Top 3 DSA Myths

Hi there and welcome back to DSAtoday.eu, the streamlined DSA compliance service. Today, we'll have a look at the most common misconceptions about the Digital Services Act and what they could mean for your business.

As a tech entrepreneur, you need to know whether you are required to comply with the EU’s Digital Services Act. In this post, we break down the Top 3 DSA Myths and provide you with a FREE RESOURCE to determine your compliance obligations!

DSA Myth #1 - “I’m not based in the EU so I have no obligations under Digital Services Act”

FACT: If you provide intermediary services to users located in the EU, you are required to comply with the DSA, regardless of your place of incorporation. This is because the geographic scope is attached to the service recipient, not the provider. You could be based in Brussels, Belgium or Brussels, Wisconsin - if you provide intermediary services to EU users, those services need to comply with the Digital Services Act.

This has become a standard feature in EU lawmaking, aimed at preventing the circumvention of regulations by unscrupulous actors and at ensuring that EU citizens and users remain protected by the EU legal framework even when the services are provided by a company registered in a third country.

DSA Myth #2 - “These rules only apply to the tech giants, not small players like us”

FACT: While it's true that size indeed does matter for determining the extent of your obligations under the Digital Services Act, being a small company doesn't exempt you from at least some exposure.

All providers of intermediary services in the EU have some degree of responsibility under the Digital Services Act including obligations to (a) designate contact points for users and authorities, (b) disclose restrictions on the use of their service in Terms & Conditions and (c) prepare and execute periodic transparency reporting. These obligations apply regardless of the size of your business.

The same goes for the second tier of the DSA obligations, applicable to hosting services, including duties to (a) implement a notice-and-action mechanism, (b) provide Statements of Reason for service restrictions and (c) notify suspicions of serious criminal offences. These obligations also apply regardless of your size.

Exemptions for micro and small enterprises, as defined in Recommendation 2003/361/EC, do apply to obligations applicable to online platforms and online marketplaces. It's important to be absolutely certain about the extent of your obligations under the DSA. Stick around for the BONUS DSA FACT at the end of this post to get a complimentary compliance check for your business.

DSA Myth #3 - “There’s no serious supervision so we needn’t bother with compliance”

FACT: It is your responsibility as a business owner or manager to ensure your service complies with applicable law. To help incentivise you to fulfil your obligations, the Digital Services Act established a dedicated framework for supervision and enforcement.

As part of this framework, the European Commission and National Competent Authorities cooperate in information sharing and coordination of cross border enforcement. These enforcement authorities have sweeping enforcement powers not unlike those applicable to public competition enforcement. The penalties applicable for violations of the Digital Services Act are significant and can go up to 6% of the total annual worldwide turnover.

BONUS DSA FACT: Compliance with the Digital Services Act doesn't have to be difficult. With our complimentary compliance check at DSAtoday.eu, you can determine your level of compliance obligations with just a few clicks and entirely free of charge - delivered to your inbox instantly.

We hope you found these Top 3 DSA Myths informative, send any questions you might have to info@dsatoday.eu.