Did the EU just upend the internet? Fundamental changes for US platforms in Europe

The Court of Justice of the European Union recently issued a decision in X v. Russmedia which, despite not grabbing headlines, has the potential to fundamentally upend the internet — and to challenge how U.S. digital services operate in Europe. The CJEU may have just introduced obligations for websites and platforms to verify user identities, proactively scan and block content, and force third-party sites to take content down — all backed up by the threat of EU General Data Protection Regulation fines and litigation.      

Background 

The case started through a dispute between a Romanian woman on a Craigslist-style marketplace site in Romania called Publi24.ro operated by Russmedia. An unknown third party posted a fake ad about the woman, claiming she offered sexual services — while also posting her real photo and phone number in the ad. The plaintiff complained to Russmedia; it took down the posting within an hour. However, the ad remained available on other third-party sites.  

This notice-and-takedown procedure complied with the EU's e-Commerce Directive, the e-commerce law in effect at the time — the predecessor to the Digital Services Act. The DSA retains the notice-and-takedown procedure and, like its predecessor, exempts platforms from liability if they promptly remove content after being notified that it infringes on others’ rights.