In late 2025, enforcement activity under the European Union’s Digital Services Act (DSA) has been heating up, signaling a stronger regulatory environment for online marketplaces and platforms operating in the European Union. Recent high-profile actions and transparency requirements underscore a shift from passive intermediary roles toward active accountability for content, sellers, and product listings. For US-based brands that sell internationally or use European distributors and platforms, understanding these developments is critical for managing infringement risk, compliance obligations, and marketplace strategy.
What Is the Digital Services Act?
The Digital Services Act is a comprehensive EU regulation designed to modernize the EU’s approach to digital services by holding online intermediaries—social platforms, marketplaces, app stores—accountable for illegal content, unsafe products, and marketplace transparency. It updates and replaces portions of the older Electronic Commerce Directive and applies obligations based on platform size and risk level. Key components include obligations for takedown of illegal content, transparency around content moderation, and seller identity verification.
Recent Enforcement Activity
A sign of the EU’s willingness to use the DSA enforcement framework came in early December 2025, when the European Commission fined X (formerly Twitter) €120 million for breaching transparency obligations under the DSA. This fine underscores how seriously the EU is treating compliance—not just on paper, but in day-to-day platform operations. Bitdefender
Simultaneously, official EU sources show platforms are required to verify and display seller contact details and perform due diligence on marketplace sellers, making it harder for bad actors to hide behind anonymity while selling counterfeit or unsafe goods. These requirements are part of ongoing transparency and verification obligations platforms must meet. Digital Strategy EU
Impacts on Online Marketplaces
Under the DSA, online marketplaces are no longer treated simply as neutral intermediaries. They must:
- Verify seller identities and display contact details, increasing accountability for third-party sellers.
- Implement rapid takedown mechanisms for illegal or infringing listings.
- Publish detailed transparency reports showing actions taken to address illegal content or offerings.
These obligations change how marketplaces operate in the EU and reduce the reliance on soft protections, such as internal platform policies, that historically made it difficult for rights holders to enforce trademarks or combat counterfeit products.
Why This Matters to US Brands
For US brands that sell products through global platforms like Amazon and Etsy—or engage European distributors—the DSA’s enforcement wave creates several practical considerations:
- Stronger Takedown Tools—but with Conditions
The DSA equips brands with a uniform enforcement toolkit that can be integrated into broader brand protection programs. However, platforms will look for verified seller data and compliance before acting, so brands must prepare adequate documentation and strategies tailored to EU takedown processes. - Seller Verification and Marketplace Presence
Platforms subject to the DSA must enforce Know Your Business Customer (KYBC) principles and display verified seller information, which can benefit legitimate brands but also increases the importance of accurate legal profiles and compliance documentation for sellers. - Evidence of Use and Trademark Strategy
Marketplaces and enforcement authorities pay attention to demonstrable rights and use evidence. US brands without European trademark registrations or consistent marketplace use risk slower enforcement responses and reduced leverage when disputing listings. - Contracting and Distribution Agreements
Brands working with European distributors should revisit licensing and distribution agreements to ensure they comply with DSA transparency and seller responsibilities. Clear contractual obligations for compliance can reduce risk of non-compliance by third parties.
Practical Steps for US Brands
To navigate this evolving landscape, our US clients should consider:
- Securing EU trademark registrations and maintaining consistent use evidence to support enforcement and dispute resolution.
- Developing tailored takedown protocols aligned with DSA requirements and platform procedures.
- Coordinating seller verification documentation for marketplaces selling into the EU.
- Reviewing contracts with European partners to align obligations with enhanced transparency and compliance requirements.
The European Union’s enforcement of the Digital Services Act represents a significant shift in how online marketplaces are regulated and how liability for illegal or infringing third-party activity is allocated. For US brands selling internationally or engaging European partners, the time to align IP strategy with regulatory realities is now. Proactive planning, strong trademark protection, and clear documentation are essential tools for minimizing risk and maximizing enforcement effectiveness in the EU market. At Minx Law, we advise our US clients on aligning trademark strategy, enforcement protocols, and marketplace compliance with evolving EU regulations, helping clients leverage the Digital Services Act to strengthen takedowns, reduce cross-border risk, and protect brand value in an increasingly accountable marketplace environment.
