Council of theEuropean Union
Brussels, 18 November 2021
(OR. en)13203/21
Interinstitutional File:
2020/0361(COD)
COMPET 737
MI 772
JAI 1126
TELECOM 388
CT 132
PI 100
AUDIO 98
CONSOM 231
CODEC 1367
JUSTCIV 165
IA 176
NOTE
From:
To:

General Secretariat of the Council
CouncilNo. prev. doc.:
No. Cion doc.:

13613/21
14124/20 + COR1 + ADD1

Subject:

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND
OF THE COUNCIL on a Single Market For Digital Services (Digital
Services Act) and amending Directive 2000/31/EC- General approachI.

INTRODUCTION

1.

On 15 December 2020, the Commission submitted the proposal for a Regulation of theEuropean Parliament and the Council1. The proposal is based on Article 114 of the Treaty on
the Functioning of the European Union (TFEU).

1Doc. 14124/20 + COR 1 + ADD 1.

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2.

The proposal aims to contribute to the proper functioning of the internal market forintermediary services by setting out uniform rules for a safe, predictable and trusted online
environment, where fundamental rights enshrined in the Charter are effectively protected.

3.

The European Economic and Social Committee provided its opinion on the proposal on
27 April 2021.1 The European Data Protection Supervisor (EDPS) provided its opinion on
10 February 20212.

4.

In the European Parliament, the Committee on the Internal Market and Consumer Protection(IMCO) has not yet voted on its report.

5.

In its Conclusions, the European Council, meeting on 21 and 22 October 2021, invited the colegislators to reach agreement on the Digital Services Act proposal with a view to reaching an
ambitious agreement as soon as possible.

1
2

INT/929 – EESC-2021.
Opinion 1/2021.

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II.

WORK CONDUCTED IN THE COUNCIL PREPARATORY BODIES6.

The examination of the proposal by the Working Party on Competitiveness and Growthstarted on 16 December 2020 under the German Presidency and has since continued andintensified during the Portuguese and Slovenian Presidencies with the objective to reachgeneral approach at the Council (Competitiveness) meeting on 25 November 2021.

7.

The Working Party on Competitiveness and Growth discussed the proposal at 41 meetings,
which were held during the German (1 meeting), Portuguese (23 meetings) and Slovenian (17meetings) Presidencies.

8.

The impact assessment accompanying this proposal was examined in detail during two
Working Party meetings on 6 and 12 January 2021. The examination showed that delegations
generally supported the aim of the proposal, as well as the methods, criteria and policy
options identified by the Commission.

9.

At its meeting on 27 May 2021, the Council (Competitiveness) was presented the progress
report (doc. 8570/21).

10.

The Woking Party focused its discussions on the scope, obligations for online marketplaces
and obligations in general, and on enforcement and enforceability of the future Regulation,
particularly with regard to the obligations applicable for very large online platforms and verylarge online search engines.

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11.

Based on the discussions at Working Party level, a strong and general support among theMember States has been identified regarding the level of ambition of the proposal, its overall
objectives and the need for its swift adoption. There has been, in particular, a strong and wide
support among Member States to preserve the three main principles set up by the ECommerce Directive: the country of origin principle, the principle of the conditional liability
exemption, and the prohibition of general monitoring obligations. Member States have also
repeatedly confirmed their support for the overall architecture of asymmetric andproportionate due diligence obligations, tailored to the risks posed, and reaffirmed the needfor an effective cross-border cooperation and enforcement.

12.

At its meeting on 17 November 2021, The Permanent Representatives Committee(COREPER) discussed the Presidency compromise text (doc. 13613/21) and gave its consent
to forward the annexed text to the Council (Competitiveness) of 25 November 2021 in orderto agree on a general approach

13.

Changes compared to the Commission proposal are marked in bold and underlined and/or
strikethrough.

III. CONCLUSION14.

The Council (Competitiveness) is invited to mark its agreement on the text (general approach)and mandate the Presidency to enter into negotiations on this file with the representatives of
the European Parliament and the Commission.

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ANNEX
2020/0361 (COD)

Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on a Single
Market For Digital Services (Digital Services Act) and amending Directive 2000/31/EC(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114
thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee4,[Having regard to the opinion of the Committee of the Regions5,
Having regard to the opinion of the European Data Protection Supervisor6,
Acting in accordance with the ordinary legislative procedure,

4
5
6

OJ C , , p. .
OJ C , , p. .
OJ C, p.

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Whereas:(1)

Information society services and especially intermediary services have become an importantpart of the Union’s economy and daily life of Union citizens. Twenty years after the
adoption of the existing legal framework applicable to such services laid down in Directive
2000/31/EC of the European Parliament and of the Council7, new and innovative businessmodels and services, such as online social networks and marketplaces, have allowedbusiness users and consumers to impart and access information and engage in transactions in
novel ways. A majority of Union citizens now uses those services on a daily basis. However,the digital transformation and increased use of those services has also resulted in new risks
and challenges, both for individual users recipients of the service and for society as awhole.

(2)

Member States are increasingly introducing, or are considering introducing, national laws on
the matters covered by this Regulation, imposing, in particular, diligence requirements forproviders of intermediary services. Those diverging national laws negatively affect theinternal market, which, pursuant to Article 26 of the Treaty, comprises an area without
internal frontiers in which the free movement of goods and services and freedom of
establishment are ensured, taking into account the inherently cross-border nature of theinternet, which is generally used to provide those services. The conditions for the provisionof intermediary services across the internal market should be harmonised, so as to provide
businesses with access to new markets and opportunities to exploit the benefits of theinternal market, while allowing consumers and other recipients of the services to haveincreased choice. Both business users, consumers and other users can be “recipients ofthe service” for the purpose of this Regulation.

7

Directive 2000/31/EC of the European Parliament and of the Council of 8 June 2000 on
certain legal aspects of information society services, in particular electronic commerce, in
the Internal Market ('Directive on electronic commerce') (OJ L 178, 17.7.2000, p. 1).

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(3)

Responsible and diligent behaviour by providers of intermediary services is essential for asafe, predictable and trusted online environment and for allowing Union citizens and otherpersons to exercise their fundamental rights guaranteed in the Charter of Fundamental
Rights of the European Union (‘Charter’), in particular the freedom of expression andinformation and the freedom to conduct a business, and the right to non-discrimination.

(4)

Therefore, in order to safeguard and improve the functioning of the internal market, atargeted set of uniform, effective and proportionate mandatory rules should be established atUnion level. This Regulation provides the conditions for innovative digital services toemerge and to scale up in the internal market. The approximation of national regulatory
measures at Union level concerning the requirements for providers of intermediary services
is necessary in order to avoid and put an end to fragmentation of the internal market and toensure legal certainty, thus reducing uncertainty for developers and fosteringinteroperability. By using requirements that are technology neutral, innovation should not be
hampered but instead be stimulated.

(5)This Regulation should apply to providers of certain information society services as definedin Directive (EU) 2015/1535 of the European Parliament and of the Council8, that is, any
service normally provided for remuneration, at a distance, by electronic means and at theindividual request of a recipient. Specifically, this Regulation should apply to providers ofintermediary services, and in particular intermediary services consisting of services known
as ‘mere conduit’, ‘caching’, ‘online search engine’ and ‘hosting’ services, given that theexponential growth of the use made of those services, mainly for legitimate and sociallybeneficial purposes of all kinds, has also increased their role in the intermediation andspread of unlawful or otherwise harmful information and activities.

8

Directive (EU) 2015/1535 of the European Parliament and of the Council of 9 September
2015 laying down a procedure for the provision of information in the field of technicalregulations and of rules on Information Society services (OJ L 241, 17.9.2015, p. 1).

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(6)

In practice, certain providers of intermediary services intermediate in relation to services
that may or may not be provided by electronic means, such as remote information
technology services, transport, accommodation or delivery services. This Regulation should
apply only to intermediary services and not affect requirements set out in Union or nationallaw relating to products or services intermediated through intermediary services. This
Regulation should not apply in situations where the intermediation is indispensable tothe provision of the intermediated service and the service provider exercises decisive
influence over the conditions under which the intermediated service is provided, as
specified in the case law of the Court of Justice of the European Union., including insituations where the intermediary service constitutes an integral part of another service
which is not an intermediary service as specified in the case law of the Court of Justice of
the European Union.

(7)

In order to ensure the effectiveness of the rules laid down in this Regulation and a levelplaying field within the internal market, those rules should apply to providers ofintermediary services irrespective of their place of establishment or residencelocation, in so
far as they provideoffer services in the Union, as evidenced by a substantial connection to
the Union.

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(8)

Such a substantial connection to the Union should be considered to exist where the service
provider has an establishment in the Union or, in its absence, on the basis of the existence ofa significant number of recipients of the serviceusers in one or more Member States inrelation to their population, or the targeting of activities towards one or more Member
States. The targeting of activities towards one or more Member States can be determined on
the basis of all relevant circumstances, including factors such as the use of a language or acurrency generally used in that Member State, or the possibility of ordering products orservices, or using the use of a relevant national top level domain. The targeting of activities
towards a Member State could also be derived from the availability of an application in therelevant national application store, from the provision of local advertising or advertising in
the language used in that Member State, or from the handling of customer relations such asby providing customer service in the language generally used in that Member State. A
substantial connection should also be assumed where a service provider directs its activities
to one or more Member States as set out in Article 17(1)(c) of Regulation (EU) 1215/2012of the European Parliament and of the Council9. On the other hand, mere technicalaccessibility of a website from the Union cannot, on that ground alone, be considered as
establishing a substantial connection to the Union.

9

Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12
December 2012 on jurisdiction and the recognition and enforcement of judgments in civil
and commercial matters (OJ L351, 20.12.2012, p.1).

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(8a)

The place at which a service provider is established in the Union should be determinedin compliance with Union law as interpreted by the Court of Justice of the European
Union according to which the concept of establishment involves the actual pursuit of an
economic activity through a fixed establishment for an indefinite period. Thisrequirement is also fulfilled where a company is constituted for a given period. The
place of establishment of a company offering services via a website is not the place atwhich the technology supporting its website is located or the place at which its website
is accessible but the place where it pursues its economic activity. In cases where aprovider has several places of establishment it is important to determine from whichplace of establishment the service concerned is offered. In cases where it is difficult todetermine from which of several places of establishment a given service is offered, thisis the place where the provider has the centre of his activities relating to this particularservice.

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(9)

This Regulation fully harmonises the rules applicable to intermediary services in theinternal market with the objective to ensure a safe, predictable and trusted online
environment, where fundamental rights enshrined in the Charter are effectively
protected. Accordingly, Member States should not adopt or maintain additional
national requirements on those matters falling within the scope of this Regulation,
unless explicitly provided for in this Regulation, since this would affect the direct anduniform application of the fully harmonised rules applicable to the providers ofintermediary services in accordance with the objectives of this Regulation. This does
not preclude the possibility to apply other national legislation applicable to providers
of intermediary services in accordance with Union law, including Directive
2000/31/EC, in particular its Article 3, which pursue other legitimate public interest
objectives. This Regulation should complement, yet not affect the application of rules
resulting from other acts of Union law regulating certain aspects of the provision ofintermediary services, in particular Directive 2000/31/EC, with the exception of thosechanges introduced by this Regulation, Directive 2010/13/EU of the European Parliamentand of the Council as amended,10 and Regulation (EU) …/.. of the European Parliament andof the Council11 – proposed Terrorist Content Online Regulation. Therefore, this Regulation
leaves those other acts, which are to be considered lex specialis in relation to the generally
applicable framework set out in this Regulation, unaffected. However, the rules of thisRegulation apply in respect of issues that are not or not fully addressed by those other acts aswell as issues on which those other acts leave Member States the possibility of adopting
certain measures at national level.

1011Directive 2010/13/EU of the European Parliament and of the Council of 10 March 2010 on
the coordination of certain provisions laid down by law, regulation or administrative actionin Member States concerning the provision of audiovisual media services (Audiovisual
Media Services Directive) (Text with EEA relevance), OJ L 95, 15.4.2010, p. 1 .
Regulation (EU) …/.. of the European Parliament and of the Council – proposed Terrorist
Content Online Regulation.

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(10)

This Regulation should be without prejudice to other acts of Union law regulating theprovision of information society services in general, other aspects of the provision ofintermediary services in the internal market or specifying and complementing theharmonised rules set out in this Regulation such as Directive 2010/13/EU of theEuropean Parliament and of the Council as amended, including the specific objectives
set out in that Directive as regards video-sharing platforms,12 Regulation (EU)2021/784 of the European Parliament and of the Council13 proposed Terrorist Content
Online Regulation, Regulation (EU) 2019/1148 of the European Parliament and of theCouncil14, Regulation (EU) …./…. [on European Production and Preservation Orders
for electronic evidence in criminal matters]; Directive (EU) …./…. [laying down
harmonised rules on the appointment of legal representatives for the purpose ofgathering evidence in criminal proceedings] and Regulation (EU) 2019/1150 of theEuropean Parliament and of the Council15,

12

13

14

15

Directive 2010/13/EU of the European Parliament and of the Council of 10 March 2010
on the coordination of certain provisions laid down by law, regulation oradministrative action in Member States concerning the provision of audiovisual media
services (Audiovisual Media Services Directive) ((Text with EEA relevance), OJ L 95,
15.4.2010, p. 1) .
Regulation (EU) 2021…/784.. of the European Parliament and of the Council of 29
April 2021 on addressing the dissemination of the Terrorist Content Online– proposed
Terrorist Content Online Regulation (OJ L 172, 17.5.2021, p. 79).
Regulation (EU) 2019/1148 of the European Parliament and of the Council of 20 June2019 on the marketing and use of explosives precursors, amending Regulation (EC) No
1907/2006 and repealing Regulation (EU) No 98/2013 (OJ L 186, 11.7.2019, p. 1).
Regulation (EU) 2019/1150 of the European Parliament and of the Council of 20 June2019 on promoting fairness and transparency for business users of online
intermediation services (OJ L 186, 11.7.2019, p. 57).

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Directive 2002/58/EC of the European Parliament and of the Council16 and Regulation(EU) 2021/1232 of the European Parliament and of the Council[…/…] on temporary
derogation from certain provisions of Directive 2002/58/EC17. Similarly, for reasons ofclarity, it should also be specified that this Regulation is without prejudice to Union
law on consumer protection, in particular Directive 2005/29/EC of the European
Parliament and of the Council18, Directive 2011/83/EU of the European Parliament andof the Council19 and Directive 93/13/EEC of the European Parliament and of theCouncil20, as amended by Directive (EU) 2019/2161 of the European Parliament and of
the Council21, on the protection of personal data, in particular Regulation (EU)2016/679 of the European Parliament and of the Council22,

16

17

18

19

20

21

22

Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002
concerning the processing of personal data and the protection of privacy in theelectronic communications sector (Directive on privacy and electronic
communications) (, OJ L 201, 31.7.2002, p. 37).
Regulation (EU) […/…] 2021/1232 of the European Parliament and of the Council of
14 July 2021 on temporary derogation from certain provisions of Directive 2002/58/EC
as regards the use of technologies by providers of number-independent interpersonalcommunications services for the processing of personal and other data for the purposeof combating online child sexual abuse (OJ L 274, 30.7.2021, p. 41) […/…] on
temporary derogation from certain provisions of Directive 2002/58/EC..
Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005
concerning unfair business-to-consumer commercial practices in the internal market
and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and2002/65/EC of the European Parliament and of the Council and Regulation (EC) No
2006/2004 of the European Parliament and of the Council (‘Unfair Commercial
Practices Directive’) (OJ L 149, 11.6.2005, p. 22).
Directive 2011/83/EU of the European Parliament and of the Council of 25 October
2011 on consumer rights, amending Council Directive 93/13/EEC and Directive
1999/44/EC of the European Parliament and of the Council and repealing Council
Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of theCouncil (OJ L 304, 22.11.2011, p. 64).
Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts(OJ L 95, 21.4.1993, p. 29) as amended by Directive (EU) 2019/2161 of the European
Parliament and of the Council.
Directive (EU) 2019/2161 of the European Parliament and of the Council of 27
November 2019 amending Council Directive 93/13/EEC and Directives 98/6/EC,
2005/29/EC and 2011/83/EU of the European Parliament and of the Council as regards
the better enforcement and modernisation of Union consumer protection rules.
Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016
on the protection of natural persons with regard to the processing of personal data and on thefree movement of such data, and repealing Directive 95/46/EC (General Data Protection
Regulation) (OJ L 119, 4.5.2016, p. 1).

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and Regulation (EU) 1215/2012 of the European Parliament and of the Council of 12
December 2012 on jurisdiction and the recognition and enforcement of judgments incivil and commercial matters23.24 This Regulation is, therefore, without prejudice toUnion rules on private international law, in particular rules regarding jurisdiction andthe recognition and enforcement of judgments in civil and commercial matters andrules on the law applicable to contractual and non-contractual obligations. The
protection of individuals with regard to the processing of personal data is solely
governed by the rules of Union law on that subject, in particular Regulation (EU)2016/679 and Directive 2002/58/EC. This Regulation is also without prejudice to therules of Union law on working conditions and the rules of Union law in the field of
judicial cooperation in civil and criminal matters. However, to the extent that theserules pursue the same objectives laid down in this Regulation, the rules of thisRegulation apply in respect of issues that are not or not fully addressed by those otheracts as well as issues on which those other acts leave Member States the possibility of
adopting certain measures at national level. For reasons of clarity, it should also be
specified that this Regulation is without prejudice to Regulation (EU) 2019/1148 of theEuropean Parliament and of the Council25 and Regulation (EU) 2019/1150 of the European
Parliament and of the Council,26 , Directive 2002/58/EC of the European Parliament and of
the Council27 and Regulation […/…] on temporary derogation from certain provisions of

23

24

25

26

27

Regulation (EU) 1215/2012 of the European Parliament and of the Council of 12 December
2012 on jurisdiction and the recognition and enforcement of judgments in civil andcommercial matters (OJ L 351, 20.12.2012, p. 1–32).
Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April
2016 on the protection of natural persons with regard to the processing of personal
data and on the free movement of such data, and repealing Directive 95/46/EC(General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).
Regulation (EU) 2019/1148 of the European Parliament and of the Council on the marketingand use of explosives precursors, amending Regulation (EC) No 1907/2006 and repealing
Regulation (EU) No 98/2013 (OJ L 186, 11.7.2019, p. 1).
Regulation (EU) 2019/1150 of the European Parliament and of the Council of 20 June 2019
on promoting fairness and transparency for business users of online intermediation services(OJ L 186, 11.7.2019, p. 57).
Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002
concerning the processing of personal data and the protection of privacy in the electronic
communications sector (Directive on privacy and electronic communications), OJ L 201,
31.7.2002, p. 37.

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Directive 2002/58/EC28 as well as Union law on consumer protection, in particular Directive
2005/29/EC of the European Parliament and of the Council29, Directive 2011/83/EU of theEuropean Parliament and of the Council30 and Directive 93/13/EEC of the European
Parliament and of the Council31, as amended by Directive (EU) 2019/2161 of the European
Parliament and of the Council32, and on the protection of personal data, in particular
Regulation (EU) 2016/679 of the European Parliament and of the Council.33 The protectionof individuals with regard to the processing of personal data is solely governed by the rulesof Union law on that subject, in particular Regulation (EU) 2016/679 and Directive
2002/58/EC. This Regulation is also without prejudice to the rules of Union law on working
conditions.
(11)

It should be clarified that this Regulation is without prejudice to the rules of Union law on
copyright and related rights, including Directive 2001/29/EC, Directive 2004/48/EC and
Directive 2019/790/EU; in particular this Regulation is without prejudice to the specificrules and procedures governing the liability of providers of intermediary services set inthose Directives.which establish specific rules and procedures that should remain
unaffected.

28
29

30

31
32

33

Regulation […/…] on temporary derogation from certain provisions of Directive
2002/58/EC.
Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005
concerning unfair business-to-consumer commercial practices in the internal market andamending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of
the European Parliament and of the Council and Regulation (EC) No 2006/2004 of theEuropean Parliament and of the Council (‘Unfair Commercial Practices Directive’).
Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on
consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of theEuropean Parliament and of the Council and repealing Council Directive 85/577/EEC and
Directive 97/7/EC of the European Parliament and of the Council.
Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts.
Directive (EU) 2019/2161 of the European Parliament and of the Council of 27 November
2019 amending Council Directive 93/13/EEC and Directives 98/6/EC, 2005/29/EC and2011/83/EU of the European Parliament and of the Council as regards the better
enforcement and modernisation of Union consumer protection rules.
Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016
on the protection of natural persons with regard to the processing of personal data and on thefree movement of such data, and repealing Directive 95/46/EC (General Data Protection
Regulation) (OJ L 119, 4.5.2016, p. 1).

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(12)

In order to achieve the objective of ensuring a safe, predictable and trusted online
environment, for the purpose of this Regulation the concept of “illegal content” should
underpin the general idea that what is illegal offline should also be illegal online. The
concept should be defined broadly to cover be defined broadly and also covers
information relating to illegal content, products, services and activities. In particular, thatconcept should be understood to refer to information, irrespective of its form, that under theapplicable law is either itself illegal, such as illegal hate speech or terrorist content andunlawful discriminatory content, or that relates to activities that are illegal. Illustrative
examples include such as the sharing of images depicting child sexual abuse, unlawful nonconsensual sharing of private images, online stalking, the sale of non-compliant or
counterfeit products, the sale of products or the provision of services in infringement ofconsumer protection law, the non-authorised use of copyright protected material, theillegal offer of accommodation services or illegal sale of live animals or activities
involving infringements of consumer protection law. In this regard, it is immaterial whether
the illegality of the information or activity results from Union law or from national law thatis consistent in compliance with Union law and what the precise nature or subject matter isof the law in question.

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(13)

Considering the particular characteristics of the services concerned and the correspondingneed to make the providers thereof subject to certain specific obligations, it is necessary to
distinguish, within the broader category of providers of hosting services as defined in thisRegulation, the subcategory of online platforms. Online platforms, such as social networks,
or online marketplaces, should be defined as providers of hosting services that not only store
information provided by the recipients of the service at their request, but that also
disseminate that information to the public, again at their request. However, in order to avoid
imposing overly broad obligations, providers of hosting services should not be considered as
online platforms where the dissemination to the public is merely a minor and purely
ancillary feature that is intrinsically linked to of another service and that feature cannot,
for objective technical reasons, be used without that other, principal service, and theintegration of that feature is not a means to circumvent the applicability of the rules of thisRegulation applicable to online platforms. For example, the hosting of a comments section
in an online newspaper could constitute such a feature, where it is clear that it is ancillary to
the main service represented by the publication of news under the editorial responsibility ofthe publisher. In contrast, the hosting of comments in a social network should beconsidered an online platform service, where it is clear that it is a major feature of theservice offered, even if it is ancillary to publishing the posts of recipients of the service.

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(14)

The concept of ‘dissemination to the public’, as used in this Regulation, should entail the
making available of information to a potentially unlimited number of persons, that is,making the information easily accessible to users recipients of the service in general
without further action by the recipient of the service providing the information being
required, irrespective of whether those persons actually access the information in question.
Accordingly, where access to information requires registration or admittance to agroup of recipients of the service, that information should be considered to bedisseminated to the public only where recipients of the service seeking to access theinformation are automatically registered or admitted without a human decision or
selection of whom to grant access. The mere possibility to create groups of users of a given
service, including a messagings service, should not, in itself, be understood to mean that the
information disseminated in that manner is not disseminated to the public. However, theconcept should exclude dissemination of information within closed groups consisting of afinite number of pre-determined persons. Interpersonal communication services, as definedin Directive (EU) 2018/1972 of the European Parliament and of the Council,34 such as
emails or private messaging services, fall outside the scope of the definition of online
platformsis Regulation as they are used for interpersonal communication between afinite number of persons which is determined by the sender of the communication.
However, the obligations set out in this Regulation for providers of online platforms
may apply to services that allow the making available of information to a potentiallyunlimited number of recipients, not determined by the sender of the communication,such as through public groups or open channels. Information should be considereddisseminated to the public within the meaning of this Regulation only where that occurs
upon the direct request by the recipient of the service that provided the information.
Consequently, providers of services, such as cloud infrastructure, which are provided
at the request of parties other than the content providers and only indirectly benefit
the latter, should not be covered by the definition of online platforms.

34

Directive (EU) 2018/1972 of the European Parliament and of the Council of 11 December
2018 establishing the European Electronic Communications Code (Recast), OJ L 321,
17.12.2018, p. 36).

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(15)

Where some of the services provided offered by a provider are covered by this Regulationwhilst others are not, or where the services provided offered by a provider are covered bydifferent sections of this Regulation, the relevant provisions of this Regulation should apply
only in respect of those services that fall within their scope.

(16)

The legal certainty provided by the horizontal framework of conditional exemptions fromliability for providers of intermediary services, laid down in Directive 2000/31/EC, hasallowed many novel services to emerge and scale-up across the internal market. Thatframework should therefore be preserved. However, in view of the divergences whentransposing and applying the relevant rules at national level, and for reasons of clarity andcoherence, that framework should be incorporated in this Regulation. It is also necessary to
clarify certain elements of that framework, having regard to case law of the Court of Justiceof the European Union.

(17)

The relevant rules of Chapter II should only establish when the provider of intermediaryservices concerned cannot be held liable in relation to illegal content provided by therecipients of the service. Those rules should not be understood to provide a positive basis forestablishing when a provider can be held liable, which is for the applicable rules of Union or
national law to determine. Furthermore, the exemptions from liability established in thisRegulation should apply in respect of any type of liability as regards any type of illegal
content, irrespective of the precise subject matter or nature of those laws.

(18)

The exemptions from liability established in this Regulation should not apply where, insteadof confining itself to providing the services neutrally, by a merely technical and automatic
processing of the information provided by the recipient of the service, the provider ofintermediary services plays an active role of such a kind as to give it knowledge of, or
control over, that information. Those exemptions should accordingly not be available inrespect of liability relating to information provided not by the recipient of the service but by
the provider of the intermediary service itself, including where the information has beendeveloped under the editorial responsibility of that provider.

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(19)

In view of the different nature of the activities of ‘mere conduit’, ‘caching’ and ‘hosting’ andthe different position and abilities of the providers of the services in question, it is necessary
to distinguish the rules applicable to those activities, in so far as under this Regulation they
are subject to different requirements and conditions and their scope differs, as interpreted by
the Court of Justice of the European Union.

(20)

A provider of intermediary services that deliberately collaborates with a recipient of theservices in order to undertake illegal activities does not provide its service neutrally andshould therefore not be able to benefit from the exemptions from liability provided for inthis Regulation. This is the case, for instance, where it offers its service with the main
purpose of facilitating illegal activities, for example by making explicit its purpose tofacilitate criminal activities and that its services are suited for that purpose. The fact
alone that a service offers encrypted transmissions or any other system that makes theidentification of the user impossible should not in itself qualify as deliberatecollaboration.

(21)

A provider should be able to benefit from the exemptions from liability for ‘mere conduit’and for ‘caching’ services when it is in no way involved with the information transmitted.
This requires, among other things, that the provider does not modify the information that it
transmits. However, this requirement should not be understood to cover manipulations of atechnical nature which take place in the course of the transmission, as such long as thesemanipulations do not alter the integrity of the information transmitted.

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(22)

In order to benefit from the exemption from liability for hosting services, the provider
should, upon obtaining actual knowledge or awareness of illegal content, act expeditiously
to remove or to disable access to that content. The removal or disabling of access should beundertaken in the observance of the principle ofright to freedom of expression. The
provider can obtain such actual knowledge or awareness, inter alia, through, in particular,
its own-initiative investigations, or notices submitted to it by individuals or entities inaccordance with this Regulation in so far as those notices are sufficiently precise andadequately substantiated to allow a diligent economic operator to reasonably identify, assess
and where appropriate act against the allegedly illegal content. However, such actual
knowledge cannot be considered to be obtained solely on the ground that that provider
is aware, in a general sense, of the fact that its service is also used to share illegal
content and that it therefore has an abstract knowledge that such content is being
made available illegally through its service. Furthermore, the fact that an provider
automatically indexes content uploaded to its service, that it has a search function andthat it recommends content on the basis of the profiles or preferences of the recipientsof the service is not a sufficient ground for the conclusion that that provider has‘specific’ knowledge of illegal activities carried out on that platform or of illegal
content stored on it.

(22a) The exemption of liability should not apply where the recipient of the service is acting
under the authority or the control of the provider of a hosting service. For example,
where the provider of the online marketplace determines the price of the goods orservices offered by the trader, it could be considered that the trader acts under theauthority or control of that online marketplace.

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(23)

In order to ensure the effective protection of consumers when engaging in intermediatedcommercial transactions online, certain providers of hosting services, namely, online
platforms that allow consumers to conclude distance contracts with tradersmarketplaces,
should not be able to benefit from the exemption from liability for hosting service providers
established in this Regulation, in so far as those online platformsmarketplaces present therelevant information relating to the transactions at issue in such a way that it leads
consumers to believe that the information was provided by those online platforms
marketplaces themselves or by recipients of the service acting under their authority orcontrol, and that those online platforms marketplaces thus have knowledge of or control
over the information, even if that may in reality not be the case. This could be, forexample, the case where the online marketplace fails to display clearly the identity ofthe trader pursuant to this Regulation, where the online marketplace withholds such
identity or contact details until after the conclusion of the trader-consumer contract, or
is marketing the product or service in its own name rather than using the name of the
trader who will supply it. In that regard, is it should be determined objectively, on the basisof all relevant circumstances, whether the presentation could lead to such a belief on the sideof an average consumer who is reasonably well informed and reasonably observant andcircumspectand reasonably well-informed consumer.

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(24)

The exemptions from liability established in this Regulation should not affect the possibilityof injunctions of different kinds against providers of intermediary services, even where theymeet the conditions set out as part of those exemptions. Such injunctions could, in particular,consist of orders by courts or administrative authorities requiring the termination or
prevention of any infringement, including the removal of illegal content specified in suchorders, issued in compliance with Union law, or the disabling of access to it.

(25)

In order to create legal certainty and not to discourageto encourage activities aimed at
detecting, identifying and acting against illegal content that providers of all categories ofintermediary services may undertake on a voluntary basis, it should be clarified that themere fact that providers undertake such activities does not lead to the unavailability of the
exemptions from liability set out in this Regulation, provided those activities are carried out
in good faith and in a diligent manner. In addition, it is appropriate to clarify that the merefact that those providers take measures, in good faith, to comply with the requirements ofUnion law, including those set out in this Regulation as regards the implementation of theirterms and conditions, should not lead to the unavailability of those exemptions fromliability. Therefore, any such activities and measures that a given provider may have taken
should not be taken into account when determining whether the provider can rely on an
exemption from liability, in particular as regards whether the provider provides offers its
service neutrally and can therefore fall within the scope of the relevant provision, without
this rule however implying that the provider can necessarily rely thereon. Voluntary actions
should not be used to circumvent the obligations of all providers of intermediaryservices under this Regulation.

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(26)

Whilst the rules in Chapter II of this Regulation concentrate on the exemption from liabilityof providers of intermediary services, it is important to recall that, despite the generally
important role played by those providers, the problem of illegal content and activities online
should not be dealt with by solely focusing on their liability and responsibilities. Where
possible, third parties affected by illegal content transmitted or stored online should attempt
to resolve conflicts relating to such content without involving the providers of intermediaryservices in question. Recipients of the service should be held liable, where the applicable
rules of Union and national law determining such liability so provide, for the illegal content
that they provide and may disseminate through intermediary services. Where appropriate,
other actors, such as group moderators in closed online environments, in particular in thecase of large groups, should also help to avoid the spread of illegal content online, in
accordance with the applicable law. Furthermore, where it is necessary to involve
information society services providers, including providers of intermediary services, any
requests or orders for such involvement should, as a general rule, be directed to the specificprovider actor that has the technical and operational ability to act against specific items ofillegal content, so as to prevent and minimise any possible negative effects for on theavailability and accessibility of information that is not illegal content.

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(27)

Since 2000, new technologies have emerged that improve the availability, efficiency, speed,
reliability, capacity and security of systems for the transmission and storage of data online,
leading to an increasingly complex online ecosystem. In this regard, it should be recalledthat providers of services establishing and facilitating the underlying logical architecture andproper functioning of the internet, including technical auxiliary functions, can also benefit
from the exemptions from liability set out in this Regulation, to the extent that their services
qualify as ‘mere conduits’, ‘caching’ or hosting services. Such services include, as the casemay be, wireless local area networks, domain name system (DNS) services, top–leveldomain name registries, registrars, certificate authorities that issue digital certificates, orcontent delivery networks, that enable or improve the functions of other providers ofintermediary services. Likewise, services used for communications purposes, and thetechnical means of their delivery, have also evolved considerably, giving rise to online
services such as Voice over IP, messaging services and web-based e-mail services, where
the communication is delivered via an internet access service. Those services, too, canbenefit from the exemptions from liability, to the extent that they qualify as ‘mere conduit’,‘caching’ or hosting service.

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(27a) Intermediary services span a wide range of economic activities which take place online
and that develop continually to provide for transmission of information that is swift,safe and secure, and to ensure convenience of all participants of the online ecosystem.
For example, ‘Mere conduit’ intermediary services include generic categories ofservices such as internet exchange points, wireless access points, virtual private
networks, domain name system (DNS) services and resolvers, top–level domain nameregistries, registrars, certificate authorities that issue digital certificates, voice over IP
and other interpersonal communication services, while generic examples of ‘caching’intermediary services include the sole provision of content delivery networks, reverse
proxies or content adaptation proxies. Such services are crucial to ensure smooth andefficient transition of information delivered on the internet. The same applies to online
search engines in view of their important role in locating information online. Examplesof “hosting services” include categories of services such as cloud computing, web
hosting, paid referencing services or services enabling sharing information and content
online, including file storage and sharing. Intermediary services may be provided inisolation, as a part of another type of intermediary service, or simultaneously withother intermediary services. Whether a specific service constitutes a mere conduit,caching, hosting or online search engine service depends solely on its technicalfunctionalities, that might evolve in time, and should be assessed on a case-by-casebasis.

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(28)

Providers of intermediary services should not be subject to a monitoring obligation withrespect to obligations of a general nature. For instance, any monitoring obligation that
requires the providers of intermediary services to perform a general search of allcontent in order to find any potential illegal content, or that puts excessive burdens or
requires unreasonable or excessive resources and measures by the providers ofintermediary services, should be considered a general monitoring obligation. Thisshould not prevent monitoring obligations of a specific nature, provided that they meetthe principles of proportionality and necessity, are in conformity with the conditions as
set out by any relevant Union law, including the Charter, as interpreted by the Courtof Justice of the European Union, and the illegality of the content in question has been
established by a court or is manifest, insofar this does not compel the provider of anintermediary service to carry out an independent assessment of that specific content.
This does not concern monitoring obligations in a specific case and, in particular, The banof general monitoring obligation does not affect orders by national authorities inaccordance with national legislation, in accordance with the conditions established in thisRegulation. Such orders should not consist in requiring a service provider to introduce,
exclusively at its own expense, a screening system which entails general and permanentmonitoring in order to prevent any future infringement. However, such orders may
require a provider of hosting services to remove information which it stores, thecontent of which is identical or equivalent to the content of information which waspreviously declared to be unlawful, or to block access to that information, irrespectiveof who requested the storage of that information, provided that the monitoring of andsearch for the information concerned is limited to information properly identified in
the order, such as the name of the person concerned by the infringement determinedpreviously, the circumstances in which that infringement was determined andequivalent content to that which was declared to be illegal, and does not require theprovider of hosting services to carry out an independent assessment of that content, asinterpreted by the Court of Justice of the European Union. Nothing in this Regulation
should be construed as an imposition of a general monitoring obligation or a general active
fact-finding obligation, or as a general obligation for providers to take proactive measures torelation to illegal content.

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(29)

Depending on the legal system of each Member State and the field of law at issue, national
judicial or administrative authorities, including law enforcement authorities, may orderproviders of intermediary services to act against one or more certain specific items of illegal
content or to provide certain specific items of information. The national laws on the basis ofwhich such orders are issued differ considerably and the orders are increasingly addressed incross-border situations. In order to ensure that those orders can be complied with in an
effective and efficient manner, in particular in a cross-border context, so that the publicauthorities concerned can carry out their tasks and the providers are not subject to any
disproportionate burdens, without unduly affecting the rights and legitimate interests of any
third parties, it is necessary to set certain conditions that those orders should meet andcertain complementary requirements relating to the processing of those orders. This
Regulation harmonises only certain specific minimum conditions that such orders
should fulfil in order to make the obligation of providers to inform on the effect given
to those orders, applicable in accordance with this Regulation. Therefore, thisRegulation does not provide a legal basis for the issuing of such orders nor for theirterritorial scope or cross-border enforcement. The applicable Union or national law on
the basis of which those orders are issued, may require additional conditions andshould also be the basis for the enforcement of the respective orders. In case of noncompliance with such orders, the issuing Member State should be able to enforce themin accordance with its national law. The applicable national laws should be incompliance with Union law, including the Charter and the Treaty provisions on thefreedom of establishment and to provide services within the Union, in particular withregard to online gambling and betting services. The application of those national laws
for the enforcement of the respective orders is without prejudice to applicable Union
legal acts or international agreements concluded by the Union or by Member States
relating to the cross-border recognition, execution and enforcement of those orders, inparticular in civil and criminal matters. The requirements relating to the obligation to
inform on the processing of those orders, which are laid down in this Regulation,
should be subject to the rules in Chapter IV. The provider of intermediary services
should inform the issuing authority about the effect given to the orders without undue
delay after executing the requested actions in compliance with the deadlines set out inthe relevant Union or national law.

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If, in exceptional cases, the provider of intermediary services cannot comply with theorder, such information should be accompanied by the reasons for not complying withthe order, including the reasons why the conditions of the order have not been fulfilled
or where applicable, objectively justifiable technical and operational reasons for nonexecution and a request for further information and clarification. The requirements toprovide information on redress available to the provider of the service and to therecipient of the service who provided the content, includes a requirement to provide
information about administrative complaint handling mechanisms and judicial redress
including appeals against orders issued by judicial authorities.

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(30)

Relevant national authorities should be able to issue such orders against content
considered illegal or orders to provide information on the basis of Union or its nationallaws, in compliance with Union law, and address them to providers of intermediaryservices, including those which are established in another Member State. Orders to act
against illegal content or to provide information should be issued in compliance with Union
law, in particular the Charter. However, this should be without prejudice to Union law
in the field of judicial cooperation in civil or criminal matters, including Regulation(EU) No 1215/2012 of the European Parliament and of the Council of 12 December
2012 on jurisdiction and the recognition and enforcement of judgments in civil andcommercial matters and Regulation (EU) …/… on European production andpreservation orders for electronic evidence in criminal matters, and to national
criminal or civil procedural law. Therefore where those laws in the context of criminalor civil proceedings, provide for additional or incompatible conditions than those
provided for this Regulation in relation to orders to act against illegal content or toprovide information, the conditions provided for in this Regulation may not apply or
may be adapted. In particular, the obligation on the Digital Services Coordinator from
the Member State of the issuing authority to transmit a copy of the orders to all other
Digital Services Coordinators may not apply in the context of criminal proceedings or
may be adapted, where the applicable national criminal procedural laws so provide.
Furthermore, the obligation for the orders to contain a statement of reasons explaining
why the information is illegal content, may be adapted where necessary under theapplicable national criminal procedural laws for the prevention, investigation,
detection and prosecution of criminal offences. Finally, the obligation on the providers
of intermediary services to inform the recipient of the service may be delayed inaccordance with the applicable laws, in particular in the context of criminal, civil oradministrative proceedings. In addition, the orders should be issued in compliance with
Regulation (EU) 2016/679 and the prohibition of general obligations to monitor informationor to actively seek facts or circumstances indicating illegal activity laid down in thisRegulation.

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The conditions and requirements laid down in this Regulation which apply to orders to act
against illegal content are without prejudice to other Union acts providing for similarsystems for acting against specific types of illegal content, such as Regulation (EU)
2021…/784…. [proposed Regulation addressing the dissemination of terrorist content
online], Regulation (EU) 2019/1020, or or Regulation (EU) 2017/2394 that confers specificpowers to order the provision of information on Member State consumer law enforcement
authorities, whilst the conditions and requirements that apply to orders to provide
information are without prejudice to other Union acts providing for similar relevant rules for
specific sectors. Those conditions and requirements should be without prejudice to retention
and preservation rules under applicable national law, in conformity compliance with Union
law and confidentiality requests by law enforcement authorities related to the non-disclosureof information. The conditions and requirements for orders to act against illegal content
under this Regulation should not affect the possibility for Member States to require a
provider of intermediary services to prevent an infringement, in compliance with thisRegulation, in particular the prohibition of general monitoring obligations, and with
Union law as interpreted by the Court of Justice of the European Union. Such
conditions and requirements should be fulfilled at the latest when the order istransmitted to the provider concerned. The order may be adopted in one of the official
languages of the issuing authority of the Member State. Where this language isdifferent from the language declared by the provider of intermediary services or fromanother official language of the Union, bilaterally agreed between the authority issuing
the order and the provider of intermediary services, the transmission of the ordershould be accompanied by a translation of at least the elements of the order which are
set out in this Regulation. Where a provider of intermediary services has bilaterally
agreed to use a certain language with the authorities of a Member State, it isencouraged to accept orders in the same language issued by authorities in otherMember States.

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(31)

The territorial scope of such orders to act against illegal content should be clearly set out on
the basis of the applicable Union or national law enabling the issuance of the order andshould not exceed what is strictly necessary to achieve its objectives. In that regard, thenational judicial or administrative authority, including a law enforcement authority,
issuing the order should balance the objective that the order seeks to achieve, in accordancewith the legal basis enabling its issuance, with the rights and legitimate interests of all third
parties that may be affected by the order, in particular their fundamental rights under theCharter. In particular in a cross-border context, the effect of the order should be
limited to the territory of the issuing Member State, unless the illegality of the content
derives directly from Union law or the issuing authority considers that the rights atstake require a wider territorial scope, in accordance with Union and internationallaw, including the interests of international comity. In addition, where the order referringto the specific information may have effects beyond the territory of the Member State of theauthority concerned, the authority should assess whether the information at issue is likely toconstitute illegal content in other Member States concerned and, where relevant, takeaccount of the relevant rules of Union law or international law and the interests ofinternational comity.

(32)

The orders to provide information regulated by this Regulation concern the production of
specific information about individual recipients of the intermediary service concerned whoare identified in those orders for the purposes of determining compliance by the recipients ofthe services with applicable Union or national rules. Such orders could request
information aiming to enable the identification of the recipients of the service
concerned. Therefore, orders about information on a group of recipients of the service whoare not specifically identified, including orders to provide aggregate information required forstatistical purposes or evidence-based policy-making, should remain unaffected by the rulesof this Regulation on the provision of information.

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(33)

Orders to act against illegal content and to provide information are subject to the rules
safeguarding the competence of the Member State where the service provider addressed isestablished and laying down possible derogations from that competence in certain cases, set
out in Article 3 of Directive 2000/31/EC, only if the conditions of that Article are met.
Given that the orders in question relate to specific items of illegal content and information,
respectively, where they are addressed to providers of intermediary services established inanother Member State, they do not in principle restrict those providers’ freedom to provide
their services across borders. Therefore, the rules set out in Article 3 of Directive
2000/31/EC, including those regarding the need to justify measures derogating from thecompetence of the Member State where the service provider is established on certain
specified grounds and regarding the notification of such measures, do not apply in respect of
those orders.

(33a) This Regulation does not prevent the relevant national judicial and administrative
authorities, on the basis of national or Union law, from issuing orders to restore one ormore specific items of legal content which is in conformity with the terms andconditions of a given provider of intermediary services but has been removed.
(34)

In order to achieve the objectives of this Regulation, and in particular to improve thefunctioning of the internal market and ensure a safe and transparent online environment, it isnecessary to establish a clear and balanced set of harmonised due diligence obligations forproviders of intermediary services. Those obligations should aim in particular to guarantee
different public policy objectives such as the safety and trust of the recipients of the service,including minors and vulnerable users at particular risk of being subject to hate speech,
sexual harassments or other discriminatory actions, protect the relevant fundamental
rights enshrined in the Charter, to ensure meaningful accountability of those providers andto empower recipients and other affected parties, whilst facilitating the necessary oversightby competent authorities.

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(35)

In that regard, it is important that the due diligence obligations are adapted to the type, size
and nature of the intermediary service concerned. This Regulation therefore sets out basic
obligations applicable to all providers of intermediary services, as well as additional
obligations for providers of hosting services and, more specifically, providers of online
platforms and of very large online platforms. To the extent that providers of intermediaryservices may fall within those different categories in view of the nature of their services andtheir size, they should comply with all of the corresponding obligations of this Regulation.
Those harmonised due diligence obligations, which should be reasonable and non-arbitrary,are needed to achieve the identified public policy concerns, such as safeguarding thelegitimate interests of the recipients of the service, addressing illegal practices andprotecting fundamental rights enshrined in the Charter online. The due diligenceobligations are compatible with and independent from the question of liability ofintermediaries which need therefore to be assessed separately. As such, intermediaryservices could be exempt from liability for third party content or activities regardlessof whether they have been considered to comply with their due diligence obligations.

(36)

In order to facilitate smooth and efficient two-way communications, including, where
relevant, by acknowledging the receipt of such communications, relating to matters
covered by this Regulation, providers of intermediary services should be required toestablish designate a single electronic point of contact and to publish relevant information
relating to thateir point of contact, including the languages to be used in such
communications. The electronic point of contact can also be used by trusted flaggers and byprofessional entities which are under a specific relationship with the provider ofintermediary services. In contrast to the legal representative, the electronic point of contact
should serve operational purposes and should not be required necessarily have to have aphysical location. When specifying the languages of communication, providers ofintermediary services are encouraged to ensure that the languages chosen do not per seconstitute an obstacle to communication. Where necessary, providers of intermediaryservices and Member States' authorities may reach a separate agreement on thelanguage of communication, or seek alternative means to overcome the language
barrier, including by using all available technological means or internal and external
human resources.

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(37)

Providers of intermediary services that are established in a third country that offer services
in the Union should designate a sufficiently mandated legal representative in the Union andprovide information relating to their legal representatives. In order to comply with thisobligation, moreover, the providers of intermediary services should ensure that thedesignated legal representative has the necessary powers and resources to cooperatewith the relevant authorities. This could be the case, for example, where a provider ofintermediary services appoints a subsidiary undertaking of the same group of theprovider, or a fortiori its parent undertaking, if they are established in the Union.
However, it might not be the case, for instance, when the legal representative is subject
to reconstruction proceedings, bankruptcy, personal or corporate insolvency. Thisshould allow for the effective oversight and, where necessary, enforcement of thisRegulation by the Board, the Commission and the national competent authorities, or
any other authorities applying enforcement powers pursuant to this Regulation, so as
to allow for the effective oversight and, where necessary, enforcement of this Regulation in
relation to those providers. It should be possible for the legal representative to also function
as electronic point of contact, provided the relevant requirements of this Regulation arecomplied with.

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(38)

Whilst the freedom of contract of providers of intermediary services should in principle berespected, it is appropriate to set certain rules on the content, application and enforcement of
the terms and conditions of those providers in the interests of transparency, the protection ofrecipients of the service and the avoidance of unfair or arbitrary outcomes. Providers of theintermediary services should clearly include and maintain up to date in their terms andconditions the grounds on the basis of which they may restrict the provision of theirservice. When designing, applying and enforcing those restrictions providers ofintermediary service should take into account the rights and legitimate interests of therecipients of the service, including fundamental rights as enshrined in the Charter. For
example, providers of very large online platforms should in particular pay due regard
to freedom of expression and information, including media freedom and pluralism. Allproviders of intermediary services should pay regard to international standards for theprotection of human rights, such as the UN Guiding Principles on Business and Human
Rights, which can provide guidance to observe the applicable fundamental rights.
Providers of intermediary services that are primarily aimed at minors below the age of18 years, for example through the design or marketing of the service, or which are usedpredominantly by a large number of minors, should make particular efforts to render
the explanation of their terms and conditions easily understandable to minors.

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(39)

To ensure an adequate level of transparency and accountability, providers of intermediaryservices should annually report, in accordance with the harmonised requirements containedin this Regulation, on the content moderation they engage in, including the measures taken
as a result of the application and enforcement of their terms and conditions. However, so as
to avoid disproportionate burdens, those transparency reporting obligations should not apply
to providers that are micro- or small enterprises as defined in Commission Recommendation
2003/361/EC35 and which are not very large online platforms in accordance with thisRegulation.

(40)

Providers of hosting services play a particularly important role in tackling illegal content
online, as they store information provided by and at the request of the recipients of theservice and typically give other recipients access thereto, sometimes on a large scale. It is
important that all providers of hosting services, regardless of their size, put in place userfriendly notice and action mechanisms that facilitate the notification of specific items of
information that the notifying party considers to be illegal content to the provider of hosting
services concerned ('notice'), pursuant to which that provider can decide whether or not it
agrees with that assessment and wishes to remove or disable access to that content ('action').
Such mechanisms should be at least as easy to find and use as notification mechanisms
for content that violates the terms and conditions of the hosting service provider.
Provided the requirements on notices are met, it should be possible for individuals or entities
to notify multiple specific items of allegedly illegal content through a single notice. The
obligation to put in place notice and action mechanisms should apply, for instance, to filestorage and sharing services, web hosting services, advertising servers and paste bins, in as
far as they qualify as providers of hosting services covered by this Regulation.

35

Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of
micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).

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(41)

The rules on such notice and action mechanisms should be harmonised at Union level, so as
to provide for the timely, diligent and objective processing of notices on the basis of rulesthat are uniform, transparent and clear and that provide for robust safeguards to protect theright and legitimate interests of all affected parties, in particular their fundamental rights
guaranteed by the Charter, irrespective of the Member State in which those parties are
established or reside and of the field of law at issue. The fundamental rights include but are
not limited to, as the case may be, the right to freedom of expression and information, theright to respect for private and family life, the right to protection of personal data, the rightto non-discrimination and the right to an effective remedy of the recipients of the service;
the freedom to conduct a business, including the freedom of contract, of service providers;
as well as the right to human dignity, the rights of the child, the right to protection ofproperty, including intellectual property, and the right to non-discrimination of parties
affected by illegal content. Providers of hosting services should act upon notices in atimely manner, in particular, by taking into account the type of illegal content being
notified and the urgency of taking action. For instance, providers can be expected toact without delay when allegedly illegal content involving an imminent threat to life orsafety of persons is being notified. The provider of hosting services should inform theindividual or entity notifying the specific content without undue delay after taking adecision whether to act upon the notice.

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(41a) Those mechanisms should allow for the submission of notices which are sufficiently
precise and adequately substantiated to enable the hosting provider concerned to takean informed and diligent decision in respect of the content to which the notice relates,in particular whether or not that content is to be considered illegal content and is to be
removed or access thereto is to be disabled. Those mechanisms should be such as tofacilitate the provision of notices that contain an explanation of the reasons why thenotice provider considers that content to be illegal content and a clear indication of thelocation of that content. The notice should contain sufficient information to enable theprovider of intermediary services to identify, without a detailed legal examination, that
it is clear that the content is illegal and that the decision to remove or disable access to
it is compatible with freedom of expression and information. Except for the submissionof notices relating to offences referred to in Articles 3 to 7 of Directive 2011/93/EU of
the European Parliament and of the Council36, it is necessary to know the identity of
the notice provider, for instance to avoid misuses or to identify alleged infringements topersonality rights or intellectual property rights.

36

Directive 2011/93/EU of the European Parliament and of the Council of 13 December 2011
on combating the sexual abuse and sexual exploitation of children and child pornography,
and replacing Council Framework Decision 2004/68/JHA (OJ L 335, 17.12.2011, p. 1).

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(42)

Where a provider of hosting services provider decides to remove or disable information
provided by a recipient of the service or to otherwise restrict its visibility ormonetisation, for instance following receipt of a notice or acting on its own initiative,
including exclusively by through the use of automated means, that provider should informin a clear and easily comprehensible way the recipient of its decision, the reasons for its
decision and the available redress possibilities to contest the decision, in view of thenegative consequences that such decisions may have for the recipient, including as regards
the exercise of its fundamental right to freedom of expression. That obligation should apply
irrespective of the reasons for the decision, in particular whether the action has been taken
because the information notified is considered to be illegal content or incompatible with theapplicable terms and conditions. Restriction of visibility may consist in demotion in
ranking or in recommender systems, as well as in limiting accessibility by one or more
recipients of the service or blocking the user from an online community without theuser knowing it (‘shadow banning’). The monetisation via advertising revenue ofcontent provided by the recipient of the service can be restricted by suspending or
terminating the monetary payment or revenue associated to that content. Irrespectiveof aAvailable recourses to challenge the decision of the provider of hosting services
provider, the recipient of the service should always have a right to initiate proceedings
before a court include judicial redressin accordance with the national laws.

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(42a) [previous recital 48] A provider of hosting services n online platform may in someinstances become aware, such as through a notice by a notifying party or through its own
voluntary measures, of information relating to certain activity of a recipient of the service,
such as the provision of certain types of illegal content, that reasonably justify, having
regard to all relevant circumstances of which the online platformprovider of hosting
services is aware, the suspicion that the recipient may have committed, may be committing
or is likely to commit a serious criminal offence involving a threat to the life or safety of
person or persons, such as offences specified in Directive 2011/36/EU of the European
Parliament and of the Council37, Directive 2011/93/EU of the European Parliament and of
the Council38 or Directive (EU) 2017/541 of the European Parliament and of theCouncil39. For example, specific items of content could give rise to a suspicion of athreat to the public, such as incitement to terrorism within the meaning of Article 21 of
Directive (EU) 2017/541. In such instances, the online platformprovider of hosting
services should inform without delay the competent law enforcement authorities of suchsuspicion. The provider of hosting services should provide all relevant information
available to it, including where relevant the content in question and , if available, the time
when the content was published, including the designated time zone, an explanation ofits suspicion and the information necessary to locate and identify the relevant recipientof the service. This Regulation does not provide the legal basis for profiling of recipients ofthe services with a view to the possible identification of criminal offences by providers of
hosting servicesonline platforms. Providers of hosting servicesOnline platforms should
also respect other applicable rules of Union or national law for the protection of the rights
and freedoms of individuals when informing law enforcement authorities.

37

38

39

Directive 2011/36/EU of the European Parliament and of the Council of 5 April 2011
on preventing and combating trafficking in human beings and protecting its victims,
and replacing Council Framework Decision 2002/629/JHA (OJ L 101, 15.4.2011, p. 1).
Directive 2011/93/EU of the European Parliament and of the Council of 13 December 2011
on combating the sexual abuse and sexual exploitation of children and child pornography,
and replacing Council Framework Decision 2004/68/JHA (OJ L 335, 17.12.2011, p. 1).
Directive (EU) 2017/541 of the European Parliament and of the Council of 15 March2017 on combating terrorism and replacing Council Framework Decision
2002/475/JHA and amending Council Decision 2005/671/JHA (OJ L 88, 31.3.2017, p.
6).

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(43)

To avoid disproportionate burdens, the additional obligations imposed on providers of
online platforms under this Regulation should not apply to micro or small enterprises as
defined in Recommendation 2003/361/EC of the Commission,40 unless their reach andimpact is such that they meet the criteria to qualify as very large online platforms under thisRegulation. The consolidation rules laid down in that Recommendation help ensure that any
circumvention of those additional obligations is prevented. The exemption of micro- andsmall enterprises from those additional obligations should not be understood as affecting
their ability to set up, on a voluntary basis, a system that complies with one or more of thoseobligations.

40

Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of
micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).

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(44)

Recipients of the service, including individuals or entities that have submitted a notice,
should be able to easily and effectively contest certain decisions of providers of online
platforms that negatively affect them. Therefore, providers of online platforms should be
required to provide for internal complaint-handling systems, which meet certain conditions
aimed at ensuring that the systems are easily accessible and lead to swift and fair outcomes,
and are subject to human review. Such systems should enable all recipients of theservice, including individuals or entities that have submitted a notice, to lodge a complaintand should not set up formal requirements such as referral to specific, relevant legal
provisions or elaborate legal explanations. The possibility to lodge a complaint for thereversal of the contested decisions should be available for at least six months, to be
calculated from the time of informing the recipient of the service, including the individual
or entity, of the decision. In addition, provision should be made for the possibility of out-ofcourt dispute settlement of disputes in good faith, including those that could not be resolvedin satisfactory manner through the internal complaint-handling systems, by certified
certified bodies that have the requisite independence, means and expertise to carry out theiractivities in a fair, swift and cost-effective manner. The fees charged by the disputesettlement bodies should be reasonable, accessible, attractive, inexpensive for
consumer and proportionate, and assessed on a case-by-case basis. Providers of online
platforms should be able to refuse to engage in dispute settlement in the case when thesame dispute regarding the same content has already been resolved or is being
reviewed by another dispute settlement body provided that they comply with theexisting or future outcome of the dispute settlement consistently. Recipients of theservice, including individuals or entities that have submitted notices, should be able tochoose between the internal complaint mechanism, an out-of-court dispute settlement
or judicial redress. The possibilities to contest decisions of providers of online platforms
thus created should complement, yet leave unaffected in all respects, the possibility to seek
judicial redress in accordance with the laws of the Member State concerned, and therefore
exercising their right to an effective judicial remedy as provided for in Article 47 of theCharter. The provisions in this Regulation on out-of-court settlement of disputes
should not amount to an obligation for the Member States to establish such out-ofcourt settlement bodies.

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(45)

For contractual consumer-to-business disputes over the purchase of goods or services,
Directive 2013/11/EU of the European Parliament and of the Council41 ensures that Union
consumers and businesses in the Union have access to quality-certified alternative dispute
resolution entities. In this regard, it should be clarified that the rules of this Regulation on
out-of-court dispute settlement are without prejudice to that Directive, including the right ofconsumers under that Directive to withdraw from the procedure at any stage if they are
dissatisfied with the performance or the operation of the procedure.

41

Directive 2013/11/EU of the European Parliament and of the Council of 21 May 2013 onalternative dispute resolution for consumer disputes and amending Regulation (EC) No
2006/2004 and Directive 2009/22/EC (OJ L 165, 18.6.2013, p. 63).

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(46)

Action against illegal content can be taken more quickly and reliably where providers of
online platforms take the necessary measures to ensure that notices submitted by trusted
flaggers through the notice and action mechanisms required by this Regulation are treatedwith priority, without prejudice to the requirement to process and decide upon all notices
submitted under those mechanisms in a timely, diligent and objective manner. Such trusted
flagger status should be awarded by the Digital Services Coordinator of the Member
State in which the applicant is established and should be recognised by all providers of
online platforms within the scope of this Regulation. Such trusted flagger status should
only be awarded to entities, and not individuals, that have demonstrated, among other things,
that they have particular expertise and competence in tackling illegal content, that they
represent collective interests and that they work in a diligent and objective manner. To
avoid diminishing the added value of such mechanism, the overall number of trusted
flaggers awarded in accordance with this Regulation should be limited. In particular,industry associations representing their members' interests should apply for the statusof trusted flaggers, without prejudice to the right of private entities or individuals toenter into bilateral agreements with the providers of online platforms. Such entities canbe public in nature, such as, for terrorist content, internet referral units of national law
enforcement authorities or of the European Union Agency for Law Enforcement
Cooperation (‘Europol’) or they can be non-governmental organisations and private orsemi-public bodies, such as the organisations part of the INHOPE network of hotlines forreporting child sexual abuse material and organisations committed to notifying illegal racist
and xenophobic expressions online. For intellectual property rights, organisations ofindustry and of right-holders could be awarded trusted flagger status, where they havedemonstrated that they meet the applicable conditions. Given that trusted flaggers havedemonstrated expertise and competence, the processing of trusted flagger notices canbe expected to be less burdensome and therefore faster compared to notices submitted
by other recipients of the service. However, the average time taken to process may stillvary depending on factors including the type of illegal content, the quality of notices,and the actual technical procedures put in place for the submission of such notices. Asa current indicative benchmark, the 2016 Code of Conduct on countering Illegal Hate
Speech committed participating providers to review the majority of valid trusted
flagger notifications for removal of illegal hate speech in less than 24 hours. Other
types of illegal content may take considerably different timelines for processing,depending on the specific facts and circumstances and types of illegal content at stake.

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The rules of this Regulation on trusted flaggers should not be understood to prevent
providers of online platforms from giving similar treatment to notices submitted by entities
or individuals that have not been awarded trusted flagger status under this Regulation, fromotherwise cooperating with other entities, in accordance with the applicable law, including
this Regulation and Regulation (EU) 2016/794 of the European Parliament and of theCouncil.42 The rules of this Regulation should not prevent the providers of online
platforms from making use of such trusted flagger or similar mechanisms to take quick
and reliable action against content that is incompatible with their terms andconditions, in particular against content that is harmful for vulnerable recipients of theservice, such as minors.

42

Regulation (EU) 2016/794 of the European Parliament and of the Council of 11 May 2016
on the European Union Agency for Law Enforcement Cooperation (Europol) and replacing
and repealing Council Decisions 2009/371/JHA, 2009/934/JHA, 2009/935/JHA,
2009/936/JHA and 2009/968/JHA, OJ L 135, 24.5.2016, p. 53.

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(47)

The misuse of services of online platforms by frequently providing manifestly illegal
content or by frequently submitting manifestly unfounded notices or complaints under themechanisms and systems, respectively, established under this Regulation undermines trustand harms the rights and legitimate interests of the parties concerned. Therefore, there is aneed to put in place appropriate and proportionate safeguards against such misuse.
Information should be considered to be manifestly illegal content and notices or complaints
should be considered manifestly unfounded where it is evident to a layperson, without any
substantive analysis, that the content is illegal respectively that the notices or complaints are
unfounded. Under certain conditions, providers of online platforms should temporarilysuspend their relevant activities in respect of the person engaged in abusive behaviour. Thisis without prejudice to the freedom by providers of online platforms to determine theirterms and conditions and establish stricter measures in the case of manifestly illegal content
related to serious crimes, such as child sexual abuse material. For reasons of transparency,
this possibility should be set out, clearly and in sufficiently detail, in the terms andconditions of the online platforms. Redress should always be open to the decisions taken inthis regard by providers of online platforms and they should be subject to oversight by thecompetent Digital Services Coordinator. Providers of online platforms should send aprior warning before deciding on the suspension, which should include the reasons forthe possible suspension and the means of redress against the decision of the providersof the online platform. When deciding on the suspension, providers of online platforms
should send the statement of reasons in accordance with the rules in this Regulation.
The rules of this Regulation on misuse should not prevent providers of online platforms
from taking other measures to address the provision of illegal content by recipients of theirservice or other misuse of their services, including through the violation of their terms
and conditions, in accordance with the applicable Union and national law. Those rules arewithout prejudice to any possibility to hold the persons engaged in misuse liable, including
for damages, provided for in Union or national law.

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(48)

An online platform may in some instances become aware, such as through a notice by a
notifying party or through its own voluntary measures, of information relating to certain
activity of a recipient of the service, such as the provision of certain types of illegal content,
that reasonably justify, having regard to all relevant circumstances of which the online
platform is aware, the suspicion that the recipient may have committed, may be committing
or is likely to commit a serious criminal offence involving a threat to the life or safety of
person, such as offences specified in Directive 2011/93/EU of the European Parliament andof the Council43. In such instances, the online platform should inform without delay thecompetent law enforcement authorities of such suspicion, providing all relevant information
available to it, including where relevant the content in question and an explanation of its
suspicion. This Regulation does not provide the legal basis for profiling of recipients of theservices with a view to the possible identification of criminal offences by online platforms.
Online platforms should also respect other applicable rules of Union or national law for theprotection of the rights and freedoms of individuals when informing law enforcement
authorities. [moved to Recital 42a]

43

Directive 2011/93/EU of the European Parliament and of the Council of 13 December 2011
on combating the sexual abuse and sexual exploitation of children and child pornography,
and replacing Council Framework Decision 2004/68/JHA (OJ L 335, 17.12.2011, p. 1).

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(49)

In order to contribute to a safe, trustworthy and transparent online environment for
consumers, as well as for other interested parties such as competing traders and holders ofintellectual property rights, and to deter traders from selling products or services in violationof the applicable rules, online platforms allowing consumers to conclude distance contracts
with tradersmarketplaces should ensure that such traders are traceable. The trader should
therefore be required to provide certain essential information to the provider of online
platformmarketplace, including for purposes of promoting messages on or offering
products. That requirement should also be applicable to traders that promote messages on
products or services on behalf of brands, based on underlying agreements. Those providersof online platforms marketplaces should store all information in a secure manner for theduration of their contractual relationship with the trader and 6 months thereafter, toallow any claims to be filed against the trader or orders related to the trader to becomplied with. This is necessary and proportionatea reasonable period of time that does
not exceed what is necessary, so that it the information can be accessed, in accordance withthe applicable law, including on the protection of personal data, by public authorities andprivate parties with a legitimate interest, including through the orders to provide informationreferred to in this Regulation. This obligation leaves unaffected potential obligations topreserve certain content for longer periods of time, on the basis of other Union law ornational laws, in compliance with Union law. Without prejudice to the definition
provided for in this Regulation, any trader, irrespective of whether it is a natural or
legal person, identified on the basis of Article 6a(1)(b) of Directive 2011/83/EU and
Article 7(4)(f) of Directive 2005/29/EC should be traceable when offering a product orservice through an online platform. Similarly, the traceability of holders of domainnames for the purpose of contributing to the security, stability and resilience of domainname systems, which in turn contributes to a high common level of cybersecurity
within the Union, is ensured by Directive …/… [proposed Directive on measures for ahigh common level of cybersecurity across the Union, repealing Directive (EU)2016/1148], which introduces the obligation for top-level domain registries and theentities providing domain name registration services for the top-level domain, so-called
registrars, to collect, maintain in a database and provide lawful access to accurate andcomplete domain name registration data.

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Directive 2000/31/EC obliges all information society services providers to render easily,
directly and permanently accessible to the recipients of the service and competentauthorities certain information allowing the identification of all providers. The
traceability requirements for providers of online marketplaces set out in thisRegulation do not affect the application of rules resulting from Council Directive (EU)2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative
cooperation in the field of taxation44, which pursues other legitimate public interest
objectives.

44

Please insert in the text the number, date and OJ reference of this Regulation.

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(50)

To ensure an efficient and adequate application of that obligation, without imposing any
disproportionate burdens, the providers of the online platforms covered marketplaces
should make reasonable best efforts to verify, prior to the use of their service, thereliability of the information provided by the traders concerned. , iIn particular, theproviders of online marketplaces should use by using freely available official online
databases and online interfaces, such as national trade registers and the VAT Information
Exchange System45, or by requestingrequest the traders concerned to provide trustworthy
supporting documents, such as copies of identity documents, certified bank payment
accounts’ statements, company certificates and trade register certificates. They may also use
other sources, available for use at a distance, which offer a similar degree of reliability forthe purpose of complying with this obligation. However, the providers of online platforms
covered marketplaces should not be required to engage in excessive or costly online factfinding exercises or to carry out verifications on the spot. Nor should such providers online
platforms, which have made the reasonable efforts required by this Regulation, be
understood as guaranteeing the reliability of the information towards consumer or otherinterested parties. Such online platforms should also design and organise their online
interface in a way that enables traders to comply with their obligations under Union law, inparticular the requirements set out in Articles 6 and 8 of Directive 2011/83/EU of theEuropean Parliament and of the Council46, Article 7 of Directive 2005/29/EC of theEuropean Parliament and of the Council47 and Article 3 of Directive 98/6/EC of theEuropean Parliament and of the Council48

45
46

47

48

https://ec.europa.eu/taxation_customs/vies/vieshome.do?selectedLanguage=en
Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on
consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of theEuropean Parliament and of the Council and repealing Council Directive 85/577/EEC and
Directive 97/7/EC of the European Parliament and of the Council.
Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005
concerning unfair business-to-consumer commercial practices in the internal market andamending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of
the European Parliament and of the Council and Regulation (EC) No 2006/2004 of theEuropean Parliament and of the Council (‘Unfair Commercial Practices Directive’).
Directive 98/6/EC of the European Parliament and of the Council of 16 February 1998 on
consumer protection in the indication of the prices of products offered to consumers.

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Providers of online marketplaces should make their best efforts to ensure that traders
provide complete information and ensure that products or services are not offered aslong as the information is incomplete. This should not amount to a general monitoring
obligation or an obligation for the provider of online marketplaces to assess whether
the content provided is in fact compliant with Union law.

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(50a) Providers of online marketplaces should not rely on so-called dark patterns indesigning their online interfaces. Dark patterns are design techniques that push or
deceive consumers into undesired decisions which have negative consequences forthem. These manipulative techniques can be used to persuade the recipients of theservice to engage in unwanted behaviours, including making it unreasonably difficult
to discontinue purchases or to sign out from a given marketplace, to deceive therecipients of the service by nudging them into decisions on transactions, or by default
settings that are very difficult to change, and so unreasonably bias the decision makingof the recipient of the service, in a way that subverts and impairs their autonomy,
decision-making and choice. Common and legitimate advertising practices that are incompliance with Union law should not in themselves be regarded as constituting dark
patterns. Providers of online marketplaces should design and organise their online
interface in a way that enables traders to comply with their obligations under relevant
Union law, in particular the requirements set out in Articles 6 and 8 of Directive
2011/83/EU of the European Parliament and of the Council49, Article 7 of Directive
2005/29/EC of the European Parliament and of the Council50, Articles 5 and 6 of the
Directive 2000/31/EC of the European Parliament and of the Council and Article 3 ofDirective 98/6/EC of the European Parliament and of the Council51. For that purpose,the providers of online marketplaces should make best efforts to assess whether the
traders using their services have uploaded the information on their online interfaces, inline with relevant applicable Union law.

49

50

51

Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on
consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of theEuropean Parliament and of the Council and repealing Council Directive 85/577/EEC and
Directive 97/7/EC of the European Parliament and of the Council.
Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005
concerning unfair business-to-consumer commercial practices in the internal market andamending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of
the European Parliament and of the Council and Regulation (EC) No 2006/2004 of theEuropean Parliament and of the Council (‘Unfair Commercial Practices Directive’).
Directive 98/6/EC of the European Parliament and of the Council of 16 February 1998 on
consumer protection in the indication of the prices of products offered to consumers.

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This should not amount to an obligation for providers of online marketplaces togenerally monitor the products or services offered by traders through their services
nor a general fact-finding obligation, in particular to assess the accuracy of theinformation provided by traders. The online interfaces should be user-friendly andeasily accessible for traders and consumers.

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(51)

In view of the particular responsibilities and obligations of providers of online platforms,
they should be made subject to transparency reporting obligations, which apply in addition
to the transparency reporting obligations applicable to all providers of intermediary services
under this Regulation. For the purposes of determining whether online platforms or online
search engines may be very large online platforms or very large online search enginesthat are subject to certain additional obligations under this Regulation, the transparency
reporting obligations for providers of online platforms and of online search engines
should include certain obligations relating to the publication and communication of
information on the average monthly active recipients of the service in the Union. In orderto ensure transparency and enable scrutiny over online platforms’ content moderation
decisions and monitoring the spread of illegal content online, the Commission should
maintain and update a database which contains the decisions and statements of reasonsof the providers of online platforms when they remove or otherwise restrict availabilityof and access to content. In order to allow the Commission to keep the database
updated, the providers of online platforms should submit the decisions and statementof reasons without undue delay after a decision has been made by a provider. The
database should be accessible to vetted researchers and Digital Services Coordinators,
who may also grant access to the database to national authorities where relevant for
the exercise of their tasks. The structured database should allow access to and queries
for the relevant information, in particular as regards the type of alleged illegal content
at stake.

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(52)

Online advertisingement plays an important role in the online environment, including in
relation to the provision of the services of online platforms, when the provider of online
platform receives remuneration as economic consideration for the placement of thespecific advertisement on the platform's online interface, for example as direct
payment or increased sale commission. However, online advertising ement can contributeto significant risks, ranging from advertisements that is itselfare themselves illegal content,
to contributing to financial incentives for the publication or amplification of illegal orotherwise harmful content and activities online, or the discriminatory presentationdisplayof advertising with an impact on the equal treatment and opportunities of citizens. In
addition to the requirements resulting from Article 6 of Directive 2000/31/EC, providers of
online platforms should therefore be required to ensure that the recipients of the service havecertain individualised information necessary for them to understand when and on whose
behalf the advertisement is displayedpresented. They should ensure that the information
is salient, including through standardised visual or audio marks, clearly identifiable
and unambiguous for the average user, and should be adapted to the nature of theindividual service’s online interface. In addition, recipients of the service should haveinformation on the main parameters used for determining that specific advertisementing is
to be displayed presented to them, providing meaningful explanations of the logic used tothat end, including when this is based on profiling. Such explanations should include
information on the method used for presenting the advertisement – for example
whether it is contextual, behavioural or other type of advertising – and, whereapplicable, the main profiling criteria used. The requirements of this Regulation on theprovision of information relating to advertisement is without prejudice to the application of
the relevant provisions of Regulation (EU) 2016/679, in particular those regarding the rightto object, automated individual decision-making, including profiling and specifically theneed to obtain consent of the data subject prior to the processing of personal data fortargeted advertising. Similarly, it is without prejudice to the provisions laid down in
Directive 2002/58/EC in particular those regarding the storage of information in terminal
equipment and the access to information stored therein. Finally, this Regulation
complements the application of the Directive 2010/13/EU which imposes measures toenable users to declare audiovisual commercial communications in user-generated
videos. It also complements the obligations for traders regarding the disclosure ofcommercial communications deriving from Directive 2005/29/EC.

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(53)

Given the importance of very large online platforms, due to their reach, in particular as
expressed in number of recipients of the service, in facilitating public debate, economictransactions and the dissemination of information, opinions and ideas and in influencing
how recipients obtain and communicate information online, it is necessary to impose
specific obligations on the providers of those platforms, in addition to the obligations
applicable to all online platforms. Due to their critical role in locating and making
information retrievable online, it is also necessary to impose those obligations, to theextent they are applicable, on the providers of very large online search engines, inaddition to the obligations applicable to all providers of intermediary services. Those
additional obligations on providers of very large online platforms and of very large online
search engines are necessary to address those public policy concerns, there being noalternative and less restrictive measures that would effectively achieve the same result.

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(54)

Very large online platforms and very large online search engines may cause societal risks,different in scope and impact from those caused by smaller platforms. Providers of suchvery large online platforms and very large online search engines should therefore bear
the highest standard of due diligence obligations, proportionate to their societal impact
and means. Once the number of recipients of a platform or a search engine reaches asignificant share of the Union population, the systemic risks the platform or search engine
poses may have a disproportionately negative impact in the Union. Such significant reachshould be considered to exist where the number of recipients exceeds an operational
threshold set at 45 million, that is, a number equivalent to 10 % of the Union population. In
order to determine the reach of a given online platform or online search engine, it isnecessary to establish the average number of active recipients of such service,represented by any recipient actually engaging with the service at least once in a given
period of time. Examples of such engagement include viewing content by scrollingthrough an online interface or uploading content on an online platform, including an
online marketplace, and not only interacting with content by clicking on, commenting,linking, sharing, purchasing or carrying out transactions on an online platform, suchas an online marketplace. Consequently, the notion of active recipient of the service
does not necessarily coincide with that of a registered user of a service, and it
cumulatively covers recipients of the service who provide content, such as traders on
an online marketplace, and those who view content. As regards online search engines,
the concept of active recipients of the service should cover those who view content on
their online interface, but not, for example, the owners of the websites indexed by the
online search engine, as they do not actively engage with the service. The number ofactive recipients of a service should include all unique recipients of the service thatengage with the specific service irrespective of the potentially different interfaces madeavailable, such as websites or apps, including where the interfaces are accessed
through different URLs or domain names. However, it should not include recipients ofother third party services that make available through their own online interfaces
content hosted by the provider of online platform or indexed by a provider of online
search engine. This Regulation does not require providers of online platforms or of
online search engines to perform specific tracking of individuals online, nor to discountautomated users such as bots.

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The operational threshold and methodology to determine the active recipients of an
online platform or of an online search engine should be kept up to date throughamendments enacted by delegated acts, where necessary, and reflect the nature of theservice and the way recipients of the service interact with it. Such very large online
platforms should therefore bear the highest standard of due diligence obligations,
proportionate to their societal impact and means.
(55)

In view of the network effects characterising the platform economy, the user base of an
online platform may quickly expand and reach the dimension of a very large online
platform, with the related impact on the internal market. This may be the case in the event ofexponential growth experienced in short periods of time, or by a large global presence andturnover allowing the online platform to fully exploit network effects and economies ofscale and of scope. A high annual turnover or market capitalisation can in particular be anindication of fast scalability in terms of user reach. In those cases, the Digital Services
Coordinator of establishment and the Commission should be able to request more frequent
reporting from provider of the online platform on the user base to be able to timely identify
the moment at which that platform should be designated as a very large online platform forthe purposes of this Regulation.

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(56)

Very large online platforms and very large online search engines are can be used in a waythat strongly influences safety online, the shaping of public opinion and discourse, as well as
on online trade. The way they design their services is generally optimised to benefit theiroften advertising-driven business models and can cause societal concerns. In the absence ofeEffective and fundamental rights based regulation and enforcement is necessary inorder to , they can set the rules of the game, without effectively identifying and mitigateing
the risks and the societal and economic harm that may arisethey can cause. Under thisRegulation, providers of very large online platforms and of very large online searchengines should therefore assess the systemic risks stemming from the functioning and use of
their service, as well as by potential misuses by the recipients of the service, and takeappropriate mitigating measures.

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(57)

Three categories of systemic risks should be assessed in-depth. A first category concerns therisks associated with the misuse of their service through the dissemination of illegal content,such as the dissemination of child sexual abuse material or illegal hate speech or othertypes of misuse of their services for criminal offences, and the conduct of illegal
activities, such as the sale of products or services prohibited by Union or national law,
including counterfeit products. For example, and without prejudice to the personal
responsibility of the recipient of the service of very large online platforms and of very large
online search engines for possible illegality of his or her activity under the applicable law,such dissemination or activities may constitute a significant systematic risk where access tosuch content may be amplified through accounts with a particularly wide reach. A second
category concerns the impact of the service on the exercise of fundamental rights, asprotected by the Charter of Fundamental Rights, including the freedom of expression andinformation, the right to private life, the right to non-discrimination and the rights of thechild. Such risks may arise, for example, in relation to the design of the algorithmic systems
used by the very large online platform or by very large online search engine or the misuseof their service through the submission of abusive notices or other methods for silencing
speech or hampering competition. When assessing risks to the rights of the child,providers should consider how easily understandable to minors the design andfunctioning of the service is, as well as how minors can be exposed through theirservice to content that may impair minors’ health, physical, mental and moral
development. Such risks may arise, for example, in relation to the design of online
interfaces which intentionally or unintentionally exploit the weaknesses andinexperience of minors or which may cause addictive behaviour. A third category ofrisks concerns the intentional and, oftentimes, coordinated manipulation of the platform’s orsearch engine's service, with a foreseeable impact on health, civic discourse, electoral
processes, public security, and protection of minors, having regard to the need to safeguard
public order, protect privacy and fight fraudulent and deceptive commercial practices. Suchrisks may arise, for example, through the inauthentic use of the service, such as thecreation of fake accounts, the use of bots or deceptive use of a service, and other automatedor partially automated behaviours, which may lead to the rapid and widespreaddissemination of information that is illegal content or incompatible with an online platform’s
or online search engine's terms and conditions.

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(58)

Providers of vVery large online platforms and of very large online search engines should
deploy the necessary means to diligently mitigate the systemic risks identified in the risk
assessment. TheyVery large online platforms should under such mitigating measuresconsider, for example, enhancing or otherwise adapting the design and functioning of theircontent moderation, algorithmic recommender systems and online interfaces, so that they
discourage and limit the dissemination of illegal content, adapting their decision-making
processes, or adapting their terms and conditions. This concerns in particular the speed
and quality of processing of notices, which in general should go beyond benchmarks set
by established best practices. This includes in particular the commitment to process amajority of valid notifications for removal of illegal hate speech in less than 24 hours
under the 2016 Hate speech Code of Conduct. Other types of illegal content may
require longer or shorter timelines for processing of notices, which will depend on thefacts, circumstances and types of illegal content at hand. The design and online
interface of services primarily aimed at minors or pre-dominantly used by them shouldtake into account their best interests, and ensure that their services are organised in a
way that minors are easily able to access mechanisms within this Regulation, including
notice and action and complaint mechanisms. The providers of very large online
platforms that provide access to content that may impair the physical, mental or moral
development of minors should take appropriate measures and provide tools that enableconditional access to the content. They may also include corrective measures, such as
discontinuing advertising revenue for specific content, or other actions, such as improving
the visibility of authoritative information sources. Providers of vVery large online
platforms and of very large online search engines may reinforce their internal processes orsupervision of any of their activities, in particular as regards the detection of systemic risks.
They may also initiate or increase cooperation with trusted flaggers, organise training
sessions and exchanges with trusted flagger organisations, and cooperate with other service
providers, including by initiating or joining existing codes of conduct or other selfregulatory measures. In selecting the appropriate mitigation measures, providers canconsider, where appropriate, industry best practices, including as established throughself regulatory cooperation, codes of conduct, as well as guidelines from theCommission.

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Any measures adopted should respect the due diligence requirements of this Regulation andbe effective and appropriate for mitigating the specific risks identified, in the interest ofsafeguarding public order, protecting privacy and fighting fraudulent and deceptivecommercial practices, and should be proportionate in light of the very large online
platform’s economic capacity of the provider of the very large online platform or of verylarge online search engines and the need to avoid unnecessary restrictions on the use of
their service, taking due account of potential negative effects on the fundamental rights of
the recipients of the service.

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(59)

Providers of vVery large online platforms and of very large online search engines should,
where appropriate, conduct their risk assessments and design their risk mitigation measureswith the involvement of representatives of the recipients of the service, representatives ofgroups potentially impacted by their services, independent experts and civil society
organisations. In the assessment on whether a measure is reasonable, proportionate andeffective, special consideration should be given to the right to freedom of expression.

(60)

Given the need to ensure verification by independent experts, providers of very large online
platforms and of very large online search engines should be accountable, throughindependent auditing, for their compliance with the obligations laid down by this Regulation
and, where relevant, any complementary commitments undertaking pursuant to codes ofconduct and crises protocols. They should give the auditor access to all relevant datanecessary to perform the audit properly, including, where appropriate, to data related toalgorithmic systems. Auditors should also be able to make use of other sources of objective
information, including studies by vetted researchers. Audits should be performed
according to best industry practices, with due regard, as appropriate, to auditing
standards and guidelines. Auditors should guarantee the confidentiality, security andintegrity of the information, such as trade secrets, that they obtain when performing theirtasks and have the necessary expertise in the area of risk management and technicalcompetence to audit algorithms. Auditors should be independent, so as to be able to performtheir tasks in an adequate and trustworthy manner. If their independence and technicalcompetence is not beyond doubt, they should resign or abstain from the audit engagement.

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(61)

The audit report should be substantiated, so as to give a meaningful account of the activities
undertaken and the conclusions reached. It should help inform, and where appropriate
suggest improvements to the measures taken by the providers of the very large online
platform and of the very large online search engine to comply with their obligations under
this Regulation. The report should be transmitted to the Digital Services Coordinator of
establishment and the Board without delaywithin 30 days following the adoption of theaudit implementing report, together with the risk assessment and the mitigation measures,
as well as the plans of the provider of the very large online platform or of the very large
online search engine’s plans for addressing the audit’s recommendations. The report should
include an audit opinion based on the conclusions drawn from the audit evidence obtained.
A positive opinion should be given where all evidence shows that the very large online
platform or the very large online search engine complies with the obligations laid downby this Regulation or, where applicable, any commitments it has undertaken pursuant to acode of conduct or crisis protocol, in particular by identifying, evaluating and mitigating thesystemic risks posed by its system and services. A positive opinion should be accompaniedby comments where the auditor wishes to include remarks that do not have a substantial
effect on the outcome of the audit. A negative opinion should be given where the auditor
considers that the very large online platform or the very large online search engine does
not comply with this Regulation or the commitments undertaken.

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(62)

A core part of a very large online platform’s and a very large online search engine's
business is the manner in which information is prioritised and presented on its online
interface to facilitate and optimise access to information for the recipients of the service.
This is done, for example, by algorithmically suggesting, ranking and prioritisinginformation, distinguishing through text or other visual representations, or otherwise
curating information provided by recipients. Such recommender systems can have asignificant impact on the ability of recipients to retrieve and interact with information
online. They also play an important role in the amplification of certain messages, the viraldissemination of information and the stimulation of online behaviour. The obligations on
assessment and mitigation of risks should trigger, on a case-by-case basis, the need forproviders of very large online platforms and of very large online search engines toassess and adjust the design of their recommender systems, for example by taking
measures to prevent or minimise biases that lead to the discrimination of persons invulnerable situations, in particular where this is in conformity with data protection law
and when the information is personalised on the basis of special categories of personaldata, within the meaning of Article 9 of the Regulation (EU) 2016/679. In addition,
Consequently, providers of very large online platforms and of very large online searchengines should consistently ensure that recipients of the service are appropriately informed,
and can influence the information presented to them. They should clearly present the main
parameters for such recommender systems in an easily comprehensible manner to ensurethat the recipients of the service understand how information is prioritised for them. They
should also ensure that the recipients of the service enjoy alternative options for the main
parameters, including options that are not based on profiling of the recipient.

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(63)

Advertising systems used by very large online platforms and very large online searchengines pose particular risks and require further public and regulatory supervision on
account of their scale and ability to target and reach recipients of the service based on their
behaviour within and outside that platform’s or search engine's online interface. Providersof vVery large online platforms and of very large online search engines should ensure
public access to repositories of advertisements displayed presented on their online
interfaces to facilitate supervision and research into emerging risks brought about by the
distribution of advertising online, for example in relation to illegal advertisements ormanipulative techniques and disinformation with a real and foreseeable negative impact on
public health, public security, civicl discourse, political participation, and equality.
Repositories should include the content of advertisements and related data on the advertiser
and the delivery of the advertisement, in particular where targeted advertising is concerned.
This information should include both information about targeting criteria and delivery
criteria, in particular when advertisements are delivered to persons in vulnerable
situations, such as minors.

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(64)

In order to appropriately supervise monitor and assess the compliance of very large online
platforms and very large online search engines with the obligations laid down by thisRegulation, the Digital Services Coordinator of establishment or the Commission may
require access to or reporting of specific data. Such a requirement may include, for example,
the data necessary to assess the risks and possible harms brought about by the platform’s orsearch engine's systems, data on the accuracy, functioning and testing of algorithmic
systems for content moderation, recommender systems or advertising systems, including,where appropriate training data and algorithms, or data on processes and outputs ofcontent moderation or of internal complaint-handling systems within the meaning of thisRegulation. Such data access requests do not include requests to produce specificinformation about individual recipients of the service for the purpose of determining
compliance of the recipients with other applicable Union or national law. Investigations
by researchers on the evolution and severity of online systemic risks are particularly
important for bridging information asymmetries and establishing a resilient system of risk
mitigation, informing online platforms, online search engines, Digital Services
Coordinators, other competent authorities, the Commission and the public. This Regulation
therefore provides a framework for compelling access to data from very large online
platforms and very large online search engines to vetted researchers vetted by the Digital
Services Coordinator of establishment of a very large online platform provider, or theCommission. All requirements requests for access to data under that framework should be
proportionate and appropriately protect the rights and legitimate interests, including trade
secrets and other confidential information, of the platform or the search engine and anyother parties concerned, including the recipients of the service. In addition, where data ispublicly accessible, the providers of very large onine platforms should not prevent
researchers meeting a appropriate subset of criteria from using this data for research
purposes that contribute to the detection, identification and understanding of systemicrisks. Providers and researchers should also pay particular attention to the protectionof personal data. Providers should anonymise or pseudonymise personal data except in
those cases that would render impossible the research purpose pursued.

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(65)

Given the complexity of the functioning of the systems deployed and the systemic risks theypresent to society, providers of very large online platforms and of very large online searchengines should appoint establish a compliance officersfunction, which should be
independent from the operational functions of the providers. The head of thecompliance function should report directly to the management of the provider,including for concerns of non-compliance with this Regulation. The compliance officers
that are part of the compliance function should have the necessary qualifications,knowledge, experience and ability to operationalise measures and monitor the compliancewith this Regulation within the organisation of the providers of very large online platform
or of very large online search engine’s organisation. Providers of vVery large online
platforms and of very large online search engines should ensure that the complianceofficer function is involved, properly and in a timely manner, in all issues which relate tothis Regulation including in the risk assessment and mitigation strategy and specificmeasures, as well as assessing compliance, where applicable, with commitments madeby the provider of very large online platform or of very large online search engine
under the codes of conduct they subscribe to.

(65a) In view of the additional risks relating to their activities and their additional obligations
under this Regulation, the other transparency requirements set out in this Regulation should
be complemented by additional transparency requirements applicable should apply
specifically to very large online platforms and very large online search engines, notably toreport comprehensively on the risk assessments performed and subsequent measures
adopted as provided by this Regulation.

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(66)

To facilitate the effective and consistent application of the obligations in this Regulation that
may require implementation through technological means, it is important to promote
voluntary industry standards covering certain technical procedures, where the industry canhelp develop standardised means to support providers of intermediary services incomplying y with this Regulation, such as allowing the submission of notices, including
through application programming interfaces, or standards relating to audits, or about theinteroperability of advertisement repositories. Providers of intermediary services are free
to adopt the standards, but their adoption does not presume compliance with thisRegulation. At the same time, by providing best practices, sSuch standards could inparticular be useful for relatively small providers of intermediary services. The standards
could distinguish between different types of illegal content or different types of intermediaryservices, as appropriate.

(67)

The Commission and the Board should encourage the drawing-up of codes of conduct tocontribute to the application of this Regulation. While the implementation of codes ofconduct should be measurable and subject to public oversight, this should not impair thevoluntary nature of such codes and the freedom of interested parties to decide whether toparticipate. In certain circumstances, it is important that providers of very large online
platforms and of very large online search engines cooperate in the drawing-up and adhereto specific codes of conduct. Nothing in this Regulation prevents other service providers
from adhering to the same standards of due diligence, adopting best practices and benefittingfrom the guidance provided by the Commission and the Board, by participating in the samecodes of conduct.

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(68)

It is appropriate that this Regulation identify certain areas of consideration for such codes ofconduct. In particular, risk mitigation measures concerning specific types of illegal content
should be explored via self- and co-regulatory agreements. Another area for consideration is
the possible negative impacts of systemic risks on society and democracy, such as
disinformation or manipulative and abusive activities or any adverse effects on minors.
This includes coordinated operations aimed at amplifying information, including
disinformation, such as the use of bots or fake accounts for the creation of fake inaccurate
or misleading information, sometimes with a purpose of obtaining economic gain, which areparticularly harmful for vulnerable recipients of the service, such as childrenminors. In
relation to such areas, adherence to and compliance with a given code of conduct by a verylarge online platform or a very large online search engine may be considered as an
appropriate risk mitigating measure. The refusal without proper explanations by a providerof an online platform or of an online search engine of the Commission’s invitation toparticipate in the application of such a code of conduct could be taken into account, where
relevant, when determining whether the online platform or the online search engine has
infringed the obligations laid down by this Regulation. The mere fact of participating in agiven Code of Conduct should not in itself presume compliance with this Regulation.

(69)

The rules on codes of conduct under this Regulation could serve as a basis for alreadyestablished self-regulatory efforts at Union level, including the Product Safety Pledge, theMemorandum of Understanding against counterfeit goods, the Code of Conduct against
illegal hate speech as well as the Code of practice on disinformation. In particular for thelatter, the Commission will issue guidance for strengthening the Code of practice on
disinformation as announced in the European Democracy Action Plan.

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(70)

The provision of online advertising generally involves several actors, including intermediaryservices that connect publishers of advertising with advertisers. Codes of conducts should
support and complement the transparency obligations relating to advertisement for online
platforms, and very large online platforms and very large online search engines set out inthis Regulation in order to provide for flexible and effective mechanisms to facilitate andenhance the compliance with those obligations, notably as concerns the modalities of thetransmission of the relevant information. The involvement of a wide range of stakeholders
should ensure that those codes of conduct are widely supported, technically sound, effective
and offer the highest levels of user-friendliness to ensure that the transparency obligations
achieve their objectives.

(71)

In case of extraordinary circumstances affecting public security or public health, theCommission may initiate the drawing up of crisis protocols to coordinate a rapid, collective
and cross-border response in the online environment. Extraordinary circumstances may
entail any unforeseeable event, such as earthquakes, hurricanes, pandemics and other serious
cross-border threats to public health, war and acts of terrorism, where, for example, online
platforms may be misused for the rapid spread of illegal content or disinformation or where
the need arises for rapid dissemination of reliable information. In light of the important roleof very large online platforms in disseminating information in our societies and acrossborders, providers of such platforms should be encouraged in drawing up and applying
specific crisis protocols. Such crisis protocols should be activated only for a limited periodof time and the measures adopted should also be limited to what is strictly necessary toaddress the extraordinary circumstance. Those measures should be consistent with thisRegulation, and should not amount to a general obligation for the participating providers ofvery large online platforms and of very large online search engines to monitor the
information which they transmit or store, nor actively to seek facts or circumstancesindicating illegal content.

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(72)

The task of ensuringIn order to ensure adequate oversight and enforcement of theobligations laid down in this Regulation should in principle be attributed to the, Member
States. To this end, they should appointdesignate at least one authority with the task toapplysupervise and enforce this Regulation, without prejudice to the possibility todesignate an existing authority and to its legal form in accordance to national law.
Member States should however be able to entrust more than one competent authority, withspecific supervisory or enforcement tasks and competences concerning the application ofthis Regulation, for example for specific sectors, such as electronic communications’regulators, media regulators or consumer protection authorities, reflecting their domestic
constitutional, organisational and administrative structure, where also existing authorities
may be empowered with these tasks. In the exercise of their tasks, all competentauthorities should contribute to the achievement of the objectives of this Regulation,
namely to the proper functioning of the internal market for intermediary services
where the harmonised rules for a safe, predictable and trusted online environment laid
down in this Regulation, and in particular the due diligence obligations applicable todifferent categories of providers of intermediary services, are effectively supervisedand enforced, with a view to ensure that fundamental rights, as enshrined in theCharter, are effectively protected. On the other hand, this Regulation does not require
Member States to confer to competent authorities the task to adjudicate on thelawfulness of specific items of content.

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(73)

Given the cross-border nature of the services at stake and the horizontal range of obligations
introduced by this Regulation, the one authority appointed with the task of supervising theapplication and, where necessary, enforcing this Regulation should be identified as a Digital
Services Coordinator in each Member State. Where more than one competent authority is
appointed to applysupervise and enforce this Regulation, only one authority in that Member
State should be identified as a Digital Services Coordinator. The Digital Services
Coordinator should act as the single contact point with regard to all matters related to theapplication of this Regulation for the Commission, the Board, the Digital Services
Coordinators of other Member States, as well as for other competent authorities of theMember State in question. In particular, where several competent authorities are entrustedwith tasks under this Regulation in a given Member State, the Digital Services Coordinatorshould coordinate and cooperate with those authorities in accordance with the national law
setting their respective tasks and without prejudice to the independent assessment of theother competent authorities. While not entailing any hierarchical supraordination overother competent authorities in the exercise of their tasks, the Digital Services
Coordinator, and should ensure effective involvement of all relevant competent authorities
and should timely report their assessment in the context of cooperation on supervisionand enforcement at Union level. Moreover, in addition to the specific mechanisms
provided for in this Regulation as regards cooperation at European level, Member
State should also ensure cooperation among the Digital Services Coordinator and othercompetent authorities designated at national level, where applicable, thorughappropriate tools, such as by pooling of resources, joint task forces, joint investigations
and mutual assistance mechanisms.

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(74)

The Digital Services Coordinator, as well as other competent authorities designated under
this Regulation, play a crucial role in ensuring the effectiveness of the rights and obligations
laid down in this Regulation and the achievement of its objectives. Accordingly, it isnecessary to ensure that those authorities have the necessary means to supervise all theproviders of intermediary services under their jurisdiction, in the interest of all Union
citizens. Given the variety of providers of intermediary services and their use ofadvanced technology in providing their services, it is also essential that the Digital
Services Coordinator and the relevant competent authorities are equipped with thenecessary number of staff and experts with specialised skills, advanced technicalmeans, and that they autonomously manage financial resources to carry out theirtasks. Furthermore, the level of resources should take into account the size, complexityand potential societal impact of the providers under their jurisdiction, as well as thereach of their services across the Union. Those authorities should also act in complete
independence from private and public bodies, without the obligation or possibility to seek orreceive instructions, including from the government, and without prejudice to the specificduties to cooperate with other competent authorities, the Digital Services Coordinators, theBoard and the Commission. On the other hand, the independence of these authorities should
not mean that they cannot be subject, in accordance with national constitutions and without
endangering the achievement of the objectives of this Regulation, to national control ormonitoring proportionate accountability mechanisms regarding the general activities of
the Digital Services Coordinators, such as their financial expenditure or to judicial review,or that they should not have the possibility to consult reporting to the national
parliaments. It should also not prevent the exercise of judicial review, or the possibility
to consult or regularly exchange views with other national authorities, including law
enforcement authorities or, crisis management authorities or consumer protection
authorities, where appropriate., such as informing each other about ongoinginvestigations, without affecting the exercise of their respective powers.

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(75)

Member States can designate an existing national authority with the function of the Digital
Services Coordinator, or with specific tasks to applysupervise and enforce this Regulation,
provided that any such appointed authority complies with the requirements laid down in thisRegulation, such as in relation to its independence. Moreover, Member States are inprinciple not precluded from merging functions within an existing authority, in accordancewith Union law. The measures to that effect may include, inter alia, the preclusion to dismiss
the President or a board member of a collegiate body of an existing authority before theexpiry of their terms of office, on the sole ground that an institutional reform has taken place
involving the merger of different functions within one authority, in the absence of any rules
guaranteeing that such dismissals do not jeopardise the independence and impartiality ofsuch members.

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(76)

[amended and moved to recital 84-a)]In the absence of a general requirement for providers
of intermediary services to ensure a physical presence within the territory of one of theMember States, there is a need to ensure clarity under which Member State's jurisdiction
those providers fall for the purposes of enforcing the rules laid down in Chapters III and IV
by the national competent authorities. A provider should be under the jurisdiction of theMember State where its main establishment is located, that is, where the provider has its
head office or registered office within which the principal financial functions andoperational control are exercised. In respect of providers that do not have an establishment
in the Union but that offer services in the Union and therefore fall within the scope of thisRegulation, the Member State where those providers appointed their legal representative
should have jurisdiction, considering the function of legal representatives under thisRegulation. In the interest of the effective application of this Regulation, all Member Statesshould, however, have jurisdiction in respect of providers that failed to designate a legal
representative, provided that the principle of ne bis in idem is respected. To that aim, each
Member State that exercises jurisdiction in respect of such providers should, without undue
delay, inform all other Member States of the measures they have taken in the exercise of thatjurisdiction.

(77)

Member States should provide the Digital Services Coordinator, and any other competentauthority designated under this Regulation, with sufficient powers and means to ensure
effective investigation and enforcement, in accordance with the tasks conferred on them.
This includes the power of competent authorities to adopt interim measures inaccordance with national law in case of risk of serious harm. Such interim measures,
which may include orders to terminate or remedy a given alleged infringement, should
not go beyond what is necessary to ensure that serious harm is prevented pending thefinal decision. Digital Services Coordinators should in particular be able to search for andobtain information which is located in its territory, including in the context of joint
investigations, with due regard to the fact that oversight and enforcement measuresconcerning a provider under the jurisdiction of another Member State or the Commission
should be adopted by the Digital Services Coordinator of that other Member State, where
relevant in accordance with the procedures relating to cross-border cooperation, or, whereapplicable, by the Commission.

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(78)

Member States should set out in their national law, in accordance with Union law and inparticular this Regulation and the Charter, the detailed conditions and limits for the exerciseof the investigatory and enforcement powers of their Digital Services Coordinators, andother competent authorities where relevant, under this Regulation.

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(79)

In the course of the exercise of those powers, the competent authorities should comply withthe applicable national rules regarding procedures and matters such as the need for a prior
judicial authorisation to enter certain premises and legal professional privilege. Those
provisions should in particular ensure respect for the fundamental rights to an effective
remedy and to a fair trial, including the rights of defence, and, the right to respect for private
life. In this regard, the guarantees provided for in relation to the proceedings of theCommission pursuant to this Regulation could serve as an appropriate point of reference. A
prior, fair and impartial procedure should be guaranteed before taking any final decision,
including the right to be heard of the persons concerned, and the right to have access to thefile, while respecting confidentiality and professional and business secrecy, as well as theobligation to give meaningful reasons for the decisions. This should not preclude the takingof measures, however, in duly substantiated cases of urgency and subject to appropriate
conditions and procedural arrangements. The exercise of powers should also be
proportionate to, inter alia the nature and the overall actual or potential harm caused by the
infringement or suspected infringement. The competent authorities should in principle takeall relevant facts and circumstances of the case into account, including information gatheredby competent authorities in other Member States.

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(80)

Member States should ensure that violations of the obligations laid down in this Regulation
can be sanctioned in a manner that is effective, proportionate and dissuasive, taking into
account the nature, gravity, recurrence and duration of the violation, in view of the public
interest pursued, the scope and kind of activities carried out, as well as the economic
capacity of the infringer. In particular, penalties should take into account whether theprovider of intermediary services concerned systematically or recurrently fails to comply
with its obligations stemming from this Regulation, as well as, where relevant, whether theprovider is active in several Member States. Where this Regulation provides for a
maximum amount of fines or of a periodic penalty payment, this maximum amountshould apply per infringement of this Regulation and without prejudice to themodulation of the fines or periodic penalty payments for specific infringements.
Member States should ensure that the imposition of fines or periodic penalty payments
in respect of infringements should in each individual case be effective, proportionate
and dissuasive by setting up national rules and procedures in accordance with thisRegulation, taking into account all the above mentioned criteria concerning the generalconditions for imposing the fines or periodic penalty payments.

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(81)

In order to ensure effective enforcement of this Regulation, individuals or representative
organisations should be able to lodge any complaint related to compliance with the
obligations laid down in this Regulation with the Digital Services Coordinator in the
territory where they received the service, without prejudice to this Regulation’s rules onjurisdiction and to the applicable rules on handling of complaints in accordance withnational principles of good administration. Complaints cshould provide a faithfuloverview of concerns related to a particular intermediary service provider’s compliance andcould also inform the Digital Services Coordinator of any more cross-cutting issues. The
Digital Services Coordinator should involve other national competent authorities as well as
the Digital Services Coordinator of another Member State, and in particular the one of theMember State where the provider of intermediary services concerned is established, if theissue requires cross-border cooperation.

(82)

Member States should ensure that Digital Services Coordinators can take measures that are
effective in addressing and proportionate to certain particularly serious and persistentinfringements of this Regulation. Especially where those measures can affect the rights andinterests of third parties, as may be the case in particular where the access to online
interfaces is restricted, it is appropriate to require that the measures be ordered by acompetent judicial authority at the Digital Service Coordinators’ request and are subject toadditional safeguards. In particular, third parties potentially affected should be afforded theopportunity to be heard and such orders should only be issued when powers to take suchmeasures as provided by other acts of Union law or by national law, for instance to protect
collective interests of consumers, to ensure the prompt removal of web pages containing or
disseminating child pornography, or to disable access to services are being used by a third
party to infringe an intellectual property right, are not reasonably available.

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(83)

Such an order to restrict access should not go beyond what is necessary to achieve its
objective. For that purpose, it should be temporary and be addressed in principle to a
provider of intermediary services, such as the relevant hosting service provider, internet
service provider or domain registry or registrar, which is in a reasonable position to achievethat objective without unduly restricting access to lawful information.

(84)

The Digital Services Coordinator should regularly publish, for example on its website, areport on the activities carried out under this Regulation. In particular, the report should
include an overview of complaints received and of their follow-up, such as the overall
number of complaints received, the number of complaints that led to the opening of aformal investigation or to the transmission to other Digital Services Coordinators,
without referring to any personal data. Given that the Digital Services Coordinator is also
made aware of orders to take action against illegal content or to provide information
regulated by this Regulation through the common information sharing system, the Digital
Services Coordinator should include in its annual report the number and categories of theseorders addressed to providers of intermediary services issued by judicial and administrative
authorities in its Member State.

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(84-a) In the absence of a general requirement for providers of intermediary services to ensure aphysical presence within the territory of one of the Member States, there is a need to ensure
clarity under which jurisdiction competence those providers fall for the purposes ofsupervising and enforcing the obligations set out in this Regulation rules laid down in
Chapters III and IV by the national competent authorities or by the Commission, including
judicial remedies against their decisions, in accordance with Chapter IV of thisRegulation. This competence is therefore without prejudice to private international law
rules concerning conflict of jurisdiction and laws applicable to court proceedings basedon this Regulation and brought by natural persons or legal persons other than national
competent authorities, such as proceedings brought by consumers in the courts of theMember State where they are domiciled in accordance with Union law in the field of
judicial cooperation in civil matters. It is also without prejudice to any otherjurisdictional rules applicable to obligations on providers of intermediary services
pursuant to other Union law or national law in compliance with Union law, such as thejurisdiction for the application and enforcement of consumer protection law or thejurisdiction for disputes on specific items of content. It also applies only to the
obligations placed by this Regulation upon intermediary services to inform the issuingauthority of the effect given to the orders to act against illegal content and orders toprovide information adopted in accordance with this Regulation, but not to the orderitself. A provider should be under the jurisdiction competence of the Member State where
its main establishment is located, that is, where the provider has its head office or registeredoffice within which the principal financial functions and operational control are exercised. In
respect of providers that do not have an establishment in the Union but that offer services in
the Union and therefore fall within the scope of this Regulation, the Member State where
those providers appointed their legal representative should have jurisdictioncompetence,
considering the function of legal representatives under this Regulation. In the interest of theeffective application of this Regulation, all Member States or the Commission, whereapplicable, should, however, have jurisdiction competence in respect of providers thatfailed to designate a legal representative, provided that the provider is not subject toenforcement proceedings for the same facts by another Member State or theCommissionthe principle of ne bis in idem is respected.

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To that aim, each Member State that exercises jurisdiction competence in respect of suchproviders should, without undue delay, inform all other Member States of the measures they
have taken in the exercise of that jurisdictioncompetence through the information sharing
system to be used for all communications among authorities pursuant to thisRegulation. In such cases, priority should be given to the earliest among those
proceedings and all existing proceedings in other Member States concerning the same
conduct should be suspended.

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(84-b) In order to achieve the objectives of this Regulation there is a need to ensure its
effective public enforcement and provide for clear rules on the allocation ofsupervisory and enforcement tasks between the national competent authorities and theCommission. The Commission should be responsible, with the support of national
competent authorities, for oversight and public enforcement of systemic issues, such as
issues with a wide impact on collective interests of recipients of the service, which aremost notably associated with the provision of intermediary services by very large
online platforms or very large online search engines. Therefore, the Commission
should be empowered for the supervision and enforcement of all due diligenceobligations on the providers of very large online platforms or of very large online
search engines. The Commission should be exclusively responsible for the obligations
on those providers to manage systemic risks referred to in Section 4 of Chapter III ofthis Regulation. In case of an individual issue, such as an individual complaint or anindividual instance of malfunctioning of notice and action system that do not point toany systemic infringement, the competent authorities in the Member State ofestablishment of providers of such services should remain empowered, to the extent
that the Commission has not initiated any proceedings on such issue, for thesupervision and enforcement of the due diligence obligations on those providers,
because those national competent authorities of establishment may be often best placed
to address such cases. Systemic infringement could include issues of particular gravity
or risk, such as those affecting multiple Member States or serious repeatedinfringements, or lack of functional systems as required by this Regulation. Thisshould also be without prejudice to the administrative tasks assigned to national
competent authorities of the Member State of establishment, such as the vetting ofresearchers.

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(84a) Given the cross-border and cross-sectoral relevance of intermediary services, a highlevel of cooperation is necessary to ensure the consistent application of this Regulationand the availability of relevant information for the exercise of enforcement tasks
through the information sharing system. Cooperation may take different forms
depending on the issues at stake, without prejudice to specific joint investigation
exercises. It is in any case necessary that the Digital Services Coordinator of
establishment of a provider of intermediary services informs other Digital Services
Coordinators about issues, investigations and actions which are going to be taken vis à
vis such a provider. Moreover, when a competent authority in a Member State holds
relevant information for an investigation carried out by the competent authorities in
the Member State of establishment, or is able to gather such information located in its
territory to which the competent authorities in the Member State of establishment do
not have access, the Digital Services Coordinator of destination should assist the Digital
Services Coordinator of establishment in a timely manner, including through theexercise of its powers of investigation in accordance with the applicable national
procedures and the Charter. The addressee of such investigatory measures should
comply with them and be liable in case of failure to comply, and the competentauthorities in the Member State of establishment should be able to rely on theinformation gathered through mutual assistance, in order to ensure compliance withthis Regulation.

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(85)

Where aThe Digital Services Coordinator of destination, in particular on the basis ofcomplaints received or of the input of other national competent authorities whereappropriate, or the Board in case of issues involving at least three Member States,
should be able to requestask s another the Digital Services Coordinator of establishment
to take investigatory or enforcement actions with regard to a provider under its
competence. Where a single Digital Services Coordinator requests such action, it
should be based on well-substantiated evidence showing the existence of an alleged
infringement with negative impact on collective interests of the recipients of the service
in its Member State or having a negative societal impact. The Digital Services
Coordinator of establishment should be able to rely on mutual assistance or invite therequesting Digital Services Coordinator to a joint investigation in case further
information is needed to take a decision., the requesting Digital Services Coordinator, or
the Board in case it issued a recommendation to assess issues involving more than threeMember States, The Board should be able to refer the matter to the Commission in case ofany disagreement as to the assessments or the measures taken or proposed or a failure toadopt any measures in accordance with this Regulation. Where tThe Commission, on thebasis of the information made available by the concerned authorities, considers that the
proposed measures, including the proposed level of fines, cannot ensure the effective
enforcement of the obligations laid down in this Regulation, it should accordingly beable to express its serious doubts and request the competent Digital Services Coordinator
to re-assess the matter and take the necessary measures to ensure compliance with thisRegulation within a defined time period. This possibility is without prejudice to theCommission’s general duty to oversee the application of, and where necessary enforce,
Union law under the control of the Court of Justice of the European Union in accordancewith the Treaties. A failure by the Digital Services Coordinator of establishment to take any
measures pursuant to such a request may also lead to the Commission’s intervention under
Section 3 of Chapter IV of this Regulation, where the suspected infringer is a very large
online platform.

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(86)

In order to facilitate cross-border supervision and investigations of obligations laid down inthis Regulation involving several Member States, the Digital Services Coordinators of
establishment should be able, through the information sharing system, to invite other
Digital Services Coordinators to a joint investigation concerning an alleged
infringement of to participate, on a permanent or temporary basis, in joint oversight andinvestigation activities concerning matters covered by this Regulation. Other Digital
Services Coordinators, and other competent authorities where appropriate, should be
able to join the investigation proposed by the Digital Services Coordinator of
establishment, unless the latter considers that an excessive number of participating
authorities may affect the effectiveness of the investigation taking into account thefeatures of the alleged infringement and the lack of direct effects on the recipients ofthe service in those Member States. Joint investigationThose activities may include othercompetent authorities and may cover a variety of actions to be coordinated by the Digital
Services Coordinator of establishment in accordance with the availabilities of theparticipating authorities, such as issues, ranging from coordinated data gathering
exercises, pooling of resources, task forces, coordinated to requests for information orcommon inspections of premises. All competent authorities participating in a joint
investigation should cooperate with the Digital Services Coordinator of establishment,
including by exercising their powers of investigation within their territory, in
accordance with the applicable national procedures. The joint investigation should beconcluded within a given timeframe with a final report taking into account thecontribution of all participating competent authorities. On the basis of this final report,
the Digital Services Coordinator of establishment should communicate the preliminary
position on the infringement, including the measures it intends to adopt or, whereapplicable, those that other competent authorities in that Member State intend to
adopt. Also the Board, where this is requested by at least three Digital Services
Coordinator of destination, may recommend to a Digital Services Coordinator of
establishment to launch such joint investigation and give indications on its
organisation.

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In such a case, the Board may refer the matter to the Commission also where theDigital Services Coordinator of establishment refuses to launch the investigation and
the Board does not agree with the justification given., within the limits and scope of
powers available to each participating authority. The Board may be requested to provide
advice in relation to those activities, for example by proposing roadmaps and timelines for
activities or proposing ad-hoc task-forces with participation of the authorities involved.

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(87)

In view of the particular challenges that may emerge in relation to assessing and ensuring avery large online platform’s compliance, for instance relating to the scale or complexity of asuspected infringement or the need for particular expertise or capabilities at Union level,
Digital Services Coordinators should have the possibility to request, on a voluntary basis,
the Commission to intervene and exercise its investigatory and enforcement powers under
this Regulation.

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(88)

In order to ensure a consistent application of this Regulation, it is necessary to set up an
independent advisory group at Union level, which should support the Commission and help
coordinate the actions of Digital Services Coordinators. That European Board for Digital
Services (‘the Board’) should consist of the Digital Services Coordinators, without
prejudice to the possibility for Digital Services Coordinators to invite in its meetings or
appoint ad hoc delegates from other competent authorities entrusted with specific tasks
under this Regulation, where that is required pursuant to their national allocation of tasks
and competences. In case of multiple participants from one Member State, the voting rightshould remain limited to one representative per Member State.

(89)

The Board should contribute to achieving a common Union perspective on the consistent
application of this Regulation and to cooperation among competent authorities, including byadvising the Commission and the Digital Services Coordinators about appropriate
investigation and enforcement measures, in particular vis à vis the providers of very large
online platforms or very large online search engines. The Board should also contribute to
the drafting of relevant templates and codes of conduct and analyse emerging general trends
in the development of digital services in the Union.

(90)

For that purpose, the Board should be able to adopt opinions, requests and recommendations
addressed to Digital Services Coordinators or other competent national authorities. Whilenot legally binding, the decision to deviate therefrom should be properly explained andcould be taken into account by the Commission in assessing the compliance of the Member
State concerned with this Regulation.

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(91)

The Board should bring together the representatives of the Digital Services Coordinators andpossible other competent authorities under the chairmanship of the Commission, with a viewto ensuring an assessment of matters submitted to it in a fully European dimension. In viewof possible cross-cutting elements that may be of relevance for other regulatory frameworks
at Union level, the Board should be allowed to cooperate with other Union bodies, offices,
agencies and advisory groups with responsibilities in fields such as equality, including
gender equality between women and men, and non-discrimination, data protection,
electronic communications, audiovisual services, detection and investigation of frauds
against the EU Union budget as regards custom duties, or consumer protection, orcompetition law, as necessary for the performance of its tasks.

(92)

The Commission, through the Chair, should participate in the Board without voting rights.
Through the Chair, the Commission should ensure that the agenda of the meetings is set inaccordance with the requests of the members of the Board as laid down in the rules ofprocedure and in compliance with the duties of the Board laid down in this Regulation.

(93)

In view of the need to ensure support for the Board’s activities, the Board should be able torely on the expertise and human resources of the Commission and of the competent national
authorities. The specific operational arrangements for the internal functioning of the Board
should be further specified in the rules of procedure of the Board.

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(94)

Given the importance of very large online platforms or very large online search engines, inview of their reach and impact, their failure to comply with the specific obligations
applicable to them may affect a substantial number of recipients of the services acrossdifferent Member States and may cause large societal harms, while such failures may also be
particularly complex to identify and address. For this reason the Commission, in
cooperation with the Digital Services Coordinators and the Board, should develop theUnion expertise and capabilities as regards the very large online platforms or verylarge online search engines. The Commission should therefore be able to coordinate
and rely on the expertise and resources of such authorities, for example by analysing,on a permanent or temporary basis, specific trends or issues emerging with regard to
one or more very large online platforms or very large online search engines. In orderto develop the Union expertise and capabilities, the Commission may also draw on theexpertise and capabilities of the Observatory on the Online Platform Economy as set
up in Commission Decision of 26 April 2018 (C(2018) 2392), relevant expert bodies, aswell as centres of excellence. The Commission may invite experts with specificexpertise, including in particular vetted researchers within the meaning of Article 31,
representatives of Union agencies and bodies, industry representatives, associations
representing users or civil society, international organisations, experts from the private
sector as well as other stakeholders.

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(95)

In order to address those public policy concerns it is therefore necessary to provide for acommon system of enhanced supervision and enforcement at Union level. Once aninfringement of one of the provisions that solely apply to very large online platforms has
been identified, for instance pursuant to individual or joint investigations, auditing orcomplaints, the Digital Services Coordinator of establishment, upon its own initiative or
upon the Board’s advice, should monitor any subsequent measure taken by the very large
online platform concerned as set out in its action plan. That Digital Services Coordinatorshould be able to ask, where appropriate, for an additional, specific audit to be carried out,
on a voluntary basis, to establish whether those measures are sufficient to address theinfringement. At the end of that procedure, it should inform the Board, the Commission andthe platform concerned of its views on whether or not that platform addressed theinfringement, specifying in particular the relevant conduct and its assessment of any
measures taken. The Digital Services Coordinator should perform its role under thiscommon system in a timely manner and taking utmost account of any opinions and otheradvice of the Board.

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(96)

Where the infringement of the provision that solely applies to very large online platforms is
not effectively addressed by that platform pursuant to the action plan, only the Commission
may, on its own initiative or upon advice of the Board, decide to further investigate theinfringement concernedand the measures that the platform has subsequently taken, to the
exclusion of the Digital Services Coordinator of establishment. After having conducted thenecessary investigations, the Commission should be able to issue decisions finding an
infringement and imposing sanctions in respect of very large online platforms where that isjustified. It should also have such a possibility to intervene in cross-border situations where
the Digital Services Coordinator of establishment did not take any measures despite theCommission’s request, or in situations where the Digital Services Coordinator of
establishment itself requested for the Commission to intervene, in respect of an infringementof any other provision of this Regulation committed by a very large online platform.

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(96)

The Commission should be able to investigate infringements on its own initiative inaccordance with the powers provided for in this Regulation, including by asking accessto data, by requesting information or by performing inspections, as well as by relying
on the support of the Digital Services Coordinators. Where supervision by thecompetent national authorities of individual alleged infringements points to systemic
issues, such as issues with a wide impact on collective interests of recipients of theservice, the Digital Services Coordinators should be able to, on the basis of duly
reasoned request, refer such issues to the Commission. Such a request should contain,
at least, all the necessary facts and circumstances supporting the alleged infringement
and its systemic nature. Depending on the outcome of its own assessment, theCommission should be able to take the necessary investigative and enforcement
measures pursuant to this Regulation, including where relevant launching an
investigation or adopting interim measures.

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(97)

In order to effectively perform its tasks, Tthe Commission should maintain a margin of
discretion as to the decision remain free to decide whether or not it wishes to intervene inany of the situations where it is empowered to do so under this Regulation.initiate
proceedings against providers of very large online platforms or of very large online
search engine. Once the Commission initiated the proceedings, the Digital Services
Coordinators of establishment concerned should be precluded from exercising theirinvestigatoryinvestigative and enforcement powers in respect of the relevantconcerned
conduct of the provider of the very large online platform or of very large online searchengine concerned, so as to avoid duplication, inconsistencies and risks from the viewpointof the principle of ne bis in idem. However, in The Commission, however, should be able
to ask for the interestindividual or joint contribution of effectiveness, those the Digital
Services Coordinators should not be precluded from exercising their powers either to assist
the Commission, at its request in to the performance of its supervisory tasks, or in respect ofother conduct, including conduct byinvestigation. In accordance with the duty of sincere
cooperation, the Digital Services Coordinator should make its best efforts in fulfilling
justified and proportionate requests by the Commission in the context of aninvestigation. the same Moreover, the very large online platform that is suspected toconstitute a new infringement. Those Digital Services CoordinatorsCoordinator of
establishment, as well as the Board and any other Digital Services Coordinators where
relevant, should provide the Commission with all necessary information and assistance toallow it to perform its tasks effectively, including information gathered in the context
other data gathering or data access exercises, to the extent that this is not precluded by
the legal basis according to which the information has been gathered. , whilst
cConversely, the Commission should keep them the Digital Services Coordinator of
establishment and the Board informed on the exercise of its powers as appropriate. In thatregard, the Commission should, where appropriate,and in particular when it intends toinitiate the proceeding and exercise its investigatory powers. Moreover, when stating
its objections vis à vis the concerned providers of very large online platforms or of verylarge online search engines, the Commission should also communicate these.

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The Board should provide its views on the objections and assessment made by theCommission, which should take this opinion into account of any relevant assessments
carried out by the Board or by the Digital Services Coordinators concerned and of any
relevant evidence and information gathered by them, without prejudice to the Commission’s
powers and responsibility to carry out additional investigations as necessary.in thereasoning underpinning Commission's final decision.
(98)

In view of both the particular challenges that may arise in seeking to ensure compliance by
providers of very large online platforms or of very large online search engines and theimportance of doing so effectively, considering their size and impact and the harms that they
may cause, the Commission should have strong investigative and enforcement powers toallow it to investigate, enforce and monitor certain of the rules laid down in this Regulation,in full respect of the fundamental right to be heard and to have access to the file in thecontext of enforcement proceedings, the principle of proportionality and the rights andinterests of the affected parties.

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(99)

The Commission should be able to request information necessary for the purpose of
ensuring the effective implementation of and compliance with the obligations laid downin this Regulation, throughout the Union. In particular, the Commission should haveaccess to any relevant documents, data and information necessary to open and conduct
investigations and to monitor the compliance with the relevant obligations laid down in thisRegulation, irrespective of who possesses the documents, data or information in question,and regardless of their form or format, their storage medium, or the precise place where they
are stored. The Commission should be able to directly require by means of a duly
substantiated request for information that the provider of the very large online platform
or of the very large online search engine concerned as well as any other natural or legal
persons acting for purposes related to their trade, business, craft or profession that
may be reasonably aware of information relating to the suspected infringement or the
infringement, as applicableor relevant third parties, or than individuals, provide any
relevant evidence, data and information. In addition, the Commission should be able torequest any relevant information from any public authority, body or agency within theMember State for the purpose of this Regulation, or from any natural person or legal
person for the purpose of this Regulation. The Commission should be able empowered torequire access to, and explanations by means of exercise of investigatory powers, such as
requests for information or interviews, relating to documents, data, information, databases and algorithms of relevant persons, and to interview, with their consent, any naturalor legal persons who may be in possession of useful information and to record thestatements made by any technical means. The Commission should also be empowered toundertake such inspections as are necessary to enforce the relevant provisions of thisRegulation. Those investigatory powers aim to complement the Commission’s possibility to
ask Digital Services Coordinators and other Member States’ authorities for assistance, forinstance by providing information or in the exercise of those powers.

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(99-a) The Commission should be able to take the necessary actions to monitor the effective
implementation and compliance with the obligations laid down in this Regulation. Suchactions should include the ability of the Commission to appoint independent external
experts, such as auditors, to assist the Commission in this process, including, whereapplicable and agreed to, from competent authorities of Member States, such as dataor consumer protection authorities. When appointing the external experts, theCommission should ensure that these experts are exercising their role in an
independent manner, ensuring also that they are free of any conflict of interests.
(99a) Interim measures can be an important tool to ensure that, while an investigation is
ongoing, the infringement being investigated does not lead to serious and irreparable
damage for recipients of services of very large online platforms or of very large online
search engines. This tool is important to avoid developments that could be very
difficult to reverse by a decision taken by the Commission at the end of theproceedings. The Commission should therefore have the power to impose interim
measures by decision in the context of proceedings initiated in view of the possible
adoption of a decision of non-compliance. This power should apply in cases where theCommission has made a prima facie finding of infringement of obligations concerning
very large online platforms or of very large online search engines and where there is arisk of serious damage for recipients of the service. A decision imposing interim
measures should only be valid for a specified period, either until the conclusion of theproceedings by the Commission, or for a fixed time period which can be renewed
insofar as it is necessary and appropriate.

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(100) Compliance with the relevant obligations imposed under this Regulation should be
enforceable by means of fines and periodic penalty payments. To that end, appropriate levelsof fines and periodic penalty payments should also be laid down for non-compliance withthe obligations and breach of the procedural rules, subject to appropriate limitation periods.
Since all decisions taken by the Commission under this Regulation are subject toreview by the Court of Justic of the European Union in accordance with the Treaty,
the Court of Justice should have unlimited jurisdiction in respect of fines and penalty
payments in accordance with Article 261 of the Treaty.
(100a) Given the potential significant societal effects of an infringement of the obligations thatsolely apply to very large online platforms and very large online search engines and inorder to address those public policy concerns, it is necessary to provide for a system ofenhanced supervision of any action undertaken to effectively terminate and remedy
infringements of this Regulation. Therefore once an infringement of one of theprovisions of this Regulation that solely apply to very large online platforms or verylarge online search engines has been ascertained and, where necessary, sanctioned, theCommission should request the provider of such platform or of such search engine todraw a detailed action plan to remedy any effect of the infringement for the future.
The Commission, taking into account the opinion of the Board, should establish
whether the measures included in the action plan are sufficient to address theinfringement, taking also into account whether adherence to relevant code of conduct
is included among the measures proposed. The Commission should also monitor any
subsequent measure taken by the provider of a very large online platform or of a verylarge online search engine concerned as set out in its action plan, taking into accountalso an independent audit of the provider. If at the end of implementation of the action
plan the Commission still considers that the infringement has not been fully remedied,or if the action plan is considered not suitable, it should be able to use any investigativeor enforcement powers pursuant to this Regulation, including periodic penalty
payments on the provider and initiating the procedure to disable access to theinfringing service.

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EN

(101) The provider of the very large online platforms or of very large online search engine
concerned and other persons subject to the exercise of the Commission’s powers whose
interests may be affected by a decision should be given the opportunity of submitting theirobservations beforehand, and the decisions taken should be widely publicised. While
ensuring the rights of defence of the parties concerned, in particular, the right of access tothe file, it is essential that confidential information be protected. Furthermore, while
respecting the confidentiality of the information, the Commission should ensure that any
information relied on for the purpose of its decision is disclosed to an extent that allows theaddressee of the decision to understand the facts and considerations that lead up to thedecision.
(101-a)In order to safeguard the harmonised application and enforcement of this Regulation,
it is important to ensure that national authorities, including national courts, have allnecessary information to ensure that their decisions do not run counter to a decision
adopted by the Commission under this Regulation. This is without prejudice to Article
267 of the Treaty.

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(101a) The effective enforcement and monitoring of this Regulation requires a seamless andreal-time exchange of information among the Digital Services Coordinators, the Boardand the Commission, based on the information flows and procedures foreseen in thisRegulation. This may also warrant access to this system by other competentauthorities, where appropriate. At the same time, given that the informationexchanged may be confidential or involving personal data, it should remain protectedfrom unauthorised access, in accordance with the purposes for which the information
has been gathered. For this reason all communications between these authorities
should take place on the basis of a reliable and secure information sharing system,
whose details should be laid down in an implementing act. The information sharing
system may be based on existing internal market tools, to the extent that they can meetthe objectives of this Regulation in a cost-effective manner.

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(101b) Without prejudice to the rights of recipients of services to turn to a representative inaccordance with the Directive (EU) 2020/182852 or to any other type of representation
under national law, recipients of the services should also have the right to mandate alegal person or a public body to exercise their rights provided for in this Regulation.
Such rights may for example include the recipients of services rights related to thesubmission of notices, the challenging of the decisions taken by providers ofintermediary services, and the lodging of complaints against the providers forinfringing this Regulation.
(102) In the interest of effectiveness and efficiency, in addition to the general evaluation of theRegulation, to be performed within five years of entry into force, after the initial start-up
phase and on the basis of the first three years of application of this Regulation, theCommission should also perform an evaluation of the activities of the Board and on its
structure.
(103) In order to ensure uniform conditions for the implementation of this Regulation,
implementing powers should be conferred on the Commission. Those powers should be
exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament andof the Council53.

52

53

Directive (EU) 2020/1828 of the European Parliament and of the Council of 25
November 2020 on representative actions for the protection of the collective interests ofconsumers and repealing Directive 2009/22/EC (OJ L 409, 4.12.2020, p. 1).
Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16
February 2011 laying down the rules and general principles concerning mechanisms forcontrol by Member States of the Commission’s exercise of implementing powers (OJ L 55,
28.2.2011, p. 13).

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EN(104) In order to fulfil the objectives of this Regulation, the power to adopt acts in accordancewith Article 290 of the Treaty should be delegated to the Commission to supplement thisRegulation. In particular, delegated acts should be adopted in respect of criteria for
identification of very large online platforms and of very large online search engines and oftechnical specifications for access requests. It is of particular importance that theCommission carries out appropriate consultations and that those consultations be conductedin accordance with the principles laid down in the Interinstitutional Agreement on Better
Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparationof delegated acts, the European Parliament and the Council receive all documents at thesame time as Member States' experts, and their experts systematically have access tomeetings of Commission expert groups dealing with the preparation of delegated acts.
(105) This Regulation respects the fundamental rights recognised by the Charter and thefundamental rights constituting general principles of Union law. Accordingly, thisRegulation should be interpreted and applied in accordance with those fundamental rights,
including the freedom of expression and information, as well as the freedom and pluralismof the media. When exercising the powers set out in this Regulation, all public authorities
involved should achieve, in situations where the relevant fundamental rights conflict, a fairbalance between the rights concerned, in accordance with the principle of proportionality.

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(106) Since the objective of this Regulation, namely the proper functioning of the internal market
and to ensure a safe, predictable and trusted online environment in which the fundamental
rights enshrined in the Charter are duly protected, cannot be sufficiently achieved by theMember States because they cannot achieve the necessary harmonisation and cooperation byacting alone, but can rather, by reason of its territorial and personal scope, be better achievedat the Union level, the Union may adopt measures, in accordance with the principle ofsubsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with theprinciple of proportionality, as set out in that Article, this Regulation does not go beyond
what is necessary in order to achieve that objective.,(107) The European Data Protection Supervisor was consulted in accordance with
Article 42(1) of Regulation (EU) 2018/1725 of the European Parliament and of theCouncil54 and delivered an opinion on 10 February 202155,
HAVE ADOPTED THIS REGULATION:

54
55

OJ L 295, 21.11.2018, p. 39
OJ C, p.

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Chapter I – General provisions

Article 1
Subject matter, objectives and scope0.

The aims of this Regulation are to:is to(a)contribute to the proper functioning of the internal market for intermediary services by ;(b)setting out uniform harmonised rules for a safe, predictable and trusted online environment,
where fundamental rights enshrined in the Charter are effectively protected.

1.

This Regulation lays down harmonised rules on the provision of intermediary services in
the internal market. In particular, it establishes:(a)a framework for the conditional exemption from liability of providers ofintermediary services;(b)

rules on specific due diligence obligations tailored to certain specific categories ofproviders of intermediary services;(c)rules on the implementation and enforcement of this Regulation, including as regards
the cooperation of and coordination between the competent authorities.

2.

The aims of this Regulation are to: [moved to paragraph 0]3.

This Regulation shall apply to intermediary services providedoffered to recipients of theservice that have their place of establishment or are locatedresidencein the Union,
irrespective of the place of establishment of the providers of those services.

4.

This Regulation shall not apply to any service that is not an intermediary service or to any
requirements imposed in respect of such a service, irrespective of whether the service isprovided through the use of an intermediary service.

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4a.

This Regulation shall not affect the application of Directive 2000/31/EC.

5.

This Regulation is without prejudice to the rules laid down by other Union legal acts
regulating other aspects of the provision of intermediary services in the internalmarket or specifying and complementing this Regulation, in particular, the following:(a)Directive 2000/31/EC;(b)

Directive 2010/13/EUC;(c)

Union law on copyright and related rights;(d)Regulation (EU) 2021…/784…. on preventing the dissemination of terrorist content
online [TCO once adopted];(e)

Regulation (EU) …./….on European Production and Preservation Orders forelectronic evidence in criminal matters and Directive (EU) …./….laying down
harmonised rules on the appointment of legal representatives for the purpose ofgathering evidence in criminal proceedings [e-evidence once adopted](f)Regulation (EU) 2019/1148;(g)

Regulation (EU) 2019/1150;(h)

Union law on consumer protection and product safety, including Regulation (EU)2017/2394;(i)

Union law on the protection of personal data, in particular Regulation (EU) 2016/679
and Directive 2002/58/EC;(j)

Union law in the field of judicial cooperation in civil matters, in particular
Regulation (EU) 1215/2012 or any Union legal act in the field of law applicable
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(k)

Union law in the field of judicial cooperation in criminal matters, in particular
Regulation (EU) …/… on European Production and Preservation Orders forelectronic evidence in criminal matters;(l)Directive (EU) …/… laying down harmonised rules on the appointment of legal
representatives for the purpose of gathering evidence in criminal proceedings.

Article 2
Definitions
For the purposes of this Regulation, the following definitions shall apply:(a)‘information society services’ means a services as defined in within the meaning of
Article 1(1)(b) of Directive (EU) 2015/1535;(b)‘recipient of the service’ means any natural or legal person who for professional ends orotherwise, uses an intermediary service, in particular for the purposes of seeking
information or making it accessiblethe relevant intermediary service;(c)‘consumer’ means any natural person who is acting for purposes which are outside his or
her trade, business, craft or profession;(d)‘to offer services in the Union’ means enabling natural or legal or natural persons in one
or more Member States to use the services of the provider of informationsocietyintermediary services which has a substantial connection to the Union;

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(da)

‘such a substantial connection’ means a connection of a provider of intermediaryservices with the Union resulting either from its is deemed to exist where the provider
has an establishment in the Union or from ; in the absence of such an establishment, theassessment of a substantial connection is based on specific factual criteria, such as:–a significant number of users recipients of the service in one or more Member States inrelation to its or their population; or–(e)the targeting of activities towards one or more Member States.
‘trader’ means any natural person, or any legal person irrespective of whether privately or
publicly owned, who is acting, including through any person acting in his or her name oron his or her behalf, for purposes relating to his or her trade, business, craft or profession;(f)‘intermediary service’ means one of the following information society services:–a ‘mere conduit’ service that consists of the transmission in a communication networkof information provided by a recipient of the service, or the provision of access to acommunication network;–a ‘caching’ service that consists of the transmission in a communication network of
information provided by a recipient of the service, involving the automatic, intermediate
and temporary storage of that information, for the sole purpose of making more efficientthe information's onward transmission to other recipients upon their request;–a ‘hosting’ service that consists of the storage of information provided by, and at therequest of, a recipient of the service;–an ‘online search engine’ service that allows recipients of the service to input
queries in order to perform searches of, in principle, all websites, or all websites ina particular language, on the basis of a query on any subject in the form of a
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(g)

‘illegal content’ means any information, which, in itself or by its reference to an activity,
including the sale of products or provision of services, is not in compliance with Union law
or the law of anya Member State which is in compliance with Union law, irrespective of
the precise subject matter or nature of that law;(h)‘online platform’ means a provider of a hosting service which, at the request of a recipientof the service, stores and disseminates to the public information, unless that activity is aminor and purely ancillary feature of another service and, for objective and technicalreasons, cannot be used without that other service, and the integration of the feature into
the other service is not a means to circumvent the applicability of this Regulation;.

(i)‘dissemination to the public’ means making information available, at the request of therecipient of the service who provided the information, to a potentially unlimited number ofthird parties;(ia)‘online marketplace’ means an online platform which allows consumers to conclude
distance contracts with traders;(j)‘distance contract’ means a contract as defined in within the meaning of Article 2 point(7) of Directive 2011/83/EU;

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(k)

‘online interface’ means any software, including a website or a part thereof, andapplications, including mobile applications;(l)‘Digital Services Coordinator of establishment’ means the Digital Services Coordinator of
the Member State where the provider of an intermediary service is established or its legal
representative resides or is established;(m)‘Digital Services Coordinator of destination’ means the Digital Services Coordinator of a
Member State where the intermediary service is provided;(ma)‘active recipient of an online platform’ means the recipient of the service that has
engaged with an online platform by either requesting the online platform to host
content or being exposed to content hosted by the online platform and disseminatedthrough their online interface;(mb)‘active recipient of an online search engine’ means a recipient of the service that has
engaged with the online search engine by querying the online search engine and being
exposed to content indexed and presented on its online interface;(n)‘advertisement’ means information designed to promote the message of a legal or natural
person, irrespective of whether to achieve commercial or non-commercial purposes, anddisplayed presented by an online platform on its online interface against remuneration
specifically for promoting that information;(o)‘recommender system’ means a fully or partially automated system used by an online
platform to suggest in its online interface specific information to recipients of the service,including as a result of a search initiated by the recipient of the service or otherwise
determining the relative order or prominence of information displayed;

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(p)

‘content moderation’ means the activities, automated or not, undertaken by providers ofintermediary services aimed, in particular, at detecting, identifying and addressing illegal
content or information incompatible with their terms and conditions, provided by recipientsof the service, including measures taken that affect the availability, visibility, andaccessibility of that illegal content or that information, such as demotion, demonetisation,
disabling of access to, or removal thereof, or the recipients’ ability to provide that
information, such as the termination or suspension of a recipient’s account;(q)‘terms and conditions’ means all terms and conditions or specificationsclauses,
irrespective of their name or form, which govern the contractual relationship between theprovider of intermediary services and the recipients of the services.;(r)‘turnover’ means the amount derived by an undertaking in accordance with Article
5(1) of Regulation (EC) No 139/2004.

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Chapter II – Liability of providers of intermediary services

Article 3‘Mere conduit’
1.

Where an information society service is provided that consists of the transmission in acommunication network of information provided by a recipient of the service, or theprovision of access to a communication network, the service provider shall not be liable forthe information transmitted or accessed, on condition that the provider:

2.

(a)

does not initiate the transmission;(b)

does not select the receiver of the transmission; and(c)does not select or modify the information contained in the transmission.

The acts of transmission and of provision of access referred to in paragraph 1 include theautomatic, intermediate and transient storage of the information transmitted in so far as thistakes place for the sole purpose of carrying out the transmission in the communication
network, and provided that the information is not stored for any period longer than isreasonably necessary for the transmission.

3.

This Article shall not affect the possibility for a court or administrative authority, in
accordance with Member States' legal systems, of requiring the service provider toterminate or prevent an infringement.

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Article 4‘Caching’ and online search engines
1.

Where an information society service is provided that consists of the transmission in acommunication network of information provided by a recipient of the service, or of an
online search engine, the service provider shall not be liable for the automatic,
intermediate and temporary storage of that information, performed for the sole purpose of
making more efficient the information's onward transmission to other recipients of theservice upon their request, or for the search results locating the information related tothe content requested by the recipient of the service, on condition that:(a)the provider does not modify the information;(b)

the provider complies with conditions on access to the information;(c)the provider complies with rules regarding the updating of the information, specified
in a manner widely recognised and used by industry;(d)the provider does not interfere with the lawful use of technology, widely recognised
and used by industry, to obtain data on the use of the information; and(e)the provider acts expeditiously to remove or to disable access to the information it
has stored, indexed or located upon obtaining actual knowledge of the fact that the
information at the initial source of the transmission has been removed from the
network, or access to it has been disabled, or that a court or an administrative
authority has ordered such removal or disablement.

2.

This Article shall not affect the possibility for a court or administrative authority, in
accordance with Member States' legal systems, of requiring the service provider toterminate or prevent an infringement.

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Article 5
Hosting1.

Where an information society service is provided that consists of the storage of
information provided by a recipient of the service, the service provider shall not be liable
for the information stored at the request of a recipient of the service on condition that theprovider:(a)does not have actual knowledge of illegal activity or illegal content and, as regards
claims for damages, is not aware of facts or circumstances from which the illegal
activity or illegal content is apparent; or(b)upon obtaining such knowledge or awareness, acts expeditiously to remove or todisable access to the illegal content.

2.

Paragraph 1 shall not apply where the recipient of the service is acting under the authority
or the control of the provider.

3.

Paragraph 1 shall not apply with respect to liability under consumer protection law
ofwhere an online marketplace platforms allowing consumers to conclude distancecontracts with traders, where such an online platform presents the specific item of
information or otherwise enables the specific transaction at issue in a way that would leadan average and reasonably well-informed consumer to believe that the information, or the
product or service that is the object of the transaction, is provided either by the online
platform marketplace itself or by a recipient of the service who is acting under its
authority or control.

4.

This Article shall not affect the possibility for a court or administrative authority, in
accordance with Member States' legal systems, of requiring the service provider toterminate or prevent an infringement.

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Article 6
Voluntary own-initiative investigations and legal compliance
Providers of intermediary services shall not be deemed ineligible for the exemptions from liability
referred to in Articles 3, 4 and 5 solely because they carry out in good faith and in a diligent
manner voluntary own-initiative investigations or other activities aimed at detecting, identifying
and removing, or disabling of access to, illegal content, or take the necessary measures to comply
with the requirements of Union law, including those set out in this Regulation.

Article 7
No general monitoring or active fact-finding obligations
No general obligation to monitor the information which providers of intermediary services transmit
or store, nor actively to seek facts or circumstances indicating illegal activity shall be imposed on
those providers.

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Article 8
Orders to act against illegal content
1.

Providers of intermediary services shall, upon the receipt of an order to act against one ormore specific items of illegal content, issued by the relevant national judicial oradministrative authorities, on the basis of the applicable Union or national law, incomplianceconformity with Union law, inform the authority issuing the order or any
other authority specified in the order of the effect given to the orders, without undue
delay, specifying the action taken and the moment if and when the order action wasappliedtaken and if the order was not given any effect, the reason thereof.

2.

Member States shall ensure that the orders referred to in paragraph 1 meet at least thefollowing conditions, when they are transmitted to the provider:(a)the orders contains the following elements:(i)– a statement of reasons explaining why the information is illegal content, byreference to the one or more specific provisions of Union or national law
infringed;(ii)– one or more exact uniform resource locators and, where necessary, additional
information enabling the provider of intermediary services to identify andlocate identification of the illegal content concerned, such as one or more exact
uniform resource locators (URL);(iii)– information about redress available to the provider of the service and to therecipient of the service who provided the content;(iv) where applicable, information about which authority should receive theinformation about the effect given to the orders;

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(b)

the territorial scope of the order, on the basis of the applicable rules of Union andnational law, including the Charter, and, where relevant, general principles ofinternational law, does not exceed what is strictly necessary to achieve its objective;(c)the order is drafted transmitted in one of the languages declared by the provider
pursuant to Article 10(3) or in another official language of the Union, bilaterally
agreed by the authority issuing the order and the provider, and is sent to theelectronic point of contact, appointed designated by thate provider, in accordancewith Article 10. Where the order is not drafted in the language declared by theprovider or in another language bilaterally agreed, the order may betransmitted in the language of the authority issuing the order, provided that it isaccompanied by a translation of at least the elements set out in points (a) and (b)of this paragraph.

2a.

The authority issuing the order or, where applicable the authority specified in theorder, shall transmit the order and the information received from the provider ofintermediary services as to the effect given to the order to the Digital Services
Coordinator from the Member State of the issuing authority.

3.

After receiving the order from the judicial or administrative authority, tThe Digital
Services Coordinator from thate Member State of the judicial or administrative authority
issuing the order shall, without undue delay, transmit a copy of the orders referred to inparagraph 1 to all other Digital Services Coordinators through the system established inaccordance with Article 67.

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3a.

Providers of intermediary services shall inform the recipient of the service who
provided the content, at the latest at the time when the order was applied, of theorder received and the effect given to it, or, where applicable, at the time provided by
the issuing authority in its order. Such information to the recipient of the service shall,at least, include the statement of reasons, redress possibilities, and the territorial
scope of the order, as included in the order pursuant to paragraph 2.
4.

This Article shall be without prejudice to national civil and criminal procedural laws.
The conditions and requirements laid down in this article shall be without prejudice torequirements under national criminal procedural law in conformity with Union law.

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Article 9Orders to provide information
1.

Providers of intermediary services shall, upon receipt of an order to provide a specific itemof information about one or more specific individual recipients of the service, issued by therelevant national judicial or administrative authorities on the basis of the applicable Unionor national law, in conformity compliance with Union law, inform without undue delay
the authority of issuing the order or any other authority specified in the order of its
receipt, and of the effect given to the order, specifying if and when the order was applied
and if the order was not given any effect, the reason thereof.

2.

Member States shall ensure that orders referred to in paragraph 1 meet the following
conditions, when they are transmitted to the provider:(a)the order contains the following elements:(i)– a statement of reasons explaining the objective for which the information isrequired and why the requirement to provide the information is necessary andproportionate to determine compliance by the recipients of the intermediaryservices with applicable Union or national rules, unless such a statement cannot beprovided for reasons related to the prevention, investigation, detection andprosecution of criminal offences;(ii)– information about redress available to the provider and to the recipients of theservice concerned;(iii) where applicable, information about which authority should receive theinformation about the effect given to the orders;(b)the order only requires the provider to provide information already collected for the
purposes of providing the service and which lies within its control;

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(c)

the order is drafted transmitted in one of the languages declared by the provider
pursuant to Article 10(3) or in another official language of the Union, bilaterally
agreed by the authority issuing the order and the provider, and is sent to theelectronic point of contact designated appointed by that provider, in accordancewith Article 10. Where the order is not drafted in the language declared by theprovider or in another language bilaterally agreed, the order may betransmitted in the language of the authority issuing the order, provided that it isaccompanied by a translation of at least the elements set out in points (a) and (b)of this paragraph.;2a.

The authority issuing the order or, where applicable the authority specified in theorder, shall transmit the order and the information received from the provider ofintermediary services as to the effect given to the order to the Digital Services
Coordinator from the Member State of the issuing authority.

3.

After receiving the order from the judicial or administrative authority, tThe Digital
Services Coordinator from the that Member State of the national judicial or administrative
authority issuing the order shall, without undue delay, transmit a copy of the order referred
to in paragraph 1 to all Digital Services Coordinators through the system established inaccordance with Article 67.

3a.

Providers of intermediary services shall inform the recipient of the service concerned,
at the latest at the time when the order is applied, of the order received and the effectgiven to it, or, where applicable, at the time provided by the issuing authority in its
order. Such information to the recipient of the service shall, at least, include thestatement of reasons and the redress possibilities, as included in the order pursuant toparagraph 2.

4.

This Article shall be without prejudice to national civil and criminal procedural laws.
The conditions and requirements laid down in this article shall be without prejudice torequirements under national criminal procedural law in conformity with Union law.

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Chapter III
Due diligence obligations for a transparent and safe online
environment
SECTION 1
PROVISIONS APPLICABLE TO ALL PROVIDERS OF INTERMEDIARY SERVICES

Article 10
Electronic pPoints of contact
1.

Providers of intermediary services shall establishdesignate a single electronic point ofcontact allowing for direct communication, by electronic means, with Member States’
authorities, the Commission and the Board referred to in Article 47 for the application ofthis Regulation.

2.

Providers of intermediary services shall make public the information necessary to easily
identify and communicate with their single single electronic points of contact. This
information shall be easily accessible.

3.

Providers of intermediary services shall specify in the information referred to in paragraph
2, the official language or languages of the Union which, in addition to a language
broadly understood by the largest possible number of Union citizens, which can beused to communicate with their electronic points of contact, and which shall include atleast one of the official languages of the Member State in which the provider ofintermediary services has its main establishment or where its legal representative resides oris established.

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Article 11
Legal representatives
1.

Providers of intermediary services which do not have an establishment in the Union but
which offer services in the Union shall designate, in writing, a legal or natural person as
their legal representative in one of the Member States where the provider offers its
services.

2.

Providers of intermediary services shall mandate their legal representatives to be addressedin addition to or instead of the provider by the Member States’ competent authorities, theCommission and the Board on all issues necessary for the receipt of, compliance with andenforcement of decisions issued in relation to this Regulation. Providers of intermediaryservices shall provide their legal representative with the necessary powers and sufficient
resources to cooperate with the Member States’ competent authorities, the Commission
and the Board and comply with those decisions.

3.

The designated legal representative can be held liable for non-compliance with obligations
under this Regulation, without prejudice to the liability and legal actions that could beinitiated against the provider of intermediary services.

4.

Providers of intermediary services shall notify the name, address, the electronic mailaddress and telephone number of their legal representative to the Digital Service
Coordinator in the Member State where that legal representative resides or is established.
They shall ensure that that information is publicly available, easily accessible, accurate
and up to date.

5.

The designation of a legal representative within the Union pursuant to paragraph 1 shallnot amount to an establishment in the Union.

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Article 12
Terms and conditions
1.

Providers of intermediary services shall include information on any restrictions that they
impose in relation to the use of their service in respect of information provided by therecipients of the service, in their terms and conditions. That information shall include
information on any policies, procedures, measures and tools used for the purpose ofcontent moderation, including algorithmic decision-making and human review. It shall be
set out in clear, plain, intelligible and unambiguous language and shall be publicly
available in an easily accessible and machine-readable format.

1a.

Where an intermediary service is primarily aimed at minors or is pre-dominantly
used by them, the provider of that intermediary service shall explain the conditions
and restrictions for the use of the service in a way that minors can understand,including conditions and restrictions imposed to comply with its obligations under
this Regulation, where applicable.

2.

Providers of intermediary services shall act in a diligent, objective and proportionate
manner in applying and enforcing the restrictions referred to in paragraph 1, with due
regard to the rights and legitimate interests of all parties involved, including the applicablefundamental rights of the recipients of the service as enshrined in the Charter.

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Article 13
Transparency reporting obligations for providers of intermediary services
1.

Providers of intermediary services shall publishmake publicly available in a specificsection in their online interface, at least once a year, clear and, easily comprehensible
and detailed reports on any content moderation they engaged in during the relevant period.
Those reports shall include, in particular, information on the following, as applicable:(a)for providers of intermediary services, the number of orders received from
Member States’ authorities, including orders issued in accordance with Articles 8
and 9, categorised by the type of illegal content concerned, including orders issuedin accordance with Articles 8 and 9, and the median average time needed for taking
the action specified in those orders;(b)for providers of hosting services, the number of notices submitted in accordancewith Article 14, categorised by the type of alleged illegal content concerned, any
action taken pursuant to the notices by differentiating whether the action was takenon the basis of the law or the terms and conditions of the provider, the number ofnotices submitted by trusted flaggers, the number of notices processed
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(c)

for providers of intermediary services, as applicable, the content moderation
engaged in at the providers’ own initiative, including the number and type of
removals or other restrictions of the availability, measures taken that affect theavailability, visibility and accessibility of information provided by the recipients ofthe service and the recipients’ ability to provide information through the service,and other related restrictions of the service. The information reported shall be,
categorised by the type of illegal content or violation of the terms and conditionsof the service provider, by the detection method and by the type of restriction
appliedby the type of reason and basis for taking those measures;(d)for providers of intermediary services, as applicable, the number of complaints
received through the internal complaint-handling systems in accordance with theprovider’s terms and conditions and, for providers of online platforms, also inaccordance with referred to in Article 17, the basis for those complaints, decisions
taken in respect of those complaints, the median average time needed for taking
those decisions and the number of instances where those decisions were reversed.

2.

Paragraph 1 of this Article shall not apply to providers of intermediary services that
qualify as micro or small enterprises within the meaning of the Annex to Recommendation
2003/361/EC and which are not very large online platforms in accordance with Article
25 of this Regulation.

3.

The Commission may adopt implementing acts to lay down templates concerning theform, content and other details of reports pursuant to paragraph 1 of this Article,
including harmonised reporting periods. Those implementing acts shall be adopted inaccordance with the advisory procedure referred to in Article 70.

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SECTION 2
ADDITIONAL PROVISIONS APPLICABLE TO PROVIDERS OF HOSTING SERVICES,INCLUDING PROVIDERS OF ONLINE PLATFORMS

Article 14
Notice and action mechanisms
1.

Providers of hosting services shall put mechanisms in place to allow any individual orentity to notify them of the presence on their service of specific items of information thatthe individual or entity considers to be illegal content. Those mechanisms shall be easy toaccess, user-friendly, and allow for the submission of notices exclusively by electronicmeans.

2.

The mechanisms referred to in paragraph 1 shall be such as to facilitate the submission of
sufficiently precise and adequately substantiated notices, on the basis of which a diligent
economic operator can identify the illegality of the content in question. To that end, theproviders of hosting services shall take the necessary measures to enable and facilitate thesubmission of notices containing all of the following elements:(a)an sufficiently substantiated explanation of the reasons why the individual or entity
allegesconsiders the information in question to be illegal content;(b)a clear indication of the electronic location of that information, in particularsuch as
the exact URL or URLs, and, where necessary, additional information enabling theidentification of the illegal content;(c)the name and an electronic mail address of the individual or entity submitting thenotice, except in the case of information considered to involve one of the offencesreferred to in Articles 3 to 7 of Directive 2011/93/EU;(d)a statement confirming the good faith belief of the individual or entity submitting thenotice that the information and allegations contained therein are accurate andcomplete.

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3.

Notices that include the elements referred to in paragraph 2 of this Article on the basis ofwhich a diligent provider of hosting services can identify the illegality of the content
in question shall be considered to give rise to actual knowledge or awareness for the
purposes of Article 5 in respect of the specific item of information concerned.

4.

Where the notice contains the name and an electronic contact information mail address of
the individual or entity that submitted it, the provider of hosting services shall, promptly
without undue delay, send a confirmation of receipt of the notice to that individual orentity.

5.

The provider shall also, without undue delay, notify that individual or entity of its decision
in respect of the information to which the notice relates, providing information on theredress possibilities in respect of that decision.

6.

Providers of hosting services shall process any notices that they receive under themechanisms referred to in paragraph 1, and take their decisions in respect of theinformation to which the notices relate, in a timely, diligent and objective manner. Where
they use automated means for that processing or decision-making, they shall include
information on such use in the notification referred to in paragraph 54.

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Article 15
Statement of reasons
1.

Providers of hosting services shall provide a clear and specific statement of reasons to
any affected recipients of the service for any of the following restrictions imposed:a)any restrictions of the visibility of specific items of information provided by therecipient of the service, including removal of content, or disabling access tocontent;b)suspension, termination or other restriction of monetary payments (monetisation);c)suspension or termination of the provision of the service in whole or in part;d)suspension or termination of the recipient's accounts.

This paragraph shall only apply where the relevant electronic contact details are known
to the provider. It shall apply at the latest when the restriction is imposed, andregardless of why or how it was imposed.
1.

Where a provider of hosting services decides to remove or disable access to specific items of
information provided by the recipients of the service, irrespective of the means used for
detecting, identifying or removing or disabling access to that information and of the reason for
its decision, it shall inform the recipient, at the latest at the time of the removal or disabling ofaccess, of the decision and provide a clear and specific statement of reasons for that decision.

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2.

The statement of reasons referred to in paragraph 1 shall at least contain the following
information:(a)whether the decision entails either the removal of, or the disabling of access to, therestriction of the visibility of, the information or the suspension or termination ofmonetary payments related to that informationand, where relevant, the territorial
scope of the disabling of access;(b)

the facts and circumstances relied on in taking the decision, including where relevant
whether the decision was taken pursuant to a notice submitted in accordance with
Article 14;(c)where applicable, information on the use made of automated means in taking thedecision, including where the decision was taken in respect of content detected or
identified using automated means;(d)where the decision concerns allegedly illegal content, a reference to the legal groundrelied on and explanations as to why the information is considered to be illegal content
on that ground;(e)where the decision is based on the alleged incompatibility of the information with theterms and conditions of the provider of hosting services, a reference to the contractual
ground relied on and explanations as to why the information is considered to beincompatible with that ground;(f)information on the redress possibilities available to the recipient of the service in respectof the decision, in particular through internal complaint-handling mechanisms, out-ofcourt dispute settlement and judicial redress.

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3.

The information provided by the providers of hosting services in accordance with this Article
shall be clear and easily comprehensible and as precise and specific as reasonably possible
under the given circumstances. The information shall, in particular, be such as to reasonably
allow the recipient of the service concerned to effectively exercise the redress possibilities
referred to in point (f) of paragraph 2.

4.

Providers of hosting services shall publish the decisions and the statements of reasons,referred to in paragraph 1 in a publicly accessible database managed by the Commission. That
information shall not contain personal data.[moved to Article 23(2a).

5.

This article shall not apply to any orders issued pursuant to Article 8.

Article 15a21
Notification of suspicions of criminal offences
1.

Where an provider of hosting services online platform becomes aware of any information
giving rise to a suspicion that a serious criminal offence involving a threat to the life or safetyof a person or persons has taken place, is taking place or is likely to take place, it shallpromptly inform the law enforcement or judicial authorities of the Member State or Member
States concerned of its suspicion and provide all relevant information available.

2.

Where the provider of hosting servicesonline platform cannot identify with reasonablecertainty the Member State concerned, it shall inform the law enforcement authorities of theMember State in which it is established or has its legal representative or inform Europol.
For the purpose of this Article, the Member State concerned shall be the Member State where
the offence is suspected to have taken place, be taking place and likely to take place, or theMember State where the suspected offender resides or is located, or the Member State wherethe victim of the suspected offence resides or is located.

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SECTION 3
ADDITIONAL PROVISIONS APPLICABLE TO PROVIDERS OF ONLINE PLATFORMS

Article 16
Exclusion for micro and small enterprises
This Section and Section 3a shall not apply to providers of online platforms that qualify as microor small enterprises within the meaning of the Annex to Recommendation 2003/361/EC, except
when they are very large online platforms in accordance with Article 25.

Article 17
Internal complaint-handling system
1.

Providers of oOnline platforms shall provide recipients of the service, including
individuals or entities that have submitted a notice, for a period of at least six months
following the decision referred to in this paragraph, the access to an effective internal
complaint-handling system, which enables the complaints to be lodged electronically andfree of charge, against the decision taken by the provider of the online platform not to
act upon the receipt of a notice or against the following decisions taken by the providerof the online platform on the ground that the information provided by the recipients isillegal content or incompatible with its terms and conditions:(a)decisions whether or not to remove or disable access to or restrict visibility of theinformation;(b)decisions whether or not to suspend or terminate the provision of the service, inwhole or in part, to the recipients;(c)13203/21
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(d)

decision whether or not to suspend, terminate or otherwise restrict monetary
payments related to content provided by the recipients.

2.

Providers of oOnline platforms shall ensure that their internal complaint-handling systems
are easy to access, user-friendly and enable and facilitate the submission of sufficiently
precise and adequately substantiated complaints.

3.

Providers of Oonline platforms shall handle complaints submitted through their internal
complaint-handling system in a timely, diligent and objective manner. Where a complaint
contains sufficient grounds for the provider of the online platform to consider that its
decision not to act upon the request of a notice is unfounded or that the information towhich the complaint relates is not illegal and is not incompatible with its terms andconditions, or contains information indicating that the complainant’s conduct does notwarrant the suspension or termination of the service or the account or the restriction tomonetary payments related to content, it shall reverse its decision referred to inparagraph 1 without undue delay.

4.

Providers of oOnline platforms shall inform complainants without undue delay of thedecision they have taken in respect of the information to which the complaint relates,clearly justify their decision and shall inform complainants of the possibility of out-ofcourt dispute settlement provided for in Article 18 and other available redress possibilities.

5.

Providers of oOnline platforms shall ensure that the decisions, referred to in paragraph 4,
are not solely taken on the basis of automated means.

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Article 18
Out-of-court dispute settlement
1.

Recipients of the service, including individuals or entities that have submitted notices,
addressed by the decisions referred to in Article 17(1), shall be entitled to select any outof-court dispute settlement body that has been certified in accordance with paragraph 2 ofthis Article in order to resolve disputes relating to those decisions, including complaints
that could not be resolved by means of the internal complaint-handling system referred toin that Article. Providers of oOnline platforms shall engage, in good faith, with the bodyselected with a view to resolving the dispute and shall be bound by the decision taken by
the body.
The first subparagraph is without prejudice to the right of the recipient of the service
concerned, including the individual or entity, concerned to inititiate proceedings
redress against the decision before a court in accordance with the applicable law including
proceedings in relation to the decision of the provider of online platform referred toin Article 17(1).
Providers of online platform may refuse to engage in a dispute settlement when thesame dispute regarding the same content has already been resolved or is being
reviewed by another dispute settlement body.

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2.

The Digital Services Coordinator of the Member State where the out-of-court disputesettlement body is established shall, at the request of that body, certify the body, at its
request, where the body has demonstrated that it meets all of the following conditions:(a)

it is impartial and impartial and independent of providers of online platforms andof and recipients of the service provided by the online platforms, including ofindividuals or entities that have submitted notices;(b)

it has the necessary expertise in relation to the issues arising in one or more particularareas of illegal content, or in relation to the application and enforcement of terms andconditions of one or more types of online platforms, allowing the body to contribute
effectively to the settlement of a dispute;(c)the dispute settlement is easily accessible through electronic communication
technology;(d)

it is capable of settling dispute in a swift, efficient and cost-effective manner and in
at least one official language of the Union;(e)the dispute settlement takes place in accordance with clear and fair rules ofprocedure, in compliance with applicable legislation.

The Digital Services Coordinator shall, where applicable, specify in the certificate theparticular issues to which the body’s expertise relates and the official language or
languages of the Union in which the body is capable of settling disputes, as referred to inpoints (b) and (d) of the first subparagraph, respectively.
2a.

Where an out-of-court dispute settlement body is certified by the competent Digital
Services Coordinator pursuant to paragraph 2, that certification shall be valid in all
Member States.

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3.

If the body decides the dispute in favour of the recipient of the service, including of theindividual or entity that have submitted a notice, the provider of the online platform
shall bear the fees of the dispute resolution and shall reimburse the recipient, including
the individual or entity, for any fees and other reasonable expenses that the recipient
hasthey have paid or is to pay in relation to the dispute settlement. If the body decides the
dispute in favour of the provider of the online platform, the recipient, including theindividual or entity, shall not be required to reimburse any fees or other expenses that theprovider of the online platform paid or is to pay in relation to the dispute settlement
unless the recipient, including the individual or entity, acted in manifestly bad faith.
The fees charged by the body for the dispute settlement shall be reasonable, accessible,
attractive and inexpensive for consumers. The fees and shall in any event not exceed thenominal fee and the costs thereof.
Certified out-of-court dispute settlement bodies shall make the fees, or the mechanisms
used to determine the fees, known to the recipient of the services, including to theindividuals or entities that have submitted a notice, and the provider of the online
platform concerned before engaging in the dispute settlement.

4.

Member States may establish out-of-court dispute settlement bodies for the purposes ofparagraph 1 or support the activities of some or all out-of-court dispute settlement bodies
that they have been certified in accordance with paragraph 2.
Member States shall ensure that any of their activities undertaken under the firstsubparagraph do not affect the ability of their Digital Services Coordinators to certify thebodies concerned in accordance with paragraph 2.

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4a.

The Digital Services Coordinator that certified the out-of-court dispute settlement
body shall revoke that certification if it determines, following an investigation either
on its own initiative or on the basis of the information received by third parties, thatthe body no longer meets the conditions set out in paragraph 2. Before revoking thatcertification, the Digital Services Coordinator shall afford the body an opportunity toreact to the findings of its investigation and its intention to revoke the body’s
certification.

5.

Digital Services Coordinators shall notify to the Commission the out-of-court disputesettlement bodies that they have certified in accordance with paragraph 2, including whereapplicable the specifications referred to in the second subparagraph of that paragraph, aswell as the out-of-court dispute settlement bodies whose certification they haverevoked. The Commission shall publish a list of those bodies, including thosespecifications, on a dedicated website that is easily accessible, and keep it updated.

6.

This Article is without prejudice to Directive 2013/11/EU and alternative dispute
resolution procedures and entities for consumers established under that Directive.

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Article 19
Trusted flaggers
1.

Providers of oOnline platforms shall take the necessary technical and organisational
measures to ensure that notices submitted by trusted flaggers through the mechanisms
referred to in Article 14, are processed and decided upon with priority and without delay.

2.

The status of trusted flaggers under this Regulation shall be awarded, upon application by
any entities, by the Digital Services Coordinator of the Member State in which theapplicant is established, where the applicant has demonstrated to meet all of the following
conditions:(a)it has particular expertise and competence for the purposes of detecting, identifying
and notifying illegal content;(b)

it represents collective interests and it is independent from any provider of online
platforms;(c)

it carries out its activities for the purposes of submitting notices in a timely, diligent
and objective manner.

3.

Digital Services Coordinators shall communicate to the Commission and the Board thenames, addresses and electronic mail addresses of the entities to which they have awarded
the status of the trusted flagger in accordance with paragraph 2 or revoked it inaccordance with paragraph 6.

4.

The Commission shall publish the information referred to in paragraph 3 in a publicly
available and easily accessible database and keep the database updated.

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5.

Where a provider of an online platforms has information indicating that a trusted flagger
submitted a significant number of insufficiently precise or inadequately substantiatednotices through the mechanisms referred to in Article 14, including information gathered inconnection to the processing of complaints through the internal complaint-handlingsystems referred to in Article 17(3), it shall communicate that information to the Digital
Services Coordinator that awarded the status of trusted flagger to the entity concerned,
providing the necessary explanations and supporting documents.

6.

The Digital Services Coordinator that awarded the status of trusted flagger to an entity
shall revoke that status if it determines, following an investigation either on its own
initiative or on the basis information received by third parties, including the information
provided by a provider of an online platforms pursuant to paragraph 5, that the entity nolonger meets the conditions set out in paragraph 2. Before revoking that status, the Digital
Services Coordinator shall afford the entity an opportunity to react to the findings of its
investigation and its intention to revoke the entity’s status as trusted flagger.

7.

The Commission, after consulting the Board, may issue guidance to assist providers of
online platforms and Digital Services Coordinators in the application of paragraphs 2, 5
and 6.

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Article 20
Measures and protection against misuse
1.

Providers of oOnline platforms shall suspend, for a reasonable period of time and after
having issued a prior warning, the provision of their services to recipients of the service
that frequently provide manifestly illegal content.

2.

Providers of oOnline platforms shallmay suspend, for a reasonable period of time andafter having issued a prior warning, the processing of notices and complaints submitted
through the notice and action mechanisms and internal complaints-handling systems
referred to in Articles 14 and 17, respectively, by individuals or entities or by complainants
that frequently submit notices or complaints that are manifestly unfounded.

3.

When deciding on the suspension, providers of oOnline platforms shall assess, on acase-by-case basis and in a timely, diligent and objective manner, whether a recipient of
the service, individual, entity or complainant engages in the misuse referred to inparagraphs 1 and 2, taking into account all relevant facts and circumstances apparent fromthe information available to the provider of the online platform. Those circumstances
shall include at least the following:(a)the absolute numbers of items of manifestly illegal content or manifestly unfounded
notices or complaints, submitted in a given time framethe past year;(b)

the relative proportion thereof in relation to the total number of items of information
provided or notices submitted in the past yeara given time frame;(c)the gravity of the misuses, including the nature of illegal content, and of its
consequences;(d)where it is possible to infer it, the intention of the recipient of the service,
individual, entity or complainant.

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4.

Providers of oOnline platforms shall set out, in a clear and detailed manner, their policy inrespect of the misuse referred to in paragraphs 1 and 2 in their terms and conditions,
including as regards the facts and circumstances that they take into account when assessing
whether certain behaviour constitutes misuse and the duration of the suspension.
Article 21
Notification of suspicions of criminal offences

1.

Where an online platform becomes aware of any information giving rise to a suspicion that a
serious criminal offence involving a threat to the life or safety of persons has taken place, istaking place or is likely to take place, it shall promptly inform the law enforcement or judicial
authorities of the Member State or Member States concerned of its suspicion and provide all
relevant information available.

2.

Where the online platform cannot identify with reasonable certainty the Member State
concerned, it shall inform the law enforcement authorities of the Member State in which it isestablished or has its legal representative or inform Europol.
For the purpose of this Article, the Member State concerned shall be the Member State where
the offence is suspected to have taken place, be taking place and likely to take place, or theMember State where the suspected offender resides or is located, or the Member State wherethe victim of the suspected offence resides or is located.

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[Article 22 moved to Article 24a, into new Section 3a]

Article 22
Traceability of traders
1.

Where an online platform allows consumers to conclude distance contracts with traders, it
shall ensure that traders can only use its services to promote messages on or to offer products
or services to consumers located in the Union if, prior to the use of its services, the online
platform has obtained the following information:(a)the name, address, telephone number and electronic mail address of the trader;(b)a copy of the identification document of the trader or any other electronic identification
as defined by Article 3 of Regulation (EU) No 910/2014 of the European Parliamentand of the Council56;(c)the bank account details of the trader, where the trader is a natural person;(d)the name, address, telephone number and electronic mail address of the economic
operator, within the meaning of Article 3(13) and Article 4 of Regulation (EU)2019/1020 of the European Parliament and the Council57 or any relevant act of Union
law;

(e)

where the trader is registered in a trade register or similar public register, the traderegister in which the trader is registered and its registration number or equivalent meansof identification in that register;

56

57

Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23 July
2014 on electronic identification and trust services for electronic transactions in the internalmarket and repealing Directive 1999/93/EC
Regulation (EU) 2019/1020 of the European Parliament and of the Council of 20 June 2019
on market surveillance and compliance of products and amending Directive 2004/42/EC andRegulations (EC) No 765/2008 and (EU) No 305/2011 (OJ L 169, 25.6.2019, p. 1).

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(f)

a self-certification by the trader committing to only offer products or services thatcomply with the applicable rules of Union law.

2.

The online platform shall, upon receiving that information, make reasonable efforts to assess
whether the information referred to in points (a), (d) and (e) of paragraph 1 is reliable throughthe use of any freely accessible official online database or online interface made available bya Member States or the Union or through requests to the trader to provide supporting
documents from reliable sources.

3.

Where the online platform obtains indications that any item of information referred to inparagraph 1 obtained from the trader concerned is inaccurate or incomplete, that platform
shall request the trader to correct the information in so far as necessary to ensure that all
information is accurate and complete, without delay or within the time period set by Unionand national law.
Where the trader fails to correct or complete that information, the online platform shallsuspend the provision of its service to the trader until the request is complied with.

4.

The online platform shall store the information obtained pursuant to paragraph 1 and 2 in asecure manner for the duration of their contractual relationship with the trader concerned.
They shall subsequently delete the information.

5.

Without prejudice to paragraph 2, the platform shall only disclose the information to third
parties where so required in accordance with the applicable law, including the orders referred
to in Article 9 and any orders issued by Member States’ competent authorities or theCommission for the performance of their tasks under this Regulation.

6.

The online platform shall make the information referred to in points (a), (d), (e) and (f) ofparagraph 1 available to the recipients of the service, in a clear, easily accessible andcomprehensible manner.

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7.

The online platform shall design and organise its online interface in a way that enables traders
to comply with their obligations regarding pre-contractual information and product safety
information under applicable Union law.

Article 23
Transparency reporting obligations for providers of online platforms
1.

In addition to the information referred to in Article 13, providers of online platforms shall
include in the reports referred to in that Article information on the following:(a)the number of disputes submitted to the out-of-court dispute settlement bodies
referred to in Article 18, the outcomes of the dispute settlement, and the medianaverage time needed for completing the dispute settlement procedures and the shareof disputes where the platform implemented the decisions of the body;(b)the number of suspensions imposed pursuant to Article 20, distinguishing between
suspensions enacted for the provision of manifestly illegal content, the submission of
manifestly unfounded notices and the submission of manifestly unfounded
complaints;(c)

any use made of automatic means for the purpose of content moderation, including a
specification of the precise purposes, indicators of the accuracy of the automatedmeans in fulfilling those purposes and any safeguards applied.

2.

Providers of oOnline platforms shall publish in a publicly available section of their
online interface, at least once every six months, information on the average monthly
active recipients of the service in the Unioneach Member State, calculated as an averageover the period of the past six months, in accordance with the methodology laid down in
the any delegated acts adopted pursuant to Article 25(32).

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2a.

Providers of online platforms shall, without undue delay, submit the decisions and thestatements of reasons, referred to in Article 15(1), for the inclusion in a structured
database managed by the Commission. This database shall be accessible to vetted
researchers pursuant to Article 31 and to Digital Services Coordinators, who may
grant access to that database to any relevant national authority in their Member
States. Providers of online platforms shall ensure that the information submitted does
not contain personal data. [moved from Article 15(4)]3.

Providers of oOnline platforms shall communicate to the Digital Services Coordinator of
establishment and the Commission, upon itstheir request, the information referred to inparagraph 2, updated to the moment of such request. That Digital Services Coordinator or
the Commission may require the provider of the online platform to provide additional
information as regards the calculation referred to in that paragraph, including explanations
and substantiation in respect of the data used. That information shall not include personal
data.

3a.

When the Digital Services Coordinator of establishment determines, based theinformation received pursuant to paragraphs 2 and 3, that a provider of online
platform meets the threshold of average monthly active recipients of the service in theUnion, laid down in Article 25(1), it shall inform the Commission thereof.

4.

The Commission may adopt implementing acts to lay down templates concerning the form,
content and other details of reports pursuant to paragraph 1 of this Article. Those
implementing acts shall be adopted in accordance with the advisory procedurereferred to in Article 70.

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Article 24
Online advertising transparency
1.

Providers of oOnline platforms that presentdisplay advertising on their online interfaces
shall ensure that the recipients of the service can identify, for each specific advertisement
displayed presented to each individual recipient, in a clear, salient and unambiguous mannerand in real time:(a)that the information displayed presented is an advertisement, including throughprominent markings. Such markings may be standardised pursuant to Article 34;(b)

the natural or legal person on whose behalf the advertisement is displayedpresented;(c)meaningful information about the main parameters used to determine the recipient towhom the advertisement is displayedpresented. The information shall be directly andeasily accessible from the advertisement.

2.

Providers of online platforms shall provide recipients of the service with a functionality
to declare whether the content they provide is or contains commercial communications
as defined in Article 2(f) of Directive 2000/31/EC.
When the recipient of the service submits a declaration pursuant to this paragraph, theprovider of online platform shall ensure that other recipients of the service can identify
in a clear and unambiguous manner and in real time, including through prominent
markings, that the content provided by the recipient of the service is or contains
commercial communications. Such markings may be standardised pursuant to Article
34.

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SECTION 3A
PROVISIONS APPLICABLE TO PROVIDERS OF ONLINE MARKETPLACES

Article 224a
Traceability of traders
1.

Where an online platform allows consumers to conclude distance contracts with traders, it
Providers of online marketplaces shall ensure that traders can only use its their services
to promote messages on or to offer products or services to consumers located in the Unionif, prior to the use of its their services, the providers of online platform marketplaces
haves obtained the following information, where applicable:(a)the name, address, telephone number and electronic mail address of the trader;(b)a copy of the identification document of the trader or any other electronic
identification as defined by Article 3 of Regulation (EU) No 910/2014 of theEuropean Parliament and of the Council58;(c)the bank payment account details of the trader, where the trader is a natural person;(d)the name, address, telephone number and electronic mail address of the economic
operator, within the meaning of Article 3(13) and Article 4 of Regulation (EU)2019/1020 of the European Parliament and the Council or any relevant act of Union
law;

58

Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23 July
2014 on electronic identification and trust services for electronic transactions in the internalmarket and repealing Directive 1999/93/EC.

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(e)

where the trader is registered in a trade register or similar public register, the traderegister in which the trader is registered and its registration number or equivalentmeans of identification in that register;(f)a self-certification by the trader committing to only offer products or services thatcomply with the applicable rules of Union law.

2.

The provider of the online platform marketplace shall, upon receiving that information,
make reasonable best efforts to assess, prior to the use of their services, whether the
information referred to in points (a), (d) and (e) of paragraph 1 is reliable through the useof any freely accessible official online database or online interface made available by aMember States or the Union or through requests to the trader to provide supporting
documents from reliable sources.

3.

Where the provider of the online platform marketplace obtains sufficient indications that
any item of information referred to in paragraph 1 obtained from the trader concerned is
inaccurate, or incomplete or not up to date, that provider platform shall request the trader
to correct the information in so far as necessary to ensure that all information is accurate,and complete and up to date, without delay or within the time period set by Union andnational law.
Where the trader fails to correct or complete that information, the provider of online
platform marketplace shall suspend the provision of its service to the trader until therequest is complied with.

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4.

The provider of the online marketplace platform shall store the information obtained
pursuant to paragraph 1 and 2 in a secure manner for the duration of 6 months after theend of the their contractual relationship with the trader concerned. They shall subsequently
delete the information.

5.

Without prejudice to paragraph 2 of this Article, the providers of online marketplaces
platform shall only disclose the information to third parties where so required inaccordance with the applicable law, including the orders referred to in Article 9 and any
orders issued by Member States’ competent authorities or the Commission for the
performance of their tasks under this Regulation.

6.

The provider of online marketplace platform shall make the information referred to inpoints (a), (d), (e) and (f) of paragraph 1 available to the recipients of the service, at leaston the product listing, in a clear, easily accessible and comprehensible manner.

7.

The online platform shall design and organise its online interface in a way that enables
traders to comply with their obligations regarding pre-contractual information and productsafety information under applicable Union law. [this provision is moved to Article 24b]

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Article 24b
Compliance by design-1.

Providers of online marketplaces shall not design, structure, or organise their online
interface in a way that either purposefully or in effect deceives or manipulates
recipients of the service, by subverting or impairing their autonomy, decision-making
or choices.

1.

Providers of online marketplaces shall design and organise their online interface in a
way that enables traders to comply with their obligations regarding pre-contractual
information and product safety information under applicable Union law.
In particular, such online interfaces shall enable traders to provide information on
the name, address, telephone number and electronic mail address of the economic
operator, as defined in Article 3(13) of Regulation (EU) 2019/1020.

2.

The online interface shall allow traders to provide at least the information necessary
for the clear and unambiguous identification of the products or the services offered,
and, where applicable, the information concerning the labelling in compliance withrules of applicable Union law on product safety and product compliance.

3.

Providers of online marketplaces shall make best efforts to assess whether traders
have provided the information referred to in paragraphs 1 and 2 prior to allowing theoffering of the product or service by the trader.

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Article 24c
Right to information
1.

Where a provider of an online marketplace becomes aware, irrespective of the means
used to, of an illegal product or service offered through its services, it shall inform
those recipients of the service that had acquired such product or contracted suchservice during the last six months about the illegality, the identity of the trader andany relevant means of redress.

2.

Where the provider of the online marketplace does not have the contact details of therecipients of the service referred to in paragraph 1, the provider shall make publicly
available and easily accessible on its online interface the information concerning theillegal products or services removed, the identity of the trader and any means ofredress.

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SECTION 4ADDITIONAL OBLIGATIONS FOR PROVIDERS OF VERY LARGE ONLINE PLATFORMS
AND VERY LARGE ONLINE SEARCH ENGINES TO MANAGE SYSTEMIC RISKS

Article 25
Very large online platforms
1.

This Section shall apply to online platforms which provide their servicesreach to a numberof average monthly active recipients of the service in the Union equal to or higher than 45
million, calculated in accordance with the methodology set out in the delegated acts
referred to in paragraph 3, and which are designated as very large online platforms
pursuant to paragraph 4.

2.

The Commission shall adopt delegated acts in accordance with Article 69 to adjust the
number of average monthly active recipients of the service in the Union referred to inparagraph 1, where the Union’s population increases or decreases at least with 5 % in
relation to its population in 2020 or, after adjustment by means of a delegated act, of its
population in the year in which the latest delegated act was adopted. In that case, it shalladjust the number so that it corresponds to 10% of the Union’s population in the year inwhich it adopts the delegated act, rounded up or down to allow the number to be expressedin millions.

3.

The Commission may shall adopt delegated acts in accordance with Article 69, after
consulting the Board, to provide additional specifications for the lay down a specificmethodology for calculating the number of average monthly active recipients of the service
in the Union, for the purposes of paragraph 1 of this Article and Article 23(2), in orderto regularly adapt such specifications for the methodology to market andtechnological developments. The methodology shall specify, in particular, how todetermine the Union’s population and criteria to determine the average monthly active
recipients of the service in the Union, taking into account different accessibility features.

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4.

The The Commission shall, after having heard the Digital Services Coordinator of
establishment concerned, adopt a decision designating as a very large online platform
for the purposes of this Regulation the online platform which has a verify, at least every
six months, whether the number of average monthly active recipients of the service in theUnion of online platforms under their jurisdiction is equal to or higher than the number
referred to in paragraph 1. The Commission shall take its decision on the basis of datareported by the provider of the online platform pursuant to Article 23(2), and, whereapplicable, additional information requested pursuant to Article 23(3) and any otherreliable data. On the basis of that verification, it shall adopt a decision designating the online
platform as a very large online platform for the purposes of this Regulation, or terminatingthat designation, and communicate that decision, without undue delay, to the online platform
concerned and to the Commission.
The failure by the provider of the online platform to comply with Article 23(2) or tocomply with the request by the Digital Services Coordinator of establishment or by theCommission pursuant to Article 23(3) shall not prevent the Commission fromdesignating that provider as a provider of very large online platform pursuant to thisparagraph or pursuant to any other information otherwise obtained by the Digital
Services Coordinator of establishment or the Commission.
When the Commission bases its decision on other reliable data pursuant to the first subparagraph of this paragraph, the Commission shall give the opportunity to theconcerned provider of online platform to provide its views within 10 working days on
the preliminary findings by the Commission that it intends to designate the online
platform as a very large online platform and shall take due account of the views
provided by the concerned provider.
The absence of the views of the provider of the online platform pursuant to the second
sub-paragraph of this paragraph shall not prevent the Commission from designatingthat online platform as a very large online platform based on such reliable data.

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5.

Where the Commission establishes that during one year the number of average monthly
active recipients of the online platform is below the threshold referred to in paragraph
1, it shall terminate the designation of the online platform as a very large online
platform by decision.

6.

The Commission shall communicate its decisions pursuant to paragraphs 4 and 5,
without undue delay, to the provider of the online platform concerned, to the Board andto the Digital Services Coordinator of establishment.
The Commission shall ensure that the list of designated very large online platforms ispublished in the Official Journal of the European Union and keep that list updated. The
obligations of set out in this Section shall apply, or cease to apply, to the very large online
platforms concerned from four months after that publication.

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Article 26
Risk assessment
1.

Providers of vVery large online platforms shall identify, analyse and assess, from the date ofapplication referred to in the second subparagraph of Article 25(64), at least once a year
thereafter, any significant systemic risks stemming from the functioning and use made of theirservices in the Union. This risk assessment shall be specific to their services and shall include
the following systemic risks:(a)the dissemination of illegal content through their services;(b)

any negative effects for the exercise of the fundamental rights to respect for private andfamily life, freedom of expression and information, the prohibition of discriminationand the rights of the child, as enshrined in Articles 7, 11, 21 and 24 of the Charter
respectively;(c)intentional manipulation of their service, including by means of inauthentic use or
automated exploitation of the service, with an actual or foreseeable negative effect on
the protection of public health, minors, civic discourse, or actual or foreseeable effects
related to electoral processes and public security.

2.

When conducting risk assessments, providers of very large online platforms shall take into
account, in particular, how their content moderation systems, recommender systems andsystems for selecting and presentingdisplaying advertisement influence any of the systemicrisks referred to in paragraph 1, including the potentially rapid and wide dissemination ofillegal content and of information that is incompatible with their terms and conditions.

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Article 27
Mitigation of risks
1.

Providers of vVery large online platforms shall put in place reasonable, proportionate andeffective mitigation measures, tailored to the specific systemic risks identified pursuant to
Article 26, with particular consideration to the impacts of such measures on
fundamental rights. Such measures may include, where applicable:(a)adapting content moderation or recommender systems, their decision-making
processes, [moved to point aa] the features or functioning of their services, or theirterms and conditions and recommender systems;(aa) adapting content moderation processes, including the speed and quality ofprocessing notices related to specific types of illegal content and, whereappropriate, the expeditious removal of or disabling access to the content
notified, in particular for the majority of illegal hate speech; as well as adapting
any relevant decision-making processes and dedicated resources for content
moderation;(b)

targeted measures aimed at limiting the presentation display of advertisements inassociation with the service they provide;(c)reinforcing the internal processes or supervision of any of their activities in particular
as regards detection of systemic risk;(d)initiating or adjusting cooperation with trusted flaggers in accordance with Article 19
and the implementation of the decision of out-of-court dispute settlement bodies
pursuant to Article 18;(e)initiating or adjusting cooperation with other providers of online platforms throughthe codes of conduct and the crisis protocols referred to in Article 35 and 37
respectively;.

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(f)

taking awareness-raising measures and adapting their online interface forincreased user information;(g)taking targeted measures to protect the rights of the child, including age
verification and parental control tools, or tools aimed at helping minors signal
abuse or obtain support, as appropriate.

2.

The Board, in cooperation with the Commission, shall publish comprehensive reports, oncea year, which shall include the following:(a)identification and assessment of the most prominent and recurrent systemic risks
reported by providers of very large online platforms or identified through otherinformation sources, in particular those provided in compliance with Article 31 and
33;

(b)

best practices for providers of very large online platforms to mitigate the systemicrisks identified.

3.

The Commission, in cooperation with the Digital Services Coordinators, may issue general
guidelines on the application of paragraph 1 in relation to specific risks, in particular topresent best practices and recommend possible measures, having due regard to the possible
consequences of the measures on fundamental rights enshrined in the Charter of all parties
involved. When preparing those guidelines the Commission shall organise public
consultations.

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Article 28
Independent audit
1.

Providers of vVery large online platforms shall be subject, at their own expense and at
least once a year, to audits to assess compliance with the following:(a)the obligations set out in Chapter III;(b)

any commitments undertaken pursuant to the codes of conduct referred to in Articles
35 and 36 and the crisis protocols referred to in Article 37.

2.

Audits performed pursuant to paragraph 1 shall be performed according to best industry
practices by organisations which:(a)are independent from the provider of very large online platforms concerned;(b)have proven expertise in the area of risk management, technical competence andcapabilities;(c)have proven objectivity and professional ethics, based in particular on adherence tocodes of practice or appropriate standards.

3.

The organisations that perform the audits shall establish an audit report for each audit. The
report shall be substantiated in writing and include at least the following:(a)the name, address and the electronic point of contact of the provider of the verylarge online platform subject to the audit and the period covered;(b)the name and address of the organisation performing the audit;(c)a description of the specific elements audited, and the methodology applied;(d)a description of the main findings drawn from the audit;

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(e)

an audit opinion on whether the provider of the very large online platform subject tothe audit complied with the obligations and with the commitments referred to inparagraph 1, either positive, positive with comments or negative;(f)

where the audit opinion is not positive, operational recommendations on specificmeasures to achieve compliance and the expected timeframe to achievecompliance.

4.

Providers of vVery large online platforms receiving an audit report that is not positive
shall take due account of any operational recommendations addressed to them with a viewto take the necessary measures to implement them. They shall, within one month fromreceiving those recommendations, adopt an audit implementation report setting out thosemeasures. Where they do not implement the operational recommendations, they shalljustify in the audit implementation report the reasons for not doing so and set out any
alternative measures they may have taken to address any instances of non-compliance
identified.

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Article 29
Recommender systems
1.

Providers of vVery large online platforms that use recommender systems shall set out intheir terms and conditions, in a clear, accessible and easily comprehensible manner, themain parameters used in their recommender systems, as well as any options for therecipients of the service to modify or influence those main parameters that they may havemade available, including at least one option which is not based on profiling as defined in, within the meaning of Article 4 (4) of Regulation (EU) 2016/679. Providers of verylarge online platforms shall also make this information directly and easily accessibleon the specific section of the online interface where the information is being
prioritised according to the recommender system.

2.

Where several options are available pursuant to paragraph 1, providers of very large
online platforms shall provide a directly and an easily accessible functionality on their
online interface where the information is prioritised, allowing the recipient of the service
to select and to modify at any time their preferred option for each of the recommendersystems that determines the relative order of information presented to them.

3.

When presenting options pursuant to this Article, providers of very large online
platforms shall not seek to subvert or impair the autonomy, decision-making, or
choice of the recipient of the service through the design, structure, function ormanner of operating of their online interface.

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Article 30
Additional online advertising transparency
1.

Providers of vVery large online platforms that presentdisplay advertising on their online
interfaces shall compile and make publicly available in a specific section of their online
interface and through application programming interfaces a repository containing theinformation referred to in paragraph 2, until one year after the advertisement waspresenteddisplayed for the last time on their online interfaces. They shall ensure that therepository does not contain any personal data of the recipients of the service to whom theadvertisement was or could have been displayedpresented.

2.

The repository shall include at least all of the following information:(a)the content of the advertisement, including the name of the product, service orbrand and the subject matter of the advertisement;(b)the natural or legal person on whose behalf the advertisement is displayedpresented;(c)the period during which the advertisement was presenteddisplayed;(d)whether the advertisement was intended to be presenteddisplayed specifically to one
or more particular groups of recipients of the service and if so, the main parameters
used for that purpose;(e)the total number of recipients of the service reached and, where applicable, aggregate
numbers in each Member State for the group or groups of recipients to whom theadvertisement was targeted specifically.

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Article 31
Data access and scrutiny
1.

Providers of vVery large online platforms shall provide the Digital Services Coordinatorof establishment or the Commission, upon their reasoned request and within a reasonable
period, specified in the request, access to data that are necessary to monitor and assess
compliance with this Regulation. That Digital Services Coordinator and the Commission
shall only use that data for those purposes.

1a.

Digital Services Coordinators and the Commission shall use that data accessedpursuant to paragraph 1 only for the purpose of monitoring and assessing compliancewith this Regulation and shall take due account of the rights and interests of theproviders of very large online platforms and the recipients of the service concerned,
including the protection of personal data, the protection of confidential information,in particular trade secrets, and maintaining the security of their service.

2.

Upon a reasoned request from the Digital Services Coordinator of establishment or theCommission, providers of very large online platforms shall, within a reasonable period, as
specified in the request, provide access to data to vetted researchers who meet therequirements in paragraphs 4 of this Article, for the sole purpose of conducting researchthat contributes to the detection, identification and understanding of systemic risks in theUnion, as set out pursuant to in Article 26(1), including as regards the adequacy,
efficiency and impacts of the risk mitigation measures pursuant to Article 27.

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2a6.

Within 15 days following receipt of a request as referred to in paragraph 1 and 2,
providers of a very large online platforms may request the Digital Services Coordinator of
establishment or the Commission, as applicable, to amend the request, where it considers
that it is unable to give access to the data requested because one of following two reasons:(a)it does not have access to the data;(b)giving access to the data will lead to significant vulnerabilities for the security of its
service or the protection of confidential information, in particular trade secrets.

2b7.

Requests for amendment pursuant to paragraph 2a point (b) of paragraph 6 shall containproposals for one or more alternative means through which access may be provided to therequested data or other data which are appropriate and sufficient for the purpose of therequest.
The Digital Services Coordinator of establishment or the Commission shall decide upon
the request for amendment within 15 days and communicate to the provider of very large
online platforms its decision and, where relevant, the amended request and the new time
period to comply with the request.

3.

Providers of vVery large online platforms shall facilitate and provide access to data
pursuant to paragraphs 1 and 2 through appropriate interfaces specified in the request,
including online databases or application programming interfaces, as appropriate.

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4.

Upon a duly substantiated application from researchers, the Digital Services
Coordinator of establishment shall award them status of vetted researchers and issue
data access requests pursuant to paragraph 2, where the researchers demonstratethat they meet all of the following conditions:(a)they are In order to be vetted, researchers shall be affiliated to a researchorganisation as defined in Article 2 (1) of Directive (EU) 2019/790 of theEuropean Parliament and of the Council with academic institutions,;(b)

they are be independent from commercial interests;(c)they are, have proven records of expertise in the fields related to the risks
investigated or related research methodologies, and shall commit and be in a capacity
to preserve the specific data security and confidentiality requirements corresponding
to each request and to protect personal data, and they describe in their request
the appropriate technical and organisational measures they put in place to this
end;

(d)

the application submitted by the researchers justifies the necessity andproportionality for the purpose of their research of the data requested and thetimeframes within which they request access to the data, and they demonstrate
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(f)

they carry their activities according to the procedures laid down in delegatedacts referred to in paragraph 5;(g)they have not already filed the same application with the Digital Services
Coordinator.

Upon receipt of the application pursuant to this paragraph, the Digital Services
Coordinator of establishment shall inform the Commission and the Board.
4-a.

Researchers may also submit their application to the Digital Services Coordinator of
the Member State of the research organisation to which they are affiliated. Upon
receipt of the application pursuant to this paragraph the Digital Services Coordinatorshall conduct an initial assessment whether the respective researchers meet all of theconditions set out in paragraph 4 and subsequently send the application, together
with the supporting documents submitted by the respective researchers and the initialassessment, to the Digital Services Coordinator of establishment.
While taking due account of the provided initial assessment, the final decision toaward a researcher the status of vetted researcher lies within the competence ofDigital Services Coordinator of establishment, pursuant to paragraph 4.

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4a.

The Digital Services Coordinator that awarded the status of vetted researcher andissued the access request in favour of a vetted researcher shall issue a decision
terminating the access if it determines, following an investigation either on its own
initiative or on the basis information received from third parties, that the vetted
researcher no longer meets the conditions set out in paragraph 4. Before terminating
the access, the Digital Services Coordinator shall allow the vetted researcher to react
to the findings of its investigation and its intention to terminate the access.

4b.

Digital Services Coordinators shall communicate to the Board the names and contact
information of the natural persons or entities to which they have awarded the statusof the vetted researcher as well as the purpose of the research underpinning therequest in accordance with paragraph 4 or that they have terminated it in accordancewith paragraph 4a.

4c.

Providers of very large online platforms shall not restrict or prevent in any way
access to data publicly accessible in their online interface for researchers who comply
with the conditions set in points a), b), c) and d) of paragraph 4 and who use the datasolely for performing research that contributes to the detection, identification andunderstanding of systemic risks in the Union as set out pursuant to Article 26(1).

4d.

Upon completion of the research envisaged in paragraphs 2 and 4, the vetted
researchers shall make their research results publicly available free of charge, taking
into account the rights and interests of the recipients of the service concerned incompliance with Regulation (EU) 2016/679.

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5.

The Commission shall, after consulting the Board, adopt delegated acts laying down thetechnical conditions under which providers of very large online platforms are to share data
pursuant to paragraphs 1 and 2 and the purposes for which the data may be used. Thosedelegated acts shall lay down the specific conditions and relevant objective indicators, aswell as procedures under which such sharing of data with vetted researchers can takeplace in compliance with Regulation (EU) 2016/679, taking into account the rights andinterests of the providers of very large online platforms and the recipients of the service
concerned, including the protection of confidential information, in particular trade secrets,
and maintaining the security of their service. Those delegated acts shall also lay down
the conditions for access to the database referred to in Article 23(2a).

6.

Within 15 days following receipt of a request as referred to in paragraph 1 and 2, a verylarge online platform may request the Digital Services Coordinator of establishment or theCommission, as applicable, to amend the request, where it considers that it is unable togive access to the data requested because one of following two reasons:(a)it does not have access to the data;(b)giving access to the data will lead to significant vulnerabilities for the security of its
service or the protection of confidential information, in particular trade secrets.
[moved to new paragraph 2a]7.

Requests for amendment pursuant to point (b) of paragraph 6 shall contain proposals forone or more alternative means through which access may be provided to the requested dataor other data which are appropriate and sufficient for the purpose of the request.
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Article 32
Compliance functionofficers
1.

Providers of very large online platforms shall establish a compliance function whichis independent from the operational functions and composed of one or more
compliance officers, including the head of the compliance function. The compliancefunction shall have sufficient authority, stature and resources, as well as access to the
management body of the provider of the very large online platform to monitor thecompliance of that provider with this Regulation.

2.

Compliance officers shall have the professional qualifications, knowledge, experienceand ability necessary to fulfil the tasks referred to in paragraph 3.
The management body of the provider of very large online platform shall appoint ahead of the compliance function who is an independent senior manager with distinct
responsibility for the compliance function.
The head of the compliance function shall report directly to the management body ofthe provider of very large online platform, independent from senior management,
and can raise concerns and warn that body where risks referred to in Article 26 or
non-compliance with this Regulation affect or may affect the provider of very large
online platform concerned, without prejudice to the responsibilities of the
management body in its supervisory and managerial functions.
The head of the compliance function shall not be removed without prior approval ofthe management body of the provider of very large online platform.

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1.

Very large online platforms shall appoint one or more compliance officers responsible formonitoring their compliance with this Regulation.

2.

Very large online platforms shall only designate as compliance officers persons who havethe professional qualifications, knowledge, experience and ability necessary to fulfil thetasks referred to in paragraph 3. Compliance officers may either be staff members of, or
fulfil those tasks on the basis of a contract with, the very large online platform concerned.

3.

Compliance officers shall have the following tasks:(a)cooperating with the Digital Services Coordinator of establishment and theCommission for the purpose of this Regulation;(aa) ensuring that all risks referred to in Article 26 are identified and properly
reported on and that reasonable, proportionate and effective risk mitigation
measures are taken pursuant to Article 27;(b)organising and supervising the very large online platform’s activities of the providerof the very large online platform relating to the independent audit pursuant to
Article 28;(c)informing and advising the management and employees of the provider of the verylarge online platform about relevant obligations under this Regulation;(d)monitoring the compliance of the provider of the very large online platform’s
compliance with its obligations under this Regulation;.

(e)where applicable, monitoring compliance of the provider of the very large
online platform with commitments made under the codes of conduct pursuant
to Articles 35 and 36 or the crisis protocols pursuant to Article 37.

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4.

Very large online platforms shall take the necessary measures to ensure that thecompliance officers can perform their tasks in an independent manner.

5.

Providers of vVery large online platforms shall communicate the name and contact detailsof the compliance officers in the compliance function to the Digital Services Coordinatorof establishment and the Commission.

6.

Very large online platforms shall support the compliance officer in the performance of hisor her tasks and provide him or her with the resources necessary to adequately carry out
those tasks. The compliance officer shall directly report to the highest management level ofthe platform. The management body of the provider of very large online platform shalldefine, oversee and be accountable for the implementation of the provider'sgovernance arrangements that ensure independence of the compliance function,
including the segregation of duties in the organisation of the provider of very large
online platform, the prevention of conflicts of interest, and sound management ofsystemic risks identified pursuant to Article 26.

7.

The management body shall approve and review periodically, at least once a year, thestrategies and policies for taking up, managing, monitoring and mitigating the risks
identified pursuant to Article 26 to which the very large online platform is or may be
exposed to.

8.

The management body shall devote sufficient time to the consideration of themeasures related to risk management. It shall be actively involved in the decisions
related to risk management and ensure that adequate resources are allocated to the
management of the risks identified pursuant to Article 26.

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Article 33
Transparency reporting obligations for providers of very large online platforms
1.

Providers of vVery large online platforms shall publish the reports referred to in Article
13, including the information referred to in Article 23, within six months from the dateof application referred to in Article 25(64), and thereafter every six months.

1a.

The reports pursuant to paragraph 1 of this Article shall also detail the humanresources dedicated by the provider of very large online platforms to content
moderation, including those dedicated to compliance with obligations pursuant to
Articles 14 and 19, and processing complaints pursuant to Article 17 and shall specify
the specialist and linguistic expertise of the staff, as well as the training and support
given to such staff.

1b.

In addition to the information referred to in Articles 23(2), the providers of very large
online platforms shall include in the reports referred to in that Article also theinformation on the average monthly recipients of the service for each Member State.

2.

In addition to the reports provided for in Article 13 , including the information referred
to in Article 23, providers of very large online platforms shall make publicly available
and transmit to the Digital Services Coordinator of establishment and the Commission, atleast once a year and within 30 days following the adoption of the audit implementing
report provided for in Article 28(4):(a)

a report setting out the results of the risk assessment pursuant to Article 26;(b)

the related risk mitigation measures identified and implemented pursuant to Article
27;

(c)

the audit report provided for in Article 28(3);(d)

the audit implementation report provided for in Article 28(4).

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3.

Where a provider of very large online platforms considers that the publication of
information pursuant to paragraph 2 may result in the disclosure of confidential
information of that platform or of the recipients of the service, may cause significant
vulnerabilities for the security of its service, may undermine public security or may harm
recipients, the platform provider may remove such information from the reports. In thatcase, that platform the provider shall transmit the complete reports to the Digital Services
Coordinator of establishment and the Commission, accompanied by a statement of thereasons for removing the information from the public reports.

Article 33a
Very large online search engines
1.

This Section, with the exception of Article 33(1a) and (1b), shall apply to online
search engines which reach a number of average monthly active recipients of theservice in the Union equal to or higher than 45 million, and which are designated asvery large online search engines in accordance with Article 25(4).

2.

For the purpose of determining the number of average monthly active recipients ofthe service, Article 23(2), (3) and (3a) shall apply to all online search engines which do
not qualify as micro or small enterprises within the meaning of the Annex toRecommendation 2003/361/EC, with the exception of those which are very large
online search engine in accordance with the paragraph 1 of this Article.

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SECTION 5OTHER PROVISIONS CONCERNING DUE DILIGENCE OBLIGATIONSArticle 34
Standards
1.

The Commission shall consult the Board and shall support and promote the development
and implementation of voluntary industry standards set by relevant European andinternational standardisation bodies at least for the following:(a)electronic submission of notices under Article 14;(b)electronic submission of notices by trusted flaggers under Article 19, including
through application programming interfaces;(c)specific interfaces, including application programming interfaces, to facilitate
compliance with the obligations set out in Articles 30 and 31;(d)auditing of very large online platforms and very large online search engines set out
pursuant to Article 28;(e)interoperability of the advertisement repositories referred to in Article 30(2);(f)

transmission of data between advertising intermediaries in support of transparency
obligations pursuant to points (b) and (c) of Article 24;(g)prominent marking of advertisements and of commercial communication withincontent disseminated through online platforms pursuant to Article 24.

2.

The Commission shall support the update of the standards in the light of technologicaldevelopments and the behaviour of the recipients of the services in question. The relevant
information regarding the update of the standards shall be publicly available andeasily accessible.

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Article 35
Codes of conduct
1.

The Commission and the Board shall encourage and facilitate the drawing up of codes ofconduct at Union level to contribute to the proper application of this Regulation, taking
into account in particular the specific challenges of tackling different types of illegal
content and systemic risks, in accordance with Union law, in particular on competition andthe protection of personal data.

2.

Where significant systemic risk within the meaning of Article 26(1) emerge and concern
several very large online platforms or very large online search engines, the Commission
may invite the providers of the very large online platforms or of the very large online
search engines concerned, other providers of very large online platforms, other of online
platforms and other providers of intermediary services, as appropriate, as well as civilsociety organisations and other interested parties, to participate in the drawing up of codesof conduct, including by setting out commitments to take specific risk mitigation measures,
as well as a regular reporting framework on any measures taken and their outcomes.

3.

When giving effect to paragraphs 1 and 2, the Commission and the Board and where
relevant other bodies shall aim to ensure that the codes of conduct clearly set out theirobjectives, contain key performance indicators to measure the achievement of thoseobjectives and take due account of the needs and interests of all interested parties,
including citizens, at Union level. The Commission and the Board shall also aim to ensurethat participants report regularly to the Commission and their respective Digital Service
Coordinators of establishment on any measures taken and their outcomes, as measured
against the key performance indicators that they contain.

4.

The Commission and the Board shall assess whether the codes of conduct meet the aims
specified in paragraphs 1 and 3, and shall regularly monitor and evaluate the achievementof their objectives. They shall publish their conclusions.

5.

The Board shall regularly monitor and evaluate the achievement of the objectives of thecodes of conduct, having regard to the key performance indicators that they may contain.

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Article 36
Codes of conduct for online advertising
1.

The Commission shall encourage and facilitate the drawing up of codes of conduct at
Union level between, providers of online platforms and other relevant service providers,such as providers of online advertising intermediary services, other actors involved in the
programmatic advertising value chain, or organisations representing recipients of theservice and civil society organisations or relevant authorities to contribute to furthertransparency in online advertising beyond the requirements of Articles 24 and 30.

2.

The Commission shall aim to ensure that the codes of conduct pursue an effective
transmission of information, in full respect for the rights and interests of all parties
involved, and a competitive, transparent and fair environment in online advertising, in
accordance with Union and national law, in particular on competition and the protection of
personal data. The Commission shall aim to ensure that the codes of conduct address atleast:(a)the transmission of information held by providers of online advertisingintermediaries to recipients of the service with regard to requirements set in points(b) and (c) of Article 24;(b)

the transmission of information held by providers of online advertisingintermediaries to the repositories pursuant to Article 30.

3.

The Commission shall encourage the development of the codes of conduct within one year
following the date of application of this Regulation and their application no later than six
months after that date.

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Article 37
Crisis protocols
1.

The Board may recommend the Commission to initiate the drawing up, in accordance withparagraphs 2, 3 and 4, of crisis protocols for addressing crisis situations strictly limited to
extraordinary circumstances affecting public security or public health.

2.

The Commission shall encourage and facilitate very large online platforms, very large
online search engines and, where appropriate, other online platforms or online searchengines, with the involvement of the Commission, to participate in the drawing up, testing
and application of those crisis protocols, which include one or more of the following
measures:(a)displaying prominent information on the crisis situation provided by Member States’
authorities or at Union level or by other relevant reliable bodies depending on thecontext of the crisis;(b)

ensuring that the provider of intermediary services appoints a specific point ofcontact responsible for crisis management; where relevant, this may be theelectronic point of contact referred to in Article 10 is responsible for crisis
management or, in the case of providers of very large online platforms or of verylarge online search engines, the compliance officer referred to in Article 32;(c)where applicable, adapt the resources dedicated to compliance with the obligations
set out in Articles 14, 17, 19, 20 and 27 to the needs created by the crisis situation.

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3.

The Commission shall may involve, as appropriate, Member States’ authorities and may
also involve Union bodies, offices and agencies in drawing up, testing and supervising theapplication of the crisis protocols. The Commission may, where necessary and appropriate,
also involve civil society organisations or other relevant organisations in drawing up thecrisis protocols.

4.

The Commission shall aim to ensure that the crisis protocols set out clearly all of thefollowing:(a)the specific parameters to determine what constitutes the specific extraordinary
circumstance the crisis protocol seeks to address and the objectives it pursues;(b)

the role of each participant and the measures they are to put in place in preparationand once the crisis protocol has been activated;(c)a clear procedure for determining when the crisis protocol is to be activated;(d)a clear procedure for determining the period during which the measures to be taken
once the crisis protocol has been activated are to be taken, which is strictly limited towhat is necessary for addressing the specific extraordinary circumstances concerned;(e)safeguards to address any negative effects on the exercise of the fundamental rights
enshrined in the Charter, in particular the freedom of expression and information andthe right to non-discrimination;(f)a process to publicly report on any measures taken, their duration and their outcomes,
upon the termination of the crisis situation.

5.

If the Commission considers that a crisis protocol fails to effectively address the crisis
situation, or to safeguard the exercise of fundamental rights as referred to in point (e) of
paragraph 4, it may request the participants to revise the crisis protocol, including by
taking additional measures.

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Chapter IV
Implementation, cooperation, sanctions and enforcement
SECTION 1
COMPETENT AUTHORITIES AND NATIONAL DIGITAL SERVICES COORDINATORS

Article 38
Competent authorities and Digital Services Coordinators
1.

Member States shall designate one or more competent authorities as responsible for theapplicationsupervision and enforcement of this Regulation (‘competent authorities’).

2.

Member States shall designate one of the competent authorities as their Digital Services
Coordinator. The Digital Services Coordinator shall be responsible for all matters relating
to applicationsupervision and enforcement of this Regulation in that Member State, unlessthe Member State concerned has assigned certain specific tasks or sectors to othercompetent authorities. The Digital Services Coordinator shall in any event be responsible
for ensuring coordination at national level in respect of those matters and for contributing
to the effective and consistent applicationsupervision and enforcement of this Regulation
throughout the Union.
For that purpose, Digital Services Coordinators shall cooperate with each other, othernational competent authorities, the Board and the Commission, without prejudice to thepossibility for Member States to provide for cooperation mechanisms and regularexchanges of views of the Digital Services Coordinator with other national authorities
where relevant for the performance of their respective tasks of those other authorities andof the Digital Services Coordinator.

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Where a Member State designates one or more more than one competent authoritiesy inaddition to the Digital Services Coordinator, it shall ensure that the respective tasks ofthose authorities and of the Digital Services Coordinator are clearly defined and that they
cooperate closely and effectively when performing their tasks. The Member State
concerned shall communicate the name of the other competent authorities as well as theirrespective tasks to the Commission and the Board.
3.

Member States shall designate the Digital Services Coordinators within two fifteen months
from the date of entry into force of this Regulation.
Member States shall make publicly available, and communicate to the Commission and theBoard, the name of their competent authority designated as Digital Services Coordinatorand information on how it can be contacted.

4.

The provisionsrequirements applicable to Digital Services Coordinators set out in Articles
39, 4044a and 41 shall also apply to any other competent authorities that the Member
States designate pursuant to paragraph 1 of this Article.

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Article 39
Requirements for Digital Services Coordinators
1.

Member States shall ensure that their Digital Services Coordinators perform their tasks
under this Regulation in an impartial, transparent and timely manner. Member States shallensure that their Digital Services Coordinators have all necessary means to carry out
their tasks, including sufficient adequate technical, financial and human resources toadequately supervise all providers of intermediary services under their competence.
to carry out their tasks.Each Member State shall ensure that its Digital Services
Coordinator has sufficient autonomy in managing its budget within the budget's
overall limits, in order not to affect the independence of the Digital Services
Coordinator.

2.

When carrying out their tasks and exercising their powers in accordance with thisRegulation, the Digital Services Coordinators shall act with complete independence. They
shall remain free from any external influence, whether direct or indirect, and shall neither
seek nor take instructions from any other public authority or any private party.

3.

Paragraph 2 of this Article is without prejudice to the tasks of Digital Services
Coordinators within the system of supervision and enforcement provided for in thisRegulation and the cooperation with other competent authorities in accordance with Article
38(2). Paragraph 2 of this Article shall not prevent the exercise of judicial review andshall also be without prejudice to proportionate accountability requirements
regarding the general activities of the Digital Services Coordinators, such as financial
expenditure or reporting to national parliaments. The exercise of the judicial review
and proportionate accountability requirements shall not undermine the achievementof the objectives of this Regulation. supervision of the authorities concerned inaccordance with national constitutional law.

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[amended and moved to Article 44a]
Article 40
Jurisdiction
1.

The Member State in which the main establishment of the provider of intermediaryservices is located shall have jurisdiction for the purposes of Chapters III and IV of thisRegulation.

2.

A provider of intermediary services which does not have an establishment in the Union but
which offers services in the Union shall, for the purposes of Chapters III and IV, bedeemed to be under the jurisdiction of the Member State where its legal representative
resides or is established.

3.

Where a provider of intermediary services fails to appoint a legal representative inaccordance with Article 11, all Member States shall have jurisdiction for the purposes of
Chapters III and IV. Where a Member State decides to exercise jurisdiction under thisparagraph, it shall inform all other Member States and ensure that the principle of ne bis inidem is respected.

4.

Paragraphs 1, 2 and 3 are without prejudice to the second subparagraph of Article 50(4)and the second subparagraph of Article 51(2) and the tasks and powers of the Commission
under Section 3.

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Article 41
Powers of Digital Services Coordinators
1.

Where needed for carrying out their tasks under this Regulation, Digital Services
Coordinators shall have at least the following powers of investigation, in respect of conduct
by providers of intermediary services under the jurisdiction competence of their Member
State:(a)the power to require those providers, as well as any other persons acting for purposes
related to their trade, business, craft or profession that may reasonably be aware of
information relating to a suspected infringement of this Regulation, including,organisations performing the audits referred to in Articles 28 and 50(3),59a(2),, toprovide such information within a reasonable time period;(b)

the power to carry out, or request a judicial authority in their Member State toorder, on-site inspections of any premises that those providers or those persons use forpurposes related to their trade, business, craft or profession, or to request other publicauthorities to do so, in order to examine, seize, take or obtain copies of information
relating to a suspected infringement in any form, irrespective of the storage medium;(c)the power to ask any member of staff or representative of those providers or those
persons to give explanations in respect of any information relating to a suspected
infringement and to record the answers with their consent.

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2.

Where needed for carrying out their tasks under this Regulation, Digital Services
Coordinators shall have at least the following enforcement powers, in respect of providers ofintermediary services under the jurisdiction competence of their Member State:(a)the power to accept the commitments offered by those providers in relation to theircompliance with this Regulation and to make those commitments binding;(b)

the power to order the cessation of infringements and, where appropriate, to impose
remedies proportionate to the infringement and necessary to bring the infringement
effectively to an end, or request a judicial authority in their Member State to do so;(c)the power to impose fines, or request a judicial authority in their Member State to
do so, in accordance with Article 42 for failure to comply with this Regulation,
including with any of the investigative orders issued pursuant to paragraph 1 of this
Article;(d)the power to impose a periodic penalty payment, or request a judicial authority intheir Member State to do so, in accordance with Article 42 to ensure that an
infringement is terminated in compliance with an order issued pursuant to point (b) of
this subparagraph or for failure to comply with any of the investigative orders issued
pursuant to paragraph 1 of this Article;(e)the power to adopt interim measures to avoid the risk of serious harm.

As regards points (c) and (d) of the first subparagraph, Digital Services Coordinators shallalso have the enforcement powers set out in those points in respect of the other persons
referred to in paragraph 1 for failure to comply with any of the orders issued to them pursuant
to that paragraph. They shall only exercise those enforcement powers after having provided
those others persons in good time with all relevant information relating to such orders,
including the applicable time period, the fines or periodic payments that may be imposed for
failure to comply and redress possibilities.

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3.

Where needed for carrying out their tasks under this Regulation, Digital Services
Coordinators shall also have, in respect of providers of intermediary services under thejurisdiction competence of their Member State, where all other powers pursuant to this
Article to bring about the cessation of an infringement have been exhausted, the infringement
persists and causes serious harm which cannot be avoided through the exercise of otherpowers available under Union or national law, the power to take the following measures:(a)require the management body of those providers, within a reasonable time period, toexamine the situation, adopt and submit an action plan setting out the necessary
measures to terminate the infringement, ensure that the provider takes those measures,and report on the measures taken;(b)where the Digital Services Coordinator considers that the a provider of intermediaryservices has not sufficiently complied with the requirements referred to in point (a)of
the first indent, that the infringement persists and causes serious harm, and that the
infringement entails a serious criminal offence involving a threat to the life or safety of
persons, request the competent judicial authority of that its Member State to order the
temporary restriction of access of recipients of the service concerned by the
infringement or, only where that is not technically feasible, to the online interface of theprovider of intermediary services on which the infringement takes place.

The Digital Services Coordinator shall, except where it acts upon the Commission’s request
referred to in Article 65, prior to submitting the request referred to in point (b) of the firstsubparagraph, invite interested parties to submit written observations within a time period thatshall not be less than two weeks, describing the measures that it intends to request andidentifying the intended addressee or addressees thereof. The provider of intermediaryservices, the intended addressee or addressees and any other third party demonstrating a
legitimate interest shall be entitled to participate in the proceedings before the competentjudicial authority. Any measure ordered shall be proportionate to the nature, gravity,
recurrence and duration of the infringement, without unduly restricting access to lawful
information by recipients of the service concerned.

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The restriction of access shall be for a period of four weeks, subject to the possibility for thecompetent judicial authority, in its order, to allow the Digital Services Coordinator to extend
that period for further periods of the same lengths, subject to a maximum number ofextensions set by that judicial authority. The Digital Services Coordinator shall only extend
the period where it considers, having regard to the rights and interests of all parties affectedby the that restriction and all relevant circumstances, including any information that theprovider of intermediary services, the addressee or addressees and any other third party that
demonstrated a legitimate interest may provide to it, that both of the following conditions
have been met:(a)the provider of intermediary services has failed to take the necessary measures toterminate the infringement;(b)

the temporary restriction does not unduly restrict access to lawful information byrecipients of the service, having regard to the number of recipients affected and whether
any adequate and readily accessible alternatives exist.

Where the Digital Services Coordinator considers that those two the conditions set out inpoints (a) and (b) of the third subparagraph have been met but it cannot further extend theperiod pursuant to the third subparagraph, it shall submit a new request to the competentjudicial authority, as referred to in point (b) of the first subparagraph.
4.

The powers listed in paragraphs 1, 2 and 3 are without prejudice to Section 3.

5.

The measures taken by the Digital Services Coordinators in the exercise of their powers listed
in paragraphs 1, 2 and 3 shall be effective, dissuasive and proportionate, having regard, inparticular, to the nature, gravity, recurrence and duration of the infringement or suspected
infringement to which those measures relate, as well as the economic, technical andoperational capacity of the provider of the intermediary services concerned where relevant.

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6.

Member States shall lay down specific conditions and procedures for the exercise of thepowers pursuant to paragraphs 1, 2 and 3 and shall ensure that any exercise of thosee
powers pursuant to paragraphs 1, 2 and 3 is subject to adequate safeguards laid down in theapplicable national law in conformity compliance with the Charter and with the generalprinciples of Union law. In particular, those measures shall only be taken in accordance withthe right to respect for private life and the rights of defence, including the rights to be heard
and of access to the file, and subject to the right to an effective judicial remedy of all affectedparties.

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Article 42
Penalties
1.

Member States shall lay down the rules on penalties applicable to infringements of thisRegulation by providers of intermediary services under their jurisdiction competence andshall take all the necessary measures to ensure that they are implemented in accordance with
Article 41.

2.

Penalties shall be effective, proportionate and dissuasive. Member States shall notify theCommission of those rules and of those measures and shall notify it, without delay, of any
subsequent amendments affecting them.

3.

Member States shall ensure that the maximum amount of penalties imposed for a Member
States shall ensure that the maximum amount of fines that may be imposed for a failure
to comply with the an obligations laid down in this Regulation shall be not exceed 6 % of theannual income or turnover of the provider of intermediary services concerned in thepreceding financial year. Penalties Member States shall ensure that the maximum
amount of fines that may be imposed for the supply of incorrect, incomplete or misleading
information, failure to reply or rectify incorrect, incomplete or misleading information andfailure to submit to an on-site inspection shall be not exceed 1 % of the annual income orturnover of the provider or person concerned in the preceding financial year.

4.

Member States shall ensure that the maximum amount of a periodic penalty payment shall not
be exceed 5 % of the average daily turnover or income of the provider of intermediaryservices concerned in the preceding financial year per day, calculated from the date specified
in the decision concerned.

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Article 43
Right to lodge a complaint
Both Rrecipients of the service and their representative organisations as referred to in Article
68 shall have the right to lodge a complaint against providers of intermediary services alleging an
infringement of this Regulation with the Digital Services Coordinator of the Member State where
the recipient resides is located or is established. The Digital Services Coordinator shall assess thecomplaint and, where appropriate, transmit it to the Digital Services Coordinator of establishment,
accompanied, where considered appropriate, by an opinion. Where the complaint falls under the
responsibility of another competent authority in its Member State, the Digital Service Coordinatorreceiving the complaint shall transmit it to that authority.

Article 44
Activity reports
1.

Digital Services Coordinators shall draw up an annual report on theirir activities under thisRegulation, including the number of complaints received pursuant to Article 43 andan overview of their follow-up. Those reports shall include information provided bynational competent authorities, where applicable. The Digital Services Coordinatorsy
shall make the annual reports available to the public, without prejudice to the applicable
rules on the confidentiality of information, and shall communicate them to theCommission and to the Board.

2.

The annual report shall also include at least the following information:(a)the number and subject matter of orders to act against illegal content and orders toprovide information issued in accordance with Articles 8 and 9 by any national
judicial or administrative authority of the Member State of the Digital Services
Coordinator concerned;(b)the effects given to those orders, as communicated to the Digital Services
Coordinator pursuant to Articles 8 and 9.

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3.

Where a Member State has designated several competent authorities pursuant to Article 38,
it shall ensure that the Digital Services Coordinator draws up a single report covering theactivities of all competent authorities and that the Digital Services Coordinator receives all
relevant information and support needed to that effect from the other competent authorities
concerned.

SECTION 1A
COMPETENCES, COORDINATED INVESTIGATION AND CONSISTENCY MECHANISMS

Article 44a
Competences [previously Article 40]
1.

The Member State in which the main establishment of the provider of intermediary services islocated shall have jurisdiction for the purposes of exclusive powers for the supervision andenforcement by the Digital Services Coordinators of the obligations laid down by thisRegulation applicable on intermediary services, except the supervision and enforcementin cases provided for in paragraphs 1a, 1b and 1c.

1a.

The Commission shall have exclusive powers for the supervision and enforcement of theobligations applicable to very large online platforms or very large online search engines,
referred to in Section 4 of Chapter III of this Regulation.

1b.

The Commission shall have the powers for the supervision and enforcement of theobligations laid down by this Regulation applicable to very large online platforms orvery large online search engines, other than those referred to in Section 4 of Chapter III.

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1c.

To the extent that the Commission has not initiated a proceeding in relation to analleged infringement of the same obligation, the Member States of establishment where
the provider of very large online platform or of very large online search engine isestablished shall have the powers for the supervision and enforcement of the obligations
laid down by this Regulation applicable to very large online platforms or very large
online search engines, other than those referred to in Chapter III Section 4.
Member States and the Commission shall supervise and enforce the obligations laid
down in this Regulation in close cooperation.

2.

A provider of intermediary services which does not have an establishment in the Union but
which offers services in the Union shall, for the purposes of Chapters III and IV.inaccordance with paragraphs 1, and 1c of this Article, be deemed to be under thejurisdiction competence of the Member State where its legal representative resides or isestablished.

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3.

Where a provider of intermediary services fails to appoint a legal representative in accordancewith Article 11, all Member States shall have jurisdiction for the purposes of Chapters III and
IV and, where applicable, the Commission shall have powers pursuant to this Article.
Where a Member State decides to exercise jurisdiction under this paragraph, it shall inform allother Member States and ensure that the principle of ne bis in idem is respected. Where a
Digital Services Coordinator decides to exercise competence under this paragraph, it
shall notify all other Digital Services Coordinators and the Commission and ensure thatthe applicable safeguards afforded by the Charter are respected, in particular to avoid
that the same conduct is sanctioned more than once for the infringement of theobligations laid down in this Regulation. Following the notification pursuant to thisparagraph, the competent authorities of other Member States shall not initiate
proceedings for the same conduct as that referred to in the notification.

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Article 44b
Mutual assistance1.

Digital Services Coordinators and the Commission shall cooperate closely andprovide each other mutual assistance in order to apply this Regulation in a consistentand efficient manner. Mutual assistance shall include, in particular, exchange of
information in accordance with this Article and the duty of the Digital Services
Coordinator of establishment to inform all Digital Services Coordinators ofdestination, the Board and the Commission about the opening of an investigation andthe intention to take a final decision, including its assessment, in respect of a specificprovider of intermediary services.

2.

For the purpose of an investigation, the Digital Services Coordinator of establishment
may request other Digital Services Coordinators to provide specific information in
their possession as regards a specific provider of intermediary services or to exercise
their investigative powers referred to in Article 41(1) with regards to specificinformation located in their Member State. Where appropriate, the Digital Services
Coordinator receiving the request may involve other competent national authorities.
The Digital Services Coordinator receiving such request shall reply without undue
delay and no later than two months after receiving the request.

4.

The Digital Services Coordinator receiving the request pursuant to paragraph 2 shallcomply with such request unless:(a)the scope of the subject matter of the request is not sufficiently specified,justified or proportionate in view of the investigative purposes; or(b)neither the requested Digital Service Coordinator nor other national competentauthority in that Member State is in possession of the requested information nor
has the competence to request it; or(c)compliance with the request would infringe Union or national law to which thecompetent authority receiving the request is subject to.

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In cases of refusal, the Digital Services Coordinator receiving the request shallprovide a reasoned justification to the requesting Digital Services Coordinator.

Article 45
Cross-border cooperation among Digital Services Coordinators
1.

Where1.

Unless the Commission has initiated an investigation for the same

alleged infringement, where a Digital Services Coordinator of destination has reasons tosuspect that a provider of an intermediary service, not under the jurisdiction of the Member
State concerned, infringed this Regulation negatively affecting the collective interests of
the recipients of the service or having a negative societal impact in its Member State,
it mayshall request to the Digital Services Coordinator of establishment to assess thematter and to take the necessary investigatory and enforcement measures to ensurecompliance with this Regulation.
1a.

Unless the Commission has initiated an investigation for the same alleged
infringement, the Board, upon a request of at least three Digital Services
Coordinators of destination pursuant to Article 48(3) alleging a reasonable suspicionof an infringement by a specific provider of intermediary services affecting recipientsof the service in their Member States, Where the Board has reasons to suspect that aprovider of intermediary services infringed this Regulation in a manner involving at least
three Member States, it may recommend the Digital Services Coordinator of establishment
to assess the matter and take the necessary investigatory and enforcement measures toensure compliance with this Regulation.

2.

A request or recommendation pursuant to paragraphs 1 or 1a shall be duly reasoned andat least indicate:(a)the electronic point of contact of the provider of the intermediary services concerned
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(b)

a description of the relevant facts, the provisions of this Regulation concerned andthe reasons why the Digital Services Coordinator that sent the request, or the Board,suspects that the provider infringed this Regulation, including the description of thenegative effects of the alleged infringement in accordance with paragraph 1;(c)any other information that the Digital Services Coordinator that sent the request, or
the Board, considers relevant, including, where appropriate, information gathered on
its own initiative or suggestions for specific investigatory or enforcement measures
to be taken, including interim measures.

3.

The Digital Services Coordinator of establishment shall take into utmost account therequest or recommendation pursuant to paragraph 1 of this Article. Where it considers thatit has insufficient information to act upon the request or recommendation and has reasons
to consider that the Digital Services Coordinator that sent the request, or the Board, could
provide additional information, it may either request such information in accordance with
Article 44b or, alternatively, may launch a joint investigation pursuant to Article
46(1) involving at least the requesting Digital Services Coordinator. The time period
laid down in paragraph 4 of this Article shall be suspended until that additional
information is provided or the invitation to participate in the joint investigation isrefused.

4.

The Digital Services Coordinator of establishment shall, without undue delay and in any
event not later than two two months following receipt of the request or recommendation
pursuant to paragraphs 1 and 1a, communicate to the Digital Services Coordinator thatsent the request, or and the Board, itsthe assessment of the suspected infringement, or thatof any other competent authority pursuant to national law where relevant, and an
explanation of any investigatory or enforcement measures taken or envisaged in relation
thereto to ensure compliance with this Regulation.

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Article 45a
Referral to the Commission
1.

5. Where the Digital Services Coordinator that sent the request, or, where appropriate, theBoard, did not receive a reply within the time period laid down in paragraph 4 or where it
does not agree with the assessment of the Digital Services Coordinator of establishment, it
may refer the matter to the Commission,Failing a response in the time period laid downin Article 45(4), or in case of disagreement with the assessment or the measures taken
or envisaged in relation thereto, or in cases referred to in Article 46(3), the Board
may refer the matter to the Commission, providing all relevant information. That
information shall include at least the request or recommendation sent to the Digital
Services Coordinator of establishment, the assessment by that Digital Services
Coordinator, the reasons supporting the disagreement and any additional information
provided pursuant to paragraph 3 and the communication referred to in paragraph4supporting the referral.

62.

The Commission shall assess the matter within three two months following the referral ofthe matter pursuant to paragraph 51, after having consulted the Digital Services
Coordinator of establishment and, unless it referred the matter itself, the Board.

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73.

Where, pursuant to paragraph 62, the Commission concludes thatconsiders that theassessment or the investigatory or enforcement measures taken or envisaged pursuant toparagraph 4 Article 45(4) are incompatible with this Regulation or insufficient to ensure
its effective enforcement, it shall communicate its serious doubts to the Digital
Services Coordinator of establishment and the Board and request the Digital Service
Coordinator of establishment to further assessreview the matter.
The Digital Services Coordinator of establishment shall and take the necessary
investigatory or enforcement measures to ensure compliance with this Regulation, taking
into utmost account the serious doubts and request for review of the Commission, andto inform it about those measures taken within two months from that request.

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Article 46
Joint investigations and requests for Commission intervention
1.

The Digital Services Coordinator of establishment may launch and lead joint
investigations:(a)at its own initiative, to investigate an alleged infringement of this Regulation by agiven provider of intermediary services in several Member States, with theparticipation of the concerned Digital Services Coordinators; or(b)upon recommendation of the Board, acting on the request of at least three Digital
Services Coordinators pursuant to Article 48(3), alleging a reasonable suspicion of
an infringement by a given provider of intermediary services affecting recipients ofthe service in their Member States, with the participation of the concerned Digital
Services Coordinators.

2.

Any Digital Service Coordinator proving a legitimate interest in participating in a joint
investigation pursuant to paragraph 1 may request to do so. The deadline for concluding
the joint investigation shall not exceed three months, unless otherwise agreed amongst
the participants.
The Digital Services Coordinator of establishment shall communicate its preliminary
position no later than 1 month after the agreed deadline to all Digital Services
Coordinators, the Commission and the Board. The preliminary position shall take into
account the views of all other Digital Services Coordinators participating in the joint
investigation. Where applicable, this preliminary position shall also set out theenforcement measures to be adopted.

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3.

The matter may be referred to the Commission pursuant to Article 45a by the Board,
where:(a)no preliminary position is adopted within the deadline set out in paragraph 2;(b)a substantial disagreement with the preliminary position of the Digital Services
Coordinator of establishment exists; or(c)the Digital Services Coordinator of establishment does not launch the joint
investigation following the recommendation by the Board pursuant to point b ofparagraph 1.

4.

In carrying out the joint investigation, the participants shall cooperate closely and ingood faith with each other, taking into account the indications of the Digital Services
Coordinator of establishment and the Board’s recommendation, where applicable.
Without prejudice to the powers of the Digital Services Coordinator of establishment
and after consulting with it, the Digital Services Coordinators of destination
participating in the joint investigation shall be entitled to exercise their investigative
powers referred to in Article 41(1) in respect of the providers of intermediary services
concerned by the alleged infringement, with regard to information and premises locatedwithin their territory.

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1.

Digital Services Coordinators may participate in joint investigations, which may becoordinated with the support of the Board, with regard to matters covered by thisRegulation, concerning providers of intermediary services operating in several Member
States.
Such joint investigations are without prejudice to the tasks and powers of the participating
Digital Coordinators and the requirements applicable to the performance of those tasks andexercise of those powers provided in this Regulation. The participating Digital Services
Coordinators shall make the results of the joint investigations available to other Digital
Services Coordinators, the Commission and the Board through the system provided for in
Article 67 for the fulfilment of their respective tasks under this Regulation.

2.

Where a Digital Services Coordinator of establishment has reasons to suspect that a verylarge online platform infringed this Regulation, it may request the Commission to take thenecessary investigatory and enforcement measures to ensure compliance with thisRegulation in accordance with Section 3. Such a request shall contain all information listed
in Article 45(2) and set out the reasons for requesting the Commission to intervene.

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SECTION 2
EUROPEAN BOARD FOR DIGITAL SERVICES

Article 47
European Board for Digital Services
1.

An independent advisory group of Digital Services Coordinators on the supervision ofproviders of intermediary services named ‘European Board for Digital Services’ (the‘Board’) is established.

2.

The Board shall advise the Digital Services Coordinators and the Commission inaccordance with this Regulation to achieve the following objectives:(a)Contributing to the consistent application of this Regulation and effective
cooperation of the Digital Services Coordinators and the Commission with regard tomatters covered by this Regulation;(b)coordinating and contributing to guidance and analysis of the Commission and
Digital Services Coordinators and other competent authorities on emerging issues
across the internal market with regard to matters covered by this Regulation;(c)assisting the Digital Services Coordinators and the Commission in the supervision ofvery large online platforms.

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Article 48
Structure of the Board
1.

The Board shall be composed of the Digital Services Coordinators, who shall be
represented by high-level officials. Where provided for by national law, other competentauthorities entrusted with specific operational responsibilities for the application andenforcement of this Regulation alongside the Digital Services Coordinator shall participate
in the Board. Other national authorities may be invited to the meetings, where the issues
discussed are of relevance for them.

2.

Each Member State shall have one vote. The Commission shall not have voting rights.
The Board shall adopt its acts by simple majority.

3.

The Board shall be chaired by the Commission. The Commission shall convene themeetings and prepare the agenda in accordance with the tasks of the Board pursuant to thisRegulation and in line with its rules of procedure. When the Board is requested to adopt
a recommendation pursuant to this Regulation, this information shall be immediately
made available to other Digital Services Coordinators through the information
sharing system set out in Article 67.

4.

The Commission shall provide administrative and analytical support for the activities of
the Board pursuant to this Regulation.

5.

The Board may invite experts and observers to attend its meetings, and may cooperate withother Union bodies, offices, agencies and advisory groups, as well as external experts asappropriate. The Board shall make the results of this cooperation publicly available.

6.

The Board shall adopt its rules of procedure, following the consent of the Commission.

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Article 49
Tasks of the Board
1.

Where necessary to meet the objectives set out in Article 47(2), the Board shall inparticular:(a)support the coordination of joint investigations;(b)support the competent authorities in the analysis of reports and results of audits ofvery large online platforms or of very large online search engines to be transmitted
pursuant to this Regulation;(c)issue opinions, recommendations or advice to Digital Services Coordinators inaccordance with this Regulation;(d)advise the Commission to take the measures referred to in Article 51 and, where
requested by the Commission, adopt opinions on draft Commission measuresconcerning very large online platforms or very large online search engines inaccordance with this Regulation;(e)

support and promote the development and implementation of European standards,
guidelines, reports, templates and code of conducts as provided for in thisRegulation, as well as the identification of emerging issues, with regard to matters
covered by this Regulation.

2.

Digital Services Coordinators and , where applicable, other national competent authorities
that do not follow the opinions, requests or recommendations addressed to them adopted
by the Board shall provide the reasons for this choice when reporting pursuant to thisRegulation or when adopting their relevant decisions, as appropriate.

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SECTION 3
SUPERVISION, INVESTIGATION, ENFORCEMENT AND MONITORING IN RESPECT OF
VERY LARGE ONLINE PLATFORMS OR VERY LARGE ONLINE SEARCH ENGINES

Article 49a
Development of expertise and capabilities
The Commission, in cooperation with the Digital Services Coordinators and the Board, shalldevelop Union expertise and capabilities and coordinate the assessment of systemic andemerging issues across the Union in relation to very large online platforms or very large
online search engines with regard to matters covered by this Regulation. The Commission
may ask the Digital Services Coordinators to support their assessment of systemic andemerging issues across the Union under this Regulation. Member States shall facilitate
cooperation with the Commission through their respective Digital Services Coordinators andother competent authorities where applicable, including by making available their expertiseand capabilities.

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Article 50
Enhanced supervision for Enforcement of obligations of very large online platforms and verylarge online search engines
1.

For the purposes of investigation of compliance of the providers of very large online
platforms and of very large online search engines with the obligations laid down in thisRegulation, the Commission may exercise the investigatory powers laid down in thisSection even before initiating proceedings pursuant to Article 51(2). It may exercise
these powers on its own initiative or following a request pursuant to paragraph 23 ofthis Article.

2.

Where a Digital Services Coordinator has reasons to suspect that a provider of verylarge online platform or of very large online search engine infringed the provisions of
Chapter III Section 4 or systemically any of the provisions of this Regulation seriously
affecting recipients in its territoryMember State, it may file, through the information
sharing system referred to in Article 67, a duly reasoned request to the Commission toassess the matter.

3.

A request pursuant to paragraph 2 shall be duly reasoned and at least indicate:(a)the electronic point of contact of the provider of the intermediary services
concerned as provided for in Article 10;(b)a description of the relevant facts, the provisions of this Regulation concerned andthe reasons why the Digital Services Coordinator that sent the request suspects
that the provider infringed this Regulation, including the a description of the facts
that 49a show the systemic nature of the infringement;(c)any other information that the Digital Services Coordinator that sent the request
considers relevant, including, where appropriate, information gathered on its own
initiative.

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1.

Where the Digital Services Coordinator of establishment adopts a decision finding that avery large online platform has infringed any of the provisions of Section 4 of Chapter III, it
shall make use of the enhanced supervision system laid down in this Article. It shall takeutmost account of any opinion and recommendation of the Commission and the Board
pursuant to this Article.
The Commission acting on its own initiative, or the Board acting on its own initiative or
upon request of at least three Digital Services Coordinators of destination, may, where it
has reasons to suspect that a very large online platform infringed any of those provisions,recommend the Digital Services Coordinator of establishment to investigate the suspected
infringement with a view to that Digital Services Coordinator adopting such a decision
within a reasonable time period.

2.

When communicating the decision referred to in the first subparagraph of paragraph 1 tothe very large online platform concerned, the Digital Services Coordinator of establishment
shall request it to draw up and communicate to the Digital Services Coordinator of
establishment, the Commission and the Board, within one month from that decision, an
action plan, specifying how that platform intends to terminate or remedy the infringement.
The measures set out in the action plan may include, where appropriate, participation in acode of conduct as provided for in Article 35.

3.

Within one month following receipt of the action plan, the Board shall communicate its
opinion on the action plan to the Digital Services Coordinator of establishment. Within one
month following receipt of that opinion, that Digital Services Coordinator shall decide
whether the action plan is appropriate to terminate or remedy the infringement.

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Where the Digital Services Coordinator of establishment has concerns on the ability of themeasures to terminate or remedy the infringement, it may request the very large online
platform concerned to subject itself to an additional, independent audit to assess theeffectiveness of those measures in terminating or remedying the infringement. In that case,that platform shall send the audit report to that Digital Services Coordinator, theCommission and the Board within four months from the decision referred to in the firstsubparagraph. When requesting such an additional audit, the Digital Services Coordinatormay specify a particular audit organisation that is to carry out the audit, at the expense of
the platform concerned, selected on the basis of criteria set out in Article 28(2).
4.

The Digital Services Coordinator of establishment shall communicate to the Commission,
the Board and the very large online platform concerned its views as to whether the verylarge online platform has terminated or remedied the infringement and the reasons thereof.
It shall do so within the following time periods, as applicable:(a)within one month from the receipt of the audit report referred to in the second
subparagraph of paragraph 3, where such an audit was performed;(b)

within three months from the decision on the action plan referred to in the firstsubparagraph of paragraph 3, where no such audit was performed;(c)

immediately upon the expiry of the time period set out in paragraph 2, where that
platform failed to communicate the action plan within that time period.

Pursuant to that communication, the Digital Services Coordinator of establishment shall nolonger be entitled to take any investigatory or enforcement measures in respect of the relevant
conduct by the very large online platform concerned, without prejudice to Article 66 or any
other measures that it may take at the request of the Commission.

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Article 51
Intervention by the Commission and openingInitiation of proceedings by the Commission andcooperation in investigation
1.

The Commission, acting either upon the Board’s recommendation or on its own initiative
after consulting the Board, may initiate proceedings in view of the possible adoption ofdecisions pursuant to Articles 58 and 59 in respect of the relevant conduct by the provider ofthe very large online platform or of the very large online search engine that: is suspectedby the Commission of having infringed any of the provisions laid down in thisRegulation.
(a)is suspected of having infringed any of the provisions of this Regulation and the Digital
Services Coordinator of establishment did not take any investigatory or enforcement
measures, pursuant to the request of the Commission referred to in Article 45(7), upon
the expiry of the time period set in that request;(b)

is suspected of having infringed any of the provisions of this Regulation and the Digital
Services Coordinator of establishment requested the Commission to intervene inaccordance with Article 46 (2), upon the reception of that request;(c)

has been found to have infringed any of the provisions of Section 4 of Chapter III, upon
the expiry of the relevant time period for the communication referred to in Article 50(4).

2.

Where the Commission decides to initiate proceedings pursuant to paragraph 1, it shall notify
all Digital Services Coordinators, and the Board andthrough the information sharing
system, as well as the provider of the very large online platform or of a very large online
search engine concerned.

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The Digital Services Coordinators shall, without undue delay upon being informed ofinitiation of the proceedings, transmit to the Commission any information they holdabout the infringement at stake.
The initiation of proceedings pursuant to paragraph 1 by the Commission shall relieve
the Digital Services Coordinator, or any competent authority where applicable, of its
competence to supervise and enforce the obligations laid down in this Regulation
pursuant to Article 44a(1c).
3.

In the exercise of its powers of investigation the Commission may request the individual
or joint support of the Digital Services Coordinators concerned by the alleged
infringement, including the Digital Services Coordinator of establishment, which shallcooperate timely and sincerely with the Commission and accordingly be entitled toexercise their investigative powers referred to in Article 41(1) in respect of the very large
online platform or very large online search engine at stake, with regard to informationand premises located within their Member State and in accordance with the request of
the Commission.

4.

The Commission shall provide the Digital Services Coordinator of establishment and theBoard all relevant information about the exercise of the powers referred to in Articles 52
to 57 and communicate its preliminary findings pursuant to Article 63(1). The Board
shall provide its views on the preliminary findings of the Commission within areasonable time period set pursuant to Article 63(2). The Commission shall take utmost
account of the views of the Board in its final decision.

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As regards points (a) and (b) of paragraph 1, pursuant to that notification, the Digital Services
Coordinator of establishment concerned shall no longer be entitled to take any investigatory
or enforcement measures in respect of the relevant conduct by the very large online platform
concerned, without prejudice to Article 66 or any other measures that it may take at therequest of the Commission.
3.

The Digital Services Coordinator referred to in Articles 45(7), 46(2) and 50(1), as
applicable, shall, without undue delay upon being informed, transmit to the Commission:(a)any information that that Digital Services Coordinator exchanged relating to theinfringement or the suspected infringement, as applicable, with the Board and withthe very large online platform concerned;(b)

the case file of that Digital Services Coordinator relating to the infringement or thesuspected infringement, as applicable;(c)any other information in the possession of that Digital Services Coordinator that may
be relevant to the proceedings initiated by the Commission.

4.

The Board, and the Digital Services Coordinators making the request referred to in Article
45(1), shall, without undue delay upon being informed, transmit to the Commission any
information in their possession that may be relevant to the proceedings initiated by theCommission.

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Article 52
Requests for information
1.

In order to carry out the tasks assigned to it under this Section, the Commission may, bysimple request or by decision, require the provider of the very large online platforms or ofvery large online search engine concerned, as well as any other natural or legal persons
acting for purposes related to their trade, business, craft or profession that may be reasonably
be aware of information relating to the suspected infringement or the infringement, asapplicable, including organisations performing the audits referred to in Articles 28 and[50(3),2)], to provide such information within a reasonable time period.

2.

When sending a simple request for information to the provider of the very large online
platform or of very large online search engine concerned or other person referred to inparagraph Article 52(1 of this Article), the Commission shall state the legal basis and the
purpose of the request, specify what information is required and set the time period within
which the information is to be provided, and the penalties fines provided for in Article 59 forsupplying incorrect or misleading information.

3.

Where the Commission requires the provider of the very large online platform or of verylarge online search engine concerned or other person referred to in paragraph Article 52(1of this Article) to supply information by decision, it shall state the legal basis and the purposeof the request, specify what information is required and set the time period within which it is
to be provided. It shall also indicate the penalties fines provided for in Article 59 and indicate
or impose the periodic penalty payments provided for in Article 60. It shall further indicate
the right to have the decision reviewed by the Court of Justice of the European Union.

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4.

The owners of the very large online platform or of the very large online search engine
concerned or other person referred to in Article 52(paragraph 1) or their representatives and,in the case of legal persons, companies or firms, or where they have no legal personality, thepersons authorised to represent them by law or by their constitution shall supply the
information requested on behalf of the provider of the very large online platform or of thevery large online search engine concerned or other person referred to in Article
52(paragraph 1). Lawyers duly authorised to act may supply the information on behalf of
their clients. The latter shall remain fully responsible if the information supplied isincomplete, incorrect or misleading.

5.

At the request of the Commission, the Digital Services Coordinators and other competentauthorities shall provide the Commission with all necessary information to carry out the tasks
assigned to it under this Section.

5a.

The Commission shall without delay forward a copy of the simple request for
information or a copy of the decision requesting information to the Digital Services
Coordinators.

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Article 53
Power to take interviews and statements
1.

In order to carry out the tasks assigned to it under this Section, the Commission may interview
any natural or legal person which consents to being interviewed for the purpose of collecting
information, relating to the subject-matter of an investigation, in relation to the suspected
infringement or infringement, as applicable. The Commission shall be entitled to record
such interview by appropriate technical means.

2.

Where an interview pursuant to paragraph 1 is conducted on the premises of anundertaking, the Commission shall inform the Digital Services Coordinator in theMember State of which the interview takes place. If so requested by that Digital Services
Coordinator, its officials may assist the officials and other accompanying persons
authorised by the Commission to conduct the interview.

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Article 54
Power to conduct on-site inspections
1.

In order to carry out the tasks assigned to it under this Section, the Commission may conduct
all necessary on-site inspections at the premises of the provider of the very large online
platform or of the very large online search engine concerned or other person referred to in
Article 52(1).

1a.

The officials and other accompanying persons authorised by the Commission to conduct
an inspection are empowered to:(a)enter any premises, land and means of transport of undertakings and associationsof undertakings;(b)

examine the books and other records related to the business, irrespective of themedium on which they are stored;(c)take or obtain in any form copies of or extracts from such books or records;(d)require the undertaking or association of undertakings to provide access to andexplanations on its organisation, functioning, IT system, algorithms, data-handlingand business practices and to record or document the explanations given;(e)seal any business premises and books or records for the period and to the extent
necessary for the inspection;(f)

ask any representative or member of staff of the undertaking or association ofundertakings for explanations on facts or documents relating to the subject-matterand purpose of the inspection and to record the answers;(g)address questions to any representative or member of staff relating to the subjectmatter and purpose of the inspection and to record the answers.

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2.

On-site iInspections may also be carried out with the assistance of auditors or experts
appointed by the Commission pursuant to Article 57(2), as well as with the Digital Services
Coordinator or the competent national authorities of the Member State in the territoryof which the inspection is to be conducted.

2a.

The officials and other accompanying persons authorised by the Commission to conduct
an inspection shall exercise their powers upon production of a written authorisation
specifying the subject matter and purpose of the inspection and the penalties provided
for in Articles 59 and 60 in case the production of required books or other records
related to the business is incomplete or where the answers to questions asked underparagraph 2 of this Article are incorrect or misleading. In good time before theinspection, the Commission shall inform about the planned inspection the Digital Service
Coordinator of the Member State in the territory of which the inspection is to be
conducted.

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3.

During on-site inspections the Commission, and auditors andor experts appointed by theCommissionit, as well as the competent national authoritiesy of the Member State in whose
the territory of which the inspection is to be conducted may require the provider of the verylarge online platform or of the very large online search engine concerned or other personreferred to in Article 52(1) to provide explanations on its organisation, functioning, IT system,
algorithms, data-handling and business conducts. The Commission and auditors or experts
appointed by it may address questions to key personnel of the provider of the very large
online platform or of the very large online search engine concerned or other person referred
to in Article 52(1).

4.

The provider of the very large online platform or of the very large online search engine
concerned or other natural or legal person referred to in Article 52(1) is required to submit toan on-site inspection ordered by decision of the Commission. The decision shall specify the
subject matter and purpose of the visit, set the date on which it is to begin and indicate thepenalties provided for in Articles 59 and 60 and the right to have the decision reviewed by the
Court of Justice of the European Union. The Commission shall take such decisions after
consulting the Digital Services Coordinator of establishment in the Member State ofwhich the inspection is to be conducted.

5.

Officials of as well as persons authorised or appointed by the Digital Services
Coordinator in the Member State of which the inspection is to be conducted shall, at therequest of that authority or of the Commission, actively assist the officials and otheraccompanying persons authorised by the Commission. To this end, they shall have thepowers listed in paragraph 1a.

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6.

Where the officials and other accompanying persons authorised by the Commission findthat an undertaking opposes an inspection ordered pursuant to this Article, the Member
State concerned shall, on request by the officials or other accompanying persons and inaccordance with national law, afford them the necessary assistance, upon their requestof, where appropriate, the assistance of an enforcement authority, so as to enable themto conduct their inspection.

7.

If the assistance provided for in paragraph 6 requires authorisation from a judicial
authority according to national rules, such authorisation shall be applied for by the
Digital Services Coordinator of the Member State on the territory of which theinspection is to be carried out upon the request of the Commission. Such authorisation
may also be applied for as a precautionary measure.

8.

Where authorisation as referred to in paragraph 7 is applied for, the national judicial
authority shall verify that the Commission decision is authentic and that the coercive
measures envisaged are neither arbitrary nor excessive having regard to the subject
matter of the inspection. Within such verification, the national judicial authority may
ask the Commission, directly or through the Digital Services Coordinators, for detailed
explanations in particular on the grounds the Commission has for suspecting an
infringement of this Regulation, as well as on the seriousness of the suspected
infringement and on the nature of the involvement of the undertaking concerned.
However, the national judicial authority may not call into question the necessity for theinspection nor demand information from the case file of the Commission. The lawfulnessof the Commission decision shall be subject to review only by the Court of Justice of theEuropean Union.

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Article 55
Interim measures
1.

In the context of proceedings which may lead to the adoption of a decision of non-compliancepursuant to Article 58(1), where there is an urgency due to the risk of serious damage for therecipients of the service, the Commission may, by decision, order interim measures against
the provider of the very large online platform or of the very large online search engine
concerned on the basis of a prima facie finding of an infringement.

2.

A decision under paragraph 1 shall apply for a specified period of time and may be renewedin so far this is necessary and appropriate.

Article 56
Commitments
1.

If, during proceedings under this Section, the provider of the very large online platform or of
the very large online search engine concerned offers commitments to ensure compliancewith the relevant provisions of this Regulation, the Commission may by decision make thosecommitments binding on the provider of the very large online platform or of the very large
online search engine concerned and declare that there are no further grounds for action.

2.

The Commission may, upon request or on its own initiative, reopenreinitiate the proceedings:(a)where there has been a material change in any of the facts on which the decision was
based;(b)where the provider of the very large online platform or of the very large online
search engine concerned acts contrary to its commitments; or(c)where the decision was based on incomplete, incorrect or misleading information
provided by the provider of the very large online platform or of the very large online
search engine concerned or other person referred to in Article 52(1).

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3.

Where the Commission considers that the commitments offered by the provider of the verylarge online platform or of the very large online search engine concerned are unable toensure effective compliance with the relevant provisions of this Regulation, it shall reject
those commitments in a reasoned decision when concluding the proceedings.

Article 57
Monitoring actions
1.

For the purposes of carrying out the tasks assigned to it under this Section, the Commission
may take the necessary actions to monitor the effective implementation and compliance withthis Regulation by the provider of the very large online platform or of the very large online
search engine concerned. The Commission may also order that platform provider to provide
access to, and explanations relating to, its databases and algorithms. Such actions may
include in particular the imposition of an obligation on the provider of the very large
online platform or of the very large online search engine to retain all documents deemed
to be necessary to assess the provider's implementation of and compliance with theseobligations and decisions.

2.

The actions pursuant to paragraph 1 may include the appointment of independent external
experts and auditors, as well as from competent national authorities, to assist theCommission in monitoring compliance with the relevant provisions of this Regulation and toprovide specific expertise or knowledge to the Commission.

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Article 58
Non-compliance
1.

The Commission shall adopt a non-compliance decision where it finds that the provider ofthe very large online platform or of the very large online search engine concerned does notcomply with one or more of the following:

2.

(a)

the relevant provisions of this Regulation;(b)interim measures ordered pursuant to Article 55;(c)commitments made binding pursuant to Article 56.,

Before adopting the decision pursuant to paragraph 1, the Commission shall communicate its
preliminary findings to the provider of the very large online platform or of the very large
online search engine concerned. In the preliminary findings, the Commission shall explain
the measures that it considers taking, or that it considers that the provider of the very large
online platform or of the very large online search engine concerned should take, in order toeffectively address the preliminary findings.

3.

In the decision adopted pursuant to paragraph 1 the Commission shall order the provider ofthe very large online platform or of the very large online search engine concerned to takethe necessary measures to ensure compliance with the decision pursuant to paragraph 1 withina reasonable time period and to provide information on the measures that that platform
provider intends to take to comply with the decision.

4.

The provider of the very large online platform or of the very large online search engine
concerned shall provide the Commission with a description of the measures it has taken to
ensure compliance with the decision pursuant to paragraph 1 upon their implementation.

5.

Where the Commission finds that the conditions of paragraph 1 are not met, it shall close theinvestigation by a decision.

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Article 59
Fines
1.

In the decision pursuant to Article 58, the Commission may impose on the provider of thevery large online platform or of the very large online search engine concerned fines notexceeding 6 % of its total worldwide turnover in the preceding financial year where it findsthat that platformprovider, intentionally or negligently:(a)infringes the relevant provisions of this Regulation;(b)

fails to comply with a decision ordering interim measures under Article 55; or(c)fails to comply with a voluntary measurecommitment made binding by a decision
pursuant to Articles 56;.

(d)fails to comply with the measures adopted by the Commission pursuant to Article 57; or(e)fails to comply with the conditions for access to the Commission’s file pursuant to
Article 63(4). [moved to paragraph 2]

2.

The Commission may by decision impose on the provider of the very large online platform
or of the very large online search engine concerned or other natural or legal personreferred to in Article 52(1) fines not exceeding 1 % of the total annual income or turnover inthe preceding financial year, where they intentionally or negligently:

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(a)

supply incorrect, incomplete or misleading information in response to a simple requestor request by a decision pursuant to Article 52; or,(aa) when the information is requested by decision, fail to reply to the request for
information by decision within the set time period;(b)fail to rectify within the time period set by the Commission, incorrect, incomplete or
misleading information given by a member of staff, or fail or refuse to provide complete
information;(c)refuse to submit to an on-site inspection pursuant to Article 54;(d)fails to comply with the measures adopted by the Commission pursuant to Article
57; or [moved from paragraph 1](e)fails to comply with the conditions for access to the Commission’s file pursuant to
Article 63(4). [moved from paragraph 1]

3.

Before adopting the decision pursuant to paragraph 2 of this Article, the Commission shallcommunicate its preliminary findings to the provider of the very large online platform or of
the very large online search engine concerned or other person referred to in Article 52(1).

4.

In fixing the amount of the fine, the Commission shall have regard to the nature, gravity,
duration and recurrence of the infringement and, for fines imposed pursuant to paragraph 2,
the delay caused to the proceedings.

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Article 59a
Enhanced supervision of remedies to address infringements of obligations laid down in Section 4of Chapter III
1.

Where the Commission has adopted a decision pursuant to Article 58 and 59 in relation
to an infringement by a provider of very large online platform or of a very large online
search engine of any of the provisions of Section 4 of Chapter III, it shall make use of theenhanced supervision system laid down in this Article. It shall take utmost account of
any opinion of the Board pursuant to this Article.

2.

When communicating the decision referred to in paragraph 1 of this Article to theprovider of a very large online platform or of a very large online search engine
concerned, the Commission shall also require the provider to draw up andcommunicate, within a timeline set by the Commission, to the Digital Services
Coordinators, the Commission and the Board an action plan to terminate or remedy the
infringement. The measures set out in the action plan shall include a commitment tocomplete an independent audit in accordance with Article 28(2) and (3) on theimplementation of the proposed measures, with the identity of the proposed auditors
and the methodology, timing and follow-up of the audit set out in the action plan. The
measures may also include, where appropriate, a commitment to participate in a
relevant code of conduct as provided for in Article 35.

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3.

Within one month following receipt of the action plan, the Board shall communicate its
opinion on the action plan to the Commission. Within one month following receipt ofthat opinion, the Commission shall decide whether the action plan is appropriate toterminate or remedy the infringement and set a time limit for its implementation. The
possible commitment to adhere to relevant codes of conduct shall be taken into accountin this decision.

4.

The Commission may take necessary measures in accordance with this Regulation, inparticular Articles 60(1)(e) and 65(1), where:a)the provider of very large online platform or of very large online search engine has
not provided any action plan; orb)

the Commission rejects the proposed action plan orc)the Commission considers that the provider has not remedied the infringement
following the implementation of the action plan.

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Article 60
Periodic penalty payments
1.

The Commission may, by decision, impose on the provider of the very large online platform
or of the very large online search engine concerned or other person referred to in Article
52(1), as applicable, periodic penalty payments not exceeding 5 % of the average daily
income or worldwide turnover in the preceding financial year per day, calculated from thedate appointed by the decision, in order to compel them to:(a)supply correct and complete information in response to a decision requiring information
pursuant to Article 52;

2.

(b)

submit to an on-site inspection which it has ordered by decision pursuant to Article 54;(c)comply with a decision ordering interim measures pursuant to Article 55(1);(d)

comply with commitments made legally binding by a decision pursuant to Article 56(1);(e)

comply with a decision pursuant to Article 58(1).

Where the provider of the very large online platform or of the very large online searchengine concerned or other person referred to in Article 52(1) has satisfied the obligation
which the periodic penalty payment was intended to enforce, the Commission may fix thedefinitive amount of the periodic penalty payment at a figure lower than that which would
arise under the original decision.

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Article 61
Limitation period for the imposition of penalties
1.

The powers conferred on the Commission by Articles 59 and 60 shall be subject to alimitation period of:(a)three years in the case of infringements of provisions concerning requests for
information pursuant to Article 52, powers to conduct interviews and takestatements pursuant to Article 53, or to conduct inspections pursuant to Article 54;(b)2.

five years in the case of all other infringements referred to in Articles 59 and 60.

Time shall begin to run on the day on which the infringement is committed. However, in thecase of continuing or repeated infringements, time shall begin to run on the day on which the
infringement ceases.

3.

Any action taken by the Commission or by the Digital Services Coordinator for the purpose of
the investigation or proceedings in respect of an infringement shall interrupt the limitation
period for the imposition of fines or periodic penalty payments. Actions which interrupt thelimitation period shall include, in particular, the following:(a)requests for information by the Commission or by a Digital Services Coordinator;(b)

on-site inspection;(c)the openinginitiation of a proceeding by the Commission pursuant to Article 51(21).

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4.

Each interruption shall start time running afresh. However, the limitation period for theimposition of fines or periodic penalty payments shall expire at the latest on the day on which
a period equal to twice the limitation period has elapsed without the Commission having
imposed a fine or a periodic penalty payment. That period shall be extended by the time
during which the limitation period is suspended pursuant to paragraph 5.

5.

The limitation period for the imposition of fines or periodic penalty payments shall besuspended for as long as the decision of the Commission is the subject of proceedings pending
before the Court of Justice of the European Union.

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Article 62
Limitation period for the enforcement of penalties
1.

The power of the Commission to enforce decisions taken pursuant to Articles 59 and 60 shallbe subject to a limitation period of five years.

2.

Time shall begin to run on the day on which the decision becomes final.

3.

The limitation period for the enforcement of penalties shall be interrupted:(a)by notification of a decision varying the original amount of the fine or periodic penalty
payment or refusing an application for variation;(b)by any action of the Commission, or of a Member State acting at the request of theCommission, designed to enforce payment of the fine or periodic penalty payment.

4.

Each interruption shall start time running afresh.

5.

The limitation period for the enforcement of penalties shall be suspended for so long as:(a)time to pay is allowed;(b)

enforcement of payment is suspended pursuant to a decision of the Court of Justice of
the European Union or to a decision of a national court.

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Article 63
Right to be heard and access to the file1.

Before adopting a decision pursuant to Articles 58(1), 59 or 60, the Commission shall give theprovider of the very large online platform or of the very large online search engine
concerned or other person referred to in Article 52(1) the opportunity of being heard on:(a)preliminary findings of the Commission, including any matter to which the Commission
has taken objections; and(b)measures that the Commission may intend to take in view of the preliminary findings
referred to point (a).

2.

The provider of the very large online platform or of the very large online search engine
concerned or other person referred to in Article 52(1) and any natural or legal person who
applies to be heard and shows a legitimate interest may submit their observations on theCommission’s preliminary findings within a reasonable time period set by the Commission inits preliminary findings, which may not be less than 14 days.

3.

The Commission shall base its decisions only on objections on which the parties concerned
have been able to comment.

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4.

The rights of defence of the parties concerned shall be fully respected in the proceedings.
They shall be entitled to have access to the Commission's file under the terms of a negotiateddisclosure, subject to the legitimate interest of the provider of the very large online platform
or of the very large online search engine concerned or other person referred to in Article
52(1) in the protection of their business secrets. The Commission shall have the power toissue decisions setting out such terms of disclosure in case of disagreement between theparties. The right of access to the file of the Commission shall not extend to confidential
information and internal documents of the Commission or Member States’ authorities. In
particular, the right of access shall not extend to correspondence between the Commission andthose authorities. Nothing in this paragraph shall prevent the Commission from disclosing andusing information necessary to prove an infringement.

5.

The information collected pursuant to Articles 52, 53 and 54 shall be used only for the
purpose of this Regulation.

6.

Without prejudice to the exchange and to the use of information referred to in Articles 51(3)and 52(5), the Commission, the Board, Member States’ authorities and their respective
officials, servants and other persons working under their supervision,; and any other natural or
legal person involved, including auditors and experts appointed pursuant to Article 57(2) shallnot disclose information acquired or exchanged by them pursuant to this Section and of thekind covered by the obligation of professional secrecy.[moved to Article 66a]13203/21
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Article 64
Publication of decisions
1.

The Commission shall publish the decisions it adopts pursuant to Articles 55(1), 56(1), 58, 59
and 60. Such publication shall state the names of the parties and the main content of thedecision, including any penalties imposed.

2.

The publication shall have regard to the rights and legitimate interests of the provider of thevery large online platform or of the very large online search engine concerned, any otherperson referred to in Article 52(1) and any third parties in the protection of their confidential
information.

Article 64a
Review by the Court of Justice of the European Union
In accordance with Article 261 of the Treaty on the Functioning of the European Union, theCourt of Justice of the European Union has unlimited jurisdiction to review decisions bywhich the Commission has imposed fines or periodic penalty payments. It may cancel, reduceor increase the fine or periodic penalty payment imposed.

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Article 65
Requests for access restrictions and cooperation with national courts
1.

Where all powers pursuant to this Article Section to bring about the cessation of an
infringement of this Regulation have been exhausted, the infringement persists and causes
serious harm which cannot be avoided through the exercise of other powers available under
Union or national law, the Commission may request the Digital Services Coordinator of
establishment of the provider of the very large online platform or of the very large online
search engine concerned to act pursuant to Article 41(3).
Prior to making such request to the Digital Services Coordinator, the Commission shall inviteinterested parties to submit written observations within a time period that shall not be lessthan two weeks, describing the measures it intends to request and identifying the intended
addressee or addressees thereof.

2.

Where the coherent application of this Regulation so requires, the Commission, acting on its
own initiative, may submit written observations to the competent judicial authority referred to
Article 41(3). With the permission of the judicial authority in question, it may also make oral
observations.
For the purpose of the preparation of its observations only, the Commission may request that
judicial authority to transmit or ensure the transmission to it of any documents necessary forthe assessment of the case.

3.

When national courts rule on a matter which is already a subject of a Commission
decision, they shall not take decisions running counter to a decision adopted by theCommission under this Regulation. They shall also avoid giving decisions which would
conflict with a decision contemplated by the Commission in proceedings it has initiatedunder this Regulation. To that effect, the national court may assess whether it isnecessary to stay its proceedings. This is without prejudice to Article 267 of the Treaty.

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Article 66
Implementing acts relating to Commission intervention
1.

In relation to the Commission intervention covered by this Section, the Commission may
adopt implementing acts concerning the practical arrangements for:(ac) the proceedings pursuant to Articles 54 and 57;(ba) the hearings provided for in Article 63;(cb) the negotiated disclosure of information provided for in Article 63.

2.

Those implementing acts shall be adopted in accordance with the advisory procedure referred
to in Article 70. Before the adoption of any measures pursuant to paragraph 1, theCommission shall publish a draft thereof and invite all interested parties to submit theircomments within the time period set out therein, which shall not be less than one month.

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SECTION 4COMMON PROVISIONS ON ENFORCEMENT

Article 66a
Professional secrecy [moved from Article 63(6)]Without prejudice to the exchange and to the use of information referred to in this ChapterArticles
51(3) and 52(5), the Commission, the Board, Member States’ competent authorities and theirrespective officials, servants and other persons working under their supervision, and any othernatural or legal person involved, including auditors and experts appointed pursuant to Article 57(2),shall not disclose information acquired or exchanged by them pursuant to this Section Regulationand of the kind covered by the obligation of professional secrecy.

Article 67
Information sharing system
1.

The Commission shall establish and maintain a reliable and secure information sharing
system supporting communications between Digital Services Coordinators, the Commission
and the Board. Other competent authorities may be granted access to this system, whereappropriate for carrying out the tasks conferred to them in accordance with thisRegulation.

2.

The Digital Services Coordinators, the Commission and the Board shall use the information
sharing system for all communications pursuant to this Regulation.

3.

The Commission shall adopt implementing acts laying down the practical and operationalarrangements for the functioning of the information sharing system and its interoperability
with other relevant systems. Those implementing acts shall be adopted in accordance with theadvisory procedure referred to in Article 70.

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Article 68
Representation
Without prejudice to Directive 2020/1828XX/EU of the European Parliament and of the Councilor
to any other type of representation under national law, recipients of intermediary services shallat least have the right to mandate a body, organisation or association to exercise the rights
conferred by this Regulation referred to in Articles 17, 18 and 19 on their behalf, provided thebody, organisation or association meets all of the following conditions:(a)

it operates on a not-for-profit basis;(b)

it has been properly constituted in accordance with the law of a Member State;(c)

its statutory objectives include a legitimate interest in ensuring that this Regulation iscomplied with.

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SECTION 5
DELEGATED ACTS

Article 69
Exercise of the delegation
1.

The power to adopt delegated acts is conferred on the Commission subject to the conditions
laid down in this Article.

2.

The delegation of power referred to in Articles 23, 25, and 31 shall be conferred on theCommission for an indeterminate period of time from [date of expected adoption of theRegulation].

3.

The delegation of power referred to in Articles 23, 25 and 31 may be revoked at any time by
the European Parliament or by the Council. A decision of revocation shall put an end to thedelegation of power specified in that decision. It shall take effect the day following that of its
publication in the Official Journal of the European Union or at a later date specified therein. It
shall not affect the validity of any delegated acts already in force.

4.

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to theEuropean Parliament and to the Council.

5.

A delegated act adopted pursuant to Articles 23, 25 and 31 shall enter into force only if noobjection has been expressed by either the European Parliament or the Council within aperiod of three months of notification of that act to the European Parliament and the Council
or if, before the expiry of that period, the European Parliament and the Council have bothinformed the Commission that they will not object. That period shall be extended by threemonths at the initiative of the European Parliament or of the Council.

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Article 70
Committee
1.

The Commission shall be assisted by the Digital Services Committee. That Committee shallbe a Committee within the meaning of Regulation (EU) No 182/2011.

2.

Where reference is made to this Article, Article 4 of Regulation (EU) No 182/2011 shallapply.

Chapter V
Final provisions

Article 71
Deletion of certain provisions ofAmendment to Directive 2000/31/EC
1.

Articles 12 to 15 of Directive 2000/31/EC shall beare deleted.

2.

References to Articles 12 to 15 of Directive 2000/31/EC shall be construed as references to
Articles 3, 4, 5 and 7 of this Regulation, respectively.

Article 72
Amendments to Directive (EU) 2020/1828 XX/EC on Representative Actions for the Protection of
the Collective Interests of Consumers
3.

The following is added to In Annex I to Directive (EU) 2020/1828, the following point is

added:“(67X) Regulation (EU) … /… of the European Parliament and of the Council of … on aSingle Market for Digital Services (Digital Services Act) and amending Directive 2000/31/EC(OJ L …, …)*”.

*

OJ: Please insert in the text the number, date and OJ reference of this Regulation.

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Article 73
Evaluation
1.

By … [five years after the date of entry into force of this Regulation] at the latest, and every
five years thereafter, the Commission shall evaluate this Regulation, and in particular thescope of the obligations on small and micro enterprises, the effectiveness of thesupervision and enforcement mechanisms, the impact on respect for the right to freedomof expression and information, and report to the European Parliament, the Council and theEuropean Economic and Social Committee. On the basis of the findings, that report shall,where appropriate, be accompanied by a proposal for amendment of this Regulation.

2.

For the purpose of paragraph 1, Member States and the Board shall send information on therequest of the Commission.

3.

In carrying out the evaluations referred to in paragraph 1, the Commission shall take into
account the positions and findings of the European Parliament, the Council, and other relevantbodies or sources.

4.

By three years from the date of application of this Regulation at the latest, the Commission,
after consulting the Board, shall carry out an assessment of the functioning of the Board andshall report it to the European Parliament, the Council and the European Economic and Social
Committee, taking into account the first years of application of the Regulation. On the basis of
the findings and taking into utmost account the opinion of the Board, that report shall, whereappropriate, be accompanied by a proposal for amendment of this Regulation with regard to
the structure of the Board.

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Article 74
Entry into force and application
1.

This Regulation shall enter into force on the twentieth day following that of its publication in
the Official Journal of the European Union.

2.

It shall apply from … [date - three eighteen months after the date of its entry into force of
this Regulation].

3.

Article 23(2) shall apply from … [twelve months after the date of entry into force of thisRegulation].

This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,

For the European Parliament

For the Council

The President

The President

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