EU Launched the First DSA Procedure: Will It Really Make an Impact?
In response to the disconcerting events that unfolded in Israel in October, the European Union has initiated the use of the Digital Services Act (DSA).
In a move following just days after the Hamas attack, the European Commission took action by sending a formal request for information to the social network X. The request was prompted by indications of alleged spreading of illegal content and disinformation, specifically involving terrorist and violent content as well as hate speech. The request is in accordance with Article 66 of the Digital Services Act (DSA), which mandates the provision of information regarding policies and actions pertaining to notices on illegal content, complaint handling, risk assessment, and measures implemented to address identified risks by social media.
A week later, another tech giant, Meta received a request to disclose further details about its efforts to adhere to the DSA, specifically in relation to the spread and promotion of illicit content and misinformation following the series of terrorist attacks in Israel carried out by Hamas. Both TikTok and Google were also cautioned to combat disinformation and terrorist material.
The Digital Services Act was officially adopted last autumn, ushering in a new era of heightened accountability for online platforms in relation to disinformation, illegal content, and other societal perils. In a significant move, the Commission identified and designated 19 Very Large Online Platforms (VLOPs) — including prominent entities such as X, Meta, Tik-Tok, and Youtube — along with Very Large Online Search Engines (VLOSEs) based on their substantial user base, surpassing 45 million or 10% of the EU population. Since August 2023, these platforms have been obligated to adhere to additional responsibilities encompassing risk assessments, risk mitigation, and transparency obligations.
On December 18th, following a formal request for information, the Commission has initiated formal proceedings against X, notwithstanding its publication of a transparency report in adherence to the DSA.
The upcoming proceedings will center around the dissemination of illicit content, delving into the intricacies of the notice and action mechanism, risk assessment and mitigation strategies. Additionally, the effectiveness of measures implemented to counter information manipulation on the platform will be scrutinized, alongside X’s efforts to enhance transparency within its operations.
The Commission, being unbound by any specific timeframe, has the authority to persistently amass evidence and undertake enforcement actions, including interim measures and non-compliance decisions. In the event of non-adherence to the DSA, a penalty amounting to 6% of the platform’s annual global turnover may be imposed, while the EU reserves the right to restrict access to infringing services in cases of recurrent and severe violations of the regulations.
Thierry Breton, Commissioner for Internal Market said: “Today’s opening of formal proceedings against X makes it clear that, with the DSA, the time of big online platforms behaving like they are “too big to care” has come to an end.”
In light of the formal information requests received by Meta, coupled with the limited scope of Meta’s transparency report spanning from January to June 2023, it is highly likely that the Commission will initiate a formal procedure against Meta, too. Notably, Meta’s substantial revenue for the previous year amounted to an impressive US$ 116bn. Conversely, X’s annual revenue appears to have experienced a decline subsequent to its acquisition by Elon Musk, reaching a figure of US$ 511m.
In spite of the significant impact of 6% of the total annual revenue, it is unlikely to cause the downfall of these companies. It is worth noting that Meta has already settled a civil penalty of US$ 5bn in response to the Cambridge Analytica scandal, demonstrating their ability to withstand substantial financial setbacks. Additionally, the notion of blocking these platforms in Europe appears far-fetched as European citizens heavily rely on them for various aspects of their lives.
In conclusion, while the initiation of the first DSA procedure marks a key moment in the ongoing endeavor to establish a safer and more transparent digital environment, it is doubtful whether the intended objective will be achieved.
Zsuzsa Detrekoi is a technology and law expert with the Media and Journalism Research Center.
