EU Updates Digital Rulebook: New Digital Services Act to Replace E-Commerce Directive
The European Commission, led by President Ursula von der Leyen, is updating the digital rulebook. Today marks the 20th anniversary of the e-Commerce Directive (ECD), which has been the backbone of Europe's digital economy. The Commission is working on a new law, the Digital Services Act (DSA), to address gaps in the ECD and clarify digital services' responsibilities.
The ECD, adopted in 2000, has empowered EU citizens to engage in online commerce and expression. It has enabled digital businesses to operate across borders within the EU Single Market. The directive's principle-based approach has allowed innovative services like Skype, Firefox, BlaBlaCar, Twitter, Zalando, Airbnb, and Spotify to flourish.
The ECD has also established a framework for content moderation. Online intermediaries are liable for illegal content once they have 'actual knowledge' of it. However, the Commission acknowledges that the ECD's provisions may no longer be fit for purpose in today's digital landscape. Thus, the DSA is being developed to address these gaps and provide clearer accountability for digital services.
The European Commission has launched a public consultation on the DSA, inviting all stakeholders to provide their input. The new law is expected to be proposed by the end of the year. The DSA aims to build on the success of the ECD, which has contributed to an increase in high-growth SMEs in Europe, from 7,000 in 2018 to almost 10,000 today. E-commerce is estimated to provide welfare gains for EU citizens between €34 billion and €204.5 billion per year.
