Digital Services Act

SUMMARY OF:

Regulation (EU) 2022/2065 on a single market for digital services and amending Directive 2000/31/EC (Digital Services Act)

WHAT IS THE AIM OF THE REGULATION?

The Digital Services Act aims to create a safer online environment for consumers and companies in the European Union (EU), with a set of rules designed to:

protect consumers and their fundamental rights more effectively;
define clear responsibilities for online platforms and social media;
deal with illegal content and products, hate speech and disinformation;
achieve greater transparency with better reporting and oversight; and
encourage innovation, growth and competitiveness in the EU’s internal market.

KEY POINTS

The regulation introduces responsibilities and a system of accountability and transparency for providers of intermediary services, such as:

internet access providers,
hosting services such as cloud computing and web-hosting services,
domain name registrars,
online marketplaces,
app stores,
collaborative economy platforms,
social networks,
content-sharing platforms,
online travel and accommodation platforms.

The regulation also includes special rules for:

very large online platforms (VLOPs) used by more than 10% of the 450 million consumers in the EU; and
very large online search engines (VLOSEs) used by more than 10% of the 450 million consumers in the EU.

The Digital Services Act safeguards the rights and interests of all parties involved, particularly EU citizens, by:

combating illegal content online, including goods and services, notably by:
- having more control over what users see online, and being more informed about the ads they see,
- being able to easily flag illegal content or products, hate speech and disinformation,
- providing a means for platforms to cooperate with ‘trusted flaggers’, and
- imposing obligations on traceability of traders in online market places;
empowering users and civil society, including:
- being able to challenge content-moderation decisions and seek redress, through a dispute mechanism or judicial redress,
- access for authorities and researchers to key data generated by the very large platforms to gauge online risks, and
- transparency on a range of issues, including on algorithms used in recommending content or products;
assessing and mitigating risks, including:
- obligations for VLOPs and VLOSEs to prevent their systems being misused and for their risk management systems to undergo independent audits,
- systems to react swiftly and efficiently to crises affecting public security or public health,
- safeguards for children and limits on using sensitive personal data for targeted advertising;
reinforcing supervision and enforcement of all intermediary service providers, with an important role for the independent digital services coordinators in each EU Member State and the European Board for Digital Services – furthermore, the European Commission has additional supervisory powers in relation to VLOPs and VLOSEs.

Crisis Response Mechanism

In the event of a crisis occurring, where extraordinary circumstances lead to a serious threat to public security or public health in the EU or in significant parts of it, the Commission may require VLOPs and VLOSEs to:

assess whether and how their services significantly contribute to this serious threat, or are likely to do so;
identify and apply effective and proportionate risk-mitigation measures (outlined in the regulation) to prevent, eliminate or limit such contributions;
report to the Commission with their assessment and response.

Amended directive

The regulation amends Directive 2000/31/EC on electronic commerce.

FROM WHEN DOES THE REGULATION APPLY?

The regulation applies from 17 February 2024.
Some rules relating to VLOPs and VLOSEs have applied since 16 November 2022, including reporting obligations, independent audits, data sharing, and supervision (including fees), investigation, enforcement and monitoring.

BACKGROUND

The Digital Services Act is part of a package which also includes Regulation (EU) 2022/1925, the Digital Markets Act (see summary).

For further information, see:

The Digital Services Act package (European Commission)
Digital Markets Act: Ensuring fair and open digital markets (European Commission)
Digital Services Act: Ensuring a safe and accountable online environment (European Commission)
Your life online: How is the EU making it easier and safer for you? (European Council – Council of the European Union).

MAIN DOCUMENT

Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market For Digital Services and amending Directive 2000/31/EC (Digital Services Act) (OJ L 277, 27.10.2022, pp. 1–102).