The ”Supplementary Provisions to the EU’s Regulation on Digital Services,” translated as ”Supplementary Provisions to the EU’s Regulation on Digital Services” (hereafter the ”Provisions”), is a cohesive proposal for Sweden’s national legislation designed to complement the broader EU regulation on digital services as set out in the EU Digital Services Act (“DSA)” . This proposal (“ remiss ” in Swedish) a comprehensive legislative proposal aimed at modernizing the regulatory framework for digital services in Sweden in line with the EU DSA. As part of the proposal, the supplementary provisions are designed to address a wide array of areas within the digital services economy, including establishing regulatory authorities in member states, implementing procedures for handling violations, imposing sanctions, establishing uniform rules for providers of intermediary services ( such as search engines and online platforms), introducing an obligation to establish contact points, reporting mechanisms for illegal goods, services or content, ensuring transparency requirements and incorporating rules for the protection of minors online.
The Provisions, presented to the Swedish Council of legislation, aim to align national law with the DSA, detailing specific responsibilities for digital service providers and the powers of national authorities. To properly enforce the DSA, these additional national provisions are required to address aspects such as the powers and measures of supervisory authorities, judicial reviews, and sanctions. The stakeholders of Sweden could now present their comments and observations on the Provisions that will be part of new legislation that complements the DSA and will take effect on December 1 st , 2024. This enactment date provides organizations and regulatory bodies sufficient time to prepare for the changes, ensuring that all provisions are implemented effectively and in harmony with EU regulations.
The Provisions are crucial for digital service providers operating in Sweden, providing them with the necessary legal framework to navigate the requirements of the EU regulation and understanding the local legal context that affects their operations. Central to enforcing the principles covered by the Provisions are the sanctions designed to ensure compliance and deter violations. The Swedish supplementary provisions grant regulatory authorities the power to impose sanctions on digital service providers who fail to comply with the obligations set forth by the EU’s digital services regulation. These sanctions are not arbitrary; they are carefully calibrated to reflect the severity of the infraction and the provider’s global annual turnover, emphasizing the importance of proportionate and impactful penalties. In extreme cases, digital service providers may face suspension or termination of their activities within the EU. The severity of sanctions depends on various factors, including the nature of the violation and the provider’s compliance history.
Sanctions under the Provisions can be substantial, signaling the seriousness with which compliance is regarded. The minimum fine is set at SEK 5,000, but the maximum can reach up to six percent of a provider’s global annual turnover. This range allows for flexibility in punishment, ensuring that penalties are both a deterrent and appropriate to the scale and nature of the violation.
The decision to impose a sanction under the supplementary provisions to the EU’s digital services regulation involves several fairness-assuring criteria. Firstly, sanctions cannot be imposed if the violation has not been addressed within two years, ensuring that enforcement actions remain timely and relevant. Additionally, service providers must be given the opportunity to respond to allegations of non-compliance before any sanction is finalized, adhering to principles of natural justice and due process.
Sanctions specifically relate to infringements of detailed obligations under various articles of the EU’s regulation. These include obligations around content management and transparency, reporting obligations, and operational requirements, including establishing clear procedures for dispute resolution and contact points for collaboration and coordination with EU institutions. The impact of these sanctions extends beyond mere financial penalties. They encourage digital service providers to put robust compliance mechanisms and controls in place, thereby enhancing the trustworthiness and safety of digital environments. Providers are motivated not only by the need to avoid financial loss but also by the broader business imperative to maintain consumer trust and regulatory goodwill.
In Sweden, the implementation and enforcement of the DSA’s supplementary provisions are overseen by national authorities, working in coordination with EU agencies such as the European Commission and the European Data Protection Board. Compliance with these provisions is crucial for digital service providers in Sweden to maintain their operations and uphold user trust.
In summary, the sanctions embedded within the Swedish supplementary provisions to the EU’s digital services regulation represent a critical tool in the regulatory arsenal. They are designed to enforce adherence to a set of standards that protect consumers and ensure a level playing field in the digital market. By setting clear expectations and serious repercussions for non-compliance, Sweden is taking definitive steps to ensure that digital service providers operate in a manner that is secure, transparent, and accountable to both users and regulatory bodies. This approach not only supports the objectives of the EU’s regulation but also enhances Sweden’s digital ecosystem in alignment with global best practices.