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A Guide to the European Digital Services Act (DSA): What Online Companies Need to Know

DIGITAL SERVICES ACT

The digital landscape is evolving rapidly, bringing with it significant changes. One such change is the implementation of the European Digital Services Act (DSA), a comprehensive tech law that now applies to nearly all internet companies. If you are an online marketplace seller or operate an ecommerce platform in the EU, it’s important to be aware of the new rules that apply to your business as of today. The Digital Services Act (DSA) is a major EU law aimed at making online platforms safer and more accountable for both users and businesses. The DSA sets out new obligations and responsibilities for providers of digital services, especially online intermediaries such as marketplace sellers and ecommerce platforms.

Here are some of the key points you need to know about the DSA and how it affects your online business.

A Broad Spectrum of Impact

Effective from February 17, 2024, the DSA extends its reach to a wide array of online services, including internet providers, online marketplaces like Bol and Marktplaats, social networks, search engines, cloud providers, online travel and accommodation platforms, and content-sharing platforms. This law signifies a major step forward in protecting European citizens online.

The Aim of the Law

The primary goal of the DSA is to make the internet safer by obligating online services to combat harmful content and to clearly inform users about how they can delete their personal data or user accounts.

Implications for Marketplaces and Sellers

For online marketplaces and sellers, the DSA introduces additional responsibilities. Websites like Bol and Marktplaats are now required to collect more detailed information about traders offering products or services on their platforms, aimed at increasing transparency and accountability in online transactions.

Enforcement and Penalties

The enforcement of this law will be overseen by the Consumer & Market Authority (ACM). The ACM has strengthened its grip on compliance with this new standard for a safer internet, with potential heavy fines of up to 6% of the annual turnover.

The Impact on E-commerce

The DSA is expected to increase consumer trust in digital services, which is crucial for the further development and growth of the digital economy in the European Union. With the potential for heavy fines, the ACM has reinforced its commitment to compliance with this new standard for a safer internet.

The DSA offers several benefits for online marketplaces and ecommerce platforms, such as:

  • Legal certainty and harmonisation: The DSA provides a clear and uniform set of rules for all providers of digital services in the EU, reducing legal fragmentation and complexity, and facilitating cross-border operations and scaling up.
  • Innovation and competitiveness: The DSA supports innovation and competitiveness in the digital sector by creating a level playing field and a fair and open online environment, and by promoting the development and adoption of new technologies and solutions.
  • User trust and loyalty: The DSA enhances user trust and loyalty by ensuring a high level of protection for their rights and interests online, and by providing them with more choice, control, and transparency over the content, goods, and services they access through online platforms.

Conclusion

The Digital Services Act (DSA) represents a new and ambitious EU law that introduces new rules for digital services, with a particular focus on online intermediaries such as marketplaces and e-commerce platforms. Its goal is to make the internet safer and more accountable for both users and businesses by ensuring a high level of protection for their rights and interests online. Additionally, it aims to foster innovation, growth, and competitiveness in the digital sector. The DSA is applicable to all providers of digital services offering their services within the EU, regardless of their establishment location, and it imposes varying obligations and responsibilities based on the type and size of the intermediary service.

As marketplaces continue their irreversible advance to become the future of retail, e-tailize is committed to ensuring that our marketplace sellers possess the necessary tools to centralize, optimize, and capitalize on marketplace platforms. Partnering with e-tailize allows you to unlock your full potential and thrive in the evolving marketplace landscape, fully equipped to meet the demands and seize the opportunities presented by the Digital Services Act.

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