Regulation (EU) 2022/2065 of the European Parliament and of the Council of October 19, 2022 (the Digital Service Act or "DSA") marks a milestone in the regulation of digital services within the European Union. This regulation, which came into force for all platforms on February 17, 2024, aims to enhance the safety and transparency of the digital environment for its users.
Implications for businessesFor businesses, this regulation means that they will have to comply with new obligations, the main ones of which are as follows:
Security:
- Suspension of users who frequently disseminate manifestly illegal content;
- Measures guaranteeing a high level of protection for the privacy, safety and security of minors.
Transparency:
- Clear information on general terms and conditions and their modification;
- Clarity and transparency of the online interface, advertising display and recommendation system;
- Internal complaints handling system;
- Transparency reports on their internal complaints handling systems and content moderation activities.
Exemptions and flexibilitiesThe DSA also recognizes certain exemptions, notably for microenterprises (fewer than 10 employees and annual sales or annual balance sheet total of less than €2 million) and small businesses (fewer than 50 employees and annual sales or annual balance sheet total of less than €10 million), so as not to hinder their growth with disproportionate regulatory burdens. These companies are exempt from the following obligations:
- Internal complaints handling system;
- Transparency reports on their internal complaints handling systems and content moderation activities.
Consequences of non-compliance
Platforms that fail to comply with the requirements of the DSA face severe penalties, which can include fines of up to 6% of their worldwide sales.
This article is only an overview of Regulation (EU) 2022/2065. For more information, please consult the full text of the regulation: https://eur-lex.europa.eu/legal-content/FR/TXT/PDF/?uri=CELEX:32022R2065
