The EU is planning to unveil the Digital Services Act at the end of the year, a major piece of legislation to overhaul rules surrounding data and digital services. The EU has invited interested parties to submit comments by September 8, and the European Commission is targeting a December deadline for the draft law.
This legislation will be watched closely as it has the potential to establish new rules and standards for the digital world. And since it is now well recognized that the ‘digital world’ is not limited to the tech sector, this law and the regulations that will follow are likely to have a significant impact on all corporations, not just on tech giants such as Google and Facebook.
The EU has been the leader on data-related regulation for years, with EU standards such as GDPR becoming the base template used by other governments and regulators globally.
The Digital Services Act is expected to establish a more comprehensive framework for data regulatory developments. It will have a material impact on how some of the largest companies in the world operate, in the EU and beyond since data is today’s most valuable asset. Therefore, it will have repercussions across all investment portfolios. And yet, there are still no required disclosures around the management of digital risks by companies, leaving investors in the dark in this crucial area.
The Digital Services Act is an opportunity for the EU to take a significant step forward that could influence similar regulation in markets like the US.