EU Digital Services Act scope expanded: Thousands of companies to be affected!

The European Union was directing its security and transparency-focused laws toward major companies in the sector. However, thousands of companies are now under the influence of these laws.

The European Union had created a digital services law with strict rules ensuring the moderation of content reaching European citizens. The goal of this law was to prevent the spread of illegal products and services.

According to this law, organizations serving more than 10 percent of the EU population were initially included in the scope. However, with the latest change, all service providers except for very small organizations are affected by this law. For example, if a platform has fewer than 50 employees and an annual revenue of less than 10 million euros, it will be exempt from the law. This shows that thousands of companies are subject to EU regulations.

The Digital Services Act emphasizes the principles of transparency and security. Key provisions include systems where users can report illegal content, transparency in moderation decisions, the option to avoid personalized content, a ban on showing advertisements to minors, and avoiding advertisements focused on ethnic origin or gender.

Furthermore, rules have also been established for those providing hosting services. These service providers must develop systems to warn their users if they host illegal content. Even internet service providers are obligated to submit transparency reports.

EU officials have the authority to penalize companies that do not comply with DSA provisions with fines of up to 6 percent of their annual revenue. However, it should be noted that this law is not new; only its scope has been expanded.

News Source: 12punto