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- The Digital Services Act (DSA), enacted by the European Union, represents a landmark effort to regulate online platforms and protect users from illegal content and harmful activities.
- The Digital Services Act is a European Union law that establishes a comprehensive legal framework for regulating online intermediaries and services, aiming to protect basic rights online and...
- The DSA's scope is broad, covering a range of online services including intermediary services (like internet service providers), hosting services (like cloud and web hosting), and very large...
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The Digital Services Act (DSA): A Comprehensive Overview
Table of Contents
The Digital Services Act (DSA), enacted by the European Union, represents a landmark effort to regulate online platforms and protect users from illegal content and harmful activities. It imposes new obligations on a wide range of online services, from social media platforms to online marketplaces, aiming to create a safer digital space for European citizens and beyond. This guide details the DSA’s key provisions, enforcement mechanisms, and potential impact.
What is the Digital Services Act?
The Digital Services Act is a European Union law that establishes a comprehensive legal framework for regulating online intermediaries and services, aiming to protect basic rights online and foster a safe, open, and accountable online environment. It was adopted on October 4,2022,and began phased implementation in February 2023,with full submission expected by February 17,2024. The DSA complements the Digital Markets Act (DMA), which focuses on gatekeepers in digital markets.
The DSA’s scope is broad, covering a range of online services including intermediary services (like internet service providers), hosting services (like cloud and web hosting), and very large online platforms (VLOPs) and very large online search engines (VLOSEs). The obligations imposed on these services vary based on their size and risk profile. The European Commission’s Digital Strategy page provides detailed information on the DSA’s objectives and scope.
Example: On april 26, 2023, the European Commission designated 17 Very Large Online Platforms and Search Engines (VLOPs/VLOSEs) subject to stricter obligations under the DSA, including Meta Platforms, Apple, and Google.
Key Obligations Under the DSA
The DSA introduces a tiered system of obligations based on the size and nature of the online service. These obligations range from basic openness requirements to more stringent risk management measures for VLOPs and VLOSEs.
- Transparency Obligations: All online intermediaries must provide clear information about their terms and conditions, content moderation policies, and complaint mechanisms.
- Due Diligence Obligations: Hosting services must implement “know yoru business customer” (KYBC) procedures to verify the identity of their business users.
- Content Moderation obligations: Platforms must establish mechanisms for users to report illegal content and must act expeditiously to remove or disable access to such content. The European Commission published guidance on content moderation on February 24, 2023.
- Risk Assessment and Mitigation Obligations (VLOPs/VLOSEs): These platforms must conduct annual risk assessments to identify systemic risks related to the dissemination of illegal content, the impact on fundamental rights, and the manipulation of their services. They must then implement mitigation measures to address these risks.
Example: TikTok is required to conduct a risk assessment regarding the potential for its platform to be used to spread disinformation during the 2024 European Parliament elections,as outlined in TikTok’s DSA transparency report.
Enforcement and Penalties
Enforcement of the DSA is primarily the responsibility of the European commission,with assistance from the Digital Services Coordinators (DSCs) in each Member State. the Commission has direct supervisory powers over VLOPs and VLOSEs, while DSCs oversee other online services.
Non-compliance with the DSA can result in significant penalties. For serious infringements, companies can face fines of up to 6% of their global annual turnover. The European Commission opened formal investigations against TikTok on May 3, 2023, regarding potential violations of the DSA related to the protection of minors and the transparency of its advice system.
Example: On December 18, 2023, the European commission issued a formal request for information to X (formerly Twitter) regarding its measures to combat the spread of illegal content and disinformation, citing concerns about potential non-compliance with the DSA. Details of the request are available on the European Commission’s website.
Impact on Businesses and Users
The DSA is expected to have a significant impact on both businesses and users of online services. For businesses, it will require investments in compliance measures, including content moderation systems, risk assessment processes, and transparency reporting. For users, the DSA aims to provide a safer and more obvious online experience, with greater control over their data and more effective mechanisms for reporting illegal content.
The DSA’s impact extends beyond the EU, as it applies to online platforms that offer services to users in the EU, irrespective of where the platform is based. This means that companies worldwide will need to