Main Changes During 2024 in E-Commerce Legislation Inside the EU

The European Union (EU) introduced substantial changes to e-commerce legislation in 2024 to enhance transparency, fairness, and safety in its digital market. Today, we want to highlight the main changes during 2024 in e-commerce legislation inside the EU, focusing on the Digital Services Act (DSA), Digital Markets Act (DMA), and the General Product Safety Regulation (GPSR).

Digital Services Act (DSA)

The DSA, effective February 17, 2024, establishes a comprehensive framework for digital services, emphasizing user safety and platform accountability. Key updates include:

• Illegal Content Management: Platforms must prevent disseminating illicit goods, services, and content, providing mechanisms for users to report violations.
• Increased Transparency: Platforms must now disclose detailed information about content moderation policies, advertising strategies, and algorithmic operations.
• Protection for Minors: New regulations restrict the use of minors’ data for targeted ads and mandate safeguards against harmful content.
• Systemic Risk Mitigation: Huge online platforms (VLOPs) with over 45 million monthly users must assess and mitigate risks, such as the spread of disinformation and negative mental health impacts.

The DSA’s implementation marks a significant shift in e-commerce legislation inside the EU, ensuring platforms prioritize safety and transparency.

Digital Markets Act (DMA)

The DMA, fully enforceable by March 6, 2024, targets large online platforms (gatekeepers) to ensure fair competition in the digital marketplace. Key provisions include:

• Ban on Self-Preferencing: Gatekeepers cannot favor their own services over third-party offerings.
• Interoperability: Services must be interoperable with those of third-party providers, fostering competition.
• Data Rights for Businesses: Companies using gatekeeper platforms must have access to their data for improved service delivery.

Gatekeepers face fines of up to 10% of global annual revenue for non-compliance, reinforcing the importance of adherence to e-commerce legislation inside the EU.

General Product Safety Regulation (GPSR)

The GPSR effective December 13, 2024, replaces the previous General Product Safety Directive and sets higher safety standards for online and offline products. Major changes include:

• Broadened Scope: Online marketplaces and fulfillment service providers are now directly responsible for product safety.
• Improved Market Oversight: Authorities have expanded powers to monitor compliance and remove unsafe products.
• Operator Obligations: Manufacturers, importers, and distributors must ensure compliance with safety standards and report issues via the Safety Business Gateway.
• Consumer Protections: Enhanced consumer rights include access to safety information and remedies for unsafe products.

The GPSR ensures that all products sold within the EU adhere to strict safety regulations, aligning with the evolving e-commerce legislation inside the EU.

Implications for E-Commerce Businesses

The main changes during 2024 in e-commerce legislation inside the EU have significant implications for businesses:

• Compliance Mandates: Businesses must adapt operations to comply with new safety and transparency requirements.
• Greater Accountability: Online platforms, including content moderation and product safety enforcement, face increased responsibilities.
• Opportunities for Smaller Businesses: By curbing gatekeeper dominance, the DMA creates a more level playing field for smaller companies.

The 2024 updates to e-commerce legislation inside the EU represent a transformative step toward a safer, more transparent, and competitive digital marketplace. Businesses must stay proactive in meeting these regulations to thrive in this dynamic environment. The EU ensures a fairer and more secure digital landscape for all stakeholders by prioritizing compliance and user safety.