This year will see the full applicability of the EU Digital Services Act, which is designed to curb illegal and harmful activities online and increase user safety. From 17 February 2024 the DSA rules will apply to all digital service providers. The DSA is already having a significant impact on digital governance since it came into force on 16 November 2022.
Since August 2023, Very Large Online Platforms (VLOPs) and Very Large Search Engines (VLOSEs), including some leading app stores, social media networks and online marketplaces, have faced strict obligations designed to guard against any illegal or harmful content on their systems. On 20 December, the European Commission designated an additional three companies as VLOPs under the DSA: Pornhub, Stripchat and XVideos. These VLOPs are regarding by the Commission as meeting the threshold of more than 45 million average monthly users in the EU and will have to comply with relevant DSA obligations by 17 February 2024.
In the next 12 months, we can expect the publication of secondary legislation to further elaborate on the principles and objectives of the DSA. It is also possible that there will be further designations of very large players.
Forthcoming deadlines
As of 17 February 2024, the DSA’s set of rules will apply to all digital service providers, with only very small platforms exempt from the majority of obligations. These obligations include providing a complaint and redress mechanism and out-of-court dispute settlement mechanisms; cooperating with “trusted flagger” organisations that have expertise in tackling illegal content online; verifying the credentials of traders on online marketplaces; and providing transparency for users with regard to online advertising, among other measures. Companies in scope should proactively review current policies, products and strategies to assess what changes need to be made to align with DSA requirements to avoid potentially heavy fines.
The 17 February deadline also applies to each Member State for the appointment of the Digital Service Coordinators (DSCs), independent authorities responsible for supervising the intermediary services established in their Member State. DSCs will have the ability to impose penalties, including financial fines, according to the penalties outlined in their national laws and in line with the DSA. Currently, the only Member States that have appointed a DSC by decree are Hungary (National Media and Infocommunications Authority, NMHH), Italy (Italian Authority for Communications Guarantees, AgCom) and Denmark (Danish Competition and Consumer Authority, KFST). Information on the other expected designations can be found here.
Secondary legislation
In the course of 2024, the European Commission is expected to come forward with a series of new Implementing and Delegated Acts, together with guidelines. It is foreseen that the Commission will adopt a draft Implementing Act on mandatory templates for the DSA’s transparency reports; a draft Implementing Act on information sharing system requirements under Article 85 of the DSA; and a draft Delegated Act on data access for vetted researchers. Other secondary initiatives are also anticipated, including an Implementing Act regarding the annual supervisory fee that will be charged to providers of very large online platforms and search engines to contribute to the costs of enforcement; a Delegated Act on methodology for counting annual users; and a Delegated Act on adjusting the number of users. Guidelines are also foreseen to clarify issues such as the role of “trusted flaggers”; dark patterns; protection of minors; and aspects of risk mitigation.
For more information, please contact Paolo Sasdelli.
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For further information, please contact:
Paolo Sasdelli, Bird & BIrd
paolo.sasdelli@twobirds.com
