Understanding the Digital Services Act: What UK Businesses Need to Know

Running a business online in today’s world means keeping up with rapidly changing digital rules and regulations. One of the biggest updates on the horizon is the new Digital Services Act (DSA) - legislation designed to overhaul how digital platforms, marketplaces, and services protect users and handle content across the European Union.

If you run a UK business - whether it’s a bustling e-commerce store, online marketplace, social media platform, or even a small business with a digital footprint - the digital act could have major implications for your operations. While the UK is no longer in the EU, the Digital Services Act still matters for any business that serves European customers or works with EU-based platforms.

Understanding where you stand, what’s required, and how to adapt your business is key to staying compliant and protected. In this guide, we’ll break down what the digital act means, who it affects, and what practical steps you should take - all in plain English. Let’s dive in.

What Is the Digital Services Act (DSA)?

The Digital Services Act - often called the DSA - is new EU-wide legislation aimed at making digital platforms safer, more transparent, and accountable for the content and transactions they host. Think of it as a set of rules that sets out how online platforms should handle user content, deal with illegal and harmful material, and act when consumers raise complaints or spot issues.

Alongside the Digital Markets Act (DMA), the DSA forms part of a wider digital act package that’s reshaping the online business and e-commerce landscape in Europe. Its main goals are to:

• Protect digital users from illegal content and unsafe products
• Make digital service providers more accountable for what happens on their platforms
• Increase transparency for consumers about advertising, content ranking, and commercial providers
• Empower users with better complaints and redress mechanisms

In practice, this means new rules on content moderation, handling illegal goods, reporting obligations, user notifications, and more.

Who Does the Digital Services Act Apply To?

Here’s where things get interesting for UK businesses. The DSA applies to a variety of “digital services” - but most importantly, it applies regardless of where your business is based if you’re providing digital services to users in the EU.

The main types of businesses affected include:

• Online marketplaces (like e-commerce platforms, booking sites, or classified ad platforms)
• Hosting services (providers storing websites, data or content for others)
• Social media platforms
• Search engines
• Content-sharing platforms
• Any business offering online services accessible in the EU

So, even if you’re a UK-based company, if you sell to, advertise to or provide services to anyone in the EU, the digital act will likely impact you.

Why Should UK Businesses Care About the Digital Act?

It’s tempting to think, “the UK isn’t in the EU anymore, so why does this matter for me?” Here are a few reasons you should pay close attention:

• If you have EU customers, the DSA applies to your business for those transactions or users.
• Non-compliance could mean fines, takedown orders, or your platform being blocked in the EU.
• Many major platforms (Google, Facebook, Amazon, etc.) are updating their terms to require partners and sellers to meet DSA rules.
• EU consumer protection standards are becoming a new international benchmark - understanding the digital act helps you stay ahead globally.

The key message? If you operate online or sell digital goods or services in the EU (even through a marketplace or social channel), you should understand your digital act obligations, just like you would the e-commerce regulations in the UK.

What Are the Main Obligations Under the Digital Services Act?

While the DSA is a long and complex piece of legislation, most UK SMEs will need to focus on a handful of key requirements that apply to their role in the digital supply chain. Here’s a summary of the main areas:

1. Handling Illegal Content and Goods

The digital act places a clear duty on platforms and hosting services to quickly remove illegal content and goods as soon as they are aware of them. This includes:

• Taking down illegal listings (such as counterfeit goods or unlawful services) “expeditiously” after notification
• Acting promptly on properly submitted notices of illegal content (e.g. copyright infringement, fake reviews, hate speech, etc.)
• Putting clear reporting mechanisms in place for users to flag illegal items or content

This is particularly important if you run a marketplace or content-sharing business. You’ll also want to review your contracts and terms and conditions to clearly reserve rights to take down content and protect yourself from liability.

2. Increased Transparency Obligations

Transparency is a cornerstone of the DSA. Platforms must make it clear to users:

• Who they are transacting with (ensuring third-party business sellers can be identified by consumers)
• How content is moderated, ranked, or removed
• How advertising is targeted and what data is used
• The outcomes of content moderation decisions

For UK businesses, this may mean updating your online shop’s policies, privacy policies, FAQ sections, and potentially providing new information to users about how you handle complaints and the internal processes around product and content moderation.

3. Enhanced User Redress and Complaints Handling

One of the game-changers in the digital act for online businesses is the requirement to:

• Provide user-friendly channels for complaints about unlawful content or product safety concerns
• Set up simple internal complaints processes so users can challenge takedowns or other moderation actions
• Offer clear information about how these complaints are handled and what remedies are available

Getting your complaints policy in order isn't just good customer service - it's now a compliance step for many cross-border businesses.

4. Due Diligence on Third-Party Sellers

Marketplaces and online platforms must take reasonable steps to verify commercial sellers’ identities and ensure that goods and services listed comply with EU law. This means:

• Collecting and displaying business details of sellers (name, contact info, etc.)
• Conducting basic checks to screen out unlawful sellers
• Providing users with info during transactions (e.g., who is responsible for the product or service and their location)

It’s a good idea to review your seller onboarding process and contracts to ensure you can collect and share the required information without breaching privacy or contract law.

5. Cooperation With Authorities

Digital businesses are required to cooperate with legitimate information, takedown, or investigation requests from EU authorities. Failing to do so could trigger heavy penalties or legal action against your business.

Having a clear data protection and compliance policy is key to managing these obligations and responding appropriately if contacted by EU agencies.

How Do DSA Rules Interact With UK Law?

After Brexit, the UK does not directly apply the digital act - but several UK laws run in parallel with DSA concepts, including:

• The UK GDPR and Data Protection Act 2018 for privacy and data handling
• The Consumer Rights Act 2015 for protection against unsafe or misrepresented goods
• The Online Harms Bill (planned), which may bring in further new duties for digital service providers
• Business advertising, cancellations, and distance selling rules for e-commerce

If you operate digitally, it’s important to ensure compliance in both jurisdictions. That means keeping your contracts, privacy policies, and e-commerce terms up-to-date with both UK and EU standards. If you’re not sure what applies to your business, getting expert legal guidance is a wise move.

Digital Act Compliance: Step-by-Step Checklist for UK Businesses

It may sound daunting, but getting on top of your digital act obligations can be tackled step-by-step. Here’s a practical checklist tailored for most UK digital businesses serving EU customers:

1. Map your digital presence in the EU.
   • Identify which parts of your business offer products or services to EU users.
   • Document which platforms or tools (websites, apps, social channels) are accessible in the EU.
2. Update your terms, privacy, and complaints policies.
   • Ensure your website terms and conditions clearly set out your policies for takedowns and user complaints.
   • Review your Privacy Policy for transparency about user data, ad targeting, and user rights.
   • Describe content moderation and reporting procedures in plain English.
3. Strengthen your content moderation processes.
   • Develop quick-response steps to handle illegal items, copyright flags, or offensive content.
   • Log all decisions, reporting channels, and actions taken - the DSA values “audit trails.”
4. Conduct due diligence on any business sellers or third parties.
   • Collect business info at onboarding, and review existing partner or affiliate contracts for compliance language.
5. Train your team.
   • Make sure staff and contractors handling content, user support, or seller onboarding know the new rules.
6. Monitor for updates.
   • EU and UK digital law is evolving fast - subscribe to regulatory updates or work with legal advisors for peace of mind.

Tackling these steps early is the best way to avoid nasty surprises like blocked accounts, sudden fines, or damaging disputes with EU authorities or business partners.

What Are the Risks of Ignoring the Digital Act?

The consequences for non-compliance can be serious - especially if you rely on EU-based customers, sellers, or platforms. Under the DSA, major penalties include:

• Fines up to 6% of your annual global turnover for the most serious breaches
• Takedown of your business from digital marketplaces for continued non-compliance
• Legal actions brought by consumers, regulators, or rights holders
• Loss of trust, reputation, and future business opportunities

On the flip side, embracing the digital act’s transparency and safety focus can help build trust with international customers and partners. Compliance is more than ticking boxes - it’s about future-proofing your reputation and “digital passport” for the EU market and beyond.

What Contracts and Policies Should UK Businesses Review?

If you’re updating for the digital act, make sure to review or put in place the following documents:

• Website Terms & Conditions: Set out user rights, rules for content, complaints, and moderation
• Privacy Policy: Explain how you process user data and comply with transparency obligations
• Marketplace/Seller Agreements: For platforms, ensure you can collect and share business identities, and require sellers to confirm their own compliance
• Complaints Handling Policy: Make clear the steps users can take and your response commitments
• Copyright and Takedown Procedures: A process for fast removal when notified of illegal material

If you don’t already have these, or if your contracts haven’t been reviewed recently, it’s essential to have a legal expert review and update your documents. Relying on old templates or DIY agreements could leave gaps and expose your business to unnecessary risk.

Key Takeaways

• The Digital Services Act is an EU digital act with strict new rules for online platforms, marketplaces, and businesses - regardless of whether you’re based in the UK.
• If you offer goods or services in the EU, you must comply with the DSA - covering illegal content, transparency, user complaints, and more.
• Risks for non-compliance include heavy fines, blocked accounts, and reputational damage.
• Key steps include updating your contracts, website policies, and complaints processes, and training your staff on DSA obligations.
• It’s crucial to review your contracts and seek professional legal guidance to ensure your business is protected from day one and future-proofed for international digital trade.

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If you’d like support making your business DSA-compliant or want a hand reviewing your contracts and policies for the digital act, reach out to our friendly team for a free, no-obligations chat at team@sprintlaw.co.uk or call 08081347754.

We’re here to help you build digital legal foundations that will protect your business today and set you up for growth tomorrow.