What is the DSA

The Digital Services Act (DSA), officially known as EU Regulation 2022/2065, represents a critical development in the European Union’s regulatory framework, introduced to address the dynamic and complex challenges of the digital age. Together with the Digital Markets Act (DMA), it forms part of the comprehensive Digital Services Package, aiming to create a safer and more transparent digital environment across Europe, safeguarding fundamental rights and ensuring competitive fairness in the EU digital market.

Scope of the DSA

The DSA officially entered into force on November 16, 2022. It imposed immediate requirements for Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs), identified by the European Commission as of April 25, 2023, while all other covered entities had to comply starting February 17, 2024.

Its key objectives encompass the uniform application of EU rules, the proactive fight against disinformation and illegal online content, and the establishment of an online environment that prioritizes safety, predictability, and trustworthiness. Crucially, it aims to empower users and civil society, strengthen oversight of digital intermediaries through newly established national and EU regulatory authorities, and support existing sector-specific laws in areas such as consumer protection, data privacy, copyright, and counter-terrorism.

Categories of intermediaries involved and relevant obligations

The legislation distinguishes various categories of online intermediaries, each with tailored obligations to ensure proportionality and efficiency in implementation.

Obligations for all Intermediaries

• Designation of single contact points for authorities and users.
• Clear and accessible Terms and Conditions.
• Transparency on content moderation practices, including algorithmic decisions.
• Annual transparency reporting obligations (except for micro and small enterprises).

Obligations for Hosting Service Providers

• Implementation of notice-and-action mechanisms.
• Prompt response to illegal content notifications.
• Justification required for any restriction measures (e.g. content removal, suspension).

Obligations for Online Platforms – Additional Duties

• Internal complaint-handling systems.
• Access to certified out-of-court dispute resolution bodies.
• Mechanisms to identify and act against abusive or repetitive misuse.
• Additional transparency requirements (e.g. data on active users).

Obligations for. VLOPs and VLOSEs – Enhanced Compliance

• Threshold: ≥45 million average monthly active users in the EU.
• Obligations include:
  • Comprehensive risk assesment.
  • Mitigation measures for systemic risks (e.g. disinformation, harm to minors).
  • Independent audits.
  • Enhanced transparency in recommender systems and targeted advertising.
  • Crisis protocols and cooperation with regulators.

Challenges for companies

For businesses, the implementation of the DSA entails substantial operational adjustments. Companies must review and clearly define their terms of service, moderation policies, and complaint mechanisms. Effective processes for swiftly addressing illegal content must be established, alongside transparent communication channels that enhance user understanding of moderation actions. Given the high stakes of potential non-compliance — ranging from significant fines to other legal repercussions — businesses operating in the EU digital marketplace must diligently adapt to the rigorous standards set forth by the DSA.

Final Considerations

The DSA introduces a multi-layered compliance framework that varies by the nature and size of the service provider. As legal practitioners, we are called upon to assist clients in mapping their digital services, assessing risk exposure, updating internal compliance frameworks, and establishing proactive governance mechanisms that ensure full alignment with the Regulation.