Transparency

The Digital Services Act modernizes the EU’s e-Commerce Directive for the platform age. All online intermediaries must establish notice-and-action mechanisms for illegal content and publish transparency reports. Online platforms face additional obligations around traceability of traders, advertising transparency, and recommender system parameters. Very Large Online Platforms and Search Engines (over 45 million EU users) must conduct annual systemic risk assessments, submit to independent audits, provide data access to researchers, and implement crisis response protocols. The Act also bans dark patterns, targeted advertising to minors, and profiling based on sensitive data. The European Commission directly supervises VLOPs while member states oversee smaller platforms through Digital Services Coordinators.

The EU AI Act is the first comprehensive legal framework for artificial intelligence globally. It bans AI systems deemed unacceptable (social scoring, real-time biometric identification in public spaces for law enforcement, manipulation techniques). High-risk AI in areas like critical infrastructure, education, employment, credit scoring, and law enforcement must undergo conformity assessments, maintain technical documentation, implement human oversight mechanisms, and meet accuracy and robustness standards. General-purpose AI models have transparency obligations including disclosing training data summaries and energy consumption. Foundation model providers face additional requirements around systemic risk assessment. The regulation applies extraterritorially to anyone placing AI systems on the EU market.