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Digital services package

The digital services package is the EU response to the need to regulate the digital space. It defines measures to protect online users while supporting innovation.

A safe and open digital space for EU citizens and businesses

Online platforms are an important part of the EU digital market and economy. EU member states recognise the need to strengthen, modernise and clarify the rules for digital services to:

  • ensure the safety of users online
  • allow innovative digital businesses to grow 

The EU’s legal framework for digital services had remained unchanged since the adoption of the e‑commerce directive in 2000, and was therefore acutely in need of an update. In the meantime, digital technologies, business models and services had changed at an unprecedented pace.  
 
The Digital Services Act package was presented by the European Commission in December 2020. It includes:

  • the Digital Services Act
  • the Digital Markets Act 

Both legislative acts were quickly adopted by the Council and the European Parliament in 2022.

The new rules better govern the digital space and digital services, including social media platforms. They: 

  • ensure digital users have access to safe products and protect users' fundamental rights
  • allow free and fair competition in the digital sectors to boost innovation and growth

Who will benefit from the new rules on digital services?

The new rules on digital services benefit a wide range of users and platforms including:

  • citizens
  • providers of digital services
  • business users of digital services
  • society at large

Your life online: How is the EU making it easier and safer for you?


The European Union is actively working on improving the digital environment for the benefit of all Europeans. Our digital life needs to be safe, easy and respectful of basic freedoms.

 

In light of the updates on the two key regulations to ensure a safer and easier online life for users, discover more on how the EU is making your online life easier and safer through a feature story. 

Your life online: How is the EU making it easier and safer for you?

What is the Digital Services Act? 

The Digital Services Act (DSA) focuses on creating a safer online environment for digital users and companies, and on protecting fundamental rights in the digital space by establishing new rules on:

  • countering illegal content online, including goods, services and information, in full respect of the Charter of Fundamental rights
  • tackling societal risks online
  • traceability of traders in online marketplaces
  • transparency measures for online platforms
  • enhanced supervision

It establishes a set of responsibilities and a clear accountability and transparency framework for providers of intermediary services, such as:

  • online marketplaces 
  • social networks 
  • content-sharing platforms 
  • online travel and accommodation platforms 

This means that all online intermediaries offering their services in the single market, whether they are established in or outside the EU, have to conform to the new rules. 

Companies have obligations proportionate to the nature of their services and to their size and impact. This means that very large online platforms (VLOPs) and very large online search engines (VLOSEs) are subject to more stringent requirements.

The benefits of the DSA

The DSA safeguards the rights and legitimate interests of all parties involved, particularly EU citizens.

Online users in the EU are empowered to have more control over what they see online, and to be able to understand or be informed about the ads they see. Users are able to flag illegal content, and the platform will then be obliged to notify them of the decisions they take.   

The law increases the transparency of the rules for content moderation online, while providing greater access to data for authorities and researchers so that they can better understand online space, its societal impact and possible risks. 

Minors are also better protected through the DSA. Platforms accessible to minors are prohibited from showing targeted advertising based on the use of minors’ personal data as defined in EU law. 

 

The rules set out under the DSA are designed to protect in particular:

  • the freedom of expression and information
  • the freedom to conduct a business
  • the right to non-discrimination 
Individual bubbles to show the different EU member states and their e-commerce data
Digital Services Act (infographic)

Digital Services Act (infographic)

Crisis mechanism in light of Russian aggression in Ukraine 

 

In the context of the war in Ukraine and the impact on the manipulation of online information, a new article has been added to the text introducing a crisis response mechanism. 

 

This mechanism will make it possible to analyse the impact of the activities of VLOPs and VLOSEs on the crisis in question and decide on measures to make sure that fundamental rights are respected. 

When will the new rules apply?

The Council adopted the Digital Services Act on 4 October 2022. The new rules will apply 15 months after their entry into force.

What is the Digital Markets Act? 

The Digital Markets Act (DMA) focuses on ensuring a level playing field for all digital companies, regardless of their size. The DMA aims to guarantee a competitive and fair digital sector by:

  • banning unfair practices of online platforms holding the biggest share of the market
  • giving the possibility for business users to offer consumers more choices 
  • providing better services and fairer prices for consumers 
  • imposing clear rights and obligations on large online platforms
  • promoting innovation and a fairer online platform environment for technology start-ups

The DMA defines clear rules for big platforms. It aims to make sure that no large online platform acts as a ‘gatekeeper’, a private rule-maker in digital markets by controlling at least one so-called ‘core platform services’.

Core platform services include:

  • online intermediation services (i.e. marketplaces, app stores)
  • online search engines
  • social networking
  • cloud services
  • advertising services 

Which platforms are considered gatekeepers?

To be considered a gatekeeper a platform must either have had an annual turnover of at least €7.5 billion within the European Union (EU) in the past three years or have a market valuation of at least €75 billion, and secondly it must have at least 45 million monthly end users and at least 10 000 business users established in the EU.

The platform must also control one or more core platform services in at least three member states.

On 6 September 2023, the European Commission designated six gatekeepers: Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft. The gatekeepers have six months following the notification to ensure full compliance with the DMA obligations.

An EU act set against a background of yellow and blue dots, representing SME online platforms
Digital Markets Act (infographic)

Digital Markets Act (infographic)

The consequences for gatekeepers

Gatekeepers will not be able to: 

  • rank their own products or services higher than those of others
  • prevent developers from using third-party payment platforms for app sales  
  • process users’ personal data for targeted advertising, unless consent is granted
  • establish unfair conditions for business users
  • pre-install certain software applications or prevent users from easily un-installing them
  • restrict business users of platforms

Gatekeepers will have to:

  • offer more choices, such as the choice of certain software on a user’s operating system
  • ensure that unsubscribing from core platform services is as easy as subscribing
  • provide information on the number of users that visit their platforms to determine whether the platform can be identified as a gatekeeper
  • give business users access to their marketing or advertising performance data on the platform
  • inform the European Commission of their acquisitions and mergers
  • ensure that the basic functionalities of instant messaging services are interoperable, i.e. enable users to exchange messages, send voice messages or files 

Fair competition of digital services is key to ensure that companies and consumers can all benefit in the same way from digital opportunities. This will also generate more innovation and boost consumer protection. 

Who makes sure that gatekeepers stick to the rules?

To ensure a high degree of harmonisation in the internal market, the European Commission is the sole enforcer of the regulation.

To make sure that gatekeepers have a clear understanding of what rules they have to abide by, the European Commission can decide to engage in regulatory dialogue.

An advisory committee and a high-level group will be set up to assist and facilitate the work of the European Commission.

What happens if gatekeepers do not comply with rules

When a large online company has been identified as a gatekeeper, it has to comply with the rules of the DMA within six months.   

If a gatekeeper violates the rules laid down in the DMA, it risks a fine of up to 10% of its total worldwide turnover. For a repeat offence, a fine of up to 20% of its worldwide turnover may be imposed. 

If a gatekeeper systematically fails to comply with the DMA, i.e. it violates the rules at least three times in eight years, the European Commission can open a market investigation and, if necessary, impose behavioural or structural remedies. 

When will the new rules apply?

The Council adopted the Digital Markets Act on 18 July 2022. The new rules will apply six months after their publication in the Official Journal of the European Union.

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