EU Digital Services Act ushers in new era of online accountability

The EU has introduced a new set of rules to deliver a safer and more accountable online environment with the introduction of the Digital Services Act (DSA). The DSA applies to all digital services that connect consumers to goods, services or content. The EC said the new rules create comprehensive obligations for online platforms to reduce harm and counter online risks, introduces strong protections for users' rights online, and places digital platforms under a unique new transparency and accountability framework. “Designed as a single, uniform set of rules for the EU, these rules will give users new protections and businesses legal certainty across the whole single market. The DSA is a first-of-a-kind regulatory toolbox globally and sets an international benchmark for a regulatory approach to online intermediaries,” said the EC.The DSA introduces a new set of rules for online intermediary services to govern how they have to design their services and procedures. The rules include new responsibilities to limit the spread of illegal content and illegal products online, increase the protection of minors and give users more choice and better information. Under the DSA, all online intermediaries will have to comply with wide-ranging new transparency obligations to increase accountability and oversight, for example with a new flagging mechanism for illegal content. But a special regime is introduced for platforms with more than 45 million users. “For such very large online platforms or search engines, further obligations include wide-ranging annual assessments of the risks for online harms on their services – for example with regard to exposure to illegal goods or content or the dissemination of disinformation,” said the EC. Under the DSA, suitable risk mitigation measures will have to be put in place that are subject to independent auditing. “Smaller platforms and startups will benefit from a reduced set of obligations, special exemptions from certain rules and, most crucially, increased legal clarity and certainty for operating across the whole EU single market,” explained the EC. “New protections for the freedom of expression will limit arbitrary content moderation decisions by platforms, and offer new ways for users to take informed action against the platform when their content is moderated. For example, users of online platforms will now have multiple means of challenging content moderation decisions, including when these decisions are based on platforms’ terms and conditions. Users can complain directly to the platform, choose an out-of-court dispute settlement body or seek redress before courts,” it continued. The new rules also require platforms' terms to be presented in a clear and concise manner, and to respect users' fundamental rights. Very large online platforms and search engines will, in addition, have to undertake a comprehensive assessment of risks to fundamental rights, including the freedom of expression, the protection of personal data and the rights of the child. The DSA also creates an unprecedented level of public oversight of online platforms across the EU. The EC has powers to directly supervise companies that individually reach more than 10% of the EU population, or approximately 45 million people. Additionally, each member state will have to designate a digital services coordinator, who will supervise other entities in scope of the DSA as well as larger companies for non-systemic issues. The national coordinators and the EC will cooperate through a European Board of Digital Services. This EU-wide cooperation mechanism will be established between national regulators and the EC. EU member states will need to empower their digital services coordinators by 17 February 2024, when the DSA is fully applicable for all entities in its scope.

EU Digital Services Act ushers in new era of online accountability

Firms face penalties if risk mitigation not in place

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