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In Digital Evolution

The Digital Services Act: what is changing in the world of tech?

by , , and 2 Mins Read

The Digital Services Act (DSA) imposes wide-ranging and transformative obligations on online intermediaries and platforms.

As has been well-publicised over the last few months, the most onerous obligations, and tighter deadlines for compliance, fall on services designated by the Commission as very large online platforms (VLOPs) or very large online search engines (VLOSEs).

However, all online platforms and online search engines were required to publish information on their user figures earlier this year, and all online intermediaries in scope should be preparing for full compliance in February 2024.

You can find our short guide to DSA compliance here. The key steps in-scope organisations should be taking now are:

  • Determine your role: Even if you are not considered a VLOP or VLOSE, if you are providing intermediary services, hosting services or operate an online platform, you will fall within scope of the DSA. Different categories of service providers will have different obligations under the DSA, so it is crucial to identify which type of service provider you are. 
  • Prepare for implementation: The DSA will apply to all service providers on 17 February 2024. Once you have determined which obligations apply to you as a service provider, you must start taking steps to ensure you are DSA-compliant by the applicable deadline. 
  • Future planning and future proofing: It’s never too soon to start thinking about how your current obligations may change going forwards. Consider now how your plans for future products/services may tip you into a different category of service provider (with its own new obligations) or whether the growth of your business will trigger a future designation as a VLOP/VLOSE.
  • Understand the practical burden of compliance: for example,
    • For online platforms, including prominent ad disclosures identifying the advertiser and main parameters of the ad targeting and updating T&Cs with the main parameters used in recommender systems.
    • Additionally, for marketplaces, complying with obligations relating to trader traceability (to obtain, verify, and publish information on all traders offering goods/services on the platform).

These new requirements will have a significant impact on online platforms and marketplaces, involving new processes and disclosures (both proactive and reactive).

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John is a media and technology lawyer and is currently EMEA Head of Regulatory at Baker McKenzie. He is a Partner in Baker McKenzie's London office, having spent 12 months in the San Francisco office in 2018. John’s practice has three main strands: (1) technology and content regulation; (2) product counselling on new technologies; and (3) copyright and digital media. Most of his time is currently spent advising clients on the EU DSA and UK OSA, including representing clients on RFIs and Investigations in front of the European Commission and Ofcom. He also regularly helps clients launch new AI products, navigating risk and regulation (like the EU AI Act). He is ranked in Chambers UK and Legal500 across various Technology and Media categories. Managing IP ranks him as a "rising star" for copyright. He is also included in Thomson Reuters "Stand-out Lawyers" rankings, and Best Lawyers ranks him as "one to watch" for TMT. In 2020 John was elected to TechUK's Data Analytics and AI Leadership Committee.

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Ben works with clients on matters involving the cross-over space of media, IP and technology. His practice has a particular focus on artificial intelligence, data protection, copyright and technology disputes. He has a particular expertise in intermediary liability issues.

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Julia Hemmings is a partner in Baker McKenzie’s Consumer, Commercial & Tech team in London. She leads the Firm’s Digital Commerce, Advertising and Marketing practice and is co-chair of the London Consumer Goods & Retail industry group. Julia advises on a wide range of consumer-facing regulatory matters, including consumer protection compliance, platform regulation and digital commerce. She regularly supports clients on online trading models, product and service launches, and regulatory investigations. Julia is experienced in supporting businesses on distribution strategies and agency arrangements across the consumer goods and digital sectors.

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Josh is a senior associate in Baker McKenzie's IP and Technology team based in London.

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