Understanding the Digital Services Act: Obligations for Marketplaces and Aggregators in the EU

If your platform helps people find secondhand jeans, antique swords, freelance designers, or dog yoga instructors—congrats, you may be regulated under the EU's new Digital Services Act (DSA). Here’s what that means, in human language.

Welcome to the DSA Era

On paper, the Digital Services Act (DSA) sounds like just another thick European regulation designed to be read by robots and lawyers. In reality, it’s a sweeping legal framework that’s poised to change how digital platforms—especially marketplaces and aggregators—operate across the European Union.

Coming into full force in 2024, the DSA is the EU’s attempt to tame the Wild West of the internet. And while it covers everything from illegal memes to algorithmic transparency, for marketplaces and aggregators, it’s a legal earthquake.

What Exactly Is the DSA?

The DSA is part of a regulatory duo with the Digital Markets Act (DMA). Its goal is to create a safer, more transparent internet. The EU is essentially telling platforms: “If you’re going to run a digital town square, keep it clean and follow the rules.”

Main goals:

• Tackle illegal content and dangerous products
• Ensure transparency in advertising and recommendations
• Assign accountability
• Harmonize rules across the EU

Who’s Affected?

The DSA applies to all intermediary services operating in the EU—from hosting to online platforms. Two categories under special scrutiny:
1. Online marketplaces (Amazon, Etsy, Vinted, etc.)
2. Aggregators (price comparison sites, service platforms, booking engines)

Obligations: From Light Touch to Heavy Lifting

Basic obligations (for everyone):
- Appoint an EU representative
- Provide contact information
- Ban illegal content in terms of service
- Cooperate with authorities

Hosting services:
- Implement notice-and-action systems
- Notify users about content takedowns
- Publish moderation reports every six months

Online platforms:
- Explain recommendation systems
- Allow users to turn off personalization
- Clearly label ads
- Disclose the actual seller behind listings

Extra Requirements for Marketplaces

• Know Your Business Customer (KYBC)
• Collect trader name, address, ID, bank details
• Quickly remove unsafe products
• Notify affected customers

Example: If someone sold explosive chargers, you’re expected to track down buyers and alert them.

Very Large Online Platforms (VLOPs)

Platforms with 45M+ EU users are considered VLOPs and must:

• Assess systemic risks
• Undergo annual audits
• Increase algorithm transparency
• Appoint DSA compliance officers

What If I Ignore It?

Fines can reach up to 6% of global turnover. That’s not a slap on the wrist—it’s a strategic risk.
Other measures include temporary bans, forced changes, and public naming-and-shaming.

What Should Marketplaces and Aggregators Do Now?

• Map your role: hosting, platform, VLOP?
• Implement KYBC for onboarding
• Update terms of service
• Set up moderation and appeals systems
• Document recommendation algorithms

Common Misconceptions

Misconception: "We’re outside the EU—it doesn’t apply."
Reality: If you serve EU users, it applies.

Misconception: "We don’t sell—just aggregate."
Reality: You still influence purchasing decisions.

Misconception: "Only giants are affected."
Reality: Most rules apply broadly.

Conclusion: The Price of Digital Admission

The DSA isn’t here to stifle innovation—it’s here to ensure accountability. For marketplaces and aggregators, it’s a challenge and an opportunity.

The internet has grown up. The EU wants it to dress like an adult. Maybe not wear a tie, but at least tuck in its shirt.