LATEST NEWS: Portugal approves the Digital Services Act - what changes for companies?

The Digital Services Regulation, better known as the Digital Services Act (DSA), fully applicable since 17 February 2024, received a decisive milestone in Portugal nearly two years later: the approval of the law that ensures its implementation.

The DSA is part of the European legislative package on digital services, which, together with the Digital Markets Regulation, aims to create a safer digital space, ensure effective protection of users' fundamental rights and promote fair competition that stimulates innovation and business growth. For users, it means greater control over their choices when using online platforms and search engines. For companies, it also represents a strategic opportunity to strengthen transparency, user trust and their competitive position in an increasingly regulated digital market.

1. Who does it apply to?

The DSA applies to all online intermediary service providers offering services to users resident in the European Union, regardless of the company's country of establishment.

This includes: app shops and online travel and accommodation platforms, social networks, marketplaces, content hosting services, search engines and internet access providers.

The rules are proportional to the size of the companies and the impact they have on society. In this sense, the regulation also lays down special rules for:

• very large online platforms (VLMPs), used by more than 10 per cent of the 450 million active consumers in the EU; and
• very large online search engines (MPLMGD), used by more than 10 per cent of the 450 million active consumers in the EU.

The European Commission has already identified several companies covered by these enhanced rules, including platforms such as Facebook, Instagram, TikTok, YouTube, Amazon Store or Temu, as well as search engines such as Google Search and Bing.

2. Main obligations for companies

In constant articulation with the GDPR, this regulation introduces clear and concrete obligations to ensure transparency, the protection of users and the moderation of illegal content. Among the main ones, the following stand out:

• Signalling and removal of illegal content: rapid notification and action mechanisms for illegal content;
• Transparency: clear disclosure of moderation policies, recommendation algorithms, criteria used in the presentation of advertising and prohibition of obscure patterns;
• Protection of minors: adoption of appropriate security measures and prohibition of the use of profiles to display targeted adverts when there is a reasonable degree of certainty that the user is a minor;
• Effective contact channels: for direct communication with authorities and users;
• Annual transparency reports: detailing content moderation and management actions.

Smaller companies benefit from partial exemptions, allowing them to apply best practices gradually and competitively.

3. What happens if companies don't comply with the rules?

Failure to comply with the obligations can lead to significant sanctions, including fines of up to 6 per cent of global annual turnover, as well as specific corrective measures.

This is where DSA becomes as strategic as it is regulatory. Each lapse can generate considerable financial and reputational risks. For companies, understanding

these requirements and aligning internal processes is not just about complying with the law, it's about protecting their credibility in the digital marketplace.

4. DSA: From Regulation to Action

To safely face the requirements of the DSA, companies must adopt a strategic approach that goes beyond simple compliance. This means clearly identifying the obligations applicable to their services, structuring internal processes for content management and user protection, and ensuring transparency in all digital interactions. Anticipating these measures not only minimises legal and reputational risks, but also makes it possible to turn compliance into a competitive advantage, strengthening user confidence and consolidating the company's position in an increasingly demanding digital market.