The Digital Services Act in Ireland: Levies

On the 17th July 2024 The Digital Services (Levy) Act 2024 was enacted in Ireland. The primary purpose of the Act is to enable Coimisiún na Meán (“CNAM”) and the Competition and Consumer Protection Commission (“CCPC”) to impose levies on certain providers falling within the scope of the Digital Services Act (“DSA”), and, in the case of CNAM, Regulation (EU) 2021/784 of the European Parliament and of the Council of 29 April 2021 on addressing the dissemination of terrorist content online, (the “Terrorist Content Online Regulation”). 

CNAM and CCPC both have oversight of enforcing obligations under the Digital Services Act (“DSA”) in Ireland, with CNAM being the lead competent authority for this purpose and the CCPC having responsibility for marketplaces. The purpose of the levies is to allow CNAM and the CCPC to meet their expenses and working capital requirements.

CNAM

The Act gives CNAM the power to impose levies on intermediary service providers and hosting service providers. 

Of interest to any providers falling within the scope of the Act will be how levies are to be calculated. In respect of CNAM, the Act amends Section 21 of the Broadcasting Act 2009 (the “BA 2009”), which provides for a number of factors to be taken into account by CNAM in calculating levies. For example:

1. CNAM must consider its expenses in that period in performing functions in relation to the relevant category of service, as a proportion of its expenses in that period in performing functions in relation to all categories of services for which it can impose levies (this also includes other categories of service which are provided for in other pieces of legislation, e.g., ‘providers of designated online services’);
2. CNAM must also seek to ensure that the total amount imposed by way of levy in relation to the particular category of service in respect of that period represents a corresponding proportion of the total amount imposed by levy under the section (i.e. s 21 BA 2009) in respect of that period. 

As it currently stands there is a lack of clarity as to what levies will apply to in-scope service providers.

CCPC

The Act allows CCPC to impose levies on ‘consumer online platform providers’. The Act amends the Irish Digital Services Act 2024 (Ireland’s national implementing legislation for the DSA). It provides that the CCPC must consider the nature and scale of services provided by a consumer online platform provider, as well as any other factor that may affect the performance by the CCPC of functions in relation to a consumer online platform provider, including if that provider has been designated as a VLOP or VLOSE under the DSA and has been charged the annual supervisory fee under Article 43 of the DSA. Further, it is also outlines that levy orders may make different provision for different consumer online platform providers.

If you would like further information on the Bill, the Digital Services Act or Terrorist Content Online Regulation, please contact Deirdre Kilroy.