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How does the Digital Services Act impact my Marketplace?Article

April 26, 2022

impact of the Digital Services Act

EU adopts new legal framework to make marketplaces more accountable and fight web abuses such as misinformation and counterfeiting

Let's briefly recall the legal and economic context that led the European legislator to build a new body of rules before explaining the impact of the Digital Services Act.

Article updated on April 26, 2022 - Negotiators from the European Parliament, Council and Commission on the Digital Services Act (DSA) reached an agreement on April 23, 2022.

Second major step in European digital regulation after the Digital Markets Act, which will regulate markets from January 2023, the European Council and Parliament have agreed on a new text on digital services, which will enter into force on January 1, 2024. The first part aimed to fight against the dominant position of the web giants. The second part will regulate digital services.

Along with the Digital Markets Act (DMA), the Digital Services Act will set new standards for the coming years to govern the digital space and the conditions of competition for businesses. The DMA updates the 20-year-old E-Commerce Directive.

The principle is simple: what is illegal offline must also be illegal online.

What is the impact of the Digital Services Act on your platform, whether you are a Startup, Retailer or Pure-player?

Classifieds and C2C platforms are all affected, even the smallest startups. The measures depend on their role, size and impact on the online ecosystem.

The European Commission's press release states that "the DSA contains EU-wide due diligence obligations that will apply to all digital services that connect consumers with goods, services or content, including new procedures for faster removal of illegal content as well as comprehensive protection of users' fundamental rights online.

In concrete terms, the legislation on digital services contains:

  • measures to fight against illegal goods, services or content onlinesuch as:
    • a mechanism for users to easily report such content and for platforms to cooperate with "trusted reporters";
    • new obligations regarding the traceability of user companies on online marketplaces,
  • new measures to empowering users and civil societyin particular:
    • the ability to challenge content moderation decisions made by platforms and seek redress, either through an alternative dispute resolution mechanism or through judicial review;
    • provisions to grant accredited researchers access to key data from the largest platforms and allow NGOs access to public data, to better understand the evolution of online risks;
    • transparency measures for online platforms in many areas, including the algorithms used to recommend content or products to users;
  • measures to assess and mitigate riskssuch as:
    • Requiring very large online platforms and search engines to prevent misuse of their systems by adopting risk-based measures and having independent audits of their risk management systems;
    • mechanisms for rapid and effective adaptation in response to public safety or public health crises;
    • new safeguards for the protection of minors and limitations on the use of sensitive personal data for targeted advertising;
  • for very large platforms, enhanced monitoring and enforcement by the Commission. The monitoring and enforcement framework also confirms the important role played by independent authorities such as the Digital Services Coordinators and the Digital Services Committee."

The final text has not yet been published, so the measures to be implemented, the control procedures and the sanctions are not yet known. We will regularly update this article to inform you about the impact of the Digital Services Act on C2C marketplaces.

Tripartie limits the impact of the Digital Services Act and provides the necessary tools for your platform

Tripartie enables retailers, marketplaces and financial sector players to enter the second-hand and peer-to-peer market quickly, without operational and reputational risk.

Tripartie has a trust-based approach and provides a set of tools to ensure secure and compliant transactions and efficient user dispute resolution.

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