Designated VLOPs and VLOSEs must identify, analyse, and assess systemic risks linked to their service design, functioning, algorithmic systems, and use. The DSA names systemic-risk areas including illegal content, fundamental rights, civic discourse and electoral processes, public security, gender-based violence, public health, minors, and serious effects on physical and mental well-being.
Those very large services must put in place reasonable, proportionate, and effective mitigation measures, maintain an internal compliance function, undergo independent audits at least annually, provide data access where required, publish six-monthly transparency reports, and make public risk assessment, mitigation, audit, and audit implementation reports within the Article 42 framework.
For penalties, Member States must set effective, proportionate, and dissuasive penalties for providers within their competence. The DSA caps maximum fines for obligation failures at 6% of annual worldwide turnover, caps certain information or inspection failures at 1% of annual income or worldwide turnover, and caps periodic penalty payments at 5% of average daily worldwide turnover or income per day. The Commission has separate enforcement powers for designated VLOPs and VLOSEs.
Who enforces the EU Digital Services Act?
Digital Services Coordinators supervise and enforce DSA compliance for providers of intermediary services established in their territory, while the European Commission has exclusive competence for the enhanced due-diligence obligations imposed on designated VLOPs and VLOSEs.
What is the maximum DSA fine for failing to comply with an obligation?
For providers within Member State competence, the DSA requires Member States to ensure that the maximum fine for failure to comply with an obligation is 6% of the provider's annual worldwide turnover in the preceding financial year. Separate 1% and daily 5% caps apply to specified information, inspection, and periodic penalty-payment situations.