Tech companies will be required to implement new procedures designed to take down illegal material such as hate speech, incitement to terrorism and child sexual abuse. E-commerce marketplaces like Amazon must also prevent sales of illegal goods under the new rules.

Failure to comply with the rules may result in fines of up to 6% of companies’ global annual revenues. For a company like Meta, the parent company of Facebook, that could mean a penalty as high as $7 billion based on 2021 sales figures.

The DSA is separate from the Digital Markets Act, which EU institutions approved last month. Both come with the threat of hefty fines. But whereas the DMA seeks to curb Big Tech firms’ market power, the DSA is all about making sure platforms get rid of toxic content quickly.

The law will affect user-generated content sites like Facebook, Instagram, Twitter, YouTube and TikTok.

Brussels has a long history of taking internet giants to task over competition abuses and data privacy.

The bloc has leveled a combined 8.2 billion euros ($8.8 billion) in fines against Google over antitrust violations, and has active investigations into Amazon, Apple and Meta.

In 2018, the EU introduced the General Data Protection Regulation, a sweeping set of privacy rules aimed at giving consumers more control over their information.

It comes as policymakers in Washington wrangle with the question of how to rein in the power of large tech companies and get them to clean up their platforms of harmful content. On Thursday, former President Barack Obama said the tech industry needs regulation to address the spread of online disinformation.

“For too long, tech platforms have amplified disinformation and extremism with no accountability,” former U.S. Democratic Presidential candidate Hillary Clinton tweeted Thursday.