The European Union’s Digital Services Act (DSA) is a regulation aimed at creating a safer and more accountable online space in the EU. A key aspect of the DSA is the requirement for non-EU companies offering intermediary services in the EU to appoint a “legal representative”. This article will break down the essential elements of this requirement and explain how it impacts businesses providing intermediary services in the EU.
What is the Digital Services Act (DSA)?
The Digital Services Act (DSA) is a regulation designed to regulate digital platforms and online intermediaries. The DSA applies to both EU-based and non-EU-based companies, and covers a broad range of intermediary service providers, including:
- Internet Service Providers (ISPs)
- Cloud Services
- Messaging Services
- Social Networks
- Content-sharing platforms
- App stores
- Online marketplaces
- Online travel and accommodation platforms
What is a legal representative under the DSA?
A “legal representative” under the DSA is a person or company appointed by non-EU businesses offering services in the EU. The legal representative must be located in an EU country where the business operates and is responsible for receiving, ensuring compliance with and enforcing decisions issued under the DSA. Importantly, the legal representative can also be held accountable for non-compliance, in addition to the business itself.
Why and when do companies need a legal representative under the DSA?
Appointing a legal representative is a mandatory requirement under the DSA. Any company that falls under the scope of the DSA and is not established in the EU but provides services within the EU must designate a legal representative in an EU Member State where it operates. For example, a U.S.-based online marketplace selling products to EU customers but with no legal presence in the EU must appoint a legal representative. Similarly, a social media platform based in Asia offering services to EU users must also designate a legal representative.
The duty to appoint a legal representative is already in force, so any company that falls under the scope of this requirement must have a legal representative in place and communicate the legal representation contact information to EU authorities. Failure to comply with this requirement could result in penalties or enforcement actions from EU authorities.
Key responsibilities of the legal representative
- Communication with authorities: the legal representative acts as the official contact for communication from national authorities, the European Commission, and the European Board for Digital Services. As mentioned, companies must provide the details of the legal representative to the relevant EU authority in the Member State where the legal representative is located, ensuring that the authorities can contact the representative as needed. These authorities handle legal matters related to the DSA, such as enforcement, compliance, and legal proceedings.
- Liability for non-compliance: the legal representative may be held liable for non-compliance with obligations under the DSA, without affecting the liability and legal actions that could be initiated against the provider of intermediary services. This shared responsibility highlights the importance of choosing a capable and well-resourced representative.
- Enforcement of decisions: the legal representative also helps ensure that decisions made by EU authorities are enforced and assists the company in complying with them. Providers of intermediary services must grant their legal representative the necessary powers and resources to ensure efficient and timely cooperation with EU authorities and to comply with their decisions.
Conclusion
The requirement for a legal representative under the DSA is an essential aspect of maintaining compliance for non-EU companies offering intermediary services in the EU. For expert assistance in appointing a legal representative, contact us today. We offer options tailored to your service and size and ensure that your business meets all necessary requirements to avoid penalties or enforcement actions.
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