As of today, 16 November 2022, the Digital Services Act (DSA) officially enters into force. With the Digital Markets Act (DMA) already into force since 1 November, now the complete Digital Services Act Package is into force.
For many technology companies, and especially (very) large online platforms that reach over 45M recipients of their services in the EU alone, this means the clock for compliance is now ticking. As indicated in the critical timeline below, all tech companies with services that fall within the scope of the DSA (intermediaries, hosting services and (very large) online platforms) will need to publish their Average Monthly Active Recipients (AMAR) in the EU ultimately by 16 February 2023. This is only three months from today.
Companies being designated as Very Large Online Platforms only get four months to comply with its obligations, which will be no later than 16 June 2023. From then onwards they have to comply with a broad range from transparency on recommender algorithms, vetting credentials of third party traders on their platforms and data sharing with authorities. Achieving such compliance requires a clear control framework and a multidisciplinary approach to get it implemented on time across different functions.
For organizations that not only have 45M AMAR in the EU but also a minimum of 10.000 EU business users, the criteria for becoming a Gatekeeper under the DMA come into view. This would result in wider range of additional obligations on commercial conduct and data sharing with business users (or ‘partners’).
Yet, beyond compliance obligations, the DSA and DMA also offer an unique opportunity for platforms to establish themselves as ‘Trusted Platform’ through improve added value to partners and consumers alike.
Want to know how? Get in touch with our experts.
(KPMG has closely followed and analyzed the Digital Services Act and Digital Markets Act (DSA / DMA) since its inception in 2020. The obligations for platforms that come with DSA / DMA potentially have a disruptive nature. Timely preparation and a holistic approach to compliance are critical to maintain a license to operate.)