Digital Services Act

Regulation 2022/2065 on a Single Market For Digital Services

Background and Scope

The DSA addresses challenges that emerged since the E-Commerce Directive’s adoption in 2000. New business models like social networks and online platforms have created novel information sharing methods, but digital transformation has also generated new risks for individuals, companies and society. Member States increasingly introduced diverging national laws on content moderation and disinformation, negatively affecting the internal market due to the internet’s cross-border nature.

The DSA applies to intermediary services including “mere conduit”, “caching” and “hosting” services, regardless of establishment location, provided they offer services in the Union with substantial connection. This substantial connection exists where the service provider has an establishment in the Union, where the number of recipients in Member States is significant relative to population, or based on targeting activities towards Member States

The framework fully harmonizes rules to ensure a safe, predictable online environment whilst addressing illegal content dissemination and societal risks. Illegal content is broadly defined to cover information relating to illegal content, products, services and activities, including information that is itself illegal or relates to illegal activities.

Key Obligations

• Universal Requirements: All intermediary services must designate authority and user contact points, maintain clear terms including content moderation policies, and publish annual transparency reports. Non-EU providers must appoint legal representatives.
• Hosting Service Obligations: Providers must establish notice and action mechanisms for illegal content reporting, provide statements of reasons for content restrictions, and inform law enforcement of suspected criminal offences involving threats to life or safety.
• Platform-Specific Requirements: Online platforms face additional obligations including internal complaint systems, access to certified dispute settlement, and prioritized processing of trusted flagger notices. They cannot use dark patterns that manipulate users and must provide clear advertisement identification with targeting information. Platforms cannot show targeted ads based on special personal data categories or profile minors.
• Very Large Platform Obligations (VLOPs): Platforms with over 45 million EU users must conduct annual systemic risk assessments covering illegal content, fundamental rights impacts, democratic processes, and public health risks. They must implement proportionate mitigation measures and undergo independent annual audits. These platforms face enhanced transparency reporting every six months and must establish independent compliance functions.
• Enforcement: The Commission has exclusive supervision over very large platforms with powers to impose fines up to 6% of global turnover. Digital Services Coordinators supervise other platforms with cross-border cooperation mechanisms.