On November 25, 2021, the Council of the European Union reached an agreement on the draft Digital Services Act (“DSA”) (see here and here) and the Digital Markets Act (“DMA”) (see here) bringing them one step closer to adoption.  The European Parliament will discuss the drafts on December 9 and plans to announce its first reading position in early 2022, after which the Council and the Parliament will enter into negotiations with the goal of reaching an agreement on a final text for both acts.

The acts lay down rules for intermediary service providers (e.g., Internet access providers, cloud providers, search engines, social networks, and online marketplaces) covering areas such as:

  • liability of mere conduit, caching and hosting services;
  • content moderation;
  • transparency of services and electronic communications;
  • transparency of online advertising;
  • openness and interoperability of the services to businesses and consumers; and
  • fair competition between service providers.

If you like to receive an overview of the  draft DSA and DMA, as well as a short explanation of the sanctions regime in the event of a breach, please let us know.

Significantly, on November 18, the European Data Protection Board issued a related statement (see here).  In that statement, the Board identified three main lingering concerns with respect to the DSA: (1) lack of protection of individuals’ fundamental rights and freedoms; (2) fragmented supervision by competent regulatory authorities; and (3) the risk of inconsistencies between the DSA and EU data protection law.  The Council’s reactions to these recommendations have yet to be published.

We will continue to monitor and report on the legislative process of the DSA and DMA.

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Photo of Dan Cooper Dan Cooper

Daniel Cooper heads up the firm’s growing Data Privacy and Cybersecurity practice in London, and counsels clients in the information technology, pharmaceutical research, sports and financial services industries, among others, on European and UK data protection, data retention and freedom of information laws…

Daniel Cooper heads up the firm’s growing Data Privacy and Cybersecurity practice in London, and counsels clients in the information technology, pharmaceutical research, sports and financial services industries, among others, on European and UK data protection, data retention and freedom of information laws, as well as associated information technology and e-commerce laws and regulations. Mr. Cooper also regularly counsels clients with respect to Internet-related liabilities under European and US laws. Mr. Cooper sits on the advisory boards of a number of privacy NGOs, privacy think tanks, and related bodies.

Photo of Anna Oberschelp de Meneses Anna Oberschelp de Meneses

Anna Sophia Oberschelp de Meneses is an associate in the Data Privacy and Cybersecurity Practice Group.  Anna is a qualified Portuguese lawyer, but is both a native Portuguese and German speaker.  Anna advises companies on European data protection law and helps clients coordinate…

Anna Sophia Oberschelp de Meneses is an associate in the Data Privacy and Cybersecurity Practice Group.  Anna is a qualified Portuguese lawyer, but is both a native Portuguese and German speaker.  Anna advises companies on European data protection law and helps clients coordinate international data protection law projects.  She has obtained a certificate for “corporate data protection officer” by the German Association for Data Protection and Data Security (“Gesellschaft für Datenschutz und Datensicherheit e.V.”). She is also Certified Information Privacy Professional Europe (CIPPE/EU) by the International Association of Privacy Professionals (IAPP).  Anna also advises companies in the field of EU consumer law and has been closely tracking the developments in this area.  Her extensive language skills allow her to monitor developments and help clients tackle EU Data Privacy, Cybersecurity and Consumer Law issues in various EU and ROW jurisdictions.