February 17 marks a crucial milestone for the European Union with the implementation of the Digital Services Act (DSA), a landmark regulatory code aimed at forging a safer, fairer and more transparent online environment. This legislation, together with the Digital Markets Act (DMA), seeks not only to safeguard the fundamental rights of users of digital services, but also to establish a level playing field that fosters innovation and growth in the European single market and globally.
What do Digital Services encompass?
Under the broad umbrella of digital services are a variety of online platforms, from simple websites to complex Internet infrastructures and social networks. Specifically, the DSA targets online intermediaries and platforms, such as online marketplaces, social networks, app stores and online hosting platforms.
Key objectives of the DSA and DMA
The DSA and the WFD have two main objectives. First, they seek to ensure a safer digital environment where the fundamental rights of all users are protected. Second, they strive to establish fair conditions of competition to boost innovation and competitiveness in the European single market and on a global scale.
Need for DSA
While digital services offer numerous benefits, such as facilitating cross-border trade and access to new markets, they also pose significant challenges. Some large platforms control important ecosystems in the digital economy, dictating rules that can be unfair to companies and limit choices for consumers. In addition, the proliferation of illegal online content and the spread of disinformation are growing concerns.
The EU regulatory response
In the face of these challenges, the European Union has adopted a modern legal framework to ensure online security, protect fundamental rights and promote a fair and open environment on online platforms. The DSA imposes various obligations on intermediary service providers, such as cooperation with the authorities and the appointment of a legal representative in the EU. Online platforms must also comply with additional obligations, such as establishing reporting mechanisms for illegal content and internal complaint systems.
Tougher penalties as an incentive for compliance
A highlight of these regulations is the stiffening of penalties, with fines that can reach 20% of the company’s total annual worldwide turnover under the DMA and up to 6% of annual global turnover under the DSA. This will serve as a powerful incentive for compliance with European regulations.
Due diligence obligations and their differentiated application
In addition, due diligence obligations are established that vary according to the type and size of the service provider. The most stringent apply to very large platforms and search engines, defined as those with more than 45 million users.
In summary, the implementation of the DSA marks a significant step towards creating a more secure and equitable online environment in the European Union. By protecting users’ rights and promoting fair competition, these regulations are in line with the objectives of the Digital Decade 2030 and pave the way for a brighter digital future.
Source: European Commission and Expansión(https://www.expansion.com/juridico/actualidad-tendencias/2024/02/12/65ca5203e5fdea890d8b45b3.html?emk=NEXP21&s_kw=1&utm_source=emailing&utm_medium=email&utm_campaign=NEXP21&utm_content=email)
This publication does not constitute legal advice.
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