EU DIGITAL SERVICES LEGISLATION
T he Digital Services Act (DSA), enacted by the European Union, represents a significant overhaul of the digital regulatory landscape, aiming to enhance user safety and platform accountability across various online services. Whilst the gaming industry is not specifically targeted by the legislation, it will nevertheless be impacted by its various provisions. DSA was formally adopted by the European Union on October 19, 2022, and came into force on November 16, 2022. It became applicable to Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) on August 25, 2023, with full application to all digital services from February 17, 2024. The legislation was introduced as part of the EU Digital Strategy to create a harmonized regulatory framework for digital services, ensuring transparency, safety, and fairness in online markets. The enforcement of the DSA is dual-tiered, involving both national regulators within Member States and centralized oversight by the European Commission. Each EU Member State is required to designate a Digital Services Coordinator (DSC), responsible for monitoring compliance and enforcing the DSA within its jurisdiction. These regulators ensure that companies headquartered in their territory adhere to the obligations outlined by the legislation. The European Commission has direct regulatory authority over Very Large Online Platforms and Very Large Online Search Engines – those platforms with over 45 million users in the EU. The Commission has the power to impose fines and corrective measures for non-compliance. Companies violating the DSA can face fines of up to six percent of their global turnover. Repeated or severe breaches may result in temporary bans from operating in the EU digital market. The role of gaming commissions The enforcement of the DSA has significant implications for gaming commissions across the EU, as many gaming platforms fall under its scope. Gaming commissions are expected to oversee compliance with transparency obligations, particularly concerning loot boxes, microtransactions, and gambling-like mechanics in online games. Regulators must
work with gaming companies to ensure strict enforcement of age verification systems and content classification mechanisms and are expected to coordinate with Digital Services Coordinators to identify risks associated with in- game advertising, fraudulent transactions, and consumer protection issues. Since many online games utilize aggressive advertising and behavioral monetization models, gaming commissions will have greater oversight in accordance with DSA over transparent advertising disclosure, ensuring that consumers are not misled by deceptive marketing practices. Content moderation and user protection The core objective of the DSA is to combat illegal and harmful content online. For gaming platforms, this necessitates the implementation of robust content moderation systems to address issues such as hate speech, harassment, and misinformation. Platforms are required to establish mechanisms that allow users to report inappropriate content, which must be addressed promptly to ensure compliance. This proactive approach mandates the use of advanced moderation tools, including artificial intelligence and machine learning, to effectively monitor and manage user-generated content. Moreover, the DSA emphasizes the promotion of diverse opinions within online communities. Gaming platforms must cultivate environments where users can express themselves without fear of harassment. This involves implementing clear guidelines against abusive behavior and fostering inclusive and respectful interactions among players. Data privacy and user consent The DSA reinforces stringent data protection measures, aligning with the General Data Protection Regulation (GDPR). Gaming companies are obliged to handle user data with heightened responsibility, ensuring that personal information is processed transparently and only with explicit user consent. This includes providing users with clear options regarding data sharing and implementing robust security protocols to protect personal information.
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IMGL MAGAZINE | MARCH 2025
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