DSA Compliance Now Applies to Mid-sized Online Platforms
The EU mandates DSA compliance for online platforms with 50-249 employees by 2024.
Why it matters: Medium-sized tech companies must urgently assess and meet DSA requirements to avoid penalties. Legal counsel must navigate these regulations, focusing on data handling and content moderation practices.
- DSA covers platforms with 50-249 employees starting February 17, 2024.
- Exemptions remain for companies under 50 employees and €10 million turnover.
- The European Commission and national authorities enforce DSA.
- Transparency in content moderation and data practices is required.
The European Union's Digital Services Act (DSA) will now include online platforms with 50 to 249 employees as of February 17, 2024. Previously, the DSA focused on Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs), but this expansion aims to increase accountability across more digital services.
Under the DSA, only micro and small enterprises—defined as having fewer than 50 employees and generating less than €10 million in annual turnover—will be exempt. These figures are specified in the European Commission guidelines.
New compliance requirements will emphasize transparency in reporting content moderation actions and how user data is handled. Medium-sized platforms must now document and disclose these processes, posing new challenges for in-house legal teams who need to ensure their company meets these stringent standards.
The DSA enforcement model splits responsibility between the European Commission, which oversees larger platforms, and national authorities who handle compliance for smaller entities. This combined effort is designed to improve digital safety and integrity throughout the EU.
Regarding these developments, Margrethe Vestager, Executive Vice-President of the European Commission, stated, "Users, Member States and platforms can now use the tools under the DSA to shape a safer and more transparent online world." Her comments underline the collaborative goal of fostering safer digital environments.
Legal counsels are advised to closely monitor these guidelines and prepare for DSA compliance by reviewing current data protection practices and transparency measures.
By the numbers:
- 50-249 — Employee count for platforms now under DSA rules.
- €10 million — Annual turnover threshold for DSA exemption.
- 2024 — Year new rules take effect.
Yes, but: National enforcement variations might lead to inconsistent compliance across different regions.
What's next: Companies must initiate compliance assessments immediately to prepare for the February 2024 deadline.