Introduced on November 16, 2022, the EU Digital Services Act (DSA) and its counterpart, the Digital Markets Act (DMA), aim to regulate online platforms and gatekeeper entities, respectively. The objective is to tackle illegal content, misinformation, and algorithmic manipulation, and to ensure fair competition in the digital space. Major tech platforms are expected to comply with the DSA by 2024, presenting a considerable challenge for the industry.
Tech Titans Take the Test
In the lead-up to the DSA’s full implementation, major tech companies have undergone ‘stress tests’ to assess their readiness to comply with the new act’s rules. These tests are overseen by EU Industry Chief Thierry Breton, highlighting their significance.
TikTok’s Trial
TikTok, a platform that will be directly impacted by the DSA, volunteered for the stress test, confirming its commitment to risk management, auditing, data sharing, and code of conduct. However, the test revealed that TikTok is not yet fully compliant with the upcoming EU rules. As the DSA compliance deadline on August 25th approaches, TikTok must address these deficiencies or face potential fines.
Meta and Twitter’s Stress Test
Meta and Twitter also underwent stress tests. A thousand Meta employees are currently working on the DSA, signifying the magnitude of its potential impact. Despite this, both companies were found needing further work to fully align with the DSA’s requirements.
Also read: ADB’s Optimistic Forecast Amid Lower Inflation in Emerging Asian Economies: A Reconsidered Perspective
The findings of these stress tests underscore the challenges that tech companies face in meeting the DSA’s robust requirements. With the August 25th deadline looming, these companies must prioritize compliance to avoid significant sanctions.