The Digital Services Package consists of the Digital Services Act (DSA) and the Digital Markets Act (DMA): two regulations proposed by the European Commission. The bills are part of the European digital strategy "Shaping Europe's Digital Future. The goal of the DSA and the DMA is to create a safer digital space in which the fundamental rights of all users of digital services are protected, and to create a level playing field to promote innovation, growth and competitiveness, both in the European single market and globally.(1)

The DSA is the successor to the E-Commerce Directive (Electronic Commerce Directive 2000/31/EC), which came into force in 2000 and set a framework for the internal market of online services.(2) This directive no longer reflects today's online world. With the changing role of online intermediaries and the need to protect users from increased illegal e-commerce, the EU believes a review of the existing regulatory framework is needed.

Specifically, this means:

measures against illegal online goods, services or content, such as a mechanism for users to flag such content and for platforms to cooperate with "trusted flaggers"

new obligations regarding the traceability of business users on online marketplaces to make it easier to track down sellers of illegal goods

effective safeguards for users, allowing them to challenge platform content moderation, among other things

transparency measures for online platforms in various areas, including with respect to the algorithms used

obligations for very large platforms to prevent misuse of their systems by implementing risk-based measures and having independent audits of their risk management in place

access for researchers to key data from major platforms so they can track how risks are evolving

supervision structures adapted to the complexity of the online environment: EU countries will assume the main role, supported by a new European Digital Services Council for very large platforms can also count on additional supervision and enforcement by the Commission.

The DSA significantly improves mechanisms for the removal of illegal content and effective protection of users' fundamental rights, including freedom of expression. The law also leads to stronger government oversight of online platforms, especially those reaching more than 10% of the EU population.(3)

The DMA is a new law to regulate large online platforms such as Amazon, Facebook and Google, so-called "gatekeepers. Search engines, social networks, video image services, cloud computing services that have a significant impact on the internal market, manage access ("gateway") between other companies and their customers, and have achieved or will achieve an entrenched and sustainable position in their operations. The number of users and annual revenue will come into play.

One result of the DMA is that an online platform will be considered a gatekeeper if it meets clearly defined criteria. It must then adhere to clear prohibitions and obligations to prevent a number of unfair practices. For example, it must not discriminate in favor of its own services, it must ensure interoperability with its platform and, in accordance with privacy rules, it must share data provided or generated through interactions between merchants on the platform and their customers. Gatekeepers can continue to offer new and innovative services as they have done so far, but without taking advantage of unfair practices.(4)

In December 2020, the European Commission published its proposal for the DSA and DMA.(5) According to the European Commission, the new rules are proportionate, encourage innovation, growth and competitiveness, and facilitate the growth of smaller platforms, SMEs and startups. The responsibilities of users, platforms and public authorities are redistributed in line with European values, with citizens at the center.

On March 25, 2022, political agreement was reached on the Digital Market Act. On April 23, 2022, political agreement was reached on the Digital Service Act.(6)

Footnotes

(1) https://digital-strategy.ec.europa.eu/en/policies/digital-services-act-package

(2) https://eur-lex.europa.eu/legal-content/NL/TXT/?uri=OJ:L:2000:178:TOC

(3)

https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital-age/digital-services-act-ensuring-safe-and-accountable-online-environment_nl

(4) https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital-age/digital-services-act-ensuring-safe-and-accountable-online-environment/europe-fit-digital-age-new-online-rules-platforms_nl

(5) https://digital-strategy.ec.europa.eu/en/policies/digital-services-act-package

(6) https://ec.europa.eu/digital-single-market/en/digital-services-act-package