What we've learned in 2 months.
May 28, 2024
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It’s officially been 2 months since we launched Unveil — and we’ve learned a lot!
Over these past few months, we’ve spoken with 30+ T&S, policy, legal, and compliance leaders, and wanted to share what we’ve been hearing.
The DSA is impacting organizations deeply
Many companies are still navigating the requirements and implications of the EU Digital Services Act (DSA). Compliance efforts are ongoing, and there is a clear need for more streamlined and efficient processes.
The law has been in effect for the Very Large Online Platforms and Search Engines (VLOPs and VLOSEs) as of August 2023. But as of February 2024, all intermediary services, hosting services, and online platforms with a presence in the EU are now subject to the regulation.
It's clear services are attempting to comply, but from the organizations we've chatted with, it's not always clear to internal teams how to best approach each component of the regulation — specifically on the transparency reporting front.
Attempts to comply are also fueled by the European Commission's enforcement approach. In January, the European Commission has announced they are hiring 40+ enforcement officers to execute the DSA. Two weeks ago, the EC and UK's Ofcom have announced an agreement to support one another's enforcement of the DSA and UK Online Safety Act. And, we're seeing DSA enforcement efforts play out in real time, with formal investigations opened into both TikTok and Meta.
Transparency Reporting is complex but has outsized value
Two core problems arise for platforms starting to develop compliant transparency reports — but platforms who build out excellent reports experience value beyond compliance.
First, it's not immediately clear what goes into these reports. Each regulation that demands an annual transparency report has different requirements. Moreover, it can be difficult to reconcile internal operations with regulatory requirements. Companies who have succeeded in building robust transparency reporting frameworks have strong data practices and fidelity, understanding of how to contextualize their data, and an understanding of new requirements — all of which are easier said than done.
Second, these reports are resource intensive. Most platforms who have been producing transparency reports are allocating 8+ teams over 4-6 months per report. Juggling the current regulatory requirements with the fact that team members oftentimes have other responsibilities results in significant pressure.
That being said, platforms who have robust transparency reports are seeing value — in compliance efforts and beyond.
Beyond compliance, companies that have implemented transparency reporting find significant value in sharing these metrics with users and advertisers to highlight their brand safety messaging. For platforms like Snapchat, Twitch, and Pinterest, their transparency metrics are leveraged by advertisers as part of GARM's Aggregated Measurement Reports. These analyses highlight platforms' commitments to user safety, and help them better position themselves to the public and advertisers.
Technology and automation are key
Speed and accuracy are critical, given the importance of transparency reporting and regulatory compliance for organizations in response to new laws like the DSA. Leveraging technology and automation can greatly reduce the time and effort required to produce transparency reports.
Currently, most platforms use numerous systems to store relevant data — and the lack of centralization makes producing reports a challenge. This is compounded by the fact that operational systems were built (understandably) to keep users safe — not adapt metrics to every new law that demands a transparency report.
There’s a growing interest in solutions that can streamline data collection, analysis, and reporting processes. If this sounds like you, we're able to help.