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- The Digital Services Act (DSA) is a European union law that establishes a thorough set of new obligations for online platforms to protect essential rights online, specifically addressing...
- Enacted on October 20, 2022, and fully applicable as of February 17, 2024, the DSA aims to create a safer digital space where illegal content can be quickly...
- For exmaple, very large online platforms (VLOPs) and very large online search engines (VLOSEs) - those with over 45 million active users in the EU - face the...
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What is the Digital Services Act?
Table of Contents
The Digital Services Act (DSA) is a European union law that establishes a thorough set of new obligations for online platforms to protect essential rights online, specifically addressing illegal and harmful content.
Enacted on October 20, 2022, and fully applicable as of February 17, 2024, the DSA aims to create a safer digital space where illegal content can be quickly removed, and users are empowered to report concerns. It applies to a wide range of online services,from social media platforms and online marketplaces to search engines and hosting services. The DSA operates alongside the Digital Markets Act (DMA), which focuses on ensuring fair competition in digital markets.
For exmaple, very large online platforms (VLOPs) and very large online search engines (VLOSEs) – those with over 45 million active users in the EU – face the most stringent requirements, including conducting risk assessments and implementing mitigation measures to address systemic risks like the spread of disinformation.According to the European Commission, as of January 12, 2026, 22 platforms have been designated as VLOPs and VLOSEs. European Commission – Digital Services Act
What are the key obligations under the DSA?
The DSA introduces a tiered system of obligations based on the size and risk profile of online platforms, with the most extensive requirements applying to Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs).
These obligations include enhanced due diligence requirements, such as knowing your buisness customer (KYBC) procedures, openness reporting on content moderation decisions, and the implementation of complaint and redress mechanisms for users. Platforms must also provide users with clear terms and conditions, and offer options to easily flag illegal content. A core principle is traceability of traders,requiring platforms to verify the identity of online traders to combat illegal goods and services.
On December 18, 2023, the European Commission formally requested preliminary reports from VLOPs and VLOSEs detailing their risk assessments and mitigation measures. European commission – Commission requests first reports from Very Large Online Platforms and Search Engines under the Digital Services Act. These reports were due by February 16, 2024, and are subject to self-reliant auditing.
How does the DSA address illegal content?
The DSA establishes a clear framework for tackling illegal content online, based on the principle of “notice-and-action.”
This means that users can report illegal content to platforms, and platforms are obligated to act expeditiously upon receiving a valid notice. The DSA defines illegal content as anything unlawful under EU or member state law, encompassing areas like hate speech, terrorist content, counterfeit goods, and illegal products. Platforms are required to establish clear procedures for handling notices and providing feedback to users. The DSA also introduces a mechanism for trusted flaggers - organizations with specialized knowledge – to submit notices that platforms must prioritize.
In April 2024,X (formerly Twitter) was the first major platform to be investigated by the European Commission under the DSA for potential breaches related to the handling of illegal content,specifically concerning the spread of illegal material following the October 7,2023,attacks in Israel. Reuters - EU launches formal investigation into X over illegal content.The investigation is ongoing as of january 12, 2026.
What are the penalties for non-compliance with the DSA?
Non-compliance with the DSA can result in significant penalties, including fines of up to 6% of a platform’s global annual revenue.
The severity of the penalty depends on the nature and gravity of the infringement. In addition to fines, the DSA also grants the European Commission the power to impose interim measures, such as requiring platforms to suspend certain services or processes, and in cases of repeated serious infringements, to ban platforms from operating in the EU. Member states are responsible for enforcing the DSA at the national level, with the Commission providing oversight and coordination.
On May 3, 2024, the European Commission issued a warning decision to TikTok regarding potential violations of the DSA related to the protection of minors and the transparency of its recommendation system. While not a fine, this warning signals the Commission’s willingness to enforce the DSA and could lead to further action if TikTok does not address the identified issues. European Commission – Commission sends warning to TikTok regarding protection of minors and transparency of its recommendation system
How does the DSA impact users?
The DSA aims to empower users with greater control over their online experience and provide them with more effective tools to address harmful content and illegal activities.
Users will have the right to appeal content moderation decisions, receive clear explanations for why content was removed or restricted, and access facts about the algorithms used to recommend content. the DSA also strengthens user privacy protections and requires platforms to be more clear about their advertising practices. Furthermore, users will have the option to opt-out of personalized advertising based on profiling.
As of December 2025, a study by the European Consumer Organisation (BEUC) found that 78% of EU consumers were unaware of their rights under the DSA, highlighting the need for increased awareness campaigns. BEUC