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Tech companies face billions in fines under EU content rules

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The world’s biggest technology companies could face billions of dollars in fines for breaches of new European Union legislation, details of which are expected to be agreed upon by lawmakers as soon as Friday.

The landmark Digital Services Act is the EU’s answer to what it sees as a failure by tech giants to combat illegal content on their platforms. Noncompliance could cost companies as much as 6% of their global annual sales when the rules go into effect as early as 2024.

All websites will be accountable to the DSA, but platforms with more than 45 million users will have to abide by stricter rules such as paying Brussels a supervisory fee of as much as 0.1% of their global annual revenue to enforce the law, and providing regulators with annual reports about illegal and harmful content on a their sites.

Large companies – including the likes of TikTok and Pornhub – will face additional obligations including opening their algorithms to enforcers and designated researchers. Those routinely violating the rules could be temporarily banned from conducting mergers and acquisitions.

 

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