The Digital Services Act (DSA) is a groundbreaking piece of EU legislation aimed at creating a safer, fairer, and more transparent online environment. It applies to all online intermediaries in the EU and protects users from illegal content and products while also safeguarding their rights when using online platforms to communicate, share information, or make purchases.

Under the DSA, all online platforms with users in the EU (excluding small businesses and micro-enterprises) must implement measures to combat illegal content, protect minors, inform users about advertisements, prohibit targeted ads based on sensitive data, explain content moderation decisions, and provide users with a complaints mechanism. These platforms must also publish annual reports on their content moderation procedures and clearly define terms and conditions for users.

For very large online platforms and search engines, the Commission has direct supervisory and enforcement powers and can impose financial penalties of up to 6% of the service provider’s global turnover in serious cases. The Digital Services Coordinator and the Commission can require immediate actions to address harm and platforms can make commitments to remedy shortcomings. In extreme cases, platforms operating illegally may face temporary service suspension by judicial order.

The DSA’s enforcement mechanisms work to ensure compliance with the regulations and protect users from harmful content and practices online.