Compliance Function Establishment and Role
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Overview
6 sources · Jul 15, 2026Legal Framework
Article 41 of the DSA imposes a mandatory compliance function on providers of very large online platforms (VLOPs) and very large online search engines (VLOSEs). Recital 99 clarifies the rationale: given the systemic risks these services present to society, a dedicated compliance function must operate independently from operational units. The head of this function must report directly to the provider's management body, including when raising concerns about non-compliance with the Regulation. Compliance officers within the function must possess the necessary qualifications, knowledge, and experience to discharge their duties effectively.
The compliance function's core mandate is to monitor and advise on the provider's adherence to DSA obligations — spanning risk assessments, mitigation measures, content moderation systems, advertising transparency, and data access requirements. The structural independence requirement means the function cannot be subordinated to commercial or operational teams whose priorities may conflict with regulatory compliance.
Key Developments
Enforcement activity under the DSA remains at an early stage, but the European Commission's proceedings against designated VLOPs signal how Article 41 will be scrutinized in practice. The Commission's opening of formal investigations against platforms including X, TikTok, and Meta has included examination of whether internal governance structures — including compliance functions — are adequately resourced and positioned to meet DSA standards.
The February 2026 matter involving AppLogic Networks in Egypt illustrates the human rights and press freedom dimensions that compliance functions must be equipped to identify and escalate. Where platform infrastructure facilitates abuses that implicate DSA risk categories, the compliance function's independence and direct reporting line become critical to ensuring concerns reach management without operational filtering.
Practical Guidance
Establish structural separation: The compliance function must sit outside operational reporting lines. Personnel should not report to product, engineering, or commercial leadership. A direct reporting line from the head of compliance to the management body satisfies Article 41's independence requirement.
Define the mandate in writing: Charter the compliance function's scope to cover all DSA obligations — Articles 34–35 risk assessments and mitigation, Article 16 notice-and-action, Article 24 advertising repositories, and Article 40 data access. Ambiguity in scope invites enforcement gaps.
Resource the function commensurately with systemic risk exposure: Recital 99's qualifications requirement means staffing must reflect the scale and complexity of the platform. Under-resourced compliance teams will not satisfy the standard.
Build an escalation mechanism for non-compliance concerns: The head of compliance must be able to raise concerns directly with management. Document the escalation pathway and ensure it cannot be blocked by intermediate operational layers.
Integrate compliance function input into risk assessment cycles: Article 34 risk assessments should involve the compliance function as a substantive contributor, not merely a reviewer, to ensure identified risks translate into actionable mitigation under Article 35.