Introducing the Digital Services Act and How it Could Affect Your Business in the Future

What is the Digital Services act?

The Digital Services Act targets the big tech companies, on how to enable users to have more control over their online data. It covers things like data collection and targeted advertising. They want to make the online world safer, for things that are illegal in the real world need to be illegal online also. It replaces the E-Commerce directive of 2000, back when Facebook didn’t exist. It addresses numerous things like counterfeit products, erasure of content and hate speech.

Critics say there are sufficient loopholes that mean it can still be exploited though. For example, an illegal act in one country may be based on a decision made in another one.

The EU Council and European Parliament need to agree together for the 27 EU member states to enact the Digital Services Act on its set of rules.

Digital services act | Greenlight Computers

Is this Act Going to Apply to My Business?

The rules of 20 years are being updated. There are just a few networks that dictate how we think, the content we see and the rules they govern. The DSA is a chance to build a better internet, so there are more opportunities for smaller companies. It wants to maintain free speech and break up the large players with more competition.

The act is for the biggest online businesses, so this will have no impact on the running of small to medium businesses. The DSA has two goals, to level the playing field of big tech, allowing for innovation and competition in the European market. Secondly, to create a safer digital space, where updating the laws of 2000 are much needed.

How Will the Digital Tax Impact Your Business?

Only the largest online platforms, like Facebook, Google and Twitter will have to do more to tackle illegal content or face up to 6% fines of their global turnover.

As an overview of some of the rules:

  • DSA is to ban advertising based on sensitive data like gender, political opinions, race, and religion
  • Forcing platforms to allow users to flag illegal content so they are quickly removed
  • Similar reporting systems will need to be implemented in online retailers, like Amazon where counterfeit items can be reported by the users.

Please note that if you are an unincorporated business or partnership in which everyone involved carries on their trade or profession independently of everyone else and not as partners of a partnership then this Act will not apply to you.

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