Brussels:

Landmark EU legislation, the Digital Services Act, requires digital companies to crack down on illegal and problematic content.

The law has been applicable to very large platforms since August, with more than 45 million monthly active users in the EU, and the world’s largest tech companies face huge fines if they violate the law.

The massive law comes into force for all companies starting Saturday, with partial exemptions for the smallest companies.

The European Commission has launched a wave of investigations into what digital giants are doing to comply with the rules, and more actions are expected.

The following are the key elements of the regulation:

Rules for all platforms

One of the obligations of all platforms is to quickly remove illegal content or make it inaccessible if a problem is discovered.

They must also quickly notify authorities when they suspect a criminal offense that threatens the life or safety of others.

Companies are required to publish a report every year detailing actions taken for content moderation and how long it takes to respond after receiving notifications of illegal content. They will also report on decisions made in disputes with users.

The law requires platforms to suspend users who frequently share illegal content such as hate speech or false advertising, while online shopping sites must verify users’ identities and block repeat fraudsters.

There are also stricter rules on targeted advertising, which is prohibited to children 17 and under.

The EU also wants users to know how their data is used, and the law prohibits targeted advertising based on sensitive data such as race, religion or sexual orientation.

The law’s more onerous obligations do not apply to small companies – defined as those with fewer than 50 employees and a turnover of less than €10 million.

Additional rules for large platforms

The EU named 22 “very large” platforms, including Apple, Amazon, Facebook, Google, Instagram, Microsoft, Snapchat, TikTok and clothing retailer Zalando, as well as three major adult websites.

Amazon and Zalando have launched legal challenges to its designation, while Meta and TikTok have challenged paying enforcement fees.

These large platforms must assess the risks of illegal content distribution and privacy violations associated with their services.

They must also put structures in place internally to mitigate such risks, such as improved content moderation.

The platforms must allow regulators access to their data so officials know whether they are following the rules.

This access will also be shared with approved researchers.

Companies will be audited annually by an independent organization at their own expense to ensure compliance, and independent internal monitors will be set up to keep an eye on their compliance with the rules.

Complaints, penalties

The DSA wants to make it easier for user complaints to be heard.

Users will be able to lodge complaints with their national authorities claiming that platforms have breached the DSA.

Online shopping sites may be held responsible for any damage caused by substandard or dangerous products purchased by users.

Violations may result in fines of up to 6% of a company’s global turnover, and for repeated violations, the EU may even decide to ban European offending platforms.

The committee will be able to approve “very large” platforms.

EU, national coordination

Under the law, the 27 EU member states must designate a competent authority with the power to investigate and sanction any violations by small companies.

The authorities must cooperate with each other and with the European Commission, the EU’s executive arm, to enforce the rule from February.

If a digital platform provider is located in a member state, that country must implement these rules, with the exception of large platforms regulated by the Commission.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)