EU Digital Services Act (DSA): What UK Businesses Need to Know in 2026

What is The Digital Services Act (DSA)?

The Digital Services Act is a key part of the EU’s digital regulation strategy, which seeks to modernise legal frameworks and create a safer and more open digital environment. It regulates online services such as social media, app stores and online travel and accommodation platforms.

Benefits for your businesses

• Simplified reporting of illegal content – You can use a user-friendly mechanism to flag illegal content and goods that infringe your rights. Your company may also become ‘trusted flaggers’, whose notices of illegal content or goods gain priority in platforms’ assessment.
• Improved protection against unfair content moderation decisions – New appeal processes, either via the platform or via out-of-court dispute bodies, giving you ways to challenge content moderation if you disagree.
• More transparency on marketplaces – the requirement to list a seller’s contact information, enhance transparency and trustworthiness in ecommerce.

Core Obligations under the Digital Services Act

• Acting on orders against illegal content and orders to provide information.
• Establishing a single point of contact for authorities and recipients and making their information easily accessible.
• Designating a legal representative where the intermediary service provider does not have an establishment in the European Union. The legal representative must be equipped with sufficient power of representation and resources and has to act, among other things, as a contact for authorities and recipients.
• Provide transparent information on any restrictions the intermediary service provider imposes in relation to the use of their services in their terms and conditions – such as policies, procedures and tools used for content moderation, including algorithmic decision-making and human review.
• Providers of online platforms must implement an easily accessible, internal complaint handling system, which enables recipients to complain.
• Providers of online platforms must take appropriate measures to ensure a high level of data protection and safety for recipients that qualify as minors.

Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs)

The DSA reserves the strictest rules for VLOPs and VLOSEs (online platforms and search engines averaging 45 million+ active users in the EU).

• assess, mitigate and report any systemic risks stemming from the design, functioning and use made of the service;
• Set up an independent compliance unit with qualified officers, including a dedicated head who reports directly to the VLOP or VLOSE management body.
• Offer more information and choices about the online advertising and recommendation systems featured on their platforms.

Consequence of non-compliance

Depending on the nature of the infringement, fines can be imposed of up to 6% of the annual worldwide turnover of the provider of intermediary services.

How can Waterfront help?

• Review and draft policies and procedures: Ensuring your terms and conditions, and procedures comply with the DSA.
• Compliance and risk assessments: Identifying gaps in existing processes, governance, and platform obligations under the DSA.

If you would like to discuss any of the above services, reach out to Andrew Gordon.