What will be the economic impact of the Digital Services Act (DSA) on the business models of Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) in the EU?

Abstract

The thesis will firstly dive into the meaning of the DSA and its temporal, geographical and material scope, i.e., the different intermediary services and their obligations in relation to the DSA. Afterwards, the principle of transparency and its connection with the DSA is explained on the basis of the transparency obligations relating to content moderation, recommender systems, systemic risk assessment and advertising. The liability exemption system of the DSA is explained before finally turning to the analysis of the enforcement system of the DSA and its role of the different actors. These include the digital service coordinators, the European Commission and private entities. The empirical section of the thesis is based on a case study of Meta’s VLOPs (Facebook and Instagram). This case study is grounded in official transparency and risk assessment reports as well as an expert interview with Meta’s Public Policy Manager and offers insights into how one of the world’s largest VLOPs is responding to the demands of the DSA.