After reaching an agreement on a package of new regulations for tech platforms European policymakers are setting big changes in oversight for everything from social media algorithms to digital advertising.
According to analysts, changes have the potential to have ramifications worldwide. The law known as the Digital Services Act (DSA) is intended to address social media’s societal harms by requiring companies to act more aggressively.
There will be new rules on how the tech industry handles misinformation and illegal content on social media, as well as illegal goods and services sold online.
“Today’s agreement sends a strong signal: to all Europeans, to all EU businesses, and to our international counterparts,” said to CNN European Commission President Ursula von der Leyen.
The draft law gives officials more tools for removing hate speech and scrutinizing the recommendation algorithms of tech platforms. It applies for social media sites, app stores, gig economy platforms, and even cloud services. The biggest companies that violate the law could face billions in fines.
Online platforms with at least 45 million EU users would require content moderation risk assessments and independent audits tied to their handling of illegal material.
Together with the Digital Markets Act (to make dominant online platforms more open) the DSA highlights how Europe has moved faster in regulations for Big Tech.