The online environment for consumers and businesses changes in connection with the entering into force of the Digital Services Act (DSA). As of 17 February the DSA will apply to all online platforms and other digital services – anything between a website to large online platforms falls within the scope of the DSA. Designated platforms have, however been under the DSA’s scope of application since August 2023.
How does the DSA impact providers of internet platforms and other digital services?
The DSA brings many new rules to the online environment, such as obligation to prompt removal of illegal content. The strictest rules apply to online platforms (such as online marketplaces, social media platforms and app stores) and prohibits targeted advertising to minors and advertising using sensitive data. The DSA also requires online platforms to inform their users why they are receiving specific content and the system used to select the information served to the user. Online market places must make best efforts to verify that traders have provided accurate information before allowing them to offer products or services on the platform, and must also make reasonable efforts to randomly check for illegal products or services.
Further, the DSA requires online platform providers to ensure that their online interface allows traders to comply with their obligations under applicable law, such as providing pre-contractual information, compliance and product safety information. If illegal products or services have been sold, the online platform provider must inform the consumers who have bought the illegal product or service of the fact that (i) the product or service is illegal, (ii) the identity of the trader and (iii) any relevant means of redress. If the online platform provider does not have the contact details of all consumers concerned, the provider must make the aforementioned facts publicly available and easily accessible on its online interface.
Micro and small businesses are to a large extent excluded from the above obligations applicable to online platforms.
Implementing the DSA in Finland
The entering into force of the DSA requires that a number of acts be amended in Finland. The DSA is also implemented by the new Act on the Supervision of Online Intermediary Services 18/2024 (FI: Laki verkon välityspalvelujen valvonnasta), applicable as of 17 February 2024. This new act gives the supervisory authorities (please see below) the right to carry out inspections and obtain information when necessary for supervision. It also sets forth sanctions (penalty payments) for the violation of the act, the maximum amount equalling to six percent of the annual global turnover for the accounting period preceding the penalty payment decision for the party concerned.
Supervision of the DSA in Finland
The main supervisory authority overseeing DSA compliance in Finland is the Finnish Transport and Communications Agency TRAFICOM (Digital Services Coordinator). Additionally the Office of the Finnish Data Protection Ombudsman and the Finnish Consumer Ombudsman supervise specific items under the DSA relating to, amongst others, processing of personal data and advertising aimed at consumers. The European Commission will oversee the compliance by very large online platforms and search engines i.e. online platforms having more than 45 million users within the EU calculated as an average over a period of six months.