Digital Services Act (DSA) and EU tech rules may be live by June 2022

European Union countries and lawmakers may reach an agreement by June on proposed techrules forcing online platforms to regulate their internet policies.

The Digital Services Act (DSA) proposed byMargrethe Vestager, Chief of EU antitrust will force Amazon.com, Alphabet Inc – Google, Apple Inc, Meta – Facebook to establish better content management on their platforms that are legal or will face penalties up to 6% of their global turnover.

What is Digital Services Act?

The new legislative proposal submitted by the European Commission to address the evolving modern e-commerce directive on illegal content, non-transparent advertising and misinformation is called as Digital Services Act (DSA). The proposal was submitted along with Digital Markets Act(DMA) on December 15, 2020. The DSA is still a proposal and it will be a law once the European Council and European Parliament approves it.

The DSA proposal and the expectations around it

Christel Schaldemose, a EU lawmaker states that he is optimistic that the deal between Eurpoean countries and lawmakers will happen before end of June.  This statement came just before talks with French Digital Affairs Minister Cedric O and EU industry chief Thierry Breton.

As per Schaldemose, the lawmaker want to expand the scope of how the online platforms operate and restrict their dark patterns that mislead people to give their personal data online. It will regulate how these data is shared and collected over the e-commerce space.

This will be addressed based on the business model of platforms and will not go far deeper scrutinization. The council wants the ban on marketplace only but the Parliament wants it for all the platforms.

Countries like Ireland, where their European headquarters of Google, Apple and Facebook is, along with Amazon’s headquarters in Luxembourg, the companies should continue to supervise the country of origin principle.

Along with that, the EU lawmakers wanted to ban targeted ads on minors, ads based on sensitive data like political or sexual orientation to comply with bloc’s privacy rules, when EU countries are having a less stricter norms in place said Schaldemose.

The DSA will improve user privacy and will be major challenge for tech companies that work on user data and keep it as their major business model.

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