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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 fundamental rights online, including freedom...
- Enacted on November 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 example, very large online platforms (VLOPs) and very large online search engines (VLOSEs) - those with over 45 million active users in the EU - face the...
What is the Digital Services Act (DSA)?
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 fundamental rights online, including freedom of expression, and to tackle illegal content, disinformation, and harmful products.
Enacted on November 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, users have more control over what they see online, and platforms are held accountable for the content they host. 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 example, 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 illegal content and manipulation of elections.The European Commission designated 17 such platforms in April 2023.European Commission Announcement
Key Obligations Under the DSA
The DSA imposes a tiered system of obligations based on the size and nature of the online service. All intermediary services must comply with certain baseline requirements, while VLOPs and VLOSEs face significantly more extensive duties.
- Due Diligence Obligations: Platforms must implement measures to identify and remove illegal content, including hate speech, counterfeit goods, and illegal products. European Commission - DSA Explained
- Transparency Requirements: Platforms must be transparent about their content moderation policies, algorithms, and advertising practices. European Commission Transparency Report
- User Empowerment: Users must have the ability to report illegal content, appeal content moderation decisions, and understand why content was removed or restricted.
- Risk Assessments: VLOPs and VLOSEs must assess and mitigate systemic risks, such as the spread of disinformation and the impact on fundamental rights.
- Self-reliant Audits: VLOPs and VLOSEs are subject to independent audits to verify their compliance with the DSA.
The DSA also introduces new rules regarding online advertising, including restrictions on targeted advertising based on sensitive personal data. platforms must provide users with data about why they are seeing a particular ad and allow them to opt out of targeted advertising.
Enforcement and penalties
The enforcement of the DSA is primarily the obligation of the European Commission, with assistance from the Digital Services Coordinators in each EU member state. The Commission has the power to investigate potential violations of the DSA and impose significant penalties.
Non-compliance with the DSA can result in fines of up to 6% of a platform’s global annual revenue. In cases of repeated serious violations, the Commission can also impose temporary bans on platforms operating in the EU. The first fines under the DSA were issued in February 2024 against TikTok for failing to adequately protect children’s data. European Commission – First DSA Fines
On February 29, 2024, the European Commission formally requested data from X (formerly Twitter) to assess its compliance with the DSA, specifically regarding the spread of illegal content and disinformation.European Commission Request for Information from X
Role of Digital Services Coordinators
Digital Services Coordinators (DSCs) are national authorities appointed by each EU member state to assist the European Commission in enforcing the DSA. They act as the primary point of contact for platforms operating in their respective countries.
DSCs are responsible for supervising compliance with the DSA, investigating complaints, and coordinating with the Commission. They also play a crucial role in ensuring that platforms provide timely and accurate information to regulators. Each member state published the name of its DSC by February 17, 2024. European Commission – DSC Appointments
for instance, in Germany, the Bundesnetzagentur (Federal Network Agency) serves as the DSC, while in France, the role is held by the Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF).