Translated using ChatGPT service.
On June 21, amendments to the Information Society Services Law will come into force, implementing the requirements of the Digital Services Act (DSA) into Latvian regulations. The DSA is the first of its kind globally, aimed at making the online environment safer, more predictable, and more trustworthy for all users. This will be achieved by imposing new obligations on intermediaries in the digital sector to reduce the spread of illegal content online and mitigate various social risks posed by online platforms, particularly very large online platforms and search engines, such as Amazon, Meta, AliExpress, Google, and others. Illegal content under the DSA is understood as any information that does not comply with European Union or member state laws.
The Consumer Rights Protection Centre (PTAC) will be the Digital Services Coordinator in Latvia, tasked with performing all the functions designated to competent authorities under the DSA, including monitoring how intermediary service providers comply with the obligations set out in the DSA.
"I would like to emphasize that Latvia has always supported the Digital Services Act and highly values its goal of ensuring a safe, predictable, and trustworthy online environment. It is important for us that user safety is strengthened in the online environment while ensuring their rights as stipulated in the EU Charter of Fundamental Rights, particularly freedom of expression and information. The creation and implementation of the Digital Services Act come at a historically significant time to establish a rules-based order online and ensure fair and transparent development of this environment in the future. Considering the strategic importance of the DSA and the fact that the status and funding for the digital services coordinator function have been provided to PTAC, I expect prompt action from PTAC to start effective oversight of this new area," emphasized the Minister of Economics, Viktors Valainis.
With the amendments to the law, PTAC is granted the powers necessary to enforce and monitor compliance with the Digital Services Act. PTAC will have the right to request information from individuals, conduct on-site inspections without a court order or other type of permission, and conduct and record interviews with employees of intermediary service providers. To ensure DSA compliance, PTAC will be able to issue decisions requiring intermediary service providers to cease DSA violations, including temporary decisions, and impose fines on individuals. Following the "consult first" principle, PTAC will also have more moderate means at its disposal to achieve voluntary compliance from intermediary service providers, such as inviting them to comply or accepting written commitments. PTAC will also be able to request other institutions, whose functions include supervision or other activities related to the DSA, to provide an opinion within one month.
PTAC has already participated in overseeing the information space during the European Parliament elections to monitor the legality of information and responded to the spread of illegal content in the digital environment. Currently, PTAC actively informs relevant entities about DSA requirements within ongoing cases, inviting them to address violations, which are mostly resolved.
"We are honored that the digital services coordinator function in Latvia has been entrusted to PTAC, granting it additional resources. Initially, we plan to focus on informing the public and especially relevant entities about the new requirements, responding to signals indicating DSA violations, thereby understanding the current situation in the digital environment. We hope this will provide information for determining future national supervision and monitoring activities. Simultaneously, it is crucial to establish a close cooperation system with other competent online supervision authorities both in Latvia and internationally, and work on enhancing cooperation with very large online platforms and search engines. PTAC plans to actively participate in international supervision activities, thereby reducing illegal content on platforms and search engines popular among Latvian users," said PTAC Director Baiba Vītoliņa.
The law amendments also establish responsibility for Digital Services Act violations:
- An intermediary service provider may be fined up to 6% of the annual worldwide turnover for the previous financial year for DSA violations and a periodic penalty payment of up to 5% of the average daily turnover or income worldwide for the previous financial year for non-compliance with legal obligations.
- A fine of up to 1% of the annual worldwide turnover for the previous financial year may be imposed on an intermediary service provider or other persons for failure to provide requested information and non-compliance with inspections.
- A periodic penalty payment of up to 5% of the average daily turnover or income worldwide for the previous financial year may be imposed for non-compliance with PTAC's legitimate demands.
PTAC's decisions can be appealed to the Administrative District Court in accordance with the Administrative Procedure Law.
As known, the Digital Services Act (Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market for Digital Services and amending Directive 2000/31/EC) came into force in EU member states on 16 November 2022 and has been applicable since 17 February this year. Therefore, Latvian website operators must assess whether their service meets the definition and criteria of intermediary services and what obligations apply to them to ensure user rights.
The DSA ensures that intermediary service providers establish a contact point for communication with authorities and users. Transparency obligations are also foreseen, requiring service providers to provide sufficient information about their services and operating conditions and publish an annual report on how they fulfill their obligations. Hosting service providers, including platform operators, must establish a complaints handling system. Users will have an easier way to submit complaints to the hosting service provider about illegal content posted by other users. The hosting service provider will be obliged to review these complaints and, if a decision is made to remove specific content, provide explanations to the content poster and ensure their right to appeal this decision.
Platform operators must design their service functionality and interfaces to ensure broader user awareness and safety. This includes prohibiting so-called "dark patterns," providing more information about displayed advertisements, preventing the creation of filter bubbles in search systems, and ensuring higher protection for underage users. E-commerce platform operators are required to implement "know your customer" obligations concerning traders, monitor the appearance of non-compliant goods or services on the platform, and inform consumers who purchased specific goods or services if they are found to be non-compliant.