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What is the Digital Services Act?

New legislation, the so-called Digital Services Act, has been in force in the European Union since February 2024. “Its main goal is to create a safe internet for users. If we want to simplify it, the act introduces a rule – What is illegal in the offline space is also illegal in the online world,” explains Daniela Ježová, a lawyer and member of the group of legal experts at the European Parliament and the European Commission.

Platforms must clearly explain why we see certain content or ads, and be more proactive in combating fraud or manipulation. It also gives users, researchers and the state greater rights to control how digital platforms operate.

 

The bigger the platform, the bigger the responsibility

The Digital Services Act sets the rules for all those who offer online services within the European Union. From small websites and e-shops to social networks. However, the strictest rules apply to so-called very large platforms.

“According to the DSA, a small e-shop does not have the same obligations as a global network with tens of millions of users. The Commission has the greatest demands on so-called very large platforms. These are those that have over 45 million users within the EU. Their impact affects not only individual users, but also the entire society,” explains Ježová.

Such platforms include Facebook, Instagram, X, TikTok, YouTube, Google, and Amazon. The European law expert adds that this list may change as the platforms gain or lose users.

First fine

The DSA has been in full force for less than two years, so all parties are still getting used to it. So far, networks have only received warnings, but the first fine has recently been imposed. The X network, formerly Twitter, which belongs to Elon Musk, received it. It will pay 120 million euros for violating European rules.

“The aim of the act is not to hand out fines, but to force platforms to comply with the established rules. However, if they are not willing to do so, they must also count on such huge sanctions,” explains Ježová.

They don’t like three things

The European Commission criticizes Xku in 3 areas. The first is the lack of transparency of the so-called blue check mark. In the past, users were used to the idea that if it appeared on someone’s profile, the account was verified and they knew who was behind it. However, this is no longer the case today, and anyone can purchase this add-on without identity verification.

The Digital Services Act does not prohibit paid features, but it does prohibit pretending to have verified that has not actually happened.

Another stumbling block was the lack of transparency of advertisements. It is the obligation of large platforms to have an advertising database that clearly shows who paid for the advertisement and what its purpose and topic are. Platform X does have such a database, but according to the commission, it is difficult to access and unclear.

The third reason for the fine was that Musk’s platform does not want to provide data to verified researchers so that they can investigate the spread of disinformation, hateful content, or foreign influence campaigns.

“Misleading users with blue flags, hiding information about ads and excluding researchers from accessing data has no place in the EU online space. The Digital Services Act protects users. It gives researchers the tools to detect potential threats and helps restore trust in the online environment. With the first DSA infringement decision, we are making it clear that Platform X is responsible for undermining users’ rights and avoiding accountability,” said Henna Vurkkunen, European Commissioner for Technology.

The Commission criticised incorrect profile verification, lack of transparency in advertisements, and unavailability of data for researchers, photo source: Unsplash

What next?

Platform X must fix the misleading use of the blue check mark within 60 days. It must also submit an action plan to the European Commission within 90 days, explaining how it will ensure more transparent advertising and better access to data for researchers. If it fails to adopt or comply with these measures, it faces further, repeated fines.

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