Systemic Risk Assessment
A systemic risk assessment is an evaluation that very large online platforms (VLOPs) and very large online search engines (VLOSEs) must conduct to identify, analyze, and assess risks arising from their services. In the context of elections, it examines how platform design, algorithms, and content dissemination might negatively affect electoral processes, civic discourse, or democratic participation. This assessment forms the basis for implementing appropriate risk mitigation measures.
Legal Basis
While Regulation 2024/900 does not directly require systemic risk assessments, VLOPs and VLOSEs must comply with obligations under the Digital Services Act (DSA). For political advertising specifically, platforms must assess how their services might amplify risks during electoral periods.
"Very large online platforms and very large online search engines shall diligently identify, analyse and assess any systemic risks in the Union stemming from the design or functioning of their service and its related systems... including any actual or foreseeable negative effects on civic discourse and electoral processes."
— Article 34(1), Regulation (EU) 2022/2065 (Digital Services Act)
Why It Matters
Systemic risk assessments are mandatory for the largest platforms and search engines operating in the EU, particularly those with 45 million or more monthly active users in the Union. During election periods, these assessments must examine how political advertising—including its transparency, targeting methods, and dissemination—could harm democratic processes.
For platforms publishing political advertising, the assessment should evaluate risks such as foreign interference, disinformation campaigns, manipulation through microtargeting, and algorithmic amplification of divisive content. The findings directly inform what mitigation measures must be implemented, such as enhanced transparency notices, restrictions on targeting techniques, or improved content moderation.
Failure to conduct adequate assessments or implement appropriate mitigation measures can result in significant fines under the DSA—up to 6% of global annual turnover. National regulators and the European Commission actively monitor compliance, especially around major electoral events like European Parliament elections.
Key Points
- Mandatory for VLOPs/VLOSEs: Only platforms and search engines with 45+ million monthly EU users must conduct formal systemic risk assessments, though smaller platforms should still evaluate election-related risks
- Election-specific focus: Assessments must examine "actual or foreseeable negative effects on civic discourse and electoral processes," including risks from political advertising dissemination
- Drives mitigation measures: The assessment identifies which risks require action, informing transparency requirements, targeting restrictions, and content moderation policies
- Regular updates required: Assessments must be conducted at least annually and whenever significant changes occur, including before major electoral periods
- Covers entire service design: Evaluation includes algorithmic systems, recommender systems, ad-delivery techniques, and content moderation processes
- Independent audit requirement: VLOPs and VLOSEs must have their risk assessments and mitigation measures independently audited at least once per year
Systemic Risk Assessment vs. Due Diligence Obligations
Systemic risk assessments (under the DSA) and general due diligence obligations (under TTPA) serve different purposes and apply to different actors. Systemic risk assessments are mandatory only for very large platforms and search engines, examining broad societal and electoral risks from their entire service architecture and algorithmic systems. They focus on platform-wide effects that could harm democracy itself.
Due diligence obligations under the TTPA apply to all publishers of political advertising, regardless of size. These obligations focus on specific transparency requirements—ensuring labels, providing transparency notices, maintaining records, and offering reporting channels. While a VLOP's systemic risk assessment might identify the need for enhanced transparency in political advertising, the TTPA's due diligence rules specify exactly what transparency must be provided.
In practice, VLOPs and VLOSEs must comply with both: conducting systemic risk assessments under the DSA and meeting all transparency and due diligence requirements under the TTPA when they publish political advertising.