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What is the Digital Services Act (DSA)?
Table of Contents
The Digital Services act (DSA) is a European Union law that establishes a complete set of new obligations for online platforms to create a safer digital space for users and essential rights. The European Commission’s Digital Strategy details the DSA’s objectives and scope.
The DSA aims to address the spread of illegal content online, protect fundamental rights, and foster innovation, growth, and competitiveness within the EU’s digital single market. It applies to a wide range of online services, including social networks, online marketplaces, search engines, and hosting services. The law categorizes services based on their size and impact, applying different levels of obligation accordingly.Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) face the most stringent requirements.
Example: On February 17, 2024, the European Commission designated 22 Very Large Online Platforms (VLOPs) and Very Large online Search Engines (vloses) under the DSA,including companies like Meta,Google,and Amazon,requiring them to comply with additional risk mitigation measures by March 2024.
Who is Affected by the DSA?
The Digital services Act affects a broad range of online intermediaries,categorized into different tiers based on their role and size. The European commission provides a detailed breakdown of which entities are subject to the DSA.
These categories include:
- Intermediary Services: these are services offering network infrastructure, such as internet service providers (ISPs).
- Hosting Services: Services storing information at the request of a user, like cloud storage providers.
- Online Platforms: services allowing users to offer goods or services, or content, to other users (e.g., social media, marketplaces).
- Very Large Online Platforms (VLOPs): Platforms with 45 million or more monthly active users in the EU.
- Very Large Online Search Engines (VLOSEs): Search engines with 45 million or more monthly active users in the EU.
Example: Meta’s first DSA transparency report (February 2024) details the measures taken by Facebook and Instagram to comply with the DSA, including content moderation statistics and information on advertising transparency.
What are the Key Obligations Under the DSA?
The Digital services Act imposes a tiered system of obligations, with VLOPs and VLOSEs facing the most extensive requirements.The European Commission outlines the specific obligations for each category of service.
Key obligations include:
- Content Moderation: platforms must have mechanisms for users to flag illegal content and must act expeditiously to remove it.
- Transparency: Platforms must be transparent about their content moderation policies, algorithms, and advertising practices.
- Risk Assessments: VLOPs and VLOSEs must conduct annual risk assessments to identify systemic risks, such as the spread of illegal content, disinformation, and negative effects on fundamental rights.
- Independent Audits: VLOPs and VLOSEs are subject to independent audits to verify their compliance with the DSA.
- Crisis Response Mechanism: The DSA establishes a crisis response mechanism to address extraordinary circumstances, such as public health emergencies or electoral interference.
example: In March 2024, the European Commission ordered TikTok to explain how it protects teenagers under the DSA, specifically regarding potential harmful content and addictive design features.
What are the penalties for Non-Compliance?
Non-compliance with the digital Services Act can result in important penalties. The European Commission details the enforcement mechanisms and potential fines.
The DSA empowers the European Commission to impose fines of up to 6% of a company’s global annual turnover for serious infringements. Member States are also responsible for designating Digital Services Coordinators (DSCs) to oversee enforcement at the national level. Repeated infringements can lead to temporary bans on providing services within the EU.
Example: While no fines have been levied *as of March 15, 2024*, the ongoing investigations into X (formerly Twitter), TikTok, and Meta demonstrate the Commission’s willingness to enforce the DSA and possibly impose significant penalties if violations are found.