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Digital Service Act: What is it?

Did you know about the Digital Service Act? If you have a business that also operates online, read on, because we are talking about a European Union law that came into force in January of this year and that sanctions illegal content and lack of transparency with fines of up to 6% of the annual turnover. Find out more to know if you need to comply and how.
December 5 2024

The Digital Service Act is one of the most significant regulations in recent years regarding the digital world and the online ecosystem in Europe.

Approved by the European Union in 2022, the Digital Service Act came into force this year.

So if you have a business, a E-commerce or offer services through a website, you should continue reading. The Digital Service Act, in fact, has established new rules that digital platforms must comply with in terms of security and transparency. This means that not only large platforms such as social networks or marketplaces, but also small and medium enterprises with a digital presence must follow guidelines to avoid penalties.

The deadline was January 1st., but today (if you act quickly) you can still adapt before coming under the eye of the controls. Let's understand better what the Digital Service Act is, what it requires and, in a few minutes, how to comply.

What is the Digital Service Act and what does it entail?

The Digital Service Act is a European Union law. This law introduces Binding rules for digital platforms operating in the European marketIts main purpose is to regulate the responsibilities of platforms regarding user-generated content and the management of goods and services offered online.

Among the focus there is:

  • the obligation to promptly remove illegal content,
  • measures to limit disinformation
  • and transparency about their algorithms.

Furthermore, very large platforms, such as and social network, they will have theobligation to provide annual reports on the management of risks related to their activity, including risks to the mental health of users and the improper use of personal data.

Finally, the Digital Service Act also includes new measures for Strengthen consumer protection and promote fair competition online.

Any non-compliant activity risks fines of up to 6% of annual global turnover.

When are fines expected?

In addition to a maximum of 6% of annual turnover, there are other milder measures proportionate to the company or business sanctioned. There is still time to act, so in the meantime observe the risks of fines:

  1. Illegal content not removed.
  2. Lack of transparency.
  3. Inadequate management of risks to people's physical and mental health.
  4. Violations in the processing of personal data.
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Credits: European Commission

The prospects offered by the Digital Service Act and how to adapt

As a digital agency we can say that between artificial intelligence, Social and the greater ease of creating content that blends into the web, the safety and protection of people come first.

Of course, we are still behind on universal regularization… but interventions like the Digital Service Act do their part.

Although it only came into force in January 2024, many companies and businesses are still not compliant and do not even know it.

Click , here to visit the European Commission's Digital Services Regulation page.

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