EU Regulation on platform-to-business relations enters into force
Regulation 2019/1150 on promoting fairness and transparency for businesses users of online intermediation services entered into force on 12 July in the EU. Member states of the EU may immediately apply the regulation to online intermediaries operating on their markets. The regulation must apply to online intermediation services provided to corporate users. Corporate users are any natural or legal persons which use an online intermediary to offer goods and services to consumers. It shall not apply to online payment services and online advertising tools that do not provide their services to facilitate the initiation of direct transactions.
The new regulation imposes on online intermediary businesses the duty to inform corporate users in detail on the reasons for terminating their contract with the platform (removal) at least 30 days prior to the termination takes effect. The platform shall give users the opportunity to clarify the facts in the framework of an internal complaint-handling process. Moreover, online platforms intermediating users shall write in their terms and conditions the main parameters determining ranking and the reasons for the main parameters to determine the offer of users’ services and goods through their websites. Finally, online intermediaries shall provide for an internal system for handling the complaints of business users. This last duty is not imposed on providers of online intermediation considered as small enterprises.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.