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INFORMATION TECHNOLOGY

Digital Services Act: EU Commission welcomes political agreement on rules ensuring a safe and accountable online environment.

The European Commission published, on 23 April 2022, a press release where it welcomed the political agreement, reached on the same day, between the European Parliament and EU Member States on the proposal on the Digital Services Act ('DSA'), proposed by the Commission in December 2020.

In particular, the Commission noted that the DSA sets out an unprecedented new standard for the accountability of online platforms regarding illegal and harmful content. In addition, the Commission stated that the DSA will provide better protection for internet users and their fundamental rights, as well as define a single set of rules in the internal market, helping smaller platforms to scale up.

Furthermore, the Commission outlined that the DSA contains EU-wide due diligence obligations that will apply to all digital services that connect consumers to goods, services, or content, including new procedures for faster removal of illegal content, as well as comprehensive protection for users' fundamental rights online. Moreover, the Commission noted that the DSA also applies to various online intermediary services, noting that their obligations under the DSA depend on their role, size, and impact on the online ecosystem and that these online intermediary services include:
  • intermediary services offering network infrastructure, namely internet access providers and domain name registrars;
  • hosting services, such as cloud computing and webhosting services;
  • very large online search engines with more than 10% of the 450 million consumers in the EU, and therefore more responsibility in curbing illegal content online;
  • online platforms bringing together sellers and consumers, such as online marketplaces, app stores, collaborative economy platforms, and social media platforms; and
  • very large online platforms with a reach of more than 10% of the 450 million consumers in the EU, which could pose particular risks in the dissemination of illegal content and societal harms.

Lastly, the Commission stated that the political agreement reached by the Parliament and Council of the EU is now subject to formal approval by the two co-legislators. Once adopted, the DSA will be directly applicable across the EU and will apply 15 months, or from 1 January 2024, whichever later, after entry into force; however, as regards the very large online platforms and very large online search engines, the DSA will apply from an earlier date, that is four months after their designation.
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