top of page
  • Mariane Bunn

DSA & DMA: everything you need to know.

Updated: Apr 4

Digital Services Act & Digital Markets Act - How will this affect you?


In an era where digital platforms play a pivotal role in our daily lives, the European Union has taken a bold step forward with the introduction of the Digital Services Act (DSA) and the Digital Markets Act (DMA). These landmark regulations are set to reshape the digital landscape, offering new challenges and opportunities for member states, including Luxembourg. As a hub for innovation and a key player in the EU's digital economy, Luxembourg's approach to these regulations will be crucial in determining its future in the digital age.


The Digital Services Act (DSA): enhancing accountability and safety online – valid from 17 of February 2024 The DSA is the Taylor Swift of the European Commission, as a popstar, it needs attention.” – David Alexandre (DLA Piper Luxembourg).


The image brings a black keyboard. On the top there's a blue padlock with some keys attached. The padlock has the European Union flag and a label written Digital Services Act

 

The DSA is designed to create a safer digital space where the fundamental rights of users are protected and to establish a level playing field for businesses. From Luxembourg's perspective, the DSA presents an opportunity to enhance consumer protection and ensure that digital services operate transparently and responsibly within its borders. It means that platforms will now be held accountable for the content they host, with obligations to swiftly remove illegal content and disinformation, thereby safeguarding the digital ecosystem.

 

For Luxembourg's vibrant start-up scene and established tech companies, this act emphasizes the importance of incorporating robust content moderation processes and transparent advertising practices. While this may require initial investments in compliance and technology, it ultimately leads to a more trustworthy digital environment that benefits both users and businesses.

 

Who is concerned:

Network infrastructure services,

Hosting providers,

Online platforms (B2B + B2C),

Very large online platforms (VLOPs) and online search engines.


The image shows a pyramid with cold colours. Each part of it shows one actor in the DSA agreement.
Image taken from European Commission website

Goals

For audience:

  • better protection of fundamental rights

  • more control and choice

  • stronger protection of children online

  • less exposure to illegal content

For providers of digital services:

  • legal certainty

  • a single set of rules across the EU

  • easier to start-up and scale-up in Europe

 

For business users of digital services:

  • access to EU-wide markets through platforms

  • level-playing field against providers of illegal content

 

For society at large:

  • greater democratic control and oversight over systemic platforms

  • mitigation of systemic risks, such as manipulation or disinformation

Obligations:

Fight against illegal content

-    It is mandatory to have an option to report the content in the platform.

 

Prohibited practices:

-       Dark patterns – not allowing the user to reject the cookies or hiding the info about it.

-       Targeted advertising for children.

 

Transparency obligations:

-       The platform's terms and conditions must be clear to everyone, including information about algorithms.

 

Read more on the European Commission website.

Or download the online guide (in French) provided by Competition Authority of the Grand Duchy of Luxembourg.

The Digital Markets Act (DMA): promoting fair competition and innovation - valid from March 2024


The DMA targets the monopolistic practices of large online platforms, referred to as "gatekeepers," that control access to digital markets. For Luxembourg, a country that prides itself on fostering innovation and competition, the DMA is a welcome development. It ensures that smaller businesses and start-ups have fair access to the market, promoting a diverse and competitive digital economy.

Luxembourgish companies will benefit from provisions that prevent gatekeepers from favouring their own services over others, allowing local businesses to compete on a more level playing field. This act encourages innovation, as companies will have the freedom to innovate without the fear of being edged out by larger platforms with dominant market positions.

 

Who is concerned?

Businesses that:

•      have strong economic position, significant impact on the internal market and is active in multiple EU countries

•      have strong intermediation position, meaning that it links a large user base to a large number of businesses

•      have (or is about to have) an entrenched and durable position in the market, meaning that it is stable over time if the company met the two criteria above in each of the last three financial years

 

Read more in the European Commission website.


Embracing the digital future

The introduction of the DSA and DMA marks a significant milestone in the EU's efforts to regulate the digital space. These regulations offer a unique opportunity to enhance consumer protection, promote fair competition and foster a thriving digital economy. By embracing these changes and actively participating in their implementation, Europe can ensure that it remains at the forefront of the digital revolution, setting a standard for innovation, safety, and fairness in the digital age.


This article was written by Koosmik after attending a conference organized by the Luxembourg Chamber of Commerce with its members, members of the European Commission and Luxembourg lawyers and market participants.

Kommentare


bottom of page