Digital Services Act enters into force

The DSA imposes new obligations on intermediaries, inter alia, hosting service providers, including online platforms and online marketplaces.

Work is currently underway in Poland to implement the DSA requirements. The implementing act will designate the Digital Services Coordinator (the function will most likely be held by the President of UKE i.e. the Office of Electronic Communications) and other competent agencies (presumably UOKiK i.e. the Office for Competition and Consumer Protection) and will specify the areas of their competence.

Who does the DSA apply to?

The DSA is not limited to very large online platforms (VLOPs).

The provisions of the DSA will apply, in particular, to:

• online marketplaces,
• social networks,
• content sharing platforms,
• app shops,
• online travel and rental booking platforms,
• online shops if they publish customer reviews of goods and/or services.

Importantly, small businesses and micro-entrepreneurs can benefit from exemptions to certain DSA obligations.

In practice, changes resulting from the DSA may require businesses to inter alia:

• implement relevant procedures and amend terms and conditions to comply with the new requirements of content moderation and meet the information obligations laid down in the DSA,
• put in place the “notice & action” mechanism for reporting illegal content,
• make sure that the interfaces of online platforms do not employ dark pattern practices,
• designate a contact point for users and authorities,
• in the case of online marketplaces, put in place an additional “know your customer” procedure and adapt ranking systems to the new rules.

What penalties does the DSA provide for?

Failure to comply with the obligations laid down in the DSA is punishable by a fine of up to 6% of annual worldwide turnover. A business that fails to co-operate with the controlling authority with respect to the DSA may be liable to a fine of up to 1% of annual income or worldwide turnover.

The oversight agency will have the right (as currently UOKiK and the President of the Data Protection Authority (PUODO) have) to either prohibit a certain practice or order a specific action to be taken.  

How can we help you?

First, it is crucial to determine whether the new regulations will apply to your organisation. For example, if you publish user reviews of products or services, there is a real risk that you will be subject to the DSA.

We are happy to offer our legal assistance at every step of implementing the DSA, starting with verification whether, and to what extent the regulations apply to your business. We can map areas that need to be adapted, adjust your policies and procedures to the requirements of the DSA and train your employees on the new rules governing the moderation of user content. We can also conduct a post-implementation audit.

We encourage you to contact us.