Anticipated changes in Bulgaria's legal landscape: Implementation of the Digital Services Act

Bulgaria

The Bulgarian Council of Ministers has unveiled a draft proposal amending the Electronic Communications Act, aiming to implement the provisions of Regulation (EU) 2022/2065. Enacted by the European Parliament and the Council on 19 October 2022, this regulation, commonly known as the Digital Services Act (DSA), pertains to the establishment of a Single Market for Digital Services.

Background

The DSA aims to harmonise regulations for intermediary services in the information society, introducing tailored measures based on their size, impact, and potential risks. To ensure compliance and the effective functioning of the Digital Single Market, the DSA mandates the creation of mechanisms at both European and national levels. Member States are required to designate a national Digital Services Coordinator, who, independently or with support, oversees and enforces regulations for intermediary service providers. Oversight of very large online platforms and search engines rests with the European Commission, with national authorities providing support.

National regulatory bodies

The draft proposal outlines the role and authority of the Bulgarian Digital Services Coordinator (DSC) and designates the Communications Regulation Commission (CRC) as the national DSC. The CRC monitors non-video-sharing intermediary service providers to ensure compliance with the DSA, while video-sharing platforms fall under the control of the Council for Electronic Media (CEM). The CEM already monitors providers of video-sharing platforms for compliance with the Radio and Television Act, which transposes the Audiovisual Media Services Directive. Additionally, the Commission for Personal Data Protection has the power to supervise the processing of personal data in accordance with the provisions of the DSA and, in particular, in relation to the implementation of its Articles 26 and 28, which concern advertising on online platforms and online protection of minors. Provisions for certifying bodies in out-of-court dispute settlement and the CRC's investigative authority are also detailed in the draft proposal. Compliance investigations by national authorities exclusively serve to monitor and ensure adherence to the DSA for intermediary service providers in Bulgaria.

Trusted flaggers and vetted researchers

Procedures for designating trusted flaggers and vetted researchers under the DSA have been established, along with processes for addressing complaints against intermediary service providers. Applicants for the status of "trusted flagger" must submit a request to the CRC, providing information and declarations on their expertise, activity, and independence from any online platform provider in accordance with Article 22 of the DSA, as well as evidence of compliance and/or references to public registers. It remains to be seen how these requirements will be applied in practice.

Vetted researcher status is to be granted specifically for investigations requiring access to data from very large online platforms or search engines in Bulgaria. Applicants, whether individuals or entities, must submit applications with evidence of compliance or provide information from public registries.

The draft proposal grants the CRC authority to initiate compliance investigations into trusted flaggers and vetted researchers. If non-compliance is identified, a decision will be issued, allowing a seven-day period for opinions (after this, the Commission sets a one-month deadline for aligning activities with the regulation). Provisions for trusted flagger status include clear rules on acquisition, implementation, and revocation. The CRC is authorised to initiate compliance investigations into trusted flaggers, potentially leading to temporary suspension, permanent revocation, or reinstatement of status in specific cases.

Certification of bodies for out-of-court dispute settlement

The draft proposal also regulates the certification of bodies for out-of-court dispute settlement between service recipients and online platform providers under the DSA. Detailed provisions regarding the certification procedure, as well as the authority of the DSC to initiate investigations into its implementation and compliance with the requirements of the DSA, are outlined. Additionally, scenarios for revoking such certification are detailed.

If your business requires legal assistance in navigating the complexities of this new legal framework, feel free to contact CMS experts Ivan Gergov, Partner, and Anna Tanova, Counsel.