DSA

What it means

The DSA, Digital Services Act, is an EU regulation that since 2024 applies to all online intermediaries: access providers, hosting services, social networks, online marketplaces and search engines. It sets rules on illegal content, transparency and user protection.

The obligations are tiered by size and type of service. Every provider must have a point of contact and clear terms of use, hosting services a mechanism for reporting illegal content, and online platforms also a complaints-handling system and advertising rules. The strictest rules apply to very large platforms.

For online marketplaces an important duty is knowing the traders who sell on them: obtaining and verifying their name, address, registration number and bank details, much as in KYC. Consumers should always know who they are buying from.

How it works in practice

Most small Slovak companies running an ordinary online shop are not platforms under the DSA, because they sell their own goods. But if they let other sellers offer goods or let users publish content such as reviews or classified ads, some of the obligations may apply to them.

Micro and small enterprises are exempt from several online platform obligations. They too must have a point of contact, clear general terms and conditions and a procedure for reports of illegal content, however. We base the assessment on the SME definition.

A seller on a large marketplace feels the DSA mainly in that the platform asks it for verification data and documents. The same data is reported by the marketplace to the Financial Administration under DAC7, and for some sales it acts as deemed supplier for VAT, so the data must be consistent with the books.

What to watch out for

The DSA bans platforms from so-called dark patterns, meaning design that manipulates users, and from targeted advertising aimed at minors or based on sensitive data. These rules complement GDPR and the rules on cookie consent; they do not replace them.

Breaches can be fined up to six percent of worldwide turnover, and in Slovakia supervision lies with the designated digital services coordinator. Although small companies are less in focus, a change of business model, such as launching a marketplace, should be assessed before launch.