EU reaches deal on major law aiming to regulate tech giants

April 25, 2022

As per the Digital Services Act (DSA), tech giants such as Facebook and Google will be expected to moderate illegal content on their platforms. It’s the second part of the bloc’s project seeking to rein in tech giants. The European Union countries and EU lawmakers on Saturday agreed on new rules requiring tech giants such as Facebook parent company Meta and Alphabet Inc’s Google, among others, to do more to moderate illegal content on their platforms.

The Digital Services Act (DSA) is the second part of the bloc’s massive project to regulate tech companies. EU antitrust chief Margrethe Vestager has been working towards reigning in Alphabet unit Google, Meta and other US tech giants.

The Digital Services Act (DSA) is the second part of the bloc’s massive project to regulate tech companies. EU antitrust chief Margrethe Vestager has been working towards reigning in Alphabet unit Google, Meta and other US tech giants.

In a press release, the European parliament said as part of the act, the European Commission and member states will have access to the algorithms of large online platforms. Illegal content will be removed swiftly, and online marketplaces will be made safer. Perhaps the most important difference in the new EU rules to those in the US, where most of these internet giants are based, pertains to liability for material posted by third parties on platforms like Facebook or Twitter. In the US, host companies enjoy near-total immunity from liability for the material posted by third parties. Under the EU’s new rules, these companies could face prosecution if they are notified that third party content on their site contravenes laws in the EU and then fail to take action to remove it.

For non-compliance, tech giants could face fines of up to 6% of their worldwide turnover. Repeated breaches could get them banned from doing business in the EU. The platforms will be made more transparent, and special care will be taken to protect minors, according to the EU.

Dark patterns, which are tactics that mislead people into giving personal data to companies online, will also be prohibited.

“As the law is finalized and implemented, the details will matter. We look forward to working with policymakers to get the remaining technical details right to ensure the law works for everyone,” a representative from Google said in a statement. The companies also face a yearly fee up to 0.05% of worldwide annual revenue to cover the costs of monitoring their compliance. Medium-sized companies will be exempted from these rules.

Source: DW News

Disclaimer:

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.

More Stories from the Market
shutterstock_453968572
February 27, 2026   LASCO Distributors Limited (LASD) has advised that Mr. John De Silva has resigned as Managing Director of the Company e…
shutterstock_453968572
February 27, 2026   Kingston Properties Limited (KPREIT) has advised that at a meeting of its Board of Directors held on February 24, 2026,…
shutterstock_148562033
February 27, 2026   JMMB Group Limited (JMMBGL) has advised that JMMB’s Employee Share Ownership Plan (ESOP) sold 104,814 JMMBGL shares on …
shutterstock_609342323
February 27, 2026   Productive Business Solutions Limited (PBS) has declared dividends to the Perpetual Cumulative Redeemable Preference Sh…
shutterstock_609342323
February 27, 2026   Carreras Limited (CAR) has declared an interim dividend of $0.40 per stock unit payable on April 20, 2026, to stockhold…
shutterstock_453968572
February 27, 2026 United States: US Producer Prices Rise 0.5%, Exceeding Forecast on Services   Prices paid to US producers rose in Januar…
shutterstock_609342323
February 26, 2026   Eppley Limited (EPLY) has declared a final dividend of $0.97 per stock unit payable on March 27, 2026, to stockholders …
shutterstock_148562033
February 26, 2026   Image Plus Consultants Limited (IPCL) has advised that connected parties purchased a total of 22,000 IPCL shares on Feb…