The European Parliament and European Union member states have agreed on details of a proposed act that will require tech giants to more aggressively tackle illegal and harmful content on their platforms.

The EU on Saturday announced the agreement on the Digital Services Act, which aims to better protect internet users from illegal online goods, services or content.

The act will go into effect after it is approved by the European Parliament and EU member countries.

It would impose strict rules on online platforms and search engines that have over 45 million monthly users in the EU. Analysts say EU officials have US tech giants in mind, including Meta Platforms and Google's parent company, Alphabet.
The tech firms would be obliged to perform analyses every year to identify any systematic risks stemming from their services, and to take effective mitigation measures.

The obligation is aimed at preventing the spread of illegal content, misinformation that could adversely affect elections or public safety, and expressions that may aggravate discrimination.

The companies would also be banned from using personal data of minors for targeted advertising.

Any company that fails to comply would face a fine of up to six percent of its worldwide sales.

European Commission President Ursula von der Leyen called the latest agreement "historic." She said, "It gives practical effect to the principle that what is illegal offline, should be illegal online."
Last month, the EU reached an agreement on the Digital Markets Act to strengthen rules for tech giants in an aim to ensure fair competition.