Illegal and harmful content is a big problem on social media or with Big Tech. These companies are likely to face heavy fines now as the new Digital services Act (DSA) is being floated in European Union. Non-compliance with the provisions could cost companies as much as 6 per cent of global annual sales. The rules will be effective in 2023/2024. Those who violate the Act repeatedly could be barred from operating in the European Union.

Thus DSA could become a global gold standard for regulating Big Tech and social media companies. All websites will be accountable to the DSA. Those with more than 45 million users will have to abide by stricter rules.

The deal awaits the signing off by the parliamentarians and the 27 EU countries. After that it will become official in 2022. Large companies will get four months to comply, and other companies 15 months.