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On the 15 December 2020, the European Commission published its long-awaited proposal for a Digital Services Act (DSA). The European Parliament and Member States will discuss the proposal before it enters into force. This article provides an overview of the most important implications of the proposal.
What does the DSA regulate?
Obligations are imposed on intermediaries when connecting consumers with goods, services and/or (online) content. The same rules will apply in across the EU and will enhance the market for digital services by stimulating cross-border digital trade and removing unnecessary legal burdens.
The DSA intends to provide incentives for companies to take adequate measures to protect users from illegal activities. It is important to note that the DSA is not replacing the e-Commerce Directive, but rather builds upon it and will apply next to the national implementations of the e-Commerce Directive.
The rules will apply within the EU single market, including those online intermediaries that offer services in the single market but are established outside of the EU.
What are the changes for EU citizens?
For users, it will become easier to flag illegal content, goods or services on online platforms. Users will also enjoy adequate online protection.
They must receive information about possible removal of content by platforms and must be able to contest removal. The platform rules regarding content moderation have to be more transparent and the same goes for the terms and conditions used by platforms.
Users must receive more information on targeted ads, such as: why users are targeted, who sponsored it and why it shows up on the platform. Users should also have the opportunity to opt-out from recommendations based on profiling.
What are the changes for businesses?
Most importantly, the DSA establishes an EU-wide framework, which cuts costs for online intermediaries to comply with all 27 Member States’ individual legislations.
The DSA creates accessible and effective tools for flagging illegal activities that harm trade. Businesses are protected against erroneous removal of content, which will limit losses.
By creating a level playing field within the EU, it is possible for start-ups to grow because they can now gain access to the single market more easily and the same rules apply to the entire single market.
What changes for platforms?
Online platforms have to comply with new and far-reaching transparency obligations to combat illegal content. When a platform decides to remove content, an explanation should be provided to the user.
Furthermore, platforms must publish detailed reports on removals and disabling illegal content. Another transparency measure involves the provision of clear and unambiguous information regarding the content moderation mechanisms used, algorithmic decision-making and human review.
Other obligations include providing information clarifying why ads are shown to users and why certain content is recommended to users. Platforms should also take adequate measures when they allow consumers to enter contracts with traders and platforms should ensure that traders can only offer products after Know Your Customer procedures have been performed.
Big platforms
In case a platform has more than 45 million monthly users, it must comply with additional measures…
