The European Union is set to enforce the Digital Services Act (DSA) starting tomorrow, marking a significant shift in the legal landscape for digital platforms operating within the EU.
This comprehensive regulation aims to enhance online governance, emphasizing transparency to mitigate the spread of illegal content and products across the internet. The DSA mandates that online services, including social media and marketplaces, adhere to the laws of the member states they operate in, particularly concerning the sale of banned items like weapons and the prohibition of hate speech.
A notable aspect of the Digital Services Act is its focus on protecting minors by ensuring platforms offer a safe online environment, free from targeted advertising based on their data. The EU has not specified the exact number of companies affected but anticipates it to be in the thousands, including a myriad of newly emerging digital platforms. Non-compliance could result in severe penalties, up to 6% of a company’s global annual turnover.
key goals of the Digital Services Act
The DSA protects consumers and their fundamental rights online by setting clear and proportionate rules. It fosters innovation, growth and competitiveness, and facilitates the scaling up of smaller platforms, SMEs and start-ups. The roles of users, platforms, and public authorities are rebalanced according to European values, placing citizens at the centre.
For citizens
- better protection of fundamental rights
- more control and choice
- stronger protection of children online
- less exposure to illegal content
For providers of digital services
- legal certainty
- a single set of rules across the EU
- easier to start-up and scale-up in Europe
For business users of digital services
- access to EU-wide markets through platforms
- level-playing field against providers of illegal content
For society at large
- greater democratic control and oversight over systemic platforms
- mitigation of systemic risks, such as manipulation or disinformation
Digital Services Act Coordinators
The DSA categorizes obligations differently for various digital service providers, including hosting services and online intermediaries. While small startups might be exempt from many provisions, they are still required to establish transparent terms and conditions and a point of contact for authorities. These measures aim to foster a safer, more accountable digital environment within the EU.
Major tech companies face the strictest scrutiny under the DSA, with additional rules on algorithmic transparency and systematic risk mitigation already in effect for larger platforms. The upcoming enforcement will expand to include general obligations for these companies, enhancing user protections and content moderation transparency.
The enforcement of the Digital Services Act will be decentralized, with Digital Services Coordinators (DSCs) in member states overseeing compliance, supported by the newly established European Board for Digital Services. This structure aims to ensure a cohesive application of the regulation across the EU, addressing the complex challenges of moderating online content and protecting users’ rights in the digital age.