Lomba, N., & Evas, T. (2020)

European Parliamentary Research Service (EPRS), PE 654.180.

https://doi.org/10.2861/7952

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This EuropeanParliamentary Research Service (EPRS) study evaluates the potential added valueof a proposed Digital Services Act (DSA), identifying regulatory gaps in theexisting e-Commerce Directive (2000/31/EC) and recommending EU-level reforms.The report frames e-commerce as a vital pillar of the European economy butemphasizes weaknesses such as fragmented national laws, uneven consumerprotection, opaque algorithmic practices, and limited enforcement mechanisms.

The assessmentidentifies 22 gaps and risks, clustered into four policy packages: (1)enhanced consumer protection and harmonized e-commerce rules, (2) clearerframeworks for content management and curation, (3) specific measures to ensurefair competition in online platform ecosystems, and (4) cross-cuttingenforcement and legal coherence measures. Key issues include insufficientoversight of systemic platforms, inconsistent notice-and-takedown proceduresfor illegal content, lack of transparency in personalized advertising, andchallenges in regulating smart contracts and cross-border disputes.

Using qualitativelegal analysis and quantitative macroeconomic modeling, the report estimatesthat harmonized EU action on consumer protection and content management couldadd at least €76 billion to EU GDP between 2020 and 2030. Beyondeconomic benefits, the DSA is expected to enhance consumer trust, safeguardfundamental rights, and reduce fragmentation across Member States.

The reportcontributes to literature by offering a holistic evaluation of digitalgovernance challenges and policy solutions. It emphasizes that unilateralMember State action risks legal uncertainty, inefficiencies, and weakenedconsumer rights. The authors conclude that coordinated EU legislation isessential to balance innovation, platform accountability, and the protection ofcitizens’ digital rights.