Lawmakers in the European Union have drafted major legislation that’s designed to curb the negative impacts of %SocialMedia sites and digital platforms.
Europe’s “Digital Services Act” (DSA) would, among other things, compel platforms such as %Facebook ($FB), %Google ($GOOGL), %Twitter ($TWTR) and others to crack down on the spread of disinformation on their sites, and to reveal how their algorithms recommend content to users.
The legislation also prohibits certain kinds of advertisements on the platforms, such as targeted ads aimed at children or tailored to people’s ethnicity or sexual orientation.
“With the DSA, we help create a safe and accountable online environment,” European Commissioner Margrethe Vestager said in a written statement issued on Saturday (April 23).
The new legislation is one of two pillars of a major tech-regulation overhaul first unveiled in draft form by the European Union in December 2020. The other pillar, the “Digital Markets Act,” (DMA) received preliminary approval last month and is designed to address issues such as anticompetitive behavior.
Both acts still await a final vote, but major changes aren’t expected. The European Union has also passed the “General Data Protection Regulation” (GDPR) that is designed to give people more control over the collection and sharing of their personal information.
Europe has taken the lead in efforts to reign in big technology companies, and both the Digital Services Act and %DigitalMarketsAct could influence efforts by governments worldwide to address problems around major technology platforms.
Under the new DSA, platforms that reach more than 10% of Europe’s population would be subject to independent audits of the steps they’re taking to prevent their systems from being abused, according to information provided by the European Commission.
Other steps the law would take include compelling online marketplaces to help identify sellers of illegal goods and setting up ways for users to flag illegal goods, services or content, and for platforms to work with “trusted flaggers.” Companies that break the law could face fines amounting to billions of U.S. dollars.
The major technology companies say they support the spirit of the European Union’s goals but that specifics of the legislation, and their potential impacts, should be more carefully considered.