Technology

EU Launches Investigations into AliExpress and LinkedIn for DSA Compliance as AI Act Clears Parliament

The European Union Scrutinizes AliExpress and LinkedIn for Digital Services Act Compliance

In a significant development for the digital landscape in Europe, the European Union has launched investigations into whether the e-commerce platform AliExpress and the professional networking site LinkedIn are in compliance with the newly implemented Digital Services Act (DSA). At the same time, the European Parliament has approved the Artificial Intelligence Act, aimed at mitigating the risks associated with AI technologies and ensuring user safety.

AliExpress, a subsidiary of the Chinese e-commerce giant Alibaba, and LinkedIn, owned by Microsoft, are under scrutiny to determine their alignment with the DSA. The DSA is part of a comprehensive package of regulations introduced by the EU to ensure a safer digital space where the fundamental rights of users are protected and to establish a level playing field for businesses. These investigations will determine if the companies meet the stringent transparency and user protection standards required under the act.

The Digital Services Act mandates clear guidelines for the removal of illegal content, safeguards users’ fundamental rights online, and obliges platforms to be more transparent about their algorithms and content moderation processes. Non-compliance with the DSA can result in hefty fines, up to 6% of a company’s total worldwide annual turnover.

European Parliament Approves Artificial Intelligence Act

On a parallel track, the European Parliament’s approval of the Artificial Intelligence Act marks a critical step in the region’s efforts to set global standards for AI. The legislation is a comprehensive attempt to address the ethical and safety concerns posed by AI technologies. It categorizes AI applications based on their risk to citizens’ rights and safety, outlining requirements and prohibitions for high-risk uses. For instance, the Act intends to ban certain AI practices deemed too risky, such as real-time biometric identification systems in public spaces.

Both of these moves reflect the EU’s proactive stance in shaping the future of digital governance and its commitment to protecting consumers in the increasingly digital economy. The implications of these regulatory actions are far-reaching, affecting global tech giants and shaping the development and deployment of AI technologies.

With the AI Act, Europe is positioning itself as a leader in the ethical use of AI, encouraging innovation while prioritizing trust and safety. It’s a delicate balance between fostering technological advancement and safeguarding societal values, which the EU seems determined to achieve.

Impact on the Tech Industry

These investigations and legislative advancements underscore the need for international tech companies to navigate a complex regulatory environment in Europe. As the digital economy continues to evolve, regulatory compliance will be a major focus for companies seeking to operate within the EU.

The unfolding events surrounding the DSA and the AI Act will undoubtedly have a profound impact on the tech industry, potentially setting a precedent for other nations to follow suit in the quest for a safe and equitable digital future.

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