EU Enforces Digital Services Act With New Probes

The EU's Digital Services Act (DSA) is now fully in force, mandating that all public-facing digital platforms implement transparent content moderation and user complaint processes. The European Commission has begun enforcement by investigating online retailer Shein for potential "addictive design" and illegal products. Separately, the EU launched an investigation into X (formerly Twitter) regarding the platform's handling of sexualized images.

- Fines for non-compliance with the Digital Services Act can be substantial, reaching up to 6% of a company's global annual turnover. Enforcement is managed by both the European Commission, which oversees the largest platforms, and national Digital Services Coordinators. - The investigation into Shein was prompted in part by French authorities who discovered illegal items such as firearms, knives, and "child-like sex dolls" on the site. The probe also examines "addictive design" features like giving users points or rewards for engagement. - The probe into X centers on its AI chatbot, Grok, which was reportedly used to create and disseminate sexually explicit deepfakes, including of women and children, by digitally altering images. This has led to an additional investigation by Ireland's Data Protection Commission regarding potential breaches of GDPR. - The DSA designates platforms and search engines with over 45 million monthly active users in the EU as "Very Large Online Platforms" (VLOPs) or "Very Large Online Search Engines" (VLOSEs), subjecting them to the strictest regulations. Shein, with 108 million users, and X, with 115.1 million, both fall into this category. - Former European Commissioner for Internal Market, Thierry Breton, was a key figure in the development and enactment of the DSA. He has been a vocal proponent of holding large platforms accountable for the content on their sites. - The DSA entered into force in November 2022, with its provisions becoming fully applicable to all in-scope services by February 17, 2024. Designated VLOPs and VLOSEs were required to comply with the new rules even earlier, starting in August 2023.

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