REGIS - Reg. Intermediation Services 2019/1150 EN

In order to ensure that contractual relations between providers of online_intermediation_services and business_users are conducted in good faith and based on fair dealing, providers of online_intermediation_services shall:

(a)	not impose retroactive changes to terms_and_conditions, except when they are required to respect a legal or regulatory obligation or when the retroactive changes are beneficial for the business_users;

(b)	ensure that their terms_and_conditions include information on the conditions under which business_users can terminate the contractual relationship with the provider of online_intermediation_services; and

(c)

include in their terms_and_conditions a description of the technical and contractual access, or absence thereof, to the information provided or generated by the business_user, which they maintain after the expiry of the contract between the provider of online_intermediation_services and the business_user.

Article 11

Internal complaint-handling system

1. Providers of online_intermediation_services shall provide for an internal system for handling the complaints of business_users.

That internal complaint-handling system shall be easily accessible and free of charge for business_users and shall ensure handling within a reasonable time frame. It shall be based on the principles of transparency and equal treatment applied to equivalent situations, and treating complaints in a manner which is proportionate to their importance and complexity. It shall allow business_users to lodge complaints directly with the provider concerned regarding any of the following issues:

(a)	alleged non-compliance by that provider with any obligations laid down in this Regulation which affects the business_user lodging the complaint (‘the complainant’);

(b)	technological issues which relate directly to the provision of online_intermediation_services, and which affect the complainant;

(c)	measures taken by, or behaviour of, that provider which relate directly to the provision of the online_intermediation_services, and which affect the complainant.

2. As part of their internal complaint-handling system, providers of online_intermediation_services shall:

(a)	duly consider complaints lodged and the follow-up which they may need to give to the complaint in order to adequately address the issue raised;

(b)	process complaints swiftly and effectively, taking into account the importance and complexity of the issue raised;

(c)	communicate to the complainant the outcome of the internal complaint-handling process, in an individualised manner and drafted in plain and intelligible language.

3. Providers of online_intermediation_services shall provide in their terms_and_conditions all relevant information relating to the access to and functioning of their internal complaint-handling system.

4. Providers of online_intermediation_services shall establish and make easily available to the public information on the functioning and effectiveness of their internal complaint-handling system. They shall verify the information at least annually and where significant changes are needed, they shall update that information.

That information shall include the total number of complaints lodged, the main types of complaints, the average time period needed to process the complaints and aggregated information regarding the outcome of the complaints.

5. The provisions of this Article shall not apply to providers of online_intermediation_services that are small enterprises within the meaning of the Annex to Recommendation 2003/361/EC.

Article 14

Judicial proceedings by representative organisations or associations and by public bodies

1. Organisations and associations that have a legitimate interest in representing business_users or in representing corporate_website_users, as well as public bodies set up in Member States, shall have the right to take action before competent national courts in the Union, in accordance with the rules of the law of the Member State where the action is brought, to stop or prohibit any non-compliance by providers of online_intermediation_services or by providers of online_search_engines, with the relevant requirements laid down in this Regulation.

2. The Commission shall encourage Member States to exchange best practices and information with other Member States, based on registries of unlawful acts which have been subject to injunction orders before national courts, where such registries are set up by relevant public bodies or authorities.

3. Organisations or associations shall have the right referred to in paragraph 1 only where they meet all of the following requirements:

(a)	they are properly established in accordance with the law of a Member State;

(b)	they pursue objectives that are in the collective interest of the group of business_users or corporate_website_users that they represent on a sustained basis;

(c)	they are of a non-profit making character;

(d)	their decision-making is not unduly influenced by any third party providers of financing, in particular by providers of online_intermediation_services or of online_search_engines.

To this end, organisations or associations shall fully and publicly disclose information on their membership and source of financing.

4. In Member States where public bodies have been set up, those public bodies shall have the right referred to in paragraph 1, where they are charged with defending the collective interests of business_users or corporate_website_users or with ensuring compliance with the requirements laid down in this Regulation, in accordance with the national law of the Member State concerned.

5. Member States may designate:

(a)	organisations or associations established in their Member State that meet at least the requirements of paragraph 3 at the request of those organisations or associations;

(b)	public bodies set up in their Member State that meet the requirements of paragraph 4

that are granted the right referred to in paragraph 1. Member States shall communicate to the Commission the name and purpose of any such designated organisations, associations or public bodies.

6. The Commission shall draw up a list of the organisations, associations and public bodies designated in accordance with paragraph 5. That list shall specify the purpose of those organisations, associations and public bodies. That list shall be published in the Official Journal of the European Union. Changes to the list shall be published without delay and, in any event, an updated list shall be drawn up and published every six months.

7. The court shall accept the list referred to in paragraph 6 as proof of the legal capacity of the organisation, association or public body, without prejudice to the court’s right to examine whether the purpose of the claimant justifies its taking action in a specific case.

8. If a Member State or the Commission raises concerns regarding the compliance, by an organisation or association, with the criteria laid down in paragraph 3, or, by a public body, with the criteria laid down in paragraph 4, the Member State that designated that organisation, association or public body in accordance with paragraph 5 shall investigate the concerns and, where appropriate, revoke the designation if one or more of the criteria are not complied with.

9. The right referred to in paragraph 1 shall be without prejudice to the rights of business_users and corporate_website_users to start any action before competent national courts, in accordance with the rules of the law of the Member State where the action is brought, which is based on individual rights and aims to stop any non-compliance, by providers of online_intermediation_services or providers of online_search_engines, with the relevant requirements laid down in this Regulation.

whereas

(10) A wide variety of business-to-consumer relations are intermediated online by providers operating multi-sided services that are essentially based on the same ecosystem-building business model.
In order to capture the relevant services, online_intermediation_services should be defined in a precise and technologically-neutral manner.
In particular, the services should consist of information society services, which are characterised by the fact that they aim to facilitate the initiating of direct transactions between business_users and consumers, irrespective of whether the transactions are ultimately concluded online, on the online portal of the provider of online_intermediation_services in question or that of the business_user, offline or in fact not at all, meaning that there should be no requirement for any contractual relationship between the business_users and consumers as a precondition for online_intermediation_services falling within the scope of this Regulation.
The mere inclusion of a service of a marginal character only should not be seen as making the aim of a website or service the facilitation of transactions within the meaning of online_intermediation_services.
In addition, the services should be provided on the basis of contractual relationships between the providers and business_users which offer goods or services to consumers.
Such a contractual relationship should be deemed to exist where both parties concerned express their intention to be bound in an unequivocal manner on a durable_medium, without an express written agreement necessarily being required.

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(11) Examples of online_intermediation_services covered by this Regulation should consequently include online e-commerce market places, including collaborative ones on which business_users are active, online software applications services, such as application stores, and online social media services, irrespective of the technology used to provide such services.
In this sense, online_intermediation_services could also be provided by means of voice assistant technology.
It should also not be relevant whether those transactions between business_users and consumers involve any monetary payment or whether they are concluded in part offline.
However, this Regulation should not apply to peer-to-peer online_intermediation_services without the presence of business_users, pure business-to-business online_intermediation_services which are not offered to consumers, online advertising tools and online advertising exchanges which are not provided with the aim of facilitating the initiation of direct transactions and which do not involve a contractual relationship with consumers.
For the same reason, search engine optimisation software services as well as services which revolve around advertising-blocking software should not be covered by this Regulation.
Technological functionalities and interfaces that merely connect hardware and applications should not be covered by this Regulation, as they normally do not fulfil the requirements for online_intermediation_services.
However, such functionalities or interfaces can be directly connected or ancillary to certain online_intermediation_services and where this is the case, the relevant providers of online_intermediation_services should be subject to transparency requirements related to differentiated treatment based on these functionalities and interfaces.
This Regulation should also not apply to online payment services, since they do not themselves meet the applicable requirements but are rather inherently auxiliary to the transaction for the supply of goods and services to the consumers concerned.

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(27) Providers of online_intermediation_services or of online_search_engines should not be required to disclose the detailed functioning of their ranking mechanisms, including algorithms, under this Regulation.
Their ability to act against bad faith manipulation of ranking by third parties, including in the interest of consumers, should equally not be impaired.
A general description of the main ranking parameters should safeguard those interests, while providing business_users and corporate_website_users with an adequate understanding of the functioning of ranking in the context of their use of specific online_intermediation_services or online_search_engines.
To ensure that the objective of this Regulation is achieved, consideration of the commercial interests of providers of online_intermediation_services or online_search_engines should, therefore, never lead to a refusal to disclose the main parameters determining ranking.
In this regard, whilst this Regulation is without prejudice to Directive (EU) 2016/943 of the European Parliament and of the Council (5), the description given should at least be based on actual data on the relevance of the ranking parameters used.

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(32) Specific contractual terms should be addressed in this Regulation, in particular in situations of imbalances in bargaining power, in order to ensure that contractual relations are conducted in good faith and on the basis of fair dealing.
Predictability and transparency require that business_users are given a real opportunity to become acquainted with changes to terms_and_conditions, which should therefore not be imposed with retroactive effect unless they are based on a legal or regulatory obligation or are beneficial to those business_users.
Business users should in addition be offered clarity as to the conditions under which their contractual relationship with providers of online_intermediation_services can be terminated.
Providers of online_intermediation_services should ensure that the conditions for termination are always proportionate and can be exercised without undue difficulty.
Finally, business_users should be fully informed of any access that providers of online_intermediation_services maintain, after the expiry of the contract, to the information that business_users provide or generate in the context of their use of online_intermediation_services.

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(37) In order to enable business_users, including those whose use of the relevant online_intermediation_services might have been restricted, suspended or terminated, to have access to immediate, suitable and effective possibilities of redress, providers of online_intermediation_services should provide for an internal complaint-handling system.
That internal complaint-handling system should be based on principles of transparency and equal treatment applied to equivalent situations, aimed at ensuring that a significant proportion of complaints can be solved bilaterally by the provider of online_intermediation_services and the relevant business_user in a reasonable period of time.
The providers of online_intermediation_services might maintain in force during the duration of the complaint the decision that they have taken.
Any attempt to reach an agreement through the internal complaint handling-process does not affect the rights of providers of online_intermediation_services or business_users to initiate judicial proceedings at any time during or after the internal complaint-handling process.
In addition, providers of online_intermediation_services should publish and, at least annually, verify information on the functioning and effectiveness of their internal complaint-handling system to help business_users to understand the main types of issues that can arise in the context of the provision of different online_intermediation_services and the possibility of reaching a quick and effective bilateral resolution.

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keyboard_tab REGIS - Reg. Intermediation Services 2019/1150 EN

REGIS - Reg. Intermediation Services 2019/1150 EN