Netherlands DSA Implementation Act enters into force
On 4 February 2025, the Dutch Digital Services Act Implementation Act, the legislation transposing the EU Digital Services Act (DSA) into law in the Netherlands, entered into force, fulfilling an important requirement of the DSA: to designate national supervisory authorities by the deadline of 17 February 2024.
The following article is an overview of the main provisions of the Dutch implementation act.
DSA and supervisory authorities
The EU DSA, which went into force in December 2022, harmonises the rules applicable to intermediary service providers, such as online platforms, online marketplaces, social media services, and internet providers. The supervision of the DSA obligations is carried out both by the European Commission and by national supervisory authorities. The European Commission monitors Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs).
According to the DSA, EU member states are required to designate competent authorities (i.e. Digital Services Coordinators) to supervise the compliance of the services established in their jurisdiction and participate in the EU cooperation mechanism. A Digital Service Coordinator (DSC) is an authority in charge of the application and enforcement of the DSA in a member state.
In the Netherlands, two supervisory authorities have been designated by the implementation act: the Netherlands Authority for Consumers and Markets (ACM) and the Dutch Data Protection Authority (AP), which addresses profiling and the use of personal data. The ACM has also been designated the Digital Service Coordinator or DSC as mandated by the EU Digital Services Act.
Sanctions
Regulators may impose an administrative fine of up to 6% of global turnover for failure to comply with an obligation of the DSA. For providing false, incomplete or misleading information, failing to respond or not correcting false, incomplete or misleading information or refusing to submit to an inspection, a maximum fine of 1% of global turnover can be levied.
In addition to an administrative fine, regulators can impose an order under penalty, which amounts to 5% of global turnover.
And, of course, sanctions will obviously lead to reputational damage.
In its role as the DSC, the Dutch ACM can also impose additional sanctions. If there is a danger of serious damage, the ACM can impose interim measures.
In these cases, the ACM can order an immediate investigation and an action plan to eliminate any danger. Reports on this must be submitted to the ACM. In exceptional cases, if the infringement constitutes a criminal offense that threatens the life or safety of individuals, the ACM can request the court to temporarily restrict the provider's online interface.
Other topics
The implementation act also includes provisions on the cooperation between the AP and the ACM, data exchanges, cooperation between the public prosecutor's office and the ACM, and cooperation with the European Commission.
ACM announcement
On 3 February 2025, the ACM announced that starting 4 February, it will monitor compliance with the DSA and stated that its main focus for 2025 will be to ensure that online platforms meet the requirements of the DSA, such as establishing a central contact point and enabling user reports of illegal content. Additionally, the ACM will review web hosting services and will launch a study into the protection of minors.
The ACM also announced that Dutch users of online services established in other countries can file reports with the ACM under the purview of the DSA. These reports will be forwarded to the regulator in the member state where the platform in question has its registered office. The ACM has already received almost 300 reports, about 200 of which are about services in other member states. The majority involve account and content restrictions, the reporting and handling of illegal content, and general issues regarding contact and reachability.
The ACM will offer assistance in investigations and enforcement actions, if necessary.
See also: Netherland’s Consumer Authority publishes DSA guidelines for providers of online services
Conclusion
The DSA represents landmark regulation aimed at creating a safer and more transparent digital environment in the EU. Companies, however, must understand their obligations under the DSA and take proactive steps to ensure compliance. By doing so, they can avoid substantial fines and penalties, and also foster a trustworthy and user-centric digital ecosystem.
The Dutch Implementation Act will allow the ACM and AP to enforce the EU’s DSA, ensuring compliance in the Netherlands.
For more information on the implementation of the EU Digital Services Act in the Netherlands, contact your CMS client partner or these CMS experts.