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The EU Digital Services Act (DSA) forces companies in the online segment to take precautions

from | 9 Jan 2023

The European Commission has agreed on a comprehensive regulatory package for online platforms, supplementing and adapting the old e-commerce directive. The Digital Service Act (DSA), together with the Digital Markets Act (DMA), is part of the European Commission's digital legislative package.

The text of the DSA was published in the Official Journal of the European Union on October 27, 2022. The DSA entered into force on November 16, 2022. The law will apply throughout the EU from February 2024. However, it will apply earlier to the largest social networks, online platforms and search engines, which will have to publish regular information on the average monthly number of their active users in the EU as early as February 17, 2023 (DSA Transparency Report).

The DSA aims to standardize regulations regarding due diligence and disclaimers for intermediary services and to ensure a level playing field. The online environment is thus to be made safer, more predictable and more trustworthy. Entrepreneurs must now take special precautions to avoid becoming liable to consumers themselves.

The DSA introduces binding EU-wide regulations that affect all providers of digital services that provide consumers with goods, services or content. For example, when ads are displayed, the user must be informed in real time that the ad is an advertisement, who is displaying it, and why it is being displayed.

In addition, entrepreneurs are obliged to check their suppliers themselves in order to prevent counterfeit products from being placed on the market. It is irrelevant whether the companies are based inside or outside the EU. The only relevant factor is whether they offer their services within the EU.

Violations could result in penalties of six percent of annual global sales.

If you have any questions, please do not hesitate to contact us. We will provide you with competent and practical advice on what online platforms must now observe and whether your company is affected by the new regulation.

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Contact 

Holger Praetorius

Holger Praetorius

Partner
Attorney at Law | ADVOCATE FOR COMMERCIAL & CORPORATE LAW

praetorius@pbc-legal.de