The EU Digital Services Act

The Brussels Effect

The EU Digital Services Act (DSA), which took full effect in February 2024, is the most comprehensive regulation of online platforms ever enacted. It applies to all platforms serving EU users and imposes escalating obligations based on size, with the strictest requirements on 'Very Large Online Platforms' (VLOPs) with more than 45 million monthly EU users — including Facebook, YouTube, TikTok, X, Amazon, and Google Search.

The DSA represents the 'Brussels Effect' in action — the EU's regulatory standards often become de facto global standards because companies find it easier to apply one set of rules worldwide than to maintain different systems for different markets. Just as the EU's GDPR became the global baseline for data protection, the DSA may become the baseline for platform regulation.

Key Obligations

The DSA requires VLOPs to conduct annual risk assessments examining how their services might spread illegal content, misinformation, or harm democratic processes. They must provide researchers with access to data for studying systemic risks — a requirement that addresses the opacity that has frustrated researchers for years.

Platforms must allow users to opt out of recommendation algorithms and must not use sensitive personal data (religion, political views, sexual orientation) for targeted advertising. Dark patterns — deceptive interface designs that manipulate users — are prohibited. Children receive special protections.

Enforcement carries teeth: fines of up to 6% of global annual revenue. For a company like Meta, that could exceed $7 billion. The European Commission has already opened investigations into X, TikTok, and AliExpress for potential DSA violations.