Big tech companies brace for EU’s Digital Services Act regulations 

The comprehensive Digital Services Act (DSA) of the European Union imposes new regulations on content moderation, user privacy, and transparency, putting more than a dozen of the largest tech companies in the world under unprecedented legal scrutiny.

A number of internet giants, including Meta’sFacebook and Instagram, Apple’s online App Store, and a few Google services, will be subject to new regulations in the EU, starting on Friday. These regulations include preventing the spread of harmful content, prohibiting or restricting certain user-targeting techniques, and sharing some internal data with regulators and related researchers.

With other comprehensive pieces of legislation, including the Digital Markets Act and the AI Act, on the horizon, the EU is regarded as the global leader in digital regulation. The introduction of comparable laws around the world will be influenced by how successfully the bloc implements these regulations.

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Researchers have questioned whether these businesses have gone above and beyond what is required of them by the law.

For the time being, the regulations are applicable to 19 of the biggest internet sites, those with more than 45 million EU users. But starting in mid-February, they will be applicable to all online outlets, regardless of size.

Any company found to be in violation of the DSA faces a fine of up to 6% of its annual global revenue, and repeat offenders risk being barred from doing business in Europe.

E-commerce behemoth Amazon and German fashion retailer Zalando are the two businesses picked out for early regulation, and both are now refuting their inclusion on the list in court.

“We can expect that platforms will fight tooth and nail to defend their practices,” Reuters quoted Kingsley Hayes, the head of data and privacy litigation at law firm Keller Postman, as saying. “Especially when new compliance rules encroach on their core business models," he added.

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