Does your online platform meet the new requirements of the European law?
The new rules apply to business providers of intermediary websites that use online platforms where business users offer goods and services to consumers. The Regulation also applies to online markets, social media and creative content markets, application distributing platforms, price comparison websites, co-operative economy markets (if they host professional users) and general search engines. However, it does not apply to online payment services, online advertising tools or advertising exchanges that do not involve a contractual relationship with consumers.
The new rules set out in the Regulation protect business users that use online platforms and provide them with more effective redress mechanisms. It focuses in particular on the rights of business users regarding the ranking of search results, access to data and resolving disputes. Given the rapid growth of online platform providers, an EU Observatory on the Online Platform Economy has been added to the measures, which will be tasked with, among other things, monitoring the application of the new rules in practice.
Article 3 of the Regulation governs terms and conditions offered by providers, which must:
- be easy to understand and accessible;
- set out the grounds for restricting, suspending or terminating services;
- include information on additional distribution channels and affiliate programmes through which business users might market goods and services;
- general information regarding the effect of the terms and conditions on the ownership and control of intellectual property rights of business users.
In addition, online platform providers must meet, among other things, the following requirements:
- give users 15 days’ notice of any changes to the terms and conditions;
- ensure that the identities of business users are clearly visible;
- provide users with a statement of reasons for restricting, suspending or terminating their services (in the event of termination, they must provide a statement of reasons at least 30 days in advance);
- set out in their terms and conditions the main parameters determining ranking and explain them – including, among other things, the possibility to influence ranking against any direct or indirect remuneration;
- where offered, a description of any ancillary goods or services that the online platform itself may offer to complement the goods or services of professional users;
- descriptions of any differentiated treatment and technical and contractual access to all personal data generated;
- the grounds for restrictions on offering different conditions through other means;
- information on the access and operation of the internal complaint-handling system or mediators.
Author: Tina Marciuš Ravnikar, Associate
