The Digital Services Act (DSA) has been introduced to regulate various internet platforms, encompassing e-commerce marketplaces, social media networks, content-sharing platforms, digital storefronts, and online travel and lodging services. 

The DSA aims to curb illicit online activities, combat misinformation, and ensure user security, fundamental rights, and a fair and transparent online environment. 

Since the end of August 2023, the DSA has been enforced upon the 19 Very Large Online Platforms (VLOPs) and Search Engines (VLOSEs) identified in April 2023, including industry giants such as Alibaba, Amazon, Apple, Google, LinkedIn, Facebook, and others, each boasting over 45 million monthly users on average.

Strengthening online safety, fairness, and openness is made possible in large part by the Digital Services Act (that was officially enforced on February 17, this year). Its provisions not only address targeted advertising and data protection but also touch upon important issues related to intellectual property and trade secrets in the digital age.

One significant aspect of the DSA is its impact on targeted advertising, particularly concerning data protection. It prohibits profiling-based targeted advertising directed at minors and restricts the use of personal data, such as religion or sexual orientation, for targeted advertising purposes. Furthermore, major platforms are required to grant verified researchers access to publicly available data, with the terms for data exchange specified by the European Commission.

The DSA also addresses the protection of intellectual property and trade secrets, clarifying obligations for intermediate service providers and raising questions about trade secret protection. This may entail major web platforms facing requirements to grant access to private data, impacting trade secret protection.

Expanding the responsibilities of online platforms, the Digital Services Act empowers users through various measures:

•  Online platforms must implement measures to combat illegal content, goods, and services, including user reporting tools and collaboration with ‘trusted flaggers’.
• Protection of minors is ensured by prohibiting the targeting of ads based on profiling or personal data.
• Transparency in advertising is mandated, requiring platforms to inform users about ad reasons and advertiser identities.
• Ads targeting users based on sensitive data, like political or religious beliefs, are strictly banned.
• Users affected by content moderation decisions receive clear explanations uploaded to the DSA Transparency database.
• Access to a complaint mechanism allows users to challenge content moderation decisions for accountability.
• Platforms must publish annual reports detailing their content moderation procedures.
• Clear terms and conditions, including content recommender system parameters, are provided to users.
• Platforms designate points of contact for authorities and users, facilitating communication and compliance.

The European Commission will enforce the DSA together with national authorities, who will supervise the compliance of the platforms established in their territory.