The imminent entry into force of the Digital Services Act (2024) and what it involves

The EU Digital Services Regulation 2022/2065, also known as the Digital Services Act, is a new European Union regulation that came into force at the beginning of 2024. The aim of the regulation is to create a safer and more predictable online environment for users, while protecting freedom of expression and innovation.

What are we talking about when we talk about intermediary service providers (ISPs)?

• Amazon is an online marketplace that connects buyers and sellers of products.
• Booking.com is an online marketplace that connects travellers and accommodation providers.
• PayPal is a payment service provider that facilitates transactions between buyers and sellers.
• Google Maps is a map service that provides location and address information.
• YouTube is a video hosting service that allows users to watch and share videos.

These are just a few examples of the many types of intermediary service providers that exist. Intermediary service providers can provide a wide range of services, such as brokering business transactions, facilitating payments, providing information and creating communities.

Here are some more specific examples of intermediary service providers:

• Online Marketplaces: eBay, Etsy, Alibaba
• Social media platforms: Facebook, Twitter, Instagram
• Data hosting platforms: Google Drive, Dropbox, iCloud
• Video hosting platforms: YouTube, Vimeo, Twitch
• E-commerce platforms: Amazon, Zalando, AliExpress
• Ridesharing platforms: Uber, Lyft, Bolt
• Accommodation platforms: Airbnb, Weguest, HomeAway, Booking.com
• Freelance recruitment platforms: Upwork, Fiverr, Freelancer.com
• Crowdfunding platforms: Kickstarter, GoFundMe, Indiegogo
• Crowdfunding platforms: Crowdcube, Seedrs, Fintonic

The regulation applies to all providers of intermediary services, which are services that facilitate communication between users, such as online platforms, search engines and hosting services. The regulation lays down a number of obligations for these providers, such as:

• Remove illegal content from their platforms within 24 hours of being notified of its existence.
• Take measures to prevent the spread of misinformation on their platforms.
• Provide users with tools to report illegal or harmful content.
• Be transparent about their algorithms and content moderation practices.

The regulation also establishes a new system of supervision and enforcement, which will be discussed later, including the creation of a new European digital services authority. This authority will be responsible for monitoring the compliance of intermediary service providers with the regulation.

Structure of EU Regulation 2022/2065

The regulation is divided into seven chapters:

• Chapter 1: General provisions
• Chapter 2: Regulatory framework for intermediary services
• Chapter 3: Illegal content
• Chapter 4: Disinformation
• Chapter 5: Transparency and accountability
• Chapter 6: Monitoring and enforcement
• Chapter 7: Final provisions

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Legal obligations arising from having a payment gateway

The legal obligations in Spain arising from having a payment gateway are set out in Law 16/2022 of 28 April on Payment Services (LSP).

Main changes introduced by EU Regulation 2022/2065

Compared to Directive 2000/31/EC, which was the previous regulation on digital services, EU Regulation 2022/2065 introduces a number of important changes, including the following:

• Extending the scope of the regulation: The new regulation applies to all intermediary service providers, regardless of their size or location.
• Increased obligations for intermediary service providers: The regulation establishes new obligations for intermediary service providers, such as removing unlawful content within 24 hours, taking measures to prevent the spread of misinformation, and transparency about their algorithms and content moderation practices.
• Creation of a new monitoring and enforcement system: The regulation creates a new European digital services authority, which will be responsible for monitoring the compliance of intermediary service providers with the regulation.

What is the new Monitoring Service?

The new Digital Services Act Monitoring Service is a new independent authority responsible for monitoring the compliance of large online platforms with the Digital Services Act (DSA). The monitoring service is composed of a group of independent experts, selected by an independent selection committee.

The objective of the monitoring service is to ensure that large online platforms comply with their legal obligations, in particular the following:

• • Remove illegal or harmful content from their platforms.
  • Protect users’ privacy.
  • Fighting disinformation.
  • Provide users with clear information about their rights and the options available to them.

The monitoring service is designed to protect the following groups of people:

• • Users of online platforms.
  • Society at large.

Users of online platforms are protected by the monitoring service because it is responsible for ensuring that platforms comply with their legal obligations to protect users, such as removing illegal or harmful content, protecting privacy and combating disinformation.

Society at large is protected by the monitoring service because it ensures that online platforms do not harm society, for example by spreading disinformation or manipulating elections.

The supervisory service has a number of powers to ensure that online platforms comply with their legal obligations. These powers include:

• • The ability to research online platforms.
  • The ability to issue orders to online platforms.
  • The ability to impose fines on online platforms in breach of the law.

The monitoring service is scheduled to start operating in 2024.

EU Regulation 2022/2065 is an important piece of legislation that has the potential to transform the online environment in the European Union. The regulation aims to create a safer and more predictable environment for users, while protecting freedom of expression and innovation.

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