EU Algorithm Law to Affect 19 Platforms

The European Union has confirmed the names of nearly two dozen platforms whose algorithms will face regulation under the Digital Services Act (DSA). This is reported by TechCrunch.

The list comprises a mix of widely known services. Most regulated platforms are developed by American commercial firms, with a few international and one non-profit organization.

The full list of 19 platforms named in the first wave is as follows:

• Alibaba AliExpress — online retail;
• Amazon Store — online retail;
• Apple AppStore — digital app store;
• Bing — search engine;
• Booking.com — hotel search service;
• Facebook — social network;
• Google Play — digital app store;
• Google Maps — mapping service;
• Google Search — search engine;
• Google Shopping — product search service;
• Instagram — social network;
• LinkedIn — social network;
• Pinterest — social platform;
• Snapchat — social network;
• TikTok — video service;
• Twitter — social network;
• Wikipedia — online encyclopedia;
• YouTube — video service;
• Zalando — online retail.

Under the law, the listed platforms meet the criteria for very large online platforms (VLOP) and very large search engines (VLOSE). The basis for inclusion in either category is having more than 45 million active users in the EU.

Designation as VLOP or VLOSE imposes additional requirements to assess and mitigate systemic risks arising from the use of algorithms and AI. Platforms must actively assess and report on potential issues related to ranking and recommendation tools.

The idea behind the EU is to use mandatory algorithmic transparency requirements to ensure accountability. The law requires regulated platforms to implement “reasonable, proportionate and effective mitigation measures” for identified risks, subject to independent auditing and oversight by the European Commission.

Fines for non-compliance can reach 6% of global annual turnover. Companies named on the lists must bring their platforms into compliance with the DSA by 25 August 2023.

Regulated VLOP/VLOSE risks include harm to fundamental rights caused by AI or algorithms, such as:

• freedom of expression;
• civic discourse and electoral processes;
• public safety and health;
• gender-based violence;
• child safety;
• mental health.

The DSA also imposes restrictions on micro-targeted advertising. The law bans processing personal data for targeted advertising or using information about children.

Users of VLOPS/VLOSE services must also be provided with clear information about why content is recommended to them. Platforms will be required to provide the right to opt out of profiling.

Additionally, under the law, VLOP must have a mechanism allowing users to flag illegal content and respond promptly to notifications.

The European Commission has signaled that the list may be expanded in the coming weeks. The agency plans to study more closely those platforms that have not confirmed compliance with the law’s criteria.

Earlier in July 2022, the European Parliament adopted the Digital Markets Act and the Digital Services Act, regulating tech giants in the areas of privacy, algorithms and competition.