On Tuesday, the European Union officially classified 19 online platforms, including Instagram, TikTok, and Twitter, as having a significant scale of user engagement, which will subject them to enhanced regulatory scrutiny regarding content management.
The identified platforms, which also include services from Amazon, Google, Meta, and Microsoft, all boast over 45 million monthly active users.
This designation falls under the newly enacted Digital Services Act (DSA), which imposes requirements such as annual audits and mandates actions to effectively address disinformation and hate speech, beginning in August.
Thierry Breton, the EU’s internal market commissioner, emphasized that starting in four months, “these platforms and search engines will no longer operate under the assumption that they are ‘too big to care’.”
He further stated, “This new oversight system will implement comprehensive measures to identify all compliance vulnerabilities within a platform.”
Platforms that meet the user threshold include Twitter, owned by Elon Musk; Alphabet’s range of services like Google Search, Google Maps, Google Shopping, and the YouTube platform; and Meta’s offerings such as Facebook and Instagram.
Additionally, the list encompasses Microsoft’s LinkedIn, Apple’s iOS App Store, the online encyclopedia Wikipedia, and popular platforms like Snapchat and Pinterest.
According to the DSA, these entities are classified as either “Very Large Online Platforms” (VLOP) or “Very Large Online Search Engines” (VLOSE).
While most of the companies are based in the United States, the list also includes the Chinese-owned app TikTok and the e-commerce platform AliExpress.
German online fashion retailer Zalando was also named among the designated platforms.
Significant Penalties
During a press briefing on Tuesday, Breton announced plans for “stress tests” to evaluate Twitter’s readiness for compliance by the end of June.
He indicated that TikTok has shown interest in collaborating to ensure adherence to the new regulations.
This announcement comes after an earlier deadline in February, when online platforms were required to disclose their user figures in Europe.
The DSA aims to achieve several goals, including improved protections for children, increased transparency in digital services, a ban on the online sale of unsafe products, and greater user choice within the EU.
The regulations empower the EU to levy fines of up to six percent of a platform’s annual global revenue for repeat violations.
By August 25, 2023, the 19 identified platforms are required to establish an independent compliance framework and submit their first annual risk assessment to the European Commission, detailing their strategies for managing content related to mental health and gender-based violence.
An independent audit and oversight by the commission will follow this submission.
Margrethe Vestager, the commission’s vice president, referred to the designations as a “major advancement” for the DSA, aimed at fostering “substantial transparency and accountability among platforms and search engines while empowering consumers.”
Platforms that claimed to operate below the 45-million user threshold include Spotify, Tinder, and Airbnb.
Breton suggested that “four to five” additional platforms may be included in the designated list in the near future, although he did not disclose any specific names.
The DSA is one of two pivotal legislative measures enacted by the EU last year to regulate digital platforms for the protection of EU citizens.
The special obligations for very large platforms complement rules that will be applicable to all entities starting on February 17, 2024.
In addition, the Digital Markets Act, the second law, seeks to restrict anti-competitive actions by so-called “gatekeepers” of the internet.