Massive Fines and Strict Rules: Is Your Company Ready for the Digital Services Act?

Massive Fines and Strict Rules: Is Your Company Ready for the Digital Services Act?

The Digital Services Act (DSA) is a new regulation introduced by the European Commission to govern online platforms operating in the EU. It requires online platforms to take measures to prevent, detect, and remove illegal content from their services, such as child sexual abuse material, terrorism-related content, hate speech, incitement to violence, and counterfeit products.

The implementation of this Act will occur in two phases:

  • From September 2023, 19 companies classified as “Very Large Online Platforms,” including Facebook, Instagram, Twitter, and YouTube, will be required to comply with the DSA.
  • From February 2024, most companies dealing with user-generated content will need to be compliant.

The Commission will have the power to impose fines of up to 6% of global revenue for a service provider. For example, a company like Meta generated $116 billion in revenue for 2022 and $23 billion in profit, it could face a $7 billion fine, representing a 30% hit to profits.

Companies operating online services for EU customers, even if incorporated elsewhere, need to begin preparing for the DSA now to ensure compliance when it comes into effect. Many businesses have user-generated content but may not realize it. This content can come in many forms, including:

  • Forum posts and comments
  • User profile descriptions
  • Product/Service reviews
  • In-game messages
  • Voice chat

If your company is affected by these new rules, it is essential to take steps to ensure preparedness for the regulation’s implementation. Sentinel can assist you in achieving compliance by providing the necessary tools. We are able to:

  • Automatically detect and flag illegal content for human moderators to review.
  • Classify sentiment, toxicity, fraud, suicidal thinking, threats, detect sensitive user information and more.
  • Create cases for each moderation action, for auditability and accountability.
  • Generate required reports for auditing purposes.

For further inquiries or a demo, please contact Sentinel at [email protected].