Digital Service Act: the law that Big Tech hates

Money.it

20 September 2023 - 19:00

condividi
Facebook
twitter whatsapp

The introduction of the DSA has put a tight deadline on 19 of the world’s largest technology companies to comply with the new European standards. Where are we at?

Digital Service Act: the law that Big Tech hates

The entry into force of the Digital Service Act (DSA) in the European Union has sparked a heated debate, whether this new law represents a restriction on freedom of expression or solely a threat to the prosperity of large technological companies.

While some see the DSA as a crucial step to combat disinformation and protect consumer rights, others accuse it of effectively legalizing censorship and creating significant disruption for web giants.

In this article, we will examine the implications of the DSA and evaluate the reactions of the companies involved.

The race to adapt

The introduction of the DSA has put a tight deadline for 19 of the world’s largest technology companies to comply with the new European standards.

These rules include a ban on targeting ads based on personal characteristics such as religion, gender, or sexual preferences, transparency mechanisms regarding measures taken against misinformation, and additional protections for minors.

The impact of this deadline has caused a race against time to change business practices of online platforms. Companies such as Meta (owner of Facebook), Snapchat and TikTok have introduced options for users to turn off some forms of content personalization, a move that has sparked concerns about the leak of efficiency in user engagement.

The case of X

Elon Musk’s X Corp, formerly known as Twitter, has also implemented tougher policies against hate speech, a step toward a healthier online environment. Precisely this recent evolution of content moderation policies and the statements of Linda Yaccarino, the CEO chosen by Musk, raise new doubts about the future of Twitter as a space for the free exchange of ideas, suggesting a return to forms of "soft" censorship.

These companies have also limited advertising targeted to children under 18, providing greater clarity to users as to why they are receiving certain ads. Meta, for example, has mobilized a large team to work on DSA compliance, demonstrating the extent of the commitment required to comply with this new regulation.

The controversial decisions of some companies

However, not all companies have accepted European impositions with open arms.

Amazon and German online retailer Zalando have taken legal action, arguing that they do not fall into the category of "very large online platforms". Amazon, in particular, said the law should focus on companies that make advertising their main source of revenue, seeking to distinguish themselves from social media.

While such companies may have valid arguments, it is clear that the DSA represents an attempt by the European Union to rein in the power of online platforms and to ensure greater protection of consumer rights and privacy, with quite a few gray areas.

Smaller platforms already compliant

For their part, some smaller platforms like Pinterest and Wikipedia already appear to meet the requirements of the DSA.

Wikipedia has announced plans to publish more information about requests to edit or remove content, demonstrating a commitment to transparency. Google stated that it has already implemented many of Brussels’ requests, improving the transparency page that collects the main advertisers.

Original article published on Money.it Italy 2023-09-11 08:00:00. Original title: Digital Service Act: la legge bavaglio che non piace nemmeno ai colossi del web

Trading online
in
Demo

Fai Trading Online senza rischi con un conto demo gratuito: puoi operare su Forex, Borsa, Indici, Materie prime e Criptovalute.