The European Union’s Digital Services Act (DSA) entered full application in February 2024. If your company — even though based in Switzerland — offers digital services to users residing in the EU, the regulation applies to you too.

What the DSA is

The Digital Services Act is a European regulation establishing obligations for providers of digital services: online platforms, marketplaces, search engines, hosting services, social networks. Its objective is to make the online environment safer, more transparent and more accountable.

The underlying principle is straightforward: what is illegal offline must be illegal online too. And services operating in the EU — regardless of where they are based — must comply with European rules.

Who among Swiss SMEs is affected

Not everyone. The DSA primarily affects those who operate as digital intermediaries towards end users in the EU:

  • E-commerce and marketplaces — if you sell products or allow third parties to sell to European customers
  • Platforms with user-generated content — forums, communities, public comment sections
  • Hosting services — if you host third-party content accessible to the European public
  • A company with an institutional website and no third-party content is generally not subject to the DSA

Key obligations for medium-sized services

  • Transparency on content moderation policies
  • Mechanism for reporting and removing illegal content
  • Obligation to respond to orders from authorities in EU member states
  • Annual report on reports received and handled

Penalties

Penalties can reach up to 6% of global annual turnover. For the most serious cases of systemic violations, the European Commission can impose more severe sanctions or even a temporary ban on operating in the EU.

The practical point

If you run an online shop with customers in Italy, Germany or France, or if your platform allows users to publish content, now is the time to verify with your legal adviser whether and how the DSA applies to your specific situation.

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