Digital Economy Act: Illegal Offline, Illegal Online

Pavel Čech 22.10.2024

At the end of August 2024, the government approved the draft of the Digital Economy Act, which is currently being debated in the Parliament. This Act, among other things, is directly linked to the European Digital Service Act (DSA) and its main objective is to protect internet users from illegal content. It is also intended to protect public debate from censorship and level the playing field for companies operating online. The Act incorporates the general principle that what is illegal in the ordinary environment is also illegal in the digital world. It introduces stricter rules for large platforms, while smaller businesses will face less demanding obligations. Will the Digital Economy Act finally bring about a safe and transparent online environment?

Have you heard of DSA?

The DSA is a European regulation aimed at making the online environment safer and more accountable for digital service providers. The regulation, among other thing, sets out rules on the liability of internet platforms for content uploaded by users, obliges operators to respond quickly to illegal content, to establish mechanisms for reporting it and to be transparent about the rules on moderation of illegal content.

We have previously described how the DSA's mechanism for reporting and taking action against illegal content, i.e. the moderation of content, should be set up.

The DSA mainly affects the following 3 entities

  • Providers of intermediary services such as cloud services, web hosting or SaaS applications that allow users to store and share user content.
  • Online platforms, hosting services that publicly distribute and store user information. This includes, for example, social networks or accommodation portals.
  • Online marketplaces, i.e. providers of online platforms through which consumers can conclude purchase contracts remotely.

DSA has the biggest impact on the big players, but it will also impact smaller platforms. Their obligations are slightly less strict.​

Not sure if the DSA will have impact on you? Check out this article on the DSA and its impact on different types of entities.

How will the new Digital Economy Act affect you?

The Digital Economy Act addresses, among other things, who will be responsible for monitoring compliance with the DSA regulation, what offences you can commit, and what sanctions will companies that breach the regulations face.

According to the draft act, the Czech Telecommunications Office (CTU) will supervise compliance and the Office for Personal Data Protection (UOOU) will cooperate in some matters. 

You can commit an offence for example by:

  • Failing to identify contacts that users or authorities can contact.
  • Failing to implement a mechanism for reporting illegal content.
  • You do not follow the processes to deal with notifications (for example, you do not provide confirmation of receiving notifications, you do not justify your decisions, or you do not set up and follow the rules of an internal complaints handling system.
  • You do not provide information in your terms and conditions about your content moderation policies and procedures.
  • You offer products or services on the platform from traders that you have not identified in accordance with the Regulation.
  • You do not provide the required information about the products or services offered by your merchants within the online interface.
Do you want to get into the secret abbreviations of DSA, P2B and DAC7? We have a practical guide for you to download.

Start  dealing with DSA and the new Digital Economy Act now

If you're still wondering whether these new rules apply to you, or if you've been putting them off, now is the time to start looking into it. Without a prosecutor there has been no judge, but now the Czech authorities will have the power to control the new rules and give fines. Our firm has extensive experience in implementing DSA terms for many clients and we offer assistance in modifying them to meet current requirements. We constantly monitor the development of the new Digital Economy Act, so you do not have to worry with us about not learning about any differences in the Act from the current DSA.

Get in touch will adjust your terms and conditions to meet all the requirements of the DSA and the new Act.
Author

Pavel Čech ↗

Nejraději pomáhám těm, kdo potřebují skloubit právo s technologiemi. Ve světě IT a software se totiž cítím jako ryba ve vodě. Už od mala mě přitahovaly nové technologie a promítání science fiction do našeho světa. Až při studiu na vysoké škole jsem si však uvědomil, kolik etických a právních překážek je nutné překonat před jejich uvedením do reality.

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