The European Commission has proposed two legislative initiatives to update the rules governing digital services in the EU: the Digital Services Act (DSA) and the Digital Markets Act (DMA). The Commission made proposals in December 2020, and on March 25, 2022, a political agreement was reached on the Digital Markets Act, and on April 23, 2022 on the Digital Services Act.
Together they form a single set of new rules that will be applied throughout the EU to create a safer and more open digital space.
DSA and DMA have two main goals:
- Create a safer digital space in which the fundamental rights of all users of digital services will be protected;
- Create a level playing field to stimulate innovation, growth and competitiveness both in the European single market and globally.
Following the adoption of the digital services package on first reading by the European Parliament in July 2022, both texts now have to be adopted by the Council of the European Union. Once passed by the Council, the Digital Services Act and the Digital Markets Act will be signed by the presidents of both institutions and published in the Official Journal. Both acts will enter into force 20 days after their publication in the Official Journal.
The DSA will apply directly within the EU and will apply for fifteen months or from 1 January 2024, whichever is later after entry into force. In terms of obligations for very large online platforms and very large online search engines, the DSA will apply from the earlier date, i.e. four months after their appointment.
Once the DMA takes effect, it will become applicable six months later. Companies will have six months after the Commission’s decision on the appointment to ensure compliance with the obligations set out in the Digital Markets Act.
