If your business operates an online platform or provides digital services, the EU Digital Services Act (DSA) continues to shape how you process content, handle user complaints, and comply with transparency requirements.
Since its implementation in 2022, many businesses have adapted to stricter obligations regarding the reporting of illegal content, the disclosure of terms and conditions, and algorithmic accountability. While these regulatory requirements are now part of the digital compliance landscape, our commercial law solicitors are here to help ensure your business stays fully compliant with evolving standards under the DSA.
Jump to:
- What is the EU Digital Services Act and why is it relevant to UK businesses?
- Scope of the Digital Services Act
- What are the key objectives and your obligations?
- How the DSA impacts your business operations
- What are the challenges and opportunities?
- How does it compare to the UK Online Safety Act?
- Navigate DSA compliance with confidence
What is the EU Digital Services Act and why is it relevant to UK businesses?
The DSA came into force in November 2022, with most of its provisions applying from February 2024. It aims to modernise digital regulations in the EU and prevent harmful activity online.
The law introduces a new set of rules governing how you, as an online intermediary service provider, should operate, with a focus on user safety, transparency, and accountability.
Its requirements are extensive and vary depending on the type of service you offer.
Scope of the Digital Services Act
The DSA applies to a wide range of digital services, including those that transmit, store, or host information online, as well as online platforms and search engines.
This includes ‘mere conduit’ services (transmitting information), ‘caching’ services (temporary storage), and ‘hosting’ services (storing information).
If you operate in any of the following businesses, you may fall within the scope of the DSA:
- Online marketplaces
- Social networks
- App stores
- Content sharing platforms
- Messaging services
- Online search engines
- Online shops
Your obligations depend on what type of service you provide. Mere conduit and caching providers have the fewest responsibilities, while hosting services face more. Online platforms and marketplaces are subject to additional rules, with the most stringent requirements applying to 'very large' online platforms and search engines (VLOPs and VLOSEs).
Each EU member state will have a Digital Services Coordinator to oversee general enforcement, while the European Commission supervises VLOPs and VLOSEs. If you're found in breach, you could face fines of up to 6% of your previous year’s global annual turnover.
If you target users in the EU, you’ll need to comply with the DSA.
What are the key objectives and your obligations?
The DSA is founded on several core objectives. Key aims include:
- Placing specific responsibilities on online marketplaces to stop illegal sales
- Requiring platforms to remove unlawful content quickly
- Protecting minors by banning targeted advertising based on their data
- Restricting targeted advertising using sensitive personal data
- Banning misleading interfaces, or ‘dark patterns’
- Requiring very large platforms and search engines to carry out risk assessments and independent audits
There is no single set of rules applicable to every business. Your obligations will depend on your size and the services you offer.
Examples of duties include:
- Removing illegal content
- Having clear, user-friendly terms and conditions
- Complying with rules on data use
- Being transparent about content moderation
- Appointing a representative in the EU if you're based outside it
The DSA introduces a tiered system:
- Tier 1 – all intermediary services
- Tier 2 – hosting services
- Tier 3 – online platforms and marketplaces
- Tier 4 – very large platforms and search engines
All providers, regardless of tier, are expected to act promptly to remove illegal content, clearly outline their moderation processes, and report on their moderation efforts.
To understand your obligations, you must assess the nature of your business and determine which tier applies to you. Compliance requires careful interpretation of the law, as the duties are not the same for everyone.
How the DSA impacts your business operations
If your business serves users in the EU or targets EU countries, then you may need to comply with the DSA.
You should consider:
- Whether the DSA applies to you
- Which rules are relevant? This requires a full gap analysis
- Whether your existing policies and processes are compliant
- How to create an effective compliance plan
- Training staff to understand DSA responsibilities
- Making technical changes to your platform, where necessary
- Appointing an EU-based representative, if needed
- Seeking legal advice
- Monitoring regulatory updates
What are the challenges and opportunities?
Adapting to the DSA is likely to take time, money, and internal reorganisation. You may need to review and revise your terms and conditions, internal procedures, and digital interfaces.
The DSA marks a significant shift in regulation, and failure to comply could result in costly enforcement action.
That said, compliance also presents a business opportunity. By demonstrating to your users that their safety and privacy are a priority, you establish trust. Demonstrating compliance can give you a competitive edge in the EU market and establish a long-term foundation for responsible growth.
How does it compare to the UK Online Safety Act?
The UK has its legal framework: the Online Safety Act 2023. Like the DSA, it aims to protect users, particularly children, from harmful content online.
However, the two laws are not interchangeable. Complying with one does not guarantee compliance with the other.
If your business serves both the UK and EU markets, you may need to comply with both regimes. This could mean managing two distinct compliance processes and investing in separate legal, technical and policy support.
Understanding the scope of each law and how they overlap or differ is crucial. If you're unsure, it’s wise to get legal advice as soon as possible.
Navigate DSA compliance with confidence
Adapting to the EU Digital Services Act can seem daunting, but with the proper legal support, it can also be an opportunity to strengthen your business practices. Our commercial law solicitors are ready to help you understand your responsibilities under the DSA, create compliant processes, and future-proof your business operations.
