Legal Disclaimer

This handbook is provided for informational purposes only and does not constitute legal advice. While efforts have been made to ensure accuracy, regulatory requirements may evolve. Readers should consult with qualified legal counsel to assess specific obligations under the Digital Services Act (DSA) and the Online Safety Act (OSA).

1. The Converging Regulatory Storm: DSA & UK OSA at a Glance

The digital landscape is undergoing a profound transformation, driven by comprehensive legislation such as the EU Digital Services Act (DSA) and the UK Online Safety Act (OSA). These acts are designed to foster safer, more transparent online environments, holding digital service providers accountable for user-generated content (UGC) and platform design.

Crucially, these regulatory obligations aren’t limited to large enterprises. All platforms, regardless of size, serving users in the EU or UK, must adhere to essential moderation, transparency, and reporting requirements. Smaller platforms should be equally proactive in embedding compliance to avoid operational disruption and reputational risks.

The DSA introduces stringent moderation and transparency requirements, especially robust for Very Large Online Platforms (VLOPs), including proactive policing of illegal content, public advertisement repositories, researcher data access, mandatory ‘Statements of Reasons,’ and regular transparency reporting.

Both regulatory regimes share fundamental objectives, mandating increased transparency, robust content moderation, and proactive risk assessments for illegal and harmful content. They place significant emphasis on protecting minors online, requiring age assurance mechanisms and child-friendly safety measures. 

However, their approaches diverge. The DSA champions a harmonized EU-wide framework, with the European Commission exercising direct supervision over VLOPs. In contrast, the UK OSA is enforced by Ofcom and operates under its own specific codes of practice and deadlines. Platforms operating in both the EU and UK must therefore navigate a complex, often overlapping, set of requirements, necessitating a unified and comprehensive compliance strategy.

The DSA introduces stringent content moderation requirements, emphasizing the proactive policing of illegal hate speech and disinformation. Transparency obligations are also central, including the establishment of public advertisement repositories, provisions for researcher data access, and the mandatory issuance of “Statement of Reasons” for content moderation decisions, alongside regular transparency reports. The Act grants powerful enforcement capabilities, including direct Commission supervision of VLOPs and the authority to impose fines up to 6% of annual global turnover, complemented by daily 5% penalties for persistent non-compliance.

The UK OSA, similarly, imposes duties related to illegal content, requiring risk assessments and effective removal mechanisms. It also outlines specific duties concerning content harmful to children, mandating age assurance protocols, children’s risk assessments, and the implementation of protective measures. Major platforms are also subject to transparency requirements under the OSA.

A notable shift in regulatory philosophy is evident in both acts: a move from reactive content takedowns to proactive risk management. The DSA, for instance, requires VLOPs to annually identify and assess risks associated with their services, including the spread of illegal content, disinformation, and risks to minors. 

Similarly, the OSA mandates illegal content risk assessments and children’s risk assessments. This emphasis on anticipating and mitigating harms, rather than solely responding to them, places a heavier burden on platforms to embed safety into their operational DNA.

This proactive approach directly links regulatory compliance to core product development and algorithmic architecture. The DSA’s focus on “safety by design”, its consideration of “design features that could cause addiction”, and its requirement for “recommender system transparency” demonstrate that compliance is no longer merely a legal afterthought. It is intrinsically tied to how products are built and how algorithms function. 

The UK OSA’s provisions for “safer platform design choices” and “safer feeds” further reinforce this integration. This necessitates an unprecedented level of cross-functional collaboration, ensuring that legal, product, and engineering teams work in unison to build compliant and safe digital services from the ground up.

Key Differences Between the DSA and OSA

2. Navigating the Penalty & Liability Matrix

Regulatory bodies are actively investigating and preparing to levy substantial penalties for non-compliance. The financial stakes are immense, with potential fines reaching billions for major platforms. These enforcement actions serve as a stark reminder of the serious consequences of failing to adhere to the new regulations.

• X (formerly Twitter): The platform has been under an EU DSA probe since December 2023, specifically for alleged failings in disinformation controls, dark-pattern design, and ad-transparency. Preliminary findings in July 2024 indicated breaches concerning advertising transparency, data access for researchers, and the use of “dark patterns” (specifically related to blue check marks). The European Commission is further deepening its investigation into X’s recommender systems. Media reports have suggested a potential fine of USD 1 billion, though the Commission has not confirmed specific figures. The DSA permits fines up to 6% of a platform’s global annual turnover. X’s estimated global annual revenue is $2.5 billion, which would place the upper threshold for a fine at $150 million. However, if the fine were to be based on Elon Musk’s entire holdings as the provider of the platform, the combined revenue could push the potential penalty to $6.9 billion.
• Meta (Facebook + Instagram): Formal proceedings were initiated on April 30, 2024, against Meta regarding alleged illegal-content and child-safety failings on Facebook and Instagram. Key concerns include the potential for algorithmic systems to stimulate behavioral addictions and create “rabbit-hole effects” in children, as well as the inadequacy of Meta’s age-assurance and verification methods. Meta faces a potential exposure of 6% of its global turnover.
• TikTok: In May 2025, TikTok was charged for ad-transparency breaches. Preliminary findings indicate that TikTok failed to provide a searchable advertisement repository with essential information, including ad content, targeted users, and sponsors. This preliminary finding puts ByteDance, TikTok’s parent company, at risk of a fine up to 6% of its global annual turnover. TikTok is also under investigation for potential negative impacts on young people and the “rabbit-hole” effect of its algorithmic recommendations.

These cases illustrate a significant regulatory focus on Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs). The DSA explicitly designates these platforms, defined as having over 45 million monthly active users, subjecting them to stricter rules and direct supervision by the European Commission.¹ 

The ongoing probes against X, Meta, and TikTok, all designated VLOPs, demonstrate the Commission’s active targeting of these large platforms due to their systemic impact on public safety, user well-being, and democratic discourse. This implies that for companies approaching or exceeding the VLOP threshold, the regulatory scrutiny and potential penalties escalate dramatically, demanding a fundamentally different level of compliance maturity and investment.

Beyond the substantial financial penalties, these enforcement actions carry significant non-financial consequences. Public investigations, formal charges, and potential operational restrictions can severely erode user trust, damage brand perception, and disrupt business operations. For B2B SaaS companies, whose value often hinges on trust and reliability, these reputational and operational impacts can be as damaging, if not more so, than monetary fines. This underscores that compliance is not merely about avoiding penalties; it is about safeguarding the entire business’s long-term viability and reputation.

Table 1: Regulatory Penalties at a Glance

3. Executive Readiness Review: Critical Platforms Checks 

Compliance has evolved from a siloed legal function into a strategic imperative that demands integration across governance, policy, technology, and reporting. Senior leaders must champion a “data protection by design and by default” approach, ensuring that safety and compliance are foundational elements of their operations.

Governance & Accountability

Effective compliance begins with strong governance. Organizations should designate a Chief Compliance Officer (CCO) or an equivalent leader to spearhead regulatory adherence and oversee internal operations. This leadership role is critical for establishing clear internal policies and procedures, ensuring that written standards of conduct and ethics are uniformly applied across the entire organization. 

For larger services, a senior body should conduct annual reviews of risk management and children’s safety protocols. A proactive, risk-based approach is essential for identifying, assessing, and prioritizing compliance risks – including internal, cybersecurity, third-party, operational, and financial risks – to allocate resources effectively. This involves performing regular gap analyses and readiness assessments to ensure preparedness for audits.

Policy & Content Moderation

Platforms must ensure their Terms of Service are easily accessible, clear, and understandable, particularly for children. A robust content moderation function is necessary to review and assess suspected illegal content, supported by swift takedown mechanisms. Clear and easy-to-use mechanisms for users, including minors, to report content and submit complaints are also mandated, with appropriate response processes in place.¹ Prioritizing notices from “trusted flaggers” is also a key requirement. 

Additionally, platforms need to implement processes and measures to defend against malicious and abusive notices.

Technology & Systems

Technological measures are crucial for compliance. For services accessible to minors, implementing “highly effective” age assurance methods (e.g., credit card checks, open banking, facial age estimation) is required to prevent access to inappropriate content, especially pornography. Algorithmic design must also be considered, with recommender systems configured to filter out harmful content from children’s feeds, particularly for services posing a medium or high risk. The use of “dark patterns” that inhibit user decision-making is prohibited. 

A robust incident management system is essential for responding to security breaches, including halting data access, initiating internal investigations, notifying affected users, and maintaining detailed audit trails. Compliance controls should be seamlessly integrated into the software development lifecycle, from initial development stages to final production. Furthermore, leveraging compliance management software to automate workflows, evidence collection, and internal audits can significantly reduce manual tasks and human error, allowing teams to focus on higher-value activities.

The emphasis on “continuous compliance” is a significant shift. Regulations are dynamic, with new guidelines and interpretations emerging constantly. This means compliance is no longer a one-off annual check but an ongoing, dynamic process that requires continuous monitoring and adaptation. Static compliance strategies are insufficient in this rapidly evolving landscape. Organizations must invest in systems and processes that enable continuous monitoring and adaptation, rather than relying solely on periodic reviews.

This comprehensive approach underscores the imperative of cross-functional integration for success. The readiness review explicitly covers governance, policy, technology, and reporting, highlighting the need for collaboration across various departments and regions. Successful compliance cannot be achieved in silos. Legal, Product, Engineering, and Compliance teams must work in lockstep, embedding compliance into the very fabric of the product lifecycle and operational processes. For senior leaders, this means breaking down traditional departmental barriers and fostering a culture of shared responsibility for online safety and regulatory adherence.

Reporting & Transparency

Platforms must prepare to publish annual transparency reports detailing moderation actions, reported content, appeals, and response times. VLOPs have an even stricter requirement, needing to publish these reports every six months. For all content moderation decisions, clear and specific “statements of reasons” must be provided to affected users, outlining the specific policy violations or criteria that led to the action.

These statements must then be submitted to the DSA Transparency Database, ensuring no personal data is included. For VLOPs, maintaining public advertisement repositories with information on content, targeting, and sponsors, accessible to researchers and civil society, is also a key obligation. Finally, VLOPs and VLOSEs are required to facilitate data access for vetted researchers to conduct studies on systemic risks.

For tailored guidance on aligning your governance, policy, technology, and reporting strategies, book a complimentary 30-minute compliance briefing with a Checkstep specialist.

Schedule your briefing here

4. Enforcement Deadline Timeline

The period ahead presents a series of critical deadlines under both the UK OSA and EU DSA, each carrying significant penalties for non-compliance. These dates demand immediate attention and strategic planning to avoid severe financial and reputational repercussions.

Key Enforcement and Penalty Deadlines

Risk Radar

Missing these deadlines can trigger a “domino effect” of escalating fines and enforcement actions. For instance, under the UK OSA, failing to complete a Children’s Access Assessment by April 16, 2025, automatically leads to the assumption that the service is accessed by children, subjecting it to more stringent duties and risk assessments later in the year. This means that tactical failures at one stage can quickly become strategic liabilities, emphasizing the need for meticulous planning and execution across all compliance milestones.

Furthermore, the fluidity of “final” regulations presents an ongoing challenge. While key dates are set, some timings, particularly for UK OSA Codes, remain “at risk” as they await parliamentary approval or further secondary legislation. Similarly, the EU Commission’s approach, as seen with TikTok, sometimes involves delivering guidance via preliminary findings rather than clear, public guidelines.

This highlights that merely understanding the high-level legislation is insufficient. Companies must continuously monitor regulatory updates, engage with ongoing consultations, and be prepared to adapt their compliance strategies dynamically. This underscores the critical need for expert partners who track these granular changes and provide timely, actionable intelligence.

5. What ‘Good’ Looks Like: A Compliance Scorecard

Achieving robust compliance extends beyond merely avoiding penalties; it requires embedding a culture of safety, transparency, and accountability throughout the organization. This scorecard outlines the hallmarks of an effective Trust & Safety framework, aligning with the proactive, design-centric approach mandated by new regulations.

Scorecard Categories & Key Indicators

Governance & Strategy:

• Clear, documented compliance policies and procedures that are regularly reviewed and updated.
• Designated compliance leadership (e.g., CCO) with clear responsibilities and authority to drive adherence.
• A proactive, risk-based approach to identifying, assessing, and mitigating compliance gaps across all operations.
• Consistent enforcement of standards, ensuring accountability regardless of internal stature.

Content Moderation & Policy Implementation:

• Comprehensive content policies reflected in clear, accessible Terms of Service that are easy for users to understand.
• Efficient and accurate detection of illegal and harmful content, leveraging advanced technology for scalability.
• Scalable and automated processes for actioning content, ensuring timely removal or restriction.
• Robust user reporting and appeals mechanisms, including efficient support for trusted flaggers.

Transparency & Reporting:

• Timely and accurate publication of transparency reports, utilizing mandatory templates from July 1, 2025, to ensure comparability and compliance.
• Consistent submission of clear “statements of reasons” to the DSA Transparency Database, providing detailed explanations for content moderation decisions.
• Maintenance of accessible and comprehensive public advertisement repositories (for VLOPs), detailing ad content, targeting, and sponsors.
• Facilitation of data access for vetted researchers where required, supporting independent analysis of systemic risks.

User Safety & Protection (Children & Vulnerable Users):

• Implementation of “highly effective” age assurance measures where services are accessible to minors or contain restricted content, preventing unauthorized access.
• Proactive children’s risk assessments and the implementation of specific mitigating safety measures tailored to different age groups.
• Algorithmic design that prioritizes user safety and actively filters harmful content from feeds, especially for children.
• Provision of child-friendly reporting and support resources, making it easy for young users to seek help.

Operational Excellence & Technology Integration:

• Seamless integration of compliance controls into the software development lifecycle, ensuring safety is built into product design from the outset.
• Utilization of automation tools to streamline compliance workflows, evidence collection, and audits, significantly reducing manual effort and human error.
• A robust incident management system for swift and compliant response to security breaches, minimizing impact and ensuring regulatory adherence.
• Regular and comprehensive employee training on compliance responsibilities and evolving regulations, fostering a culture of continuous awareness.

Achieving this level of compliance can become a significant competitive differentiator. Demonstrating increased trust and transparency not only showcases responsibility but also makes stakeholders more likely to engage with an organization. For B2B SaaS companies, where trust is paramount, exceeding baseline compliance can attract discerning clients who prioritize robust safety frameworks. This scorecard implicitly highlights how advanced solutions, such as AI-powered content moderation, detection accuracy, scalability, and comprehensive reporting, are essential for reaching this higher standard.

Furthermore, the strategic value of automation in compliance cannot be overstated. Manual compliance processes are often overwhelmed by the rapidly evolving regulatory landscape, leading to inefficiencies and increased risk. Automation, on the other hand, streamlines workflows, reduces human error, and saves time, costs, and resources. Investing in automation transforms compliance from a mere cost center into an enabler of scalability and resilience, allowing teams to focus on proactive risk mitigation rather than reactive administrative tasks.

6. Staying Ahead: Partnering for Proactive Compliance

The regulatory environment is dynamic, with new guidelines, interpretations, and enforcement actions emerging constantly. Staying ahead requires continuous monitoring, adaptation, and specialized expertise. Legal leaders are increasingly concerned about elevated risk due to unprecedented regulatory uncertainty, with many organizations increasing budgets to address complex challenges like AI regulation and cybersecurity.

Navigating the complexities of global compliance can overwhelm internal resources, especially for smaller teams that may lack the bandwidth or expertise to manage cross-border regulations. Expert partners provide deep knowledge of evolving regulations, help identify applicable frameworks, assess risk landscapes, and implement necessary controls. They can also help integrate compliance seamlessly into operations, from software development to incident management. Such partners offer the actionable information needed to make informed decisions and drive growth, enabling organizations to lead rather than merely react.

The increasing complexity of regulations and the specific challenges faced by in-house legal teams indicate that general compliance knowledge is no longer sufficient. The need for specialized expertise in areas such as AI regulation and cybersecurity points to an imperative for deep, niche knowledge. This positions specialized partners, with their focused expertise, as critical allies in navigating this intricate landscape.

Checkstep is an AI-powered content moderation platform that detects and actions harmful user-generated content online, providing scalable and automated solutions for online platform managers. Our team comprises “The World’s Leading Experts in Trust & Safety,” possessing deep experience in AI governance, data privacy, and scaling businesses internationally. We assist platforms in meeting their obligations for content moderation, transparency reporting, and risk assessments, ensuring a high level of privacy, safety, and security for users. Checkstep is committed to helping organizations navigate regulatory change, providing the tools and expertise necessary to build trust and maintain compliance without compromising innovation.

To explore how these capabilities can be tailored to specific organizational needs, a 30-minute briefing with a Checkstep specialist is available here.