The Impact of the EU Digital Services Act on E-commerce: What Retailers Need to Know

The EU Digital Services Act impacts e-commerce stores on various levels. For starters, it requires stricter content moderation and improved transparency. To add to that, the legislation put accountability on third-party sellers’ legal compliance on platform owners. Failing to comply with this law can lead to fines or even a complete removal from the platforms. Therefore, in this article, we explain the new regulations in detail—read on to find out what they are all about and learn how to obey the new law.

The Key Provisions of the EU Digital Services Act

The number of obligations listed in the EU Digital Services Act depends on the business size. The legislator categorises online sellers into four groups:

• Very large online platform/search engine (VLOP/VLOSE)—the biggest online platforms and search engines that reach over 10% of all EU consumers (45 million) monthly. See the official list of such platforms: VLOPs and VLOSEs.

• Online platforms—domains that bring together sellers and consumers, e.g., online marketplaces, app stores, and social media platforms.

• Hosting services—cloud and web hosts.

• Intermediary services—which offer network infrastructure, e.g., internet access providers and domain name registrars.

The exact provisions can also be divided into separate categories based on the impacted areas. Below, we have prepared a brief breakdown of the most important ones. If you want to learn more, see the official EU website.

Content Moderation

One of the responsibilities for online platforms imposed by this legislation is excellent content moderation. The platforms are responsible for ensuring that no illegal content nor misinformation is spread by the sellers on them. Moreover, VLOPs and VLOSEs are required to:

• conduct risk assessments that cover threats such as coordinated disinformation campaigns,

• prepare crisis response procedures for combating the spread of misinformation.

Transparency

Apart from content moderation, online platforms are also required to:

• Provide increased transparency regarding:

  • algorithms—their functioning should be transparent and understandable to the users,

  • adverts—online platforms need to maintain a public ad repository.

• Ensure that advertisements clearly and unambiguously recognise that they are adverts.

Note: Although personalisation is a major e-commerce trend, data privacy regulations in the EU Digital Services Act ban behavioural advertising for minors.

Accountability

The new legislation also impacts digital marketplace compliance, with the platforms being held accountable for ensuring that third-party sellers meet legal obligations.

How Does the EU Digital Services Act Affect E-Commerce Retailers?

The implications of the EU Digital Services Act are far-reaching. As they add up to the consumer protection law stack (e.g., GDPR or UK consumer rights laws), the impact of the new legislation will visibly affect your business. What changes should you expect?

Increased Compliance Complexity

ICS2 Release 3, local e-commerce packaging laws, Incoterms®, and now the EU DSA. Navigating all these regulations will become harder, and you’ll have to adjust your operations, starting from advertising and ending with product descriptions and website design, to ensure compliance with all of them. The consequences of failing to comply are severe: you risk not only being fined but also having your products removed from digital platforms.

For VLOPs and VLOSEs, this also means implementing improved seller verification methods and adjusting their product listings.

Operational Adjustments

The EU e-commerce landscape will also shift towards a higher level of oversight by online platforms regarding third-party sellers. This includes polishing parcel tracking systems as well as content moderation methods to ensure compliance across borders.

Potential Business Disruptions

If you fail to comply with the EU Digital Services Act, the consequences might include:

• fines,

• removal from platforms,

• broken supply chains,

• failing to meet customer delivery expectations.

How Can Landmark Global Support E-Commerce Retailers?

At Landmark Global, we have extensive cross-border expertise. We work closely with customs agents and other legal experts to ensure compliance with the constantly evolving law. We can help you smoothen the experience and remain compliant with the EU Digital Services Act—see our international e-commerce shipping solutions now!

The Takeaway

The EU Digital Services Act reshapes the e-commerce landscape. Hence, retailers need to adjust their operations to remain compliant. Landmark Global offers the logistics expertise and cross-border capabilities to help e-commerce businesses navigate these new challenges efficiently, along with other legal regulations, to maintain smooth, reliable delivery to customers across Europe.

You might also read: Simplify EU Sales: Landmark Global Teams Up with Xendo for UK Sellers