DSA — Digital Services Act

Regulation (EU) 2022/2065, the Digital Services Act, creates a harmonised EU-wide framework for the accountability and transparency of online intermediary services. It has applied to very large online platforms and very large online search engines (those with over 45 million average monthly active EU users) since 25 August 2023, and to all other in-scope providers since 17 February 2024. The DSA covers a layered set of services: mere conduit providers, caching services, hosting services, online platforms (including marketplaces and social networks), and online search engines, with obligations scaling up as you move through the layers. For most SMEs, the DSA's relevant obligations sit in the hosting and online platform tiers. Hosting services must have a notice-and-action mechanism allowing anyone to flag illegal content, and must process notices and inform the notifier of outcomes. Online marketplaces — platforms allowing consumers to conclude contracts with traders — carry additional due diligence obligations: they must verify trader identities, ensure compliance with consumer law, and trace and take down illegal products. All platforms must publish transparency reports, maintain a single point of contact for authorities, and designate a legal representative in the EU if not established there. Very large platforms face the heaviest obligations: mandatory annual risk assessments of systemic risks (including algorithmic amplification of harmful content, election integrity risks, and mental health impacts on minors), independent annual audits, access to data for researchers, algorithmic transparency including an option to use recommendation systems not based on profiling, and real-time API access for authorities. They also pay a supervisory fee to fund the European Commission's Digital Services Coordinator network. For an EU SME operating a platform, marketplace, or hosting service, the DSA demands terms-of-service documents that accurately describe content moderation policies, an accessible complaint mechanism, and cooperation with trusted flaggers and Digital Services Coordinators. Fines can reach 6% of global annual turnover for violations, and 1% for providing incorrect or misleading information. Repeat infringement can lead to temporary access restrictions. See the DSA compliance guide at eurocomply.app/regulations/dsa