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Digital Services Act

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83-937: The Digital Services Act ( DSA ) is an EU regulation adopted in 2022 that addresses illegal content, transparent advertising and disinformation. It updates the Electronic Commerce Directive 2000 in EU law , and was proposed alongside the Digital Markets Act (DMA). The DSA applies to online platforms and intermediaries such as social networks , marketplaces and app stores . Key requirements include disclosing to regulators how their algorithms work, providing users with explanations for content moderation decisions, and implementing stricter controls on targeted advertising. It also imposes specific rules on "very large" online platforms and search engines (those having more than 45 million monthly active users in

166-429: A supply-side platform server. The publisher is offering ad space for sale, so they are considered the supplier. The supply side platform also receives the user's identifying information, which it sends to a data management platform. At the data management platform, the user's identifying information is used to look up demographic information, previous purchases, and other information of interest to advertisers. The process

249-496: A 44% click-through rate, and instead of directing clickers to AT&T's website, the ad linked to an online tour of seven of the world's most acclaimed art museums. GoTo.com (renamed Overture in 2001, and acquired by Yahoo! in 2003) created the first search advertising keyword auction in 1998. Google launched its " AdWords " (now renamed Google Ads) search advertising program in 2000 and introduced quality-based ranking allocation in 2002, which sorts search advertisements by

332-432: A USENET posting titled "Green Card Lottery – Final One?" Canter and Siegel's Green Card USENET spam raised the profile of online advertising, stimulating widespread interest in advertising via both Usenet and traditional email. More recently, spam has evolved into a more industrial operation, where spammers use armies of virus-infected computers ( botnets ) to send spam remotely. Online banner advertising began in

415-676: A combination of bid price and searchers' likeliness to click on the ads. More recently, companies have sought to merge their advertising messages into editorial content or valuable services. Examples include Red Bull 's Red Bull Media House streaming Felix Baumgartner 's jump from space online, Coca-Cola 's online magazines, and Nike 's free applications for performance tracking. Advertisers are also embracing social media and mobile advertising; mobile ad spending has grown 90% each year from 2010 to 2013. According to Ad Age Datacenter analysis, in 2017 over half of agency revenue came from digital work. The March 2021 eBay advertisement for

498-502: A combination of bid price, expected click-through rate, keyword relevancy and site quality. Social media marketing is commercial promotion conducted through social media websites. Many companies promote their products by posting frequent updates and providing special offers through their social media profiles. Videos, interactive quizzes, and sponsored posts are all a part of this operation. Usually these ads are found on Facebook, Instagram, Twitter, and Snapchat . Mobile advertising

581-577: A comprehensive risk management and audit framework. Companies that do not comply with the new obligations risk fines of up to 6% on their global annual turnover. In addition, the Commission can apply periodic penalties up to 5% of the average daily worldwide turnover for each day of delay in complying with remedies, interim measures, and commitments. As a last resort measure, if the infringement persists and causes serious harm to users and entails criminal offences involving threat to persons' life or safety,

664-417: A demand side platform has 10 milliseconds to respond to an offer. The ad exchange picks the winning bid and informs both parties. The ad exchange then passes the link to the ad back through the supply side platform and the publisher's ad server to the user's browser, which then requests the ad content from the agency's ad server. The ad agency can thus confirm that the ad was delivered to the browser. This

747-539: A marketer from DEC (Digital Equipment Corporation), Gary Thuerk , sent an email to most of the ARPANET's American West Coast users, advertising an open house for a new model of a DEC computer. Despite the prevailing acceptable use policies, electronic mail marketing rapidly expanded and eventually became known as " spam ." The first known large-scale non-commercial spam message was sent on 18 January 1994 by an Andrews University system administrator, by cross-posting

830-577: A moving target for advertisers. Many vendors offer SEO services. Sponsored search (also called sponsored links, search ads, or paid search) allows advertisers to be included in the sponsored results of a search for selected keywords. Search ads are often sold via real-time auctions, where advertisers bid on keywords. In addition to setting a maximum price per keyword, bids may include time, language, geographical, and other constraints. Search engines originally sold listings in order of highest bids. Modern search engines rank sponsored listings based on

913-507: A penny was charged. This resulted in the advertisers monitoring the campaign by the number of clicks and were satisfied that the ads could be tracked. Search engine optimization , or SEO, attempts to improve a website's organic search rankings in SERPs by increasing the website content's relevance to search terms. Search engines regularly update their algorithms to penalize poor quality sites that try to game their rankings, making optimization

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996-527: A proportionate restriction on Delfi's right to freedom of expression. The court found that, given the serious nature of the hate speech, the Estonian courts' actions were justified to protect the rights of others. In other words, the ECtHR upheld the liability of online platforms for hate speech posted by their users, underlining that platforms could be expected to take proactive steps to control content when there

1079-409: A publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publisher's content. Other potential participants include advertising agencies that help generate and place the ad copy, an ad server which technologically delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for

1162-400: A regulation comes into force, it overrides all national laws dealing with the same subject matter and subsequent national legislation must be consistent with and made in the light of the regulation. While member states are prohibited from obscuring the direct effect of regulations, it is common practice to pass legislation dealing with consequential matters arising from the coming into force of

1245-703: A regulation. Although a regulation in principle has a direct effect, the Belgian Constitutional Court has ruled that the international institutions, such as the EU, may not derogate from the national identity as set out in the political and constitutional basic structures of the country, or the core values of the protection of the Constitution. Online marketing platform Online advertising , also known as online marketing , Internet advertising , digital advertising or web advertising ,

1328-557: A religious message to all USENET newsgroups. In January 1994 Mark Eberra started the first email marketing company for opt-in email lists under the domain Insideconnect.com. He also started the Direct Email Marketing Association to help stop unwanted email and prevent spam. Four months later, Laurence Canter and Martha Siegel , partners in a law firm, broadly promoted their legal services in

1411-728: A request for information (RFI), the procedure necessary to verify compliance with the DSA, and one is being subjected to a formal proceedings. 3 further platforms, all of them providing adult content, were added on 20 December 2023. The European Commission submitted the DSA alongside the Digital Markets Act (DMA) to the European Parliament and the Council on 15 December 2020. The DSA was prepared by von der Leyen Commission members Margrethe Vestager ( Executive Vice President of

1494-461: A restricted ad space. Trick banners: A trick banner is a banner ad where the ad copy imitates some screen elements users commonly encounter, such as an operating system message or popular application message, to induce ad clicks. Trick banners typically do not mention the advertiser in the initial ad, and thus they are a form of bait-and-switch . Trick banners commonly attract a higher-than-average click-through rate , but tricked users may resent

1577-617: A user can access requested content, sometimes while the user is waiting for the content to load. Interstitial ads are a form of interruption marketing . Text ads: A text ad displays text-based hyperlinks . Text-based ads may display separately from a web page's primary content, or they can be embedded by hyperlinking individual words or phrases to the advertiser's websites. Text ads may also be delivered through email marketing or text message marketing . Text-based ads often render faster than graphical ads and can be harder for ad-blocking software to block. Search engine marketing , or SEM,

1660-737: A variety of legislative procedures depending on their subject matter. Despite their name, Regulations are primary legislation rather than regulatory delegated legislation ; as such, they are often described as "Acts" (e.g. the Digital Services Act ). The description of regulations can be found in Article 288 of the Treaty on the Functioning of the European Union (formerly Article 249 TEC ). Article 288 To exercise

1743-410: A website visitor's initial browser window. A pop-under ad opens a new browser window under a website visitor's initial browser window. Pop-under ads and similar technologies are now advised against by online authorities such as Google, who state that they "do not condone this practice". Floating ad: A floating ad, or overlay ad, is a type of rich media advertisement that appears superimposed over

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1826-489: A website, a fan page, an app, or a product. Some examples are: Facebook's "Sponsored Stories", LinkedIn's "Sponsored Updates", and Twitter's "Promoted Tweets". This display ads format falls into its own category because unlike banner ads which are quite distinguishable, News Feed Ads' format blends well into non-paid news updates. This format of online advertisement yields much higher click-through rates than traditional display ads. The process by which online advertising

1909-624: Is a clear risk of harm from unlawful comments. This case highlighted the responsibilities of platforms to prevent the spread of harmful content. On the other hand, the MTE and Index.hu v. Hungary case illustrated the nuanced limits of freedom of speech on digital platforms. In its application of proportionality analysis, the ECtHR found that the Hungarian courts had failed to strike a fair balance between protecting reputation and ensuring freedom of expression. The Hungarian courts imposed strict liability on

1992-647: Is a form of marketing and advertising that uses the Internet to promote products and services to audiences and platform users. Online advertising includes email marketing , search engine marketing (SEM), social media marketing , many types of display advertising (including web banner advertising), and mobile advertising . Advertisements are increasingly being delivered via automated software systems operating across multiple websites, media services and platforms, known as programmatic advertising. Like other advertising media, online advertising frequently involves

2075-456: Is ad copy comprising an entire email or a portion of an email message. Email marketing may be unsolicited, in which case the sender may give the recipient an option to opt out of future emails, or it may be sent with the recipient's prior consent (opt-in). Businesses may ask for your email and send updates on new products or sales. As opposed to static messaging, chat advertising refers to real-time messages dropped to users on certain sites. This

2158-458: Is ad copy delivered through wireless mobile devices such as smartphones , feature phones , or tablet computers. Mobile advertising may take the form of static or rich media display ads, SMS (Short Message Service) or MMS (Multimedia Messaging Service) ads, mobile search ads, advertising within mobile websites, or ads within mobile applications or games (such as interstitial ads, " advergaming ", or application sponsorship). Industry groups such as

2241-406: Is almost (though not entirely) redundant to call 'content marketing' anything other than simply 'marketing'. There are, of course, other forms of marketing (in-person marketing, telephone-based marketing, word of mouth marketing, etc.) where the label is more useful for identifying the type of marketing. However, even these are usually merely presenting content that they are marketing as information in

2324-452: Is designed to increase a website's visibility in search engine results pages (SERPs). Search engines provide sponsored results and organic (non-sponsored) results based on a web searcher's query. Search engines often employ visual cues to differentiate sponsored results from organic results. Search engine marketing includes all of an advertiser's actions to make a website's listing more prominent for topical keywords. The primary reason behind

2407-519: Is displayed can involve many parties. In the simplest case, the website publisher selects and serves the ads. Publishers which operate their own advertising departments may use this method. Alternatively ads may be outsourced to an advertising agency under contract with the publisher, and served from the advertising agency's servers or ad space may be offered for sale in a bidding market using an ad exchange and real-time bidding, known as programmatic advertising. Programmatic advertising involves automating

2490-655: Is done using live chat software or tracking applications installed within certain websites with the operating personnel behind the site often dropping adverts on the traffic surfing around the sites. In reality, this is a subset of the email advertising but different because of its time window. Online classified advertising is advertising posted online in a categorical listing of specific products or services. Examples include online job boards, online real estate listings, automotive listings, online yellow pages , and online auction-based listings. Craigslist and eBay are two prominent providers of online classified listings. Adware

2573-462: Is illegal. This so-called "conditional liability exemption" is fundamentally different from the broad immunities given to intermediaries under the equivalent rule (" Section 230 CDA ") in the United States. The DSA applies to intermediary service providers that offer their services to users based in the European Union, irrespective of whether the intermediary service provider is established in

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2656-429: Is normally done in national legal systems. Regulations are in some sense equivalent to the legislative acts of the member states, in the sense that what they say is law and they do not need to be mediated into national law by means of implementing measures. As such, regulations constitute one of the most powerful forms of European Union law and a great deal of care is required in their drafting and formulation. When

2739-424: Is organised in five chapters, with the most important chapters regulating the liability exemption of intermediaries (Chapter 2), the obligations on intermediaries (Chapter 3), and the cooperation and enforcement framework between the commission and national authorities (Chapter 4). The DSA proposal maintains the current rule according to which companies that host others' data become liable when informed that this data

2822-513: Is simplified, according to the IAB. Exchanges may try to unload unsold ("remnant") space at low prices through other exchanges. Some agencies maintain semi-permanent pre-cached bids with ad exchanges, and those may be examined before going out to additional demand side platforms for bids. The process for mobile advertising is different and may involve mobile carriers and handset software manufacturers. Interstitial ads : An interstitial ad displays before

2905-569: Is software that, once installed, automatically displays advertisements on a user's computer. The ads may appear in the software itself, integrated into web pages visited by the user, or in pop-ups/pop-unders. Adware installed without the user's permission is a type of malware . Affiliate marketing occurs when advertisers organize third parties to generate potential customers for them. Third-party affiliates receive payment based on sales generated through their promotion. Affiliate marketers generate traffic to offers from affiliate networks , and when

2988-412: Is sometimes described as a 'waterfall'. Broadly speaking, there are three types of data obtained through such a data management platform: This customer information is combined and returned to the supply side platform, which can now package up the offer of ad space along with information about the user who will view it. The supply side platform sends that offer to an ad exchange . The ad exchange puts

3071-417: Is ubiquitous across online systems including websites, search engines, social media platforms, mobile applications and email. Google and Facebook dominate online display advertising, which has become a highly concentrated market, with estimates that they were responsible for 70% of overall US digital advertising revenue in 2016. The goal of display advertising is to obtain more traffic, clicks, or popularity for

3154-455: The Delfi AS v. Estonia and Magyar Tartalomszolgáltatók Egyesülete and Index.hu Zrt v. Hungary ECtHR cases, which outlined a framework for assessing intermediary liability on digital platforms. In Delfi AS v. Estonia, the ECtHR applied proportionality analysis when considering whether the Estonian courts' decision to hold the online platform Delfi liable for hate speech posted by its users was

3237-557: The General Court challenging the designations, claiming unequal treatment compared to other large retailers, and that their core business models are retail not distributing third party content/products. Zalando argued the criteria and methodology lack transparency, for instance in how it counts active users, while Amazon said VLOP rules are disproportionate for its business model and asked to be exempted from transparency around targeted ads. As of December 2023, 13 VLOPs have received

3320-523: The Commission can request the temporary suspension of the service. On 23 April 2023, the European Commission named a first list of 19 online platforms that will be required to comply starting 25 August 2023. They include the following very large online platforms (VLOPs) with more than 45 million monthly active users in the EU as of 17 February 2023. Very Large Online Search Engines (VLOSEs): Amazon and Zalando both initiated proceedings in

3403-786: The Council of the European Union and the European Parliament reached a deal on the Digital Services Act in Brussels following sixteen hours of negotiations. According to The Washington Post , the agreement reached in Brussels solidifies the two-bill plan— the Digital Services Act and the Digital Markets Act, a law regulating competition. The latter is aimed at preventing abuse of power against smaller competitors by larger "gatekeepers". On 5 July 2022,

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3486-411: The DSA regarding content related to the conflict and upcoming elections. The Atlantic Council 's Digital Forensic Research Lab reported that Breton's letters did not follow DSA processes, and digital rights group Access Now criticised Breton's letters for drawing a "false equivalence" between illegal content and disinformation. Tech companies have repeatedly criticised the heavy burden of the rules and

3569-463: The Digital Services Act have been mixed. In January 2022, the editorial board of The Washington Post stated that the U.S. could learn from these rules, while whistleblower Frances Haugen stated that it could set a "gold standard" of regulation worldwide. Tech journalist Casey Newton has argued that the DSA will shape US tech policy. Mike Masnick of Techdirt praised the DSA for ensuring the right to pay for digital services anonymously, but criticised

3652-567: The EU). Ursula von der Leyen proposed a "new Digital Services Act", in her 2019 bid for the European Commission's presidency. The expressed purpose of the DSA is to update the European Union's legal framework for illegal content on intermediaries, in particular by modernising the e-Commerce Directive adopted in 2000. In doing so, the DSA aims to harmonise different national laws in the European Union that have emerged at national level to address illegal content. Most prominent amongst these laws has been

3735-495: The European Commission for A Europe Fit for the Digital Age ) and Thierry Breton ( European Commissioner for Internal Market ). The Digital Services Act builds in large parts on the non-binding Commission Recommendation 2018/314 of 1 March 2018 when it comes to illegal content on platforms. However, it goes further in addressing topics such as disinformation and other risks especially on very large online platforms. As part of

3818-661: The European Parliament Jessica Stegrud argued that the DSA's focus on preventing the spread of disinformation and "harmful content" would undermine freedom of speech . EU regulation A regulation is a legal act of the European Union which becomes immediately enforceable as law in all member states simultaneously. Regulations can be distinguished from directives which, at least in principle, need to be transposed into national law . Regulations can be adopted by means of

3901-748: The European Parliament approved both the DSA and the DMA. Following this, on 4 October 2022, the European Council gave its final approval to the DSA. The DSA was adopted on 19 October 2022 and was published in the Official Journal of the European Union on 27 October 2022. It came into force on 16 November 2022. Most services were given 15 months to comply with its provisions (until 17 February 2024). However, "very large" online platforms and search engines, after their designation as such, had only four months to comply (until 23 August 2023). The DSA

3984-553: The European Union adopted its position on 25 November 2021. The most significant changes introduced by the Member States are to entrust the European Commission with the enforcement of the new rules, in the wake of allegations and complaints that the Irish Data Protection Watchdog was not effectively policing the bloc's data protection rules against platform companies. The Data Governance Act (DGA)

4067-401: The European Union. In addition to the liability exemptions, the DSA would introduce a wide-ranging set of new obligations on platforms, including some that aim to disclose to regulators how their algorithms work, while other obligations would create transparency on how decisions to remove content are taken and on the way advertisers target users. The European Centre for Algorithmic Transparency

4150-606: The German NetzDG , and similar laws in Austria ("Kommunikationsplattformen-Gesetz") and France (" Loi Avia "). With the adoption of the Digital Services Act at European level, those national laws would be overwritten and would have to be repealed. In practice, this will mean new legislation regarding illegal content, transparent advertising and disinformation. The DSA is meant to "govern the content moderation practices of social media platforms" and address illegal content. It

4233-712: The Mobile Marketing Association have attempted to standardize mobile ad unit specifications, similar to the IAB's efforts for general online advertising. Mobile advertising is growing rapidly for several reasons. There are more mobile devices in the field, connectivity speeds have improved (which, among other things, allows for richer media ads to be served quickly), screen resolutions have advanced, mobile publishers are becoming more sophisticated about incorporating ads, and consumers are using mobile devices more extensively. The Interactive Advertising Bureau predicts continued growth in mobile advertising with

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4316-618: The Parliament voted to introduce amendments in the DSA for tracking-free advertising and a ban on using a minor's data for targeted ads, as well as a new right for users to seek compensation for damages. In the wake of the Facebook Files revelations and a hearing by Facebook Whistleblower Frances Haugen in the European Parliament, the European Parliament also strengthened the rules on fighting disinformation and harmful content, as well as tougher auditing requirements. The Council of

4399-458: The Union's competences, the institutions shall adopt regulations, directives, decisions, recommendations and opinions. A regulation shall have general application. It shall be binding in its entirety and directly applicable in all Member States. A directive shall be binding, as to the result to be achieved, upon each Member State to which it is addressed, but shall leave to the national authorities

4482-514: The act for not including provisions that would have required a court order for the removal of illegal content. Scholars have begun critically examining the Digital Services Act. Some academics have expressed concerns that the Digital Services Act might be too rigid and prescribed, excessively focused on individual content decisions or vague risk assessments. Civil Society organisations such as Electronic Frontier Foundation have called for stronger privacy protections. Human Rights Watch has welcomed

4565-470: The adoption of location-based targeting and other technological features not available or relevant on personal computers. In July 2014 Facebook reported advertising revenue for the June 2014 quarter of $ 2.68 billion, an increase of 67 percent over the second quarter of 2013. Of that, mobile advertising revenue accounted for around 62 percent, an increase of 41 percent on the previous year. Email advertising

4648-443: The advertiser can later retarget the user with ads from the site the user visited. As advertisers collect data across multiple external websites about a user's online activity, they can create a detailed profile of the user's interests to deliver even more targeted advertising. This aggregation of data is called behavioral targeting . Advertisers can also target their audience by using contextual to deliver display ads related to

4731-448: The advertiser for deceiving them. "News Feed Ads", also called "Sponsored Stories", "Boosted Posts", typically exist on social media platforms that offer a steady stream of information updates ("news feed" ) in regulated formats (i.e. in similar sized small boxes with a uniform style). Those advertisements are intertwined with non-promoted news that the users are reading through. Those advertisements can be of any content, such as promoting

4814-430: The advertiser. In 2016, Internet advertising revenues in the United States surpassed those of cable television and broadcast television . In 2017, Internet advertising revenues in the United States totaled $ 83.0 billion, a 14% increase over the $ 72.50 billion in revenues in 2016. And research estimates for 2019's online advertising spend put it at $ 125.2 billion in the United States, some $ 54.8 billion higher than

4897-484: The advertising brand or organization. Display advertisers frequently target users with particular traits to increase the ads' effect. Web banners or banner ads typically are graphical ads displayed within a web page. Many banner ads are delivered by a central ad server . Banner ads can use rich media to incorporate video, audio, animations, buttons, forms, or other interactive elements using Java applets , HTML5 , Adobe Flash , and other programs. Frame ads were

4980-419: The alleged lack of clarity of the Digital Services Act, and have been accused of lobbying to undermine some of the more far-reaching demands by law-makers, notably on bans for targeted advertising, and a high-profile apology from Sundar Pichai to Breton on leaked plans by Google to lobby against the Digital Services Act. A bipartisan group of US senators have called the DSA and DMA discriminatory, claiming that

5063-496: The choice of form and methods. A decision shall be binding in its entirety upon those to whom it is addressed. Recommendations and opinions shall have no binding force. The Council can delegate legislative authority to the Commission and, depending on the area and the appropriate legislative procedure, both institutions can make laws. There are Council regulations and Commission regulations. Article 288 does not clearly distinguish between legislative acts and administrative acts, as

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5146-538: The content of the web page where the ads appear. Retargeting, behavioral targeting, and contextual advertising all are designed to increase an advertiser's return on investment , or ROI, over untargeted ads. Advertisers may also deliver ads based on a user's suspected geography through geotargeting . A user's IP address communicates some geographic information (at minimum, the user's country or general region). The geographic information from an IP can be supplemented and refined with other proxies or information to narrow

5229-597: The desired action is taken by the visitor, the affiliate earns a commission. These desired actions can be an email submission, a phone call, filling out an online form, or an online order being completed. Content marketing is any marketing that involves the creation and sharing of media and publishing content in order to acquire and retain customers. This information can be presented in a variety of formats, including blogs, news, video, white papers, e-books, infographics, case studies, how-to guides and more. Considering that most marketing involves some form of published media, it

5312-538: The early 1990s as page owners sought additional revenue streams to support their content. Commercial online service Prodigy displayed banners at the bottom of the screen to promote Sears products. The first clickable web ad was sold by Global Network Navigator in 1993 to a Silicon Valley law firm. In 1994, web banner advertising became mainstream when HotWired , the online component of Wired Magazine , and Time Warner 's Pathfinder sold banner ads to AT&T and other companies. The first AT&T ad on HotWired had

5395-506: The early days of the Internet , online advertising was mostly prohibited. For example, two of the predecessor networks to the Internet, ARPANET and NSFNet , had "acceptable use policies" that banned network "use for commercial activities by for-profit institutions". The NSFNet began phasing out its commercial use ban in 1991. The first widely publicized example of online advertising was conducted via electronic mail . On 3 May 1978,

5478-640: The first Asian Giant Hornet ( Vespa mandarinia ) nest in the US was controversial. The owner of the first nest discovered in the United States – in Blaine, Washington – demanded its return instead of allowing scientific investigation, and proceeded to sell it. A nearby beekeeper bought it to gift it back to the state entomology team which had exterminated it, for study. Display advertising conveys its advertising message visually using text, logos, animations, videos, photographs, or other graphics. Display advertising

5561-408: The first form of web banners. The colloquial usage of "banner ads" often refers to traditional frame ads. Website publishers incorporate frame ads by setting aside a particular space on the web page. The Interactive Advertising Bureau 's Ad Unit Guidelines propose standardized pixel dimensions for ad units. Pop-ups/pop-unders: A pop-up ad is displayed in a new web browser window that opens above

5644-654: The legislation would "focus on regulations on a handful of American companies while failing to regulate similar companies based in Europe, China, Russia and elsewhere." The DSA was mostly welcomed by the European media sector. Due to the influence gatekeepers have in selecting and controlling the visibility of certain journalistic articles over others through their online platforms, the European Federation of Journalists encouraged EU legislators to further increase

5727-642: The need for a balance between protecting reputation and upholding free speech on digital platforms. These decisions by the ECtHR provided critical legal precedents that shaped the EU’s decision-making process on the framework of the DSA. In particular, the DSA drew from the ECtHR's distinction between different types of illegal content, as well as its proportionality analysis in both cases, by incorporating nuanced rules on intermediary liability and ensuring that measures taken by platforms do not unreasonably restrict users' freedom of expression and information. Media reactions to

5810-505: The offer out for bid to demand-side platforms . Demand side platforms act on behalf of ad agencies, who sell ads which advertise brands. Demand side platforms thus have ads ready to display, and are searching for users to view them. Bidders get the information about the user ready to view the ad, and decide, based on that information, how much to offer to buy the ad space. According to the Internet Advertising Bureau ,

5893-419: The platforms for user comments that were offensive but did not constitute hate speech, constituting a disproportionate interference in the platforms' right to freedom of expression. The ECtHR ruled that imposing strict liability on platforms for user comments, without consideration of the nature of the comments or the context in which they were made, could infringe on freedom of expression. This judgment emphasized

5976-400: The preparatory phase, the European Commission launched a public consultation on the package to gather evidence between July and September 2020. An impact assessment was published alongside the proposal on 15 December 2020 with the relevant evidence base. The European Parliament appointed Danish Social Democrat Christel Schaldemose as rapporteur for the Digital Services Act. On 20 January 2022

6059-425: The range of possible locations. For example, with mobile devices, advertisers can sometimes use a phone's GPS receiver or the location of nearby mobile towers. Cookies and other persistent data on a user's machine may help narrow down a user's location even further. This involves many parties interacting automatically in real time. In response to a request from the user's browser, the publisher content server sends

6142-423: The requested website's content. Floating ads may disappear or become less obtrusive after a pre-set time period. Expanding ad: An expanding ad is a rich media frame ad that changes dimensions upon a predefined condition, such as a preset amount of time a visitor spends on a webpage, the user's click on the ad, or the user's mouse movement over the ad. Expanding ads allows advertisers to fit more information into

6225-403: The rising popularity of Search Engine Marketing has been Google. There were a few companies that had its own PPC and Analytics tools. However, this concept was popularized by Google. Google Ad words was convenient for advertisers to use and create campaigns. And, they realized that the tool did a fair job, by charging only for someone's click on the ad, which reported as the cost-per-click for which

6308-402: The sale and delivery of digital advertising on websites and platforms via software rather than direct human decision-making. Advertisements are selected and targeted to audiences via ad servers which often use cookies , which are unique identifiers of specific computers, to decide which ads to serve to a particular consumer. Cookies can track whether a user left a page without buying anything, so

6391-482: The spend on television ($ 70.4 billion). Many common online advertising practices are controversial and, as a result, have become increasingly subject to regulation. Many internet users also find online advertising disruptive and have increasingly turned to ad blocking for a variety of reasons. Online ad revenues also may not adequately replace other publishers' revenue streams. Declining ad revenue has led some publishers to place their content behind paywalls . In

6474-609: The transparency and user remedies but called for an end to abusive surveillance and profiling. Amnesty International has welcomed many aspects of the proposal in terms of fundamental rights balance, but also asked for further restrictions on advertising. Advocacy organisation Avaaz has compared the Digital Services Act to the Paris Agreement for climate change. Following the 2023 Hamas-led attack on Israel , Thierry Breton wrote public letters to X , Meta Platforms , TikTok , and YouTube on how their platforms complied with

6557-664: The transparency of platforms' recommendation systems via the DSA. Nevertheless, the DSA's later stage inter-institutional negotiations, or trilogues , have been criticized as lacking transparency and equitable participation. These criticisms mirror past experiences with the drafting of the EU Regulation on Preventing the Dissemination of Terrorist Content Online as well as the General Data Protection Regulation (GDPR). Swedish member of

6640-418: The web page content to the user's browser over the Internet. The page does not yet contain ads, but contains links which cause the user's browser to connect to the publisher ad server to request that the spaces left for ads be filled in with ads. Information identifying the user, such as cookies and the page being viewed, is transmitted to the publisher ad server. The publisher ad server then communicates with

6723-680: Was created to aid the enforcement of this. A December 2020 Time article said that while many of its provisions only apply to platforms which have more than 45 million users in the European Union , the Act could have repercussions beyond Europe. Platforms including Facebook , Twitter , TikTok , and Google's subsidiary YouTube would meet that threshold and be subjected to the new obligations. A 16 November 2021 Internet Policy Review listed some of new obligations including mandatory "notice-and-action" requirements, for example, respect fundamental rights, mandatory redress for content removal decisions, and

6806-550: Was formally approved by the European Parliament on 6 April 2022. This sets up a legal framework for common data spaces in Europe which will increase data sharing in sectors such as finance, health, and the environment. With Russia using social media platforms to spread misinformation about the 2022 Russian invasion of Ukraine , European policymakers felt a greater sense of urgency to move the legislation forward to ensure that major tech platforms were transparent and properly regulated, according to The Washington Post . On 22 April 2022,

6889-707: Was passed alongside the Digital Market Act and the Democracy Action Plan. The latter of these is focused on addressing the nuanced legal interpretation of free speech on digital platforms, a fundamental right that has been extensively guided by the European Court of Human Rights (ECtHR) and the European Convention on Human Rights . Accordingly, the Democracy Action Plan, and subsequently the DSA, were strongly influenced by

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