What is DSA (Digital Services Act)?

What is DSA (Digital Services Act)?
Marek Cieślak

Marek Cieślak

CEO CGO Finance

DSA (Digital Services Act) is a regulation introduced by the European Union to organize the digital market and the online environment. What does this mean for entrepreneurs and Internet users? We discuss it below.

The Scope of the DSA (Digital Services Act)

The provisions of the DSA (Digital Services Act) concern mainly providers of intermediary services and online platforms, including:

  • E-commerce platforms,
  • Social media platforms
  • Content sharing platforms,
  • App stores
  • Online travel and accommodation platforms.

The scope of the Digital Services Act includes:

  1. Obligations of digital platforms:

Digital platforms must take appropriate actions to counteract illegal content and misinformation. They must take greater responsibility for content moderation and remove illegal material on time. The specific obligations depend on the size of the online platform.

  1. Algorithm transparency:

Platforms must disclose how their content recommendation algorithms operate. Users should be able to understand what data is used for content personalization. They should have information on when and on whose behalf an advertisement is displayed.

  1. User protection:

New privacy measures have been introduced. They include an obligation to inform users in more detail about processing of their personal data. Platforms must also offer simple mechanisms for reporting violations.

  1. Strict requirements for large platforms:

The DSA imposes special obligations on large online platforms that have a significant impact on the market. These platforms must have regular audits and risk assessments to comply with new regulations.

  1. Obligation to adapt the terms and conditions of service:

The regulation imposes avoiding specialized terminology. It requires formulating terms in a clear and user-friendly manner. Service terms must be publicly available.

  1. Prohibition of dark patterns:

The DSA prohibits designing user interfaces that distort or limit the ability of service recipients to make independent and informed choices or decisions.


DSA (Digital Services Act) – consequences for entrepreneurs

Adapting policies and proceduresDigital companies must update their content management and data protection policies. This may involve technical changes and employee training.
Risk of financial penaltiesNon-compliance with the DSA regulations can result in heavy fines. Strict sanctions are planned to force compliance with the new regulations. They will be established by the Member States.
Cooperation with regulatory authoritiesPlatforms will have to work closely with regulators by sharing data and reports on their activities. This requires creating appropriate structures within the organization responsible for contact with regulators.
Consequences of DSA for Entrepreneurs

DSA (Digital Services Act) – impact on users

Greater control over dataUsers will gain more control over their personal data. This includes the right to better understand what data is collected and how it is used.
A safer online environmentWith strict content moderation laws, users can expect a safer online environment. It will be free from illegal content and misinformation.
Improved user experienceIncreased transparency in algorithms can improve the user experience. It will allow us to better understand and control the content on digital platforms.
Impact of DSA on users

VIES Search Engine

Although the main purpose of the DSA is to regulate digital services, it is also worth mentioning VIES. VAT Information Exchange System is a tool that allows you to verify VAT numbers in the EU. This is a key element for companies conducting intra-community transactions. It allows them to check the correctness of EU VAT numbers of their contractors.


DSA (Digital Services Act) – Summary

The DSA (Digital Services Act) introduces fundamental changes to the functioning of online platforms. Its goal is to increase safety and transparency online. Businesses need to adapt their policies and procedures to meet the new demands. Users, on the other hand, can count on better data protection and more transparent platform operations. The new regulations will have a wide-ranging impact on the way we use the Internet. The main objective is to create a more balanced and secure digital environment.

Are you interested in the DSA (Digital Services Act) and want to learn more about it? Feel free to contact us! Our experts are ready to help you.

FAQ – Questions and Answers on DSA (Digital Services Act)

What is Digital Services Act?

The Digital Services Act (DSA) is a set of EU regulations. Its main goal is to regulate the digital market. Another objective is to increase security and transparency online.

What obligations does the Digital Services Act impose on digital platforms?

The Digital Services Act (DSA) imposes obligations related to content moderation and transparency of algorithms. The protection of users’ privacy and cooperation with regulators is also crucial.

Who is covered by the Digital Services Act?

The Digital Services Act (DSA) applies to all online platforms operating in the EU. A particular emphasis is on large platforms.

What are the consequences of non-compliance with the Digital Services Act?

Failure to comply with the Digital Services Act (DSA) can result in financial penalties. It may also result in obligatory audits and risk evaluation.

How does the Digital Services Act affect users?

Users have greater control over their data and better protection against illegal content. User experience is better due to the transparency of recommendation algorithms.

What is the VIES search engine?

VIES (VAT Information Exchange System) is a tool for verifying VAT numbers in the EU. It is crucial for companies conducting intra-community transactions.

What are the deadlines for implementing the Digital Services Act?

The deadlines for the implementation of the DSA vary depending on the specific legislation. Yet, platforms must adapt to the new requirements within the time set by the EU.

What are the obligations of large platforms under the Digital Services Act?

Large platforms must undergo regular audits and risk evaluation. They must provide additional transparency and accountability in content management.

Does the Digital Services Act affect small businesses?

Yes, the Digital Services Act (DSA) affects all digital platforms. Yet, the requirements for small businesses are less restrictive than for large platforms.

What changes does the DSA (Digital Services Act) bring to advertisers?

Advertisers need to provide greater transparency in their efforts. This includes disclosing how the algorithms that personalize ads work.

Featured expert

Marek Cieślak

CEO CGO Finance