On April 23, 2022, the European Parliament and the member states of the European Union approved the Digital Services Act (DSA), aimed at improving security for users of major digital platforms.
This law dictates that platforms like Meta and Google will have to explain how their algorithms work and will be held responsible for all content that appears on their platforms, so that they take stricter measures against fake news.
Some obligations imposed by the DSA
Advertising targeted at individuals based on religion, sexual orientation, or ethnicity, and advertising aimed at minors, is prohibited.
– “Dark patterns,” meaning confusing or misleading user interfaces designed to guide users towards making certain choices, are prohibited. The European Union says that canceling a subscription should be as easy as signing up.
Large online platforms, such as Facebook, are required to make their recommendation algorithms transparent. Users should also have an option for a "non-profile-based" recommendation system. In the case of Instagram, for example, this means a chronological feed.
Hosting services and online platforms will have to clearly explain content removals and give users the opportunity to appeal.
The largest platforms will have to provide data to researchers so that they can assess "how online risks evolve".
Online marketplaces should record basic information about sellers in order to track individuals offering illegal goods or services.
– Large platforms need to introduce new strategies to deal with fake news during crises (a part of the law inspired by invasion of ukraine).
The impact of DSA
The larger the company, the greater the impact of the law, because the obligations the company will have to fulfill are greater.
But in addition, the DSA will more rigorously monitor the largest technology companies, so Meta and Google will always be in the crosshairs of scrutiny because they have more than 45 million users in the European Union.
For platform users, the impact is positive because the law aims for greater security and less fraud for users, as well as more support such as the ability to request explanations and appeal when content from their account is deleted by the platform, for example.
For technology companies, the impact is not so positive, since they will be forced to implement new systems and develop to meet the requirements of the law, and the larger the platform, the greater the obligations it will have to fulfill.
Non-compliance with the Law
The law will come into effect 15 months after its approval or on January 1, 2024, whichever comes first, and the penalty for companies that fail to comply with the law is up to 6% of the company's revenue.
Meta will be the main company impacted by the law because it has a concentration of platforms such as Facebook, WhatsApp, Instagram, and other smaller ones, but the law will apply to all digital business platforms, including marketplace apps like iFood, for example.
Ultimately, it's a law that establishes a series of rules to regulate the digital business environment, so that what is illegal offline will also be illegal online.
In Brazil, we already have the LGPD (Brazilian General Data Protection Law), which regulates the protection of user data. Would the next step be a law inspired by the DSA (Data Protection Act)?
