Why in news?

• Recently, the European Union’s groundbreaking Digital Services Act (DSA) came into effect.
• As the provisions of this act kick in, a number of companies including Meta, Google, and Snap, have been forced to make changes to their platforms.
• These changes include:
  • more disclosures on how they use artificial intelligence (AI) to offer personalised content to users, and
  • allowing the users, the option to opt out of being subjected to digital surveillance by these platforms.

What’s in today’s article?

• Digital Services Act (DSA)

What is Digital Services Act (DSA)?

• The Digital Services Act (DSA) is an EU regulation which came into force in EU law in November 2022 and will be directly applicable across the EU.
• The act aims to address several issues related to digital services, including online safety, content moderation, and the responsibilities of online platforms.
• The legislation includes new rules for large online platforms, such as social media networks and online marketplaces, to ensure greater accountability and transparency in their operations.
• Goals
  • To create a safer digital space in which the fundamental rights of all users of digital services are protected;
  • To establish a level playing field to foster innovation, growth, and competitiveness, both in the European Single Market and globally.

What are the key features of the Digital Services Act?

• Faster removals and provisions to challenge
  • Social media companies will have to add new procedures for faster removal of content deemed illegal or harmful.
  • They will also have to explain to users how their content takedown policy works.
  • The DSA also allows for users to challenge takedown decisions taken by platforms and seek out-of-court settlements.
• Bigger platforms have greater responsibility
  • Very Large Online Platforms and Very Large Online Search Engines, that is platforms, having more than 45 million users in the EU, will have more stringent requirements.
  • Hence, the law avoids a one-size fits all approach and places increased accountability on the Big Tech companies.
• Direct supervision by European Commission
  • These requirements and their enforcement will be centrally supervised by the European Commission itself.
  • This is to ensure that companies do not sidestep the legislation at the member-state level.
• More transparency on how algorithms work
  • Very Large Online Platforms (VLOP) and Very Large Online Search Engines will face transparency measures and scrutiny of how their algorithms work.
  • They will be required to conduct systemic risk analysis and reduction to drive accountability about the society impacts of their products.
• Clearer identifiers for ads and who’s paying for them
  • Online platforms must ensure that users can easily identify advertisements and understand who presents or pays for the advertisement.
  • They must not display personalised advertising directed towards minors or based on sensitive personal data.
• Heavy penalties
  • The DSA imposes heavy penalties for non-compliance, which can be up to 6 per cent of the company’s global annual turnover.
  • Companies that do not wish to abide by the rules cannot function within the EU.

What are the changes big tech has been forced to make?

• Due to the harsh repercussions and the threat of losing a market of around 450 million users, major social media companies have fallen in line.
• These companies have announced they will allow more freedom to users in the way they interact with their platforms.
• Meta: The company that operates Facebook and Instagram has said it will introduce non-personalised digital feeds.
• Google: The Internet search giant has said it will increase how much information it provides about ads targeted at users in the EU.
  • It will also expand data access to third party researchers studying systemic content risks in the region.
• Amazon: The e-commerce giant sued the EU last month over its classification as a VLOP, which would require the company to comply with the DSA’s stringent norms.
  • This was the first legal challenge to the law.

How does the EU’s DSA compare with India’s online laws?

• Information Technology Rules, 2021
  • In February 2021, India had notified extensive changes to its social media regulations in the form of the Information Technology Rules, 2021 (IT Rules).
  • These rules placed significant due diligence requirements on large social media platforms such as Meta and Twitter. This included:
    • Appointing key personnel to handle law enforcement requests and user grievances,
    • Enabling identification of the first originator of the information on its platform under certain conditions,
    • Deploying technology-based measures on a best-effort basis to identify certain types of content.
• Amendments to the IT Rules
• In 2023, with a view to make the Internet open, safe and trusted, and accountable, the IT Ministry notified the creation of government-backed grievance appellate committees.
• These committees would have the authority to review and revoke content moderation decisions taken by platforms.
• Other laws
  • India is also working on a complete overhaul of its technology policies and is expected to soon come out with a replacement of its IT Act, 2000.
  • This law is expected to look at ensuring net neutrality and algorithmic accountability of social media platforms, among other things.