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August 12, 2025

Understanding DSA, DMA and Plaid’s Role in Verification

Martijn Bos
Head of Policy, Europe

The digital world is evolving rapidly, and the EU has responded with the Digital Services Act (DSA) and Digital Markets Act (DMA). These two legislative frameworks aim to modernise and regulate online marketplaces, social media platforms, and other digital service providers. The goal is to reshape the online marketplace landscape, ensuring a fair, secure, and innovative digital environment for consumers and businesses alike. 

Understanding DSA and DMA

The DSA and DMA are poised to redefine how digital services and platforms operate within the European Union. Here's a brief overview of each:

Digital Services Act (DSA): Raising Standards Across the Board

The DSA aims to set new rules for online platforms, social media, and e-commerce companies, irrespective of their size. It focuses on:

  • Moderation of Content: Platforms must handle illegal content effectively, promoting user safety.

  • Transparency: Companies must disclose their content moderation policies, advertising algorithms, and data practices.

  • User Rights: Enhanced user rights and redress mechanisms to counter unfair treatment.

  • Market Entry for Startups: Streamlined procedures for smaller companies to enter the market.

Digital Markets Act (DMA): Regulating the Gatekeepers

The DMA, on the other hand, is designed to regulate digital gatekeepers, defined as companies with significant influence over the marketplace. Its key points include:

  • Anti-Competitive Behaviour: Preventing gatekeepers from engaging in anti-competitive practices.

  • Data Sharing: Ensuring fair access to data for smaller businesses.

  • Market Access: Facilitating interoperability, allowing users to interact across platforms.

  • Special Measures: Enabling authorities to take specific measures against non-compliance.

Plaid’s Role in a post DSA/DMA world: Streamlined Bank Account Verification

Plaid enables businesses to meet DSA and DMA compliance through fast, secure and scalable bank account verification. Using Plaid’s open banking API, platforms can:

  • Verify bank accounts quickly and accurately

  • Reduce fraud through real-time identity confirmation

  • Simplify onboarding with fewer drop-offs

  • Build user trust with transparent data handling

Speak to our local team today to learn more about how Plaid can help you comply with these new regulations.