Digital Services Regulation - Part One (what are its objectives and who is affected)

At a time when the digital ecosystem is undergoing constant evolution and innovation, the European Union has come up with a new regulatory framework called the Digital Service Act, or Digital Services Regulation ("DSA").

The DSA represents a revolutionary step by the European Union to regulate the online environment, aiming to ensure a safer and more transparent digital space for all users. The regulation targets online intermediaries and platforms, including marketplaces, social networks, content sharing platforms, app stores and online travel and accommodation services, and emphasises the prevention of illegal and harmful online activities and the spread of misinformation.

Until now, the rules set out in the DSA have only applied to selected platforms with more than 45 million users in the EU. However, from 17 February 2024, these rules will apply to all platforms providing their services in the EU single market.

Who does the DSA impact?

The DSA categorises digital service providers into several groups based on the type of service they offer and the scope of their operations:

1. intermediary service providers - entities that mediate the transfer of information, temporarily store data or allow users to store information on demand;
2. online platforms - entities within the narrower category of intermediaries, including platforms that host and make information publicly available to users on request;  
3. Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) - a special sub-category comprising platforms with more than 45 million active users in the EU; these platforms are subject to stricter regulation and oversight under the DSA due to their extensive impact and influence on the digital market and society.

In this article and in the article that follows, we will focus on intermediary service providers. These include, for example, Internet connectivity providers, cloud and web hosting providers, SaaS (Software as a Service) application providers, domain registrars, online marketplaces, app stores, social networks, content sharing platforms, etc.

What does this mean for you?

If you consider yourself to be classed as a provider of intermediary services, it is essential that you familiarise yourself with the obligations that the DSA brings. This includes not only adjusting your terms and conditions and putting in place transparent content moderation rules, but also ensuring that your services comply with user protection requirements and the fight against illegal content.

In the following article, we will discuss what specific rights and obligations you, as a provider of intermediary services, have under the DSA.

Are you ready for the changes brought by the Digital Services Regulation? Have you updated your terms and conditions to comply with the new rules? If you need to, please contact us and we'll help you bring everything into compliance.

Nathanael Schwarz contributed to this article.