What do companies need to consider with regard to the Digital Services Act (DSA)?

The European Union’s Digital Services Act (DSA) regulates digital services and sets out specific requirements for online platforms and services to create a safer and more transparent digital environment. Companies must consider several important aspects in order to comply with the requirements of the DSA:

 

  1. Classification of services:
  • Companies must determine what type of digital services they offer, as the DSA provides for different obligations for different categories of services:
  • Intermediary services (e.g. Internet access providers)
  • Hosting services (e.g. cloud services, web hosting)
  • Online platforms (e.g. social networks, online marketplaces)
  • Very large online platforms (VLOPs) and search engines with over 45 million users in the EU

 

  1. Transparency obligations:
  • Platforms must publish transparent reports on their moderation practices, including information on removed content and the reasons for its removal.
  • Advertising transparency: Platforms must clearly indicate when content is sponsored and disclose the identity of the sponsor.

 

  1. Obligations to combat illegal content:
  • Companies must provide effective mechanisms to report and remove illegal content.
  • You must respond to trusted flaggers and prioritize their reports.

 

  1. Protection of user rights:
  • Platforms must provide clear and user-friendly complaint mechanisms through which users can challenge decisions to remove or block content.
  • Users must be informed of the reasons for the removal or blocking of their content and have the right to object.

 

  1. Due diligence and risk management:
  • Very large online platforms and search engines must conduct annual risk assessments to identify and mitigate systemic risks.
  • Companies must take measures to prevent the distribution of illegal content, the manipulation of services and the violation of fundamental rights.

 

  1. Data security and privacy protection:
  • Platforms must ensure that their users’ personal data is protected in accordance with the General Data Protection Regulation (GDPR).
  • Companies must take measures to ensure the security of their systems and report data breaches.

 

  1. Cooperation with authorities:
  • Companies must cooperate with national and European authorities and respond to their requests for information or measures to combat illegal content.
  • Platforms must appoint a responsible contact person in the EU.

 

  1. Accountability and sanctions:
  • Companies must publish annual transparency reports documenting their efforts to comply with the DSA.
  • Violations of the DSA can result in substantial fines of up to 6% of annual global turnover.

 

  1. Adaptation of internal processes and training:
  • Companies should adapt internal processes to meet DSA requirements, including the implementation of new policies and procedures.
  • Training for employees and creating awareness of the new legal requirements are crucial.

 

  1. Proactive measures:
  • Platforms should take proactive measures to minimize the risk of spreading harmful content, e.g. through the use of moderation tools and algorithms.

 

The implementation of these requirements often requires close cooperation between different departments within a company, including the legal department, IT security and compliance. Compliance with the DSA is essential to minimize legal risks and strengthen user confidence.