DSA creates ‘level playing field’ for businesses in plans to update legislative framework

The European Gaming and Betting Association (EGBA) has joined 15 counterpart trade associations to ensure that the European Union maintains its Digital Services Act (DSA) as a ‘workable, balanced and future-proof’ legislation.

Sponsored by the European Commission (EC) in 2020, the DSA plans to update the EU’s legislative framework on digital commerce to create a level playing field for businesses operating in “content, products, services and activities on intermediary services”.

The organisation has backed a joint-letter sent to the European Parliament, urging the DSA to maintain its horizontal approach proposed by the European Commission, stating: “The framework’s design is deemed a vital component to building the foundation and complementing vertical and sector-specific initiatives where needed.”

Furthemore, European trade bodies representing start-ups, SMEs, technology, advertising, digital, and media organisations have called on European Parliament members (MEPs) to ensure that European digital services are protected by a ‘robust regulatory framework’.

Trade bodies have been concerned by MEPs debates that have diverted attention from establishing a balanced and flexible approach for the DSA to operate within sector-specific boundaries.

The safeguarding of the DSA’s intended format has been outlined as key to building cornerstones of the ‘e-Commerce Directive’ to preserve the EU’s country of origin principle, the ban on general monitoring, and the conditional liability exemption for hosting providers.

Additionally, the EGBA stated: “MEPs should focus on establishing a workable framework, applicable to many different types of digital services, in which business incumbents by a “balanced and future-proofed DSA.”

Moreover, trade bodies stated that DSA could not maintain a cost of compliance regarded as a market entry barrier for smaller businesses to hinder them from launching and scaling up in the EU Single Market.

Furthermore, an effective DSA ‘must be consistent with the EU’s existing legal framework’ on online business laws related to data, consumer protections and platform laws.The trade bodies underlined the importance of establishing an effective and workable DSA framework as a necessary directive ahead of the upcoming European Parliament votes to reform the EU’s  Internal Market and Consumer Protection Committees.