The Koodseadus covers a wide range of digital services, including online marketplaces, social media platforms, search engines, and cloud services. It introduces obligations for providers based on their size and the nature of their activities. Larger platforms, classified as "very large online platforms" (VLOPs) or "very large online search engines" (VLOSEs), face stricter requirements, such as conducting regular risk assessments, implementing content moderation systems, and ensuring transparency in their algorithms. These platforms must also designate a representative within the EU to facilitate oversight and compliance.
Key provisions of the Koodseadus include measures to combat illegal content, such as hate speech, disinformation, and illegal products. Platforms are required to establish effective notice-and-action procedures to remove or disable access to illegal content promptly. Additionally, the act mandates that platforms provide users with clear information about the use of their data, the functioning of recommendation systems, and the possibility of appealing content moderation decisions.
The regulation also emphasizes user rights, ensuring that individuals have greater control over their personal data and the content they interact with online. It introduces stricter rules on targeted advertising, particularly for children and minors, and requires platforms to provide tools for users to manage their privacy settings effectively.
Enforcement of the Koodseadus falls under the jurisdiction of national authorities designated by EU member states, with the European Commission acting as a supervisory body. Non-compliance with the act can result in significant fines, up to 6% of a company’s global annual turnover or €6 million, whichever is greater. The Koodseadus represents a significant step in harmonizing digital regulations across the EU and strengthening consumer protection in the digital space.