Digital Services Act: EU Cracks Down on Online Platforms Over Illegal Content Reporting

Brussels – A recent study by the German Federal Association of Consumer Organizations (Verbraucherzentrale Bundesverband – vzbv) reveals that major online platforms are failing to provide accessible and user-friendly procedures for reporting illegal content, as mandated by the European Union’s Digital Services Act (DSA). The investigation, encompassing five marketplaces (AliExpress, Amazon, Shein, Temu, and Zalando) and five social media platforms (Facebook, Instagram, Snapchat, TikTok, and YouTube), found significant obstacles hindering users’ ability to flag illegal activities like fraudulent fake shops.

DSA Requirements and Findings

The DSA, which came into full effect in February 2024, stipulates that online platforms must offer easily accessible and user-friendly reporting mechanisms. However, the vzbv study found that platforms routinely employ technical hurdles, manipulative designs, and a lack of transparency in their reporting channels.

“Platforms pose significant hurdles,” stated Ramona Pop, board member of the vzbv. “If users of online platforms wanted to report this content, they would sometimes have to overcome considerable hurdles. That has to change. Platforms are obliged to provide easily accessible options for reporting such content.”

Specific issues identified by consumer advocates included difficult-to-access reporting channels, confusing selection lists, long click paths, duplication of required information, and a lack of confirmation receipts.

Enforcement and Penalties

The European Commission is actively enforcing the DSA, and platforms face substantial fines for non-compliance. In December 2023, the Commission issued its first DSA-related fine of €120 million against X (formerly Twitter) . Investigations against Meta (Facebook and Instagram) and AliExpress are ongoing.

The Commission accepted commitments offered by AliExpress in June 2025 to address concerns related to transparency on advertising and recommender systems, making them binding . However, a preliminary investigation also found AliExpress in breach of its obligation to assess and mitigate risks related to the dissemination of illegal products under the DSA.

DSA and Transatlantic Relations

The DSA has become a point of contention in transatlantic relations. The United States government has accused the EU of using the DSA to implement censorship measures and views potential fines as a declaration of war.

Impact on Advertising Technology

The DSA also has significant implications for the advertising technology (AdTech) industry. Article 26 of the DSA requires platforms to provide real-time information to consumers about advertisements, including identifying ads as such, revealing the advertiser, and detailing targeting parameters . This impacts Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) through algorithmic transparency requirements outlined in Article 39.

Key Takeaways

• The DSA mandates accessible reporting mechanisms for illegal content on online platforms.
• A recent study shows major platforms are failing to meet these requirements.
• The European Commission is actively enforcing the DSA and issuing substantial fines for non-compliance.
• The DSA is a source of tension in EU-US relations.
• The DSA impacts advertising transparency and algorithmic accountability.