The European Union reached a deal on Saturday on landmark legislation that would force Facebook, YouTube and other internet services to combat misinformation, disclose how their services amplify divisive content and stop targeting online ads based on a person’s ethnicity, religion or sexual orientation.

The law, called the Digital Services Act, is intended to address social media’s societal harms by requiring companies to more aggressively police their platforms for illicit content or risk billions of dollars in fines. Tech companies would be compelled to set up new policies and procedures to remove flagged hate speech, terrorist propaganda and other material defined as illegal by countries within the European Union.

The law aims to end an era of self-regulation in which tech companies set their own policies about what content could stay up or be taken down. It stands out from other regulatory attempts by addressing online speech, an area that is largely off limits in the United States because of First Amendment protections. Google, which owns YouTube, and Meta, the owner of Facebook and Instagram, would face yearly audits for “systemic risks” linked to their businesses, while Amazon would confront new rules to stop the sale of illegal products.