The Digital Services Act (DSA), which came into effect on November 16, 2022, sets new standards for regulating the digital services sector within the European Union.
Replacing significant portions of the old E-Commerce Directive, the DSA expands liability rules and introduces new obligations. Along with the Digital Markets Act, the DSA forms a cornerstone of the EU's digital agenda.
Regulatory Tiers of the DSA
Since February 17, 2024, most provisions of this regulation are directly applicable. In Austria, implementation was carried out through the DSA Accompanying Act (DSA-BegG), which introduced the Coordinator for Digital Services Act (KDD-G) and adapted existing laws such as the ABGB, ECG, Copyright Act, Media Act, StPO, TKG, among others.
The DSA establishes a clear and efficient framework for transparency and accountability, strengthening the protection of users and their fundamental rights on the internet. Additionally, it promotes innovation, growth, and competitiveness in the digital single market.
The DSA utilizes the principle of graduated regulation, with four progressive regulatory tiers:
- Tier 1: Regulations for providers of intermediary services
- Tier 2: Regulations for hosting providers
- Tier 3: Regulations for providers of online platforms (and online search engines)
- Tier 4: Regulations for very large platforms and very large online search engines
Digital Services Act: Which Companies Are Affected?
The DSA addresses different companies according to the regulatory tier:
Providers of Intermediary Services: At the lowest regulatory tier, the DSA addresses all providers of "intermediary services," defined by the regulation as any information society service. Additionally, it is required that these services are offered for remuneration, including ad-financed services. The DSA territorially addresses all providers with a "substantial connection to the Union," which can be determined by the place of establishment, the origin of the users, or the orientation of the activities.
Hosting Service Providers: Intermediary services that store information and are thus classified as hosting providers, such as cloud computing services, web hosting services, and online file-sharing platforms intended for storing and exchanging files.
Online Platforms: Platforms that store and publicly disseminate information on behalf of a user, provided that the platform services are offered for remuneration, including payment with data.
Very Large Platforms and Very Large Online Search Engines: Platforms with an average monthly number of at least 45 million active users in the Union.
Expectations for Affected Companies
The expectations of the DSA vary according to the regulatory tier. For instance, hosting providers (Tier 2) must establish a notice-and-action system, while online platforms (Tier 3) need a more comprehensive complaint management and dispute resolution system. A careful review of the relevant regulatory tier and corresponding obligations is thus crucial.
Why Legal Advice Is Essential
Compliance with the Digital Services Act is of great importance for companies in the European economic area. Violations can result in significant legal and financial consequences. Thorough legal advice is therefore essential. Our law firm offers comprehensive support for implementing the DSA to minimize legal and financial risks and ensure compliance.
Our Services Include: Legal Consultation: Detailed advice on the DSA requirements and their impact on your company. Compliance Audits: Review of your existing processes and systems for compliance with the new regulations. Training and Awareness: Training for your employees to raise awareness of the new requirements and best practices. Risk Management: Assistance with conducting risk assessments and developing risk mitigation measures.
Do You Have Further Questions About the Digital Services Act?
If you have further questions on this topic or would like legal advice in other areas of business law, we specialize in this and other legal fields. Please contact our law firm at office@geuer.at or by phone at +43-1-4380072. We look forward to your inquiry.