What is the new Digital Services Law and how does it affect online reputation?

By: Carlota Gatius

Europe has long been seeking ways to regulate tech platforms. Now, it is doing so through the implementation of the Digital Services Act (DSA). Below, we’ll explain what the new Digital Services Act is, its key points, who it affects, and how it impacts online reputation.

What Is the New Digital Services Law and Which Companies Are Affected?

In general terms, this law applies to all online services, but depending on their number of monthly users, it imposes additional responsibilities. The main focus is on those platforms designated as "very large online platforms"—those with more than 45 million monthly users. Smaller companies will have more time to implement the required changes, which we will discuss below.

The European Union carried out a series of preliminary assessments to monitor the largest platforms. The companies that have had to implement the most demanding changes from day one include: AliExpress, Apple AppStore, Bing, Amazon Store, Booking, Facebook, Google Play, Google Maps, Google Search, Google Shopping, LinkedIn, Instagram, Snapchat, Pinterest, TikTok, X, YouTube, Wikipedia, and Zalando.

What Obligations Does It Impose?

To understand what the Digital Services Act is, we must highlight its four key pillars:

• Increased user empowerment
• Greater protection for minors
• Stricter content moderation and less disinformation
• More transparency and accountability

In terms of obligations, the DSA introduces a range of important restrictions and requirements for tech companies:

Personalized Advertising: Online advertising based on personal characteristics such as religion, sexual orientation, or ethnic origin is prohibited.

Dark Patterns Ban: The use of dark patterns is strictly forbidden, promoting transparency in online advertising.

Easy Cancellation: The law mandates that unsubscribing from an online service must be as simple as signing up, giving users more effective control over their preferences and personal data.

Explanations and Complaint Rights: Platforms are required to provide clear explanations when content is removed and must offer users tools to file complaints in case of disputes.

Algorithm Transparency: Algorithms used by platforms must be made public, and users should have the option to view results not based on personal profiling.

The regulation recognizes that all online services must fight disinformation and publish transparency reports. The law covers aspects such as algorithms, advertising, disinformation, and illegal content.

A key takeaway to understand the Digital Services Act is that it bans individualized online advertising based on sensitive data. Minors are also excluded as advertising targets. Dark patterns are forbidden, and opting out of a service must be as simple as opting in.

Platforms are now obligated to explain content removal and provide tools for users to appeal such decisions. Algorithms must be transparent, and an alternative must be provided for non-personalized results.

Moreover, platforms must assume responsibility for societal risks—including public, physical, and mental health. They must appoint a responsible person to oversee law compliance and risk control, subject to external audits. To facilitate this, they must submit reports and explain how their recommendation systems work.

Additional Obligations Under the Digital Services Act

Beyond the points mentioned above, platforms are required to take action to prevent the spread of illegal content and to reduce negative effects on freedom of expression and access to information. Terms and conditions must always be clear and must be upheld.

Platforms must provide mechanisms for users to easily flag illegal content and act promptly upon receiving such reports.

Lastly, transparency reports on content moderation decisions must be published regularly.

Timeline for Implementation

For Big Tech, the deadline to comply with the Digital Services Act was August 25, 2023. However, starting February 17, 2024, the obligations will extend to platforms with fewer than 45 million monthly active users. Also, by that date, EU Member States are required to appoint a Digital Services Coordinator, who will be in charge of ensuring compliance with the legislation.

How the Digital Services Act Affects Online Reputation

The implementation of the Digital Services Act in the European Union marks a significant step toward regulating major tech platforms. This legislation directly impacts companies' online reputation by enforcing strict obligations to protect individual rights and ensure transparency.

By banning personalized advertising based on personal characteristics and promoting clarity in terms and conditions, the law aims to strengthen user trust.

Furthermore, by requiring platforms to respond swiftly to illegal content and provide clear mechanisms for reporting it, the DSA reinforces the protection of freedom of expression and information online. However, the real effectiveness of this law in safeguarding online rights remains to be seen. Complying with these regulations will require significant changes from major tech companies. Ultimately, the DSA aims to ensure a safer and more secure digital identity for users, and its impact on corporate reputation will depend on how companies adapt and comply.

Conclusion

The implementation of this law requires major tech companies to make substantial modifications to meet its objectives. One of the most tangible changes is the introduction of new forms and reporting channels to address content that may infringe on individual rights. In essence, this law seeks to strengthen the protection of people’s digital identities. However, its real-world effectiveness remains to be seen.

If you want to learn more about this new legislation and its implications for online reputation, at 202 Digital Reputation, we are a specialized digital reputation agency offering a 360° approach to brand and identity care, helping define and manage our clients' reputational strategies. Contact us to find out more.