EU Digital Services Act Gets Real
The EU's Digital Services Act (DSA) is now in full effect, forcing large platforms to publish transparency reports on their content moderation efforts. Meanwhile, X is already challenging a €140M fine under the new rules, setting up a major test case for the regulation's power and the debate over online censorship.
The Digital Services Act (DSA) became fully applicable to all online intermediaries in the EU on February 17, 2024. This followed an earlier deadline of August 2023 for "Very Large Online Platforms" (VLOPs) and "Very Large Online Search Engines" (VLOSEs) — those with over 45 million monthly users in the EU. The regulation introduces a tiered system of obligations, with the most stringent rules reserved for these major platforms. The core principle of the DSA is to make what is illegal offline also illegal online. It compels platforms to implement user-friendly mechanisms for flagging illegal content and requires them to be more transparent about their content moderation decisions. For VLOPs, this includes conducting risk assessments on the spread of illegal content and its potential impact on fundamental rights, public health, and security. X's legal challenge targets a €120 million fine (approximately $140M) imposed in December 2025, the first of its kind under the DSA. The European Commission cited breaches related to the deceptive design of its paid verification system, a lack of transparency in its advertising repository, and failure to provide adequate data access for researchers. X contests the fine, alleging an "incomplete and superficial investigation" and "grave procedural errors." The DSA mandates that all intermediary services publish annual transparency reports on their content moderation. For VLOPs and VLOSEs, these reports are required biannually and must include details on the accuracy of automated moderation systems and the number of items removed. To standardize these reports, the Commission has introduced mandatory templates that platforms must use for data collection starting in July 2025. Penalties for non-compliance with the DSA are substantial, with potential fines of up to 6% of a company's global annual turnover for serious infringements. The European Commission holds primary enforcement power over the largest platforms, including the authority to order access to data and algorithms to assess compliance. The regulation also enhances user rights, giving individuals the ability to appeal content moderation decisions and, on large platforms, the option to choose a feed not based on algorithmic profiling. Furthermore, the DSA introduces a complete ban on targeted advertising aimed at children and based on sensitive personal data. The DSA is part of a broader European strategy to create a safer and more accountable digital space and is complemented by the Digital Markets Act (DMA), which focuses on the market power of large "gatekeeper" platforms. This regulatory framework is expected to set a global standard for platform governance. The European Centre for Algorithmic Transparency was established to provide the Commission with technical assistance in enforcing the DSA. Enforcement is a shared responsibility between the Commission and national Digital Services Coordinators, who oversee smaller platforms. This collaborative structure aims to ensure consistent application of the rules across the EU.
