Beginning this Friday, the biggest digital companies in the world must abide by a broad new European regulation. That regulates everything from social media moderation to targeted advertising and the sale of counterfeit goods online. With potential repercussions for the rest of the world.
The extraordinary EU regulations for online platforms will cover a wide range of businesses, including Amazon, Apple, Google, Meta, Microsoft, Snapchat, and TikTok. Among many others, and they represent one of the most thorough and ambitious attempts yet made by legislators to legislate regulation of internet giants. It might result in penalties for some businesses and adjustments to software that would affect customers.
The regulations aim to address some of the most important issues raised by detractors of major tech platforms. In recent years, such as the spread of false information and disinformation, potential harms to young people’s mental health. Rabbit holes of algorithmically recommended content, a lack of transparency. The proliferation of illegal or fake goods on online marketplaces.
Although the Digital Services Act (DSA) of the European Union was passed last year. Businesses have only just begun to get ready for its enforcement. A crucial compliance deadline is approaching on Friday, after which tech platforms with more than 45 million EU users will need to comply with the law’s requirements.
Additionally, according to the EU, the law aims “to establish a level playing field to foster innovation, growth, and competitiveness both in the European Single Market and globally.” The move enhances Europe’s reputation as a leader in minimizing the influence of strong US technology companies.
The DSA prohibits data-driven targeted advertising aimed at children on all platforms, not just the biggest ones, as well as targeted ads to all internet users based on protected traits like political affiliation, sexual orientation, and race. All internet advertisements, including those that are commercial, political, or issue-related, are subject to the regulations. Restrictions on target advertising based on protect attributes had already been implement by certain platforms in recent years.