6:35

Digital Services Act (DSA): What Compliance Officers Need to Know

Discover how the EU’s Digital Services Act reshapes the internet with new rules, user rights, and global accountability.
Source
L&D Hub
Duration
6:35

The internet is undergoing a transformation, and at the center of it all is the European Union’s Digital Services Act (DSA). This landmark regulation is more than just another policy—it is a shift in how online platforms are governed and held accountable. Whether you are a casual user, a business owner, or a tech giant, the DSA will impact the way you interact online.

Let’s break down what this law means, why it matters, and how it could change the future of the internet.

The Digital Wild West

For years, many of us have felt like the internet was spinning out of control—a digital “wild west.”

  • Illegal goods and scams have thrived on online marketplaces.
  • Disinformation and hate speech have spread rapidly across platforms.
  • Platform rules have often been unclear, inconsistently enforced, or both.

The truth is, while technology raced forward, regulations lagged behind. For nearly two decades, the fundamental rules governing the internet barely changed. Yet during that time, the internet went from a niche tool to the very center of modern life. This created a massive gap between old, outdated laws and today’s digital reality.

The big question became: How do you rein in the chaos without stifling innovation?

The EU’s New Rulebook: The Digital Services Act

Enter the Digital Services Act (DSA)—the EU’s ambitious answer to the problems of the digital age.

At its core, the DSA has three main goals:

  1. Make the internet safer for all users.
  2. Increase transparency across platforms.
  3. Ensure accountability for online services.

Importantly, the DSA does not discard the old framework entirely. The concept of “safe harbor”—where platforms are not automatically liable for every piece of user-generated content—remains. However, the DSA adds a critical new requirement: platforms only keep that protection if they actively take responsibility by tackling illegal content and addressing systemic risks.

Who Must Comply? A Tiered System of Responsibility

The DSA uses a tiered approach, placing different obligations on platforms depending on their size and influence:

  • Basic service providers (e.g., internet access providers) face minimal obligations.
  • Hosting services and online platforms (such as social media) have stricter requirements.
  • Very Large Online Platforms (VLOPs) carry the heaviest burden.

For VLOPs, obligations include:

  • Conducting annual risk assessments to identify how their systems may cause harm.
  • Undergoing independent audits to prove compliance.
  • Implementing systems for trusted flaggers—expert organizations whose reports on illegal content receive priority.

And here’s a crucial point: location does not matter. Any company serving users in the EU must comply—whether it is based in Silicon Valley, London, or Tokyo.

New Rights for Users

The DSA isn’t just about holding platforms accountable—it also expands user rights. Some key changes include:

  • The right to see who paid for an ad in your feed.
  • The right to know why a post was removed and to appeal that decision.
  • A ban on ads targeting children or using sensitive data such as religion or political views.

In short, users gain greater transparency, control, and protection over their online experiences.

The Stakes: Enforcement and Penalties

The DSA has real teeth. Companies that fail to comply face fines of up to 6% of their global annual turnover—not just EU revenue, but worldwide. For major tech companies, this could mean billions of euros in penalties.

And this is not a distant threat. The DSA is already in force. Deadlines have passed, enforcement has begun, and the grace period is over.

The Bigger Picture: Toward a Safer Digital Future

The ultimate goal of the DSA is not simply to create another compliance checklist. Instead, it aims to build a culture of responsibility in the digital world—encouraging platforms to act as accountable stewards of their ecosystems and empowering users to be better digital citizens.

But here’s the billion-euro question: Will the DSA’s influence stop at Europe’s borders? We have seen this story before with the GDPR, which set off a global wave of privacy reforms. Similarly, the DSA could inspire a new international standard for online accountability.

If so, the DSA might mark the beginning of a safer, more transparent, and more responsible internet for everyone.

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