Digital Services Act (DSA)

What is the Digital Services Act?

The Digital Services Act (DSA) is an EU regulation that sets rules for providers of intermediary services operating in the digital environment. It is designed to improve user safety online, increase transparency in the way digital services operate, and clarify responsibilities for illegal content, goods, and services offered through online platforms. The DSA is part of a broader EU regulatory framework for digital markets and applies directly across EU Member States without the need for national implementation in the form of a separate act.

In practice, the DSA applies to a wide range of service providers, including hosting services, online platforms, marketplaces, app stores, social media services, and certain search engines. Its obligations vary depending on the type of service and the provider’s size and role. The regulation follows a layered model – basic duties apply to intermediary services generally, while more extensive obligations apply to hosting services and online platforms, and the strictest requirements concern very large online platforms and very large online search engines.

The legal basis of the DSA is Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market for Digital Services. The regulation entered into force on 16 November 2022. As a general rule, it became applicable from 17 February 2024, while certain obligations for designated very large online platforms and very large online search engines applied earlier, from four months after their formal designation by the European Commission. Under the DSA, a service may be designated as very large if it reaches more than 45 million average monthly active recipients of the service in the EU, which corresponds to 10% of the EU population according to the threshold stated in the regulation.

What does the Digital Services Act regulate?

The DSA focuses on the functioning of digital intermediaries and the management of risks connected with the dissemination of illegal content and harmful practices online. It does not create a single universal definition of what is illegal in every case. Instead, it builds a procedural and compliance framework that requires providers to react appropriately when illegal content, unlawful products, or breaches of user rights are identified under applicable EU or national law.

Key obligations under the DSA may include notice-and-action mechanisms, duties to provide statements of reasons for certain content moderation decisions, transparency reporting, traceability requirements for traders on online marketplaces, complaint-handling systems, rules on trusted flaggers, and safeguards against misuse of reporting systems. For some services, the DSA also regulates online advertising transparency, including information about why a user is presented with a specific advertisement and on whose behalf it is displayed.

For very large online platforms and very large online search engines, the DSA introduces enhanced duties connected with systemic risk management. These may include assessing risks related to the dissemination of illegal content, negative effects on fundamental rights, manipulation of services, or impacts on civic discourse, electoral processes, and public security. These entities may also be required to implement mitigation measures, undergo independent audits, and provide access to certain data to regulators and vetted researchers under conditions defined by law.

When is legal support on the DSA important?

Legal support may be important whenever a business provides digital services to users in the EU, hosts third-party content, operates an online marketplace, monetises traffic through online advertising, or uses platform-based business models. The DSA is not relevant only to large technology companies. It can also affect medium-sized and smaller businesses if they act as intermediaries, enable user-generated content, or facilitate transactions between traders and consumers.

For private businesses, practical questions often arise around whether a service qualifies as a mere conduit, caching service, hosting provider, or online platform, because the classification affects the scope of obligations. Companies also need to review terms and conditions, internal reporting procedures, moderation practices, user communication, and record-keeping. In marketplaces, the trader traceability regime may require onboarding processes that allow the platform to collect and make best efforts to assess the reliability of specific information before allowing traders to offer products or services.

DSA analysis is also relevant in disputes involving account restrictions, content removals, platform transparency, advertising compliance, consumer claims, and regulatory oversight. Businesses operating across multiple jurisdictions may additionally need to align DSA obligations with consumer protection law, data protection rules, intellectual property enforcement, and sector-specific compliance duties. In some areas, legal interpretation is still developing, especially where the DSA interacts with national procedural rules or other EU legislation, so case-specific assessment remains important.

Early consultation with a lawyer may help identify whether the DSA applies to a given service, what obligations arise from the provider’s role, and how to reduce the risk of regulatory intervention, user disputes, contractual failures, or financial exposure. Timely review of internal processes can also help avoid errors in content moderation, reporting, trader onboarding, and transparency documentation.

Law firm support in matters related to the Digital Services Act may include in particular:

assessment of whether a business falls within the scope of the DSA,
classification of digital services and analysis of the applicable compliance level,
drafting and review of terms and conditions, platform rules, and transparency notices,
advice on notice-and-action mechanisms and complaint-handling procedures,
support in marketplace compliance, including trader traceability requirements,
advice on advertising transparency and platform accountability,
representation in proceedings or communication with supervisory authorities,
risk assessment concerning the interaction of the DSA with consumer, IP, data protection, and commercial law.

Need legal support regarding the Digital Services Act? Contact us.

Digital Services Act (DSA)