Contents
Doing business online is no longer just about having a great product or service – it’s also about making sure you’re hitting all the right notes when it comes to compliance, especially as the rules for digital platforms continue to evolve.
If your business, marketplace, or online platform has customers in the EU, recent changes under the Digital Services Act (DSA) could have a major impact on how you operate. And even if your firm is based squarely in the UK, the DSA’s cross-border reach means these changes might affect you more than you think.
Not sure what the DSA is, or what it means for your website, app, or digital venture? Don’t worry – in this guide, we’ll break it down in simple terms and highlight everything UK online businesses need to know to stay compliant, avoid hefty penalties, and protect your growth. Let’s get started.
What Is the Digital Services Act?
The Digital Services Act (or DSA for short) is a sweeping piece of legislation introduced by the European Union to update the rulebook for digital services that operate in the EU. Its main goal is to make the internet a safer, fairer, and more transparent place for users by setting rigorous new obligations for online businesses.
Coming into full force for most online firms on 17 February 2024, the DSA essentially overhauls how platforms handle everything from illegal content and advertising to algorithmic transparency and user rights. And crucially, it doesn’t matter if your company is headquartered in London, Manchester, Edinburgh, or elsewhere – if you offer online services to users in the EU, you’ll need to pay attention.
Here’s what the DSA sets out to do:
- Create a safer online environment for all users
- Prevent the spread of illegal content and harmful activities
- Protect fundamental rights like privacy and freedom of expression
- Increase transparency and accountability of online platforms
Does My UK Business Need to Worry About the DSA?
This is likely the first question on your mind. The DSA applies to a broad range of online “intermediary services” provided to users in the EU. In practical terms, if you run any kind of online platform – such as a marketplace, social network, app, search engine, or cloud service – and EU users can access it, you’re probably caught by the DSA, regardless of where your company is incorporated.
Service types covered by the DSA include:
- Intermediaries – Companies that provide network infrastructure, such as internet providers or cloud services.
- Hosting providers – Businesses that host content or data (for example, web hosting firms or platforms where users upload information).
- Online platforms – Apps, marketplaces, and services connecting users to goods, content, or other users. This includes everything from social networks to e-commerce sites.
- Search engines – Tools that index and present information online (especially those with large numbers of users).
The upshot? If your online business serves, targets, or is accessible to EU users – even if unintentionally – it’s worth reviewing your operations for DSA compliance.
If you’re not sure where your service falls within the DSA’s categories, a quick contract review by a legal expert can make things much clearer.
Why Has the DSA Been Introduced?
The digital economy has changed dramatically since previous EU internet rules were made (some date back to the early 2000s). With today’s platforms handling everything from shopping and news to social media, the EU’s lawmakers wanted to raise the bar for user safety, transparency, and platform accountability.
In particular, the DSA aims to tackle:
- The flood of illegal and harmful content online
- Disinformation and manipulation campaigns
- Opaque algorithms and “dark patterns” in advertising or content recommendations
- Weak mechanisms for users to report or challenge content
If your digital business is building trust with customers – and wants to avoid regulatory headaches – these aims are worth keeping front-of-mind as you grow.
What Are the Main DSA Obligations for UK Firms?
DSA rules are “tiered” – meaning the bigger and more influential your platform, the heavier your compliance burden. But every business caught by the Act needs to meet certain baseline duties.
1. Update Your Terms of Service
You’ll need to update your website terms and conditions and other policies to reflect the DSA’s requirements. That means clear statements about:
- What types of content and behaviours are permitted or banned
- Processes for handling illegal content, user disputes, and appeals
- How your platform moderates, removes, or restricts content
- Any use of algorithms for content or ad recommendations
- Your obligations for transparency and user reporting
It’s no longer enough to have generic or outdated T&Cs. Downloading a free template isn’t recommended, as copying online templates can leave you exposed if you miss important DSA requirements.
2. Provide User-Friendly Reporting Channels
You must offer easy-to-use mechanisms for users and third parties to flag illegal content or activities. Whether it’s a “Report This” button on posts or a dedicated email address, make sure complaints are logged and actioned promptly. You’ll also need to keep users informed about any steps you take in response.
If you’re an online marketplace, this is particularly important for consumer protection and your customer service reputation.
3. Appoint a Legal Representative in the EU (If Based Outside)
If your business isn’t established in the EU, you must appoint a legal representative based in an EU member state. This person or entity will act as your contact for the authorities (and could be on the hook for fines if you don’t comply).
Getting this right is crucial – and may mean adjusting your company’s legal setup. You can read more about changing company ownership or legal structure if your future plans include an EU presence.
4. Transparency Reports and Notices
Most covered businesses must publish regular transparency reports. These reports need to show:
- The number and type of illegal content reports you’ve received
- How you handled those reports (including takedowns and appeals)
- Details about automated content moderation (if relevant)
If you’re not already keeping thorough records of moderation actions, now is the time to start.
5. Enhanced Requirements for Larger Platforms
If you’re lucky enough to operate a “very large online platform” (VLOP) or “very large online search engine” (VLOSE) – usually defined as having more than 45 million EU users – you face more stringent obligations, including:
- Conducting annual risk assessments of how your platform could be used for illegal activities or spread disinformation
- Taking risk mitigation measures and regularly evaluating their effectiveness
- Greater algorithmic transparency (explaining how your recommendation or advertising systems work)
- Providing users with better control over what they see and how their data is used
Most UK startups and small businesses won’t reach this threshold straight away – but if you’re aiming for growth in the EU, it’s smart to start planning now.
What Counts as “Illegal Content” Under the DSA?
The DSA defines “illegal content” broadly – it’s not just about piracy or copyright infringement (although these still matter – read more about protecting your IP). Illegal content under the DSA can also include:
- Hate speech or incitement to violence
- Child sexual exploitation materials
- Unlawful products or goods (such as counterfeit items)
- Fraudulent or misleading advertisements
- Material that breaches privacy, discrimination, or other EU laws
If your service allows user-generated content, make sure you have robust moderation procedures and clear escalation channels for urgent matters – these processes should be outlined in your internal staff handbook too.
What Happens If I Don’t Comply with the DSA?
Non-compliance isn’t something to take lightly. The European Commission can investigate, request information, and take enforcement action against companies that fail to meet their DSA obligations – even if you’re based outside the EU.
Consequences include:
- Fines of up to 6% of your global annual turnover (that’s global, not just EU sales!)
- Orders to immediately remove unlawful content or suspend your service
- Suspension or restriction of your service in the EU for repeated breaches
The DSA’s enforcement isn’t hypothetical – authorities have already begun investigating platforms and issuing compliance warnings. It’s better to be proactive and prepared than scrambling after something goes wrong.
How Should UK Online Businesses Prepare for the DSA?
If you’re reading this as a UK-based founder, you might feel a bit overwhelmed by the DSA’s scope – but don’t stress. Here’s a pragmatic checklist to help you get started:
- Check if your services are accessible from the EU (even if you don’t actively market there)
- Map out your service category (are you a host, platform, or marketplace?)
- Update your T&Cs and privacy policies to cover DSA requirements
- Implement a clear user reporting mechanism for illegal content
- Document your content moderation workflow and keep detailed records
- Appoint an EU legal representative if you have EU users but are not based there
- Train your team on DSA-related risks, rights, and complaint handling
- Publish regular transparency reports as legally required
This process is similar to how UK firms have adapted to GDPR rules in recent years. Early action is the best way to avoid problems – and if you’re still at the business planning stage, make sure your business plan factors in these compliance steps from the outset.
Are There Differences Between the DSA and UK Digital Law?
Yes – while the UK has its own online safety and consumer laws (like the Consumer Protection from Unfair Trading Regulations and the UK’s Online Safety Act), these may not cover all the obligations required by the DSA. That means ticking the UK’s boxes might not be enough if you’re reaching EU users.
For example, the DSA’s algorithmic transparency, detailed reporting, and EU legal representative requirements go beyond what’s common in current UK rules. So it’s wise to treat DSA compliance as a distinct project, not just “business as usual.”
When Should I Get Professional Help With DSA Compliance?
If you’re unsure about your obligations, or if your business model is evolving, a review with a commercial lawyer is a smart move. Tailored advice ensures you’re not missing anything and avoids making costly mistakes with your terms, reporting, or setup – especially as the EU is taking a firm line on enforcement.
We recommend seeking help particularly if:
- Your platform handles lots of user-generated content (UGC) or cross-border sales
- You rely on complex algorithms for content or ad delivery
- You’re exploring partnerships or expanding into new EU states
- You want clarity about appointing a compliant EU representative or making group structure changes
Don’t leave it to chance – a chat with a specialist now can save you hours of research (and potentially steep fines) down the line.
Key Takeaways
- The Digital Services Act applies to a wide range of online platforms, businesses, and services accessible to EU users – including UK-based firms.
- You’ll need to update your terms, processes, and documentation to meet DSA requirements for transparency, safe reporting, and user protection.
- Reporting illegal content, transparency about content moderation, and appointing an EU representative (if needed) are all basic compliance steps.
- Fines for non-compliance are steep – up to 6% of global turnover – making early action essential to reduce risk.
- DSA rules go beyond typical UK online safety laws, so don’t assume existing compliance is enough if you target EU markets.
- Reviewing your service model and getting tailored legal guidance will ensure your business continues to grow safely and legally in a changing digital landscape.
If you’d like practical guidance on complying with the Digital Services Act, or want a review of your online business’s legal setup, our team can help. Call us on 08081347754 or email [email protected] for a free, no-obligation chat with a friendly legal expert.
Meet some of our Regulatory Compliance Lawyers
Get in touch now!
We'll get back to you within 1 business day.
Book in a free consultation with us to discuss your legal needs.