What’s Changing with Germany’s New Digital Services Act (DDG)

07/17/2024

Germany’s Digital Services Act (Digitale-Dienste-Gesetz, or DDG) significantly changes the regulatory landscape for digital platforms within the European Union.

The Digital Services Act (DDG), which came into force on May 14, 2024, introduces major changes for digital platforms and services operating within the EU. It complements the EU Digital Services Act (DSA) and adapts Germany’s national legal framework accordingly. The law aims to make digital spaces safer, strengthen user rights, and increase platform accountability.

Increased transparency requirements: Platforms must now provide clearer information about their algorithms, advertising practices, and content moderation. Users should be able to understand why certain content is displayed or removed.
Stronger content moderation: The obligation to quickly remove illegal content has been tightened. Platforms must implement effective systems for detecting and removing such content and regularly review how these systems work.
More rights for users: Users are granted expanded rights, including the right to appeal decisions to remove or not remove content. Platforms must offer transparent complaint procedures.
Mandatory risk assessment: Large platforms must conduct regular risk assessments to identify and mitigate the potential negative effects of their services on society.
Penalties for violations: Failure to comply with the regulations could result in significant fines for platforms, which could amount to up to 6% of their global annual turnover.

Recommendations for Businesses

To meet the new obligations under the DDG, companies should take the following steps:

Review and update your policies: Review your current content moderation policies and update them to comply with the new legal requirements. Ensure that your processes for removing illegal content are efficient and transparent.
Increase transparency: Implement mechanisms that increase the transparency of your algorithms and advertising practices. Create clear explanations and reports that are easily accessible to users.
Improve complaint procedures: Set up a user-friendly and transparent complaint procedure. Ensure that users can easily appeal content moderation decisions.
Conduct regular risk assessments: Conduct regular risk assessments and document them thoroughly. Develop measures to mitigate identified risks and report on them publicly.
Training and education: Train your employees regularly on the new requirements and ensure that all relevant departments are informed about the new regulations and their implementation.
Seek legal advice: Leverage the expertise of legal advisors to ensure that your company is fully compliant with the new regulations. Seek support during implementation and adaptation.

Specific Changes for Website Operators

Telemedia Services Are Now “Digital Services”: Germany’s Telemedia Act (Telemediengesetz, TMG) has been replaced by the DDG. Services previously known as “telemedia services” are now referred to legally as “digital services.”
Legal Notice (Impressum) Requirement: The obligation to provide provider identification previously outlined in § 5 of the TMG is now found in § 5 of the DDG. Website operators should update all references accordingly and stop using outdated legal citations.
Cookie Opt-In Rule: The rules for setting and reading non-essential cookies have been transferred into the new law (§ 25 of the Telecommunications Digital Services Data Protection Act, or TDDDG). Privacy policies and cookie banners should be updated to reflect this. The content of the rule itself has not changed.

Recommendations for website operators

Update Your Legal Notice (Impressum): Check your imprint and replace any references to the TMG with DDG.
Revise Your Privacy Policy and Cookie Banners: Replace mentions of the TTDSG with TDDDG, and ensure that your documentation is fully up to date.
By proactively adapting to the requirements of the Digital Services Act, companies can not only avoid legal risks but also strengthen user trust and contribute to a safer digital environment.

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