European Commission releases draft digital services package

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The draft Digital Services Package (the “Package”) released by the European Commission (the “Commission”) on 15 December 2020 is the most significant reform of European internet regulations in the past two decades. The Package will significantly impact the offering and use of digital services in the European Union (“EU”), not only for certain large systemic platforms, but for all intermediary services providers, as well as their users (business users and end-users). The Package includes two regulations: the Digital Services Act (the “DSA”) and the Digital Markets Act (the “DMA”). The DSA sets new obligations for digital services providers to contribute to online safety through the fight against the spread of illegal content and the protection of online fundamental rights. The DMA imposes specific obligations on large online platforms identified as “gatekeepers” to avoid unfair practices and lack of contestability.