In brief
Over the past year, a global push to regulate the safety, accountability, and transparency of online services have begun to crystalize. In late 2023, the EU Digital Services Act came into force alongside the passage of the UK Online Safety Act, signaling a significant shift in how digital intermediaries are regulated.
While the US has yet to pass federal legislation, both state and federal regulators invoking concerns about privacy and consumer rights and state lawmakers focusing on children’s safety, have worked to address the gap.
Beyond the EU, UK, and US, laws like the Australian Online Safety Act are contributing to an expanding landscape of digital regulation. The full impact – both intended and unintended – of these developments will unfold over the coming years.
Digital intermediaries have long been subject to general laws and an assortment of targeted obligations. However, the EU Digital Services Act and the UK Online Safety Act reflect first attempts at the comprehensive regulation of online harm, as well as various other perceived risks and challenges arising from digital intermediaries related to transparency and accountability. They come at a time when lawmakers and regulators are also keenly focused on competition and consumer issues in digital ecosystems, with reforms such as the EU Digital Markets Act and UK Digital Markets, Competition and Consumers Act imposing parallel obligations on so-called digital ‘gatekeepers.’
Adopting the lexicon of Australia’s 2021 Online Safety Act – an early, industry-led framework passed by federal lawmakers in Australia – many jurisdictions are increasingly framing the issue of digital risk as a question of online safety, especially that of children.
In the US, the Kids Online Safety Act – a sweeping Bill passed by the Senate that would impose a duty of care on covered platforms, along with various safeguarding, disclosure and transparency requirements – reflects mounting bipartisan efforts at a federal level to regulate in this space. Despite uncertainty as to whether it has the necessary traction to pass the House, the law signals the intent with which many lawmakers are confronting the issue.
The debate over online safety is just beginning; emerging technologies and processes that are being developed now may well fundamentally change our expectations of the way we participate in life online.
Rachael Annear, Partner
While the US debates the merits and constitutionality of laws seeking to improve online safety, accountability and transparency, the UK, EU and various other jurisdictions have moved forward with robust reforms that may ultimately drive global standards.
Tristan Lockwood, Senior Associate
Looking ahead
As we move forward, we anticipate that more jurisdictions will introduce laws aimed at enhancing the safety, accountability, and transparency of digital intermediaries. As these regulations evolve, we expect regulators to:
- Leverage new laws to tackle perceived risks and address control deficiencies.
- Utilize transparency mechanisms to bridge the information gaps between digital service providers and consumers.
- Focus on service providers that fail to adhere to their terms of service and public statements, particularly regarding content moderation.
With this shifting regulatory landscape, it’s essential for providers to consider any structural changes necessary to ensure that their product development, launch, and monitoring processes, along with compliance design and assurance frameworks, are robust and fit for purpose in the medium and long term.
