual property and a wide range of commercial agreements.