The EU's proposed Digital Services Act has passed the key committee stage in the European Parliament, paving the way for the law to be finalised in 2022. MEPs in the Internal Market and Consumer Protection Committee updated the European Commission's proposal with tighter restrictions on the use of targeted advertising and algorithms online, while also introducing protections for free speech and exemptions for small businesses operating online.
Unveiled a year ago by the Commission, the DSA aims to curb excesses on the internet, whether it be hate speech or other criminal acts, inappropriate content for minors, or unfair commercial practices on marketplaces. The law would introduce a general legal obligation for websites to take down illegal content posted by third-party users, and so-called 'very large online platforms' (VLOPs) would face additional obligations on vetting partners and transparency to end-users.
A key issue is the required delay for sites to take down offending material. Under the text adopted by MEPs, providers of hosting services should act on receipt of such a notice "without undue delay, taking into account the type of illegal content that is being notified and the urgency of taking action". MEPs also included stronger safeguards to ensure websites did not become too zealous or arbitrary in taking down material, to the point of infringing on freedom speech.
They also strengthened obligations for marketplaces to verify sellers on their platforms, under 'Know Your Business Customer' principles, and for platforms to disclose how they use algorithms and other recommendation systems when delivering personalised content to end-users.
VLOPs will have to carry out mandatory risk assessments and take risk mitigation measures, which should help to reduce harmful content and disinformation, the committee said. VLOPs will also have to share data with authorities and researchers, to allow scrutiny over how they work and to help better understand the evolution of online risks.
The legislation calls for 'digital service coordinators' to be set up in each EU country to enforce the law, which may be existing competition or consumer regulators. The MEPs tried to clarify their role and how they will work with the European Commission, and also issued a call for end-users to be able to claim damages if digital service providers fail to live up to their due diligence obligations under the DSA.
Further changes introduced by MEPs concern, among others, certain exemptions from DSA obligations for micro and small enterprises; bans on using “dark patterns” to influence online behaviour; better information on how personal data is used; and an option to opt out of automated profiling systems for personalised search results.
The full parliament will vote on the committee's text in January. The law can then go to final negotiations with the Commission and Council, which approved its position on the text earlier this month.
