The Digital Services Act (DSA) and Digital Markets Act (DMA) represent the EU’s global leadership in regulating the internet. These aren't just minor updates; they are fundamental shifts forcing tech giants to operate with more transparency and less predatory control. For small businesses, this complexity holds a major opportunity: new rules for giants mean new space for you to grow.
Part 1: The Digital Services Act (DSA) - Content & Transparency
1. The Transparency Mandate for Online Marketplaces
If you sell products or services through large platforms (marketplaces, app stores), the DSA directly affects your seller obligations:
- Know Your Business (KYB): Platforms must collect comprehensive information from you. Incomplete or false information leads to immediate delisting.
- Traceability: Your identity and contact details must be clearly presented to consumers buying your products/services.
2. Ad Transparency and Targeting Changes
The DSA aims to make all online ads instantly identifiable and transparent about who paid for them. It limits how data can be used for targeting:
- Sensitive Data: Platforms are restricted from targeting ads based on sensitive personal data (e.g., religion, sexual orientation).
- Minor Protection: Targeted advertising to minors (under 18) is now strictly prohibited.
If you use targeted ads, document your audience and creative approach—see our practical guides on compliance and creative risk in The Copyright Crossroads and related posts.
Part 2: The Digital Markets Act (DMA) - Competition & Opportunity
The DMA is your biggest potential advantage. It targets "Gatekeepers" to force open their closed ecosystems, benefiting smaller creators and developers.
3. Breaking Down the Gatekeeper Walls
| DMA Requirement | Impact on Your Business |
|---|---|
| Third-Party Payments | Gatekeepers must allow businesses to use alternative payment systems (e.g., in App Stores). Opportunity: Lower transaction fees and higher profit margins. |
| Data Portability | Users can easily switch data between competing services. Opportunity: Easier growth for new/niche platforms, reducing reliance on single giants. |
| Direct Communication | Platforms cannot prevent sellers/creators from communicating directly with their customers (e.g., email marketing). Opportunity: Build your owned audience faster. For tactics to grow owned channels once direct messaging opens up, see How to Earn Money from the Internet. |
The 3-Point Action Checklist for Compliance
- Audit Your Transparency: Ensure every external link, payment gateway, and seller profile used in the EU displays full, accurate business identification (VAT/Tax ID, address).
- Document Your Advertising: Maintain a robust archive of all paid ad campaigns and targeting criteria, proving you are not targeting minors or using restricted data categories.
- Embrace Interoperability: Start planning for non-Gatekeeper payment options. The moment the platforms open up, you must be ready to implement cheaper payment processing for EU customers.
Want a ready-made checklist you can download and send to your developer or accountant? Use the action items above and pair them with our technical checklist in The Digital Landslide for implementation steps.
Quick Q&A: Your Top DSA/DMA Concerns
Q: Is the DSA applicable to my small blog?
A: The DSA mostly targets large platforms (VLOPs). However, if your blog hosts user-generated content (comments, forums) and reaches a substantial EU audience, you have minimal obligations, mainly around basic transparency and contact points. If you are a micro-business, your obligations are very low, but you benefit from the scrutiny placed on the major platforms you rely on.
Q: How does the DMA save me money?
A: The DMA compels Gatekeepers (like app stores) to allow developers to offer third-party payment options. Since these third-party options typically charge much lower fees (e.g., 2-5%) compared to the Gatekeeper’s typical 15-30% commission, you can save substantially on transaction costs for your digital product sales.
Q: Do I need an EU Legal Representative?
A: If your business is based outside the EU (e.g., in the US, India, UK) but you target and sell services to EU consumers, the DSA may require you to appoint a Legal Representative in an EU member state. This is highly recommended to ensure compliance and avoid massive fines.