News & Analysis

Big Tech Bends Over in Europe

Europe’s Digital Services Act seems to hit bullseye as companies race to comply. Can India also use its large population to get Big Tech to bend?

A week ago, we had reported Google’s response to transparency slurs in the past and even hinted at why the search and advertising giant was taking those steps. It turns out now that the Big Tech giant was preparing to bend over backwards to comply with the European Union’s Digital Services Act (DSA). 

In a fresh blog post, Google has said it would increase the quantum of information provided around targeted ads in the region, while also expanding access to the data to third-party researchers analyzing systemic content risks. Google couldn’t have timed it better as the DSA kicks in from today in the European Union for platforms with more than 45 million users. 

Of course, Google isn’t the only one bending over backwards. Others such as Meta, TikTok and Snap have also come out with announcements on how they intend to keep on the right side of the law. And the reasons are obvious. The EU has set major fines to the tune of 6% of global annual turnover or a possible loss of 450 million consumers at one go. 

Are these tech giants spinning a yarn?

While Google and others have fallen in line, there are a few that haven’t. Amazon has legally questioned the EU’s classification of its business as a Very Large Online Platform (Really!)  while Elon Musk seems to be cocking a snook with X (formerly Twitter), which was also designated as a VLOP. It remains to be seen whether Musk blinks. Or continues to wink! 

What’s interesting is that these tech giants seem to be spinning the narrative as an expansion of already existing measures, though it is quite obvious that the platforms are being forced to be more transparent, given the threat of pay up (fines) or pack up. That being the case, should India take a leaf out of the DSA and bargain better around its larger internet user base?

What’s Google offering now?

For the records, here’s what Google says in the new blog post. The Ads Transparency Center that it announced last week appears specific to DSA provisions and will provide additional data on targeting of ads served in the EU, the blog says. “These steps build on our many years of work to expand the transparency of online ads,” says the ad-tech giant. 

“Building on our prior efforts to help advance public understanding of our services, we will increase data access for researchers looking to understand more about how Google Search, YouTube, Google Maps, Google Play and Shopping work in practice, and conducting research related to understanding systemic content risks in the EU,” the company says. 

It further notes that the DSA compliance measures to boost transparency also includes content moderation decisions in its ambit. So, Google would provide users with different ways to contact it, and update its reporting and appeals process to include specified types of information and context about the company’s decisions.

Will it work though? Only time will tell 

Sounds fair? Well, one cannot say for sure till users start flagging issues they face. But for now, it is quite clear that Google is ready to bend over backwards and its Transparency Center is a white board on which users can write. Whether they get responses in time and if those are solutions or mere words is something only time will tell. 

And finally, Google also said the transparency reports will include information on how it handles content moderation across its services like Search, Google Play, Maps and Shopping. It will also be tracking illegal content dissemination, fundamental rights, public health and civic discourse and report to EU regulators and independent auditors. 

This is just the start, EU has more regulations coming

Most Big Tech giants know that compliance around VLOPs and Very Large Online Search Engines are just the start as DSA will apply to a broader range of platforms and services with compliance dates set for early next year. These include driving transparency and accountability around the use of AI and other recommender algorithms. 

Per the new laws in the EU, these platforms will have to provide users more choice around how algorithms shape the content they see and proactively address AI-driven risks on their services. They also need to share data to independent researchers who can study it and prepare reports on societal impacts of these algorithmic content dissemination processes. 

In addition, the EU also set up a new AI research center in Seville, Spain that will support the European Commission’s oversight of Big Tech. They will also check on the recommender systems that profile users and monitor how much of a user’s activity is being monitored and whether requisite consents are in place. 

As of now, Google is silent on measures that it may be taking to comply with these two aspects of the DSA though there was a report that YouTube had disabled watch recommendations for those who had sought to turn-off watch history. Now, it remains to be seen how much of these rules Google adheres to in India or if it customizes its response to suit India’s laws. 

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