### member states and hosting service providers may choose to make use of dedicated tools , including , where appropriate , those established by relevant union bodies such as europol , to facilitate in particular : ### member states and hosting service providers may choose to make use of dedicated tools , including , those established by competent union bodies such as europol , to facilitate in particular :


### member states and hosting service providers may choose to make use of dedicated tools , including , where appropriate , those established by relevant union bodies such as europol , to facilitate in particular : ### to avoid duplication and to minimize the expenses for the affected hosting service provider , member states shall make use of dedicated tools , including those established by competent union bodies such as europol , to facilitate in particular :


### it is essential that the competent authority within the member state responsible for imposing penalties is fully informed about the issuing of removal orders and referrals and subsequent exchanges between the hosting service provider and the relevant competent authority . for that purpose , member states should ensure appropriate communication channels and mechanisms allowing the sharing of relevant information in a timely manner . ### it is essential that the competent authority within the member state responsible for imposing penalties is fully informed about the issuing of removal orders and referrals and subsequent exchanges between the hosting service provider and the relevant competent authorities in other member states . for that purpose , member states should ensure appropriate communication channels and mechanisms allowing the sharing of relevant information in a timely manner .


### penalties are necessary to ensure the effective implementation by hosting service providers of the obligations pursuant to this regulation . member states should adopt rules on penalties , including , where appropriate , fining guidelines . particularly severe penalties shall be ascertained in the event that the hosting service provider systematically fails to remove terrorist content or disable access to it within one hour from receipt of a removal order . non - compliance in individual cases could be sanctioned while respecting the principles of ne bis in idem and of proportionality and ensuring that such sanctions take account of systematic failure . in order to ensure legal certainty , the regulation should set out to what extent the relevant obligations can be subject to penalties . penalties for non - compliance with article 6 should only be adopted in relation to obligations arising from a request to report pursuant to article 6 or a decision imposing additional proactive measures pursuant to article 6 . when determining whether or not financial penalties should be imposed , due account should be taken of the financial resources of the provider . member states shall ensure that penalties do not encourage the removal of content which is not terrorist content . ### penalties are necessary to ensure the effective implementation by hosting service providers of the obligations pursuant to this regulation . member states should adopt rules on penalties , which can be of an administrative or criminal nature including , where appropriate , fining guidelines . particularly severe penalties shall be ascertained in the event that the hosting service provider systematically fails to remove terrorist content or disable access to it within one hour from receipt of a removal order . non - compliance in individual cases could be sanctioned while respecting the principles of ne bis in idem and of proportionality and ensuring that such sanctions take account of systematic failure . when determining whether a penalty should apply , member states should take into consideration the reports made by hosting service providers when they have been unable to execute a removal order on time . the member states should take into consideration the economic and technical capacity of the hosting service providers . in order to ensure legal certainty , the regulation should set out to what extent the relevant obligations can be subject to penalties . penalties for non - compliance with article 6 should only be adopted in relation to obligations arising from a request to report pursuant to article 6 or a decision imposing additional proactive measures pursuant to article 6 . when determining whether or not financial penalties should be imposed , due account should be taken of the financial resources of the provider . member states shall ensure that penalties do not encourage the removal of content which is not terrorist content .


### for the purposes of this regulation , member states should designate competent authorities . the requirement to designate competent authorities does not necessarily require the establishment of new authorities but can be existing bodies tasked with the functions set out in this regulation . this regulation requires designating authorities competent for issuing removal orders , referrals and for overseeing proactive measures and for imposing penalties . it is for member states to decide how many authorities they wish to designate for these tasks . ### for the purposes of this regulation , member states should designate a competent authority . the requirement to designate a competent authority does not necessarily require the establishment of a new authority but can be an existing body tasked with the functions set out in this regulation . this regulation requires designating an authority competent for issuing removal orders , referrals and for overseeing proactive measures and for imposing penalties .


### in order to provide clarity about the actions that both hosting service providers and competent authorities should take to prevent the dissemination of terrorist content online , this regulation should establish a definition of terrorist content for preventative purposes drawing on the definition of terrorist offences under directive 2017 / 541 of the european parliament and of the council9 . given the need to address the most harmful terrorist propaganda online , the definition should capture material and information that incites , encourages or advocates the commission or contribution to terrorist offences , provides instructions for the commission of such offences or promotes the participation in activities of a terrorist group . such information includes in particular text , images , sound recordings and videos . when assessing whether content constitutes terrorist content within the meaning of this regulation , competent authorities as well as hosting service providers should take into account factors such as the nature and wording of the statements , the context in which the statements were made and their potential to lead to harmful consequences , thereby affecting the security and safety of persons . the fact that the material was produced by , is attributable to or disseminated on behalf of an eu - listed terrorist organisation or person constitutes an important factor in the assessment . content disseminated for educational , journalistic or research purposes should be adequately protected . furthermore , the expression of radical , polemic or controversial views in the public debate on sensitive political questions should not be considered terrorist content . _________________ 9 directive 2017 / 541 of the european parliament and of the council of 15 march 2017 on combating terrorism and replacing council framework decision 2002 / 475 / jha and amending council decision 2005 / 671 / jha . ### in order to provide clarity about the actions that both hosting service providers and competent authorities should take to prevent the dissemination of terrorist content online , this regulation should establish a definition of terrorist content for preventative purposes drawing on the definition of terrorist offences under directive 2017 / 541 of the european parliament and of the council . given the need to address the most harmful terrorist propaganda online , the definition should capture material that incites , encourages or advocates the commission or contribution to terrorist offences , or promotes the participation in activities of a terrorist group . the definition should also cover content that provides guidance for the making and the use of explosives , firearms , any other weapons , noxious or hazardous substances as well as chemical , biological , radiological and nuclear substances and any guidance on other methods and techniques , including the selection of targets , for the purpose of committing terrorist offences . such information material includes in particular text , images , sound recordings and videos . when assessing whether content constitutes terrorist content within the meaning of this regulation , competent authorities as well as hosting service providers should take into account factors such as the nature and wording of the statements , the context in which the statements were made and their potential to lead to harmful consequences , thereby affecting the security and safety of persons . the fact that the material was produced by , is attributable to or disseminated on behalf of an eu - listed terrorist organisation or person constitutes an important factor in the assessment . content disseminated for educational , counter - narrative or research purposes should be adequately protected , by striking a fair balance between fundamental rights and public security needs . especially in cases where the content provider holds an editorial responsibility , any decision as to the removal of the disseminated material should take into account the journalistic standards established by press or media regulation consistent with the law of the union and the charter of fundamental rights . furthermore , the expression of radical , polemic or controversial views in the public debate on sensitive political questions should not be considered terrorist content .


### the terrorist content and related data referred to in paragraph 1 shall be preserved for six months . the terrorist content shall , upon request from the competent authority or court , be preserved for a longer period when and for as long as necessary for ongoing proceedings of administrative or judicial review referred to in paragraph 1 . ### the terrorist content and related data referred to in paragraph 1 shall be preserved for six months . the terrorist content shall , upon request from the competent authority or court , be preserved for a specifically defined longer period when and for as long as necessary for investigation or prosecution of terrorist offences or ongoing proceedings of administrative or judicial review referred to in paragraph 1 .


### in order to avoid duplication and possible interferences with investigations , the competent authorities should inform , coordinate and cooperate with each other and where appropriate with europol when issuing removal orders or sending referrals to hosting service providers . in implementing the provisions of this regulation , europol could provide support in line with its current mandate and existing legal framework . ### in order to avoid duplication and possible interferences with investigations , the competent authorities should inform , coordinate and cooperate with each other and where appropriate with europol before issuing removal orders or when sending referrals to hosting service providers . when deciding upon issuing a removal order , the competent authority should give due consideration to any notification of an interference with an investigative interests . where a competent authority is informed about an existing removal order issued by the competent authority of another member state , it should refrain from issuing a duplicate order . in implementing the provisions of this regulation , europol could provide support in line with its current mandate and existing legal framework .


### where hosting service providers become aware of any evidence of terrorist offences , they shall promptly inform authorities competent for the investigation and prosecution in criminal offences in the concerned member state or the point of contact in the member state pursuant to article 14 , where they have their main establishment or a legal representative . hosting service providers may , in case of doubt , transmit this information to europol for appropriate follow up . ### where hosting service providers become aware of any evidence of terrorist offences , they shall promptly inform the authority competent for the investigation and prosecution in criminal offences in the concerned member state or the point of contact in the member state pursuant to article 14 , where they have their main establishment or a legal representative . hosting service providers may , in case of doubt , transmit this information to europol for appropriate follow up .


### networks used for the distribution of radio or television broadcasts to the public include cable , iptv , satellite and terrestrial broadcasting networks . they might also include other networks to the extent that a significant number of end - users use such networks as their principal means to receive radio and television broadcasts . must carry obligations can include the transmission of services specifically designed to enable appropriate access by disabled users . accordingly complementary services include , amongst others , services designed to improve accessibility for end - users with disabilities , such as videotext , subtitling , audio description and sign language . because of the growing provision and reception of connected tv services and the continued importance of electronic programme guides for user choice the transmission of programme - related data supporting those functionalities can be included in must carry obligations . ### electronic communications networks and services used for the distribution of radio or television broadcasts to the public include cable , iptv , satellite and terrestrial broadcasting networks . they might also include other networks and services to the extent that a significant number of end - users use such networks to receive radio and television broadcasts . must carry obligations can include the transmission of services specifically designed to enable appropriate access by disabled users . accordingly complementary services include , amongst others , services designed to improve accessibility for end - users with disabilities , such as videotext , subtitling , audio description and sign language . because of the growing provision and reception of connected tv services and the continued importance of electronic programme guides and other navigation facilities for user choice the transmission of programme - related data supporting those functionalities can be included in must carry obligations .


### member states may impose reasonable ‘ must carry’ obligations , for the transmission of specified radio and television broadcast channels and related complementary services , particularly accessibility services to enable appropriate access for disabled end - users and data supporting connected tv services and electronic programme guides , on undertakings under their jurisdiction providing electronic communications networks used for the distribution of radio or television broadcast channels to the public where a significant number of end - users of such networks use them as their principal means to receive radio and television broadcast channels . such obligations shall only be imposed where they are necessary to meet general interest objectives as clearly defined by each member state and shall be proportionate and transparent . ### member states may impose reasonable ‘ must carry’ obligations , for the transmission of specified radio and television broadcast channels and related complementary services , particularly accessibility services to enable appropriate access for disabled end - users and data supporting connected tv services and electronic programme guides , on undertakings under their jurisdiction providing electronic communications networks and services used for the distribution of radio or television broadcast channels to the public where a significant number of end - users of such networks use them to receive radio and television broadcast channels . such obligations shall only be imposed where they are necessary to meet general interest objectives as clearly defined by each member state and shall be proportionate and transparent .


### where appropriate , the competent authority concerned shall inform the competent authorities in other member states and the european network and information security agency . the competent authority concerned may inform the public or require the undertakings to do so , where it determines that disclosure of the breach is in the public interest . ### where appropriate , the competent authority concerned shall inform the competent authorities in other member states and the european network and information security agency . the competent authority concerned may inform the public or require the providers to do so , where it determines that disclosure of the incident is in the public interest .


### after consulting stakeholders and in close cooperation with the commission , berec may adopt a decision identifying transnational markets in accordance with the principles of competition law and taking utmost account of the recommendation and smp guidelines adopted in accordance with article 62 . berec shall conduct an analysis of a potential transnational market if the commission or at least two national regulatory authorities concerned submit a reasoned request providing supporting evidence . ### after consulting stakeholders and national regulatory authorities the commission may , taking utmost into account the opinion of berec and proceeding in accordance with the principles of competition law and taking utmost account of the recommendation and smp guidelines adopted in accordance with article 62 , adopt a decision identifying a transnational market .


### promote the interests of the citizens of the union , including in the long term , by ensuring widespread availability and take - up of very high capacity connectivity , both fixed and mobile , and of interpersonal communications services , by enabling maximum benefits in terms of choice , price and quality on the basis of effective competition , by maintaining security of networks and services , by ensuring a high and common level of protection for end - users through the necessary sector - specific rules and by addressing the needs , such as for affordable prices , of specific social groups , in particular disabled users , elderly users and users with special social needs . ### promote the interests of the citizens of the union , by ensuring widespread availability and take - up of very high capacity connectivity , both fixed and mobile , and of interpersonal communications services , by enabling maximum benefits in terms of choice , price and quality on the basis of effective competition , by maintaining security of networks and services , by ensuring a high and common minimum level of protection for end - users through the necessary sector - specific rules and by addressing the needs , such as for affordable prices , of specific social groups , in particular disabled users , elderly users and users with special social needs .


### the commission , shall be empowered to adopt delegated acts in accordance with article 109 with a view to specifying the measures referred to in paragraphs 1 and 2 , including measures defining the circumstances , format and procedures applicable to notification requirements . the delegated acts shall be based on european and international standards to the greatest extent possible , and shall not prevent member states from adopting additional requirements in order to pursue the objectives set out in paragraphs 1 and 2 . ### the commission , shall be empowered to adopt delegated acts in accordance with article 109 with a view to specifying the measures referred to in paragraphs 1 and 2 , including measures defining the circumstances , format and procedures applicable to notification requirements . the delegated acts shall be based on european and international standards to the greatest extent possible , member states shall only adopt additional requirements to the extent necessary to safeguard their essential state functions , in particular national security , and to maintain law and order . providers of number - independent interpersonal communications services and providers of electronic communication services subject to general authorization that have notified as cross - border operators shall only have to comply with any additional national requirements as imposed by the competent authority of the member state of their main establishment .


### in justified cases , obligations on providers of number - independent interpersonal communications services to make their services interoperable , namely where access to emergency services or end - to - end connectivity between end - users is endangered due to a lack of interoperability between interpersonal communications services . ### in justified cases , and where technically feasible , obligations on providers of interpersonal communications services to make their services interoperable , namely where effective competition , or end - to - end connectivity between end - users is endangered due to a lack of interoperability between interpersonal communications services .


### member states shall ensure that all end - users in their territory have access at an affordable price , in the light of specific national conditions , to available functional internet access and voice communications services at the quality specified in their territory , including the underlying connection , at least at a fixed location . ### member states shall ensure that all consumers in their territory have access at an affordable price , in the light of specific national conditions , to an available broadband internet access and voice communications services at the quality specified in their territory , including the underlying connection , at a fixed location .


### national regulatory authorities shall , acting in pursuit of the objectives set out in article 3 , encourage and where appropriate ensure , in accordance with the provisions of this directive , adequate access and interconnection , and the interoperability of services , exercising their responsibility in a way that promotes efficiency , sustainable competition , the deployment of very high capacity networks , efficient investment and innovation , and gives the maximum benefit to end - users . they shall provide guidance and make publicly available the procedures applicable to gain access and interconnection to ensure that small and medium - sized enterprises and operators with a limited geographical reach can benefit from the obligations imposed . ### national regulatory authorities shall , acting in pursuit of the objectives set out in article 3 , encourage and where appropriate ensure , in accordance with the provisions of this directive , adequate access and interconnection , and the interoperability of services , exercising their responsibility in a way that promotes efficiency , sustainable competition , media pluralism , the deployment of very high capacity networks , efficient investment and innovation , and gives the maximum benefit to end - users . they shall provide guidance and make publicly available the procedures applicable to gain access and interconnection to ensure that small and medium - sized enterprises and operators with a limited geographical reach can benefit from the obligations imposed .


### where the commission , on the basis of a report that it had requested from berec , has found an appreciable threat to effective access to emergency services or to end - to - end connectivity between end - users within one or several member states or throughout the european union and has adopted implementing measures specifying the nature and scope of any obligations that may be imposed , in accordance with the examination procedure referred to in article 110 . ### where the commission , on the basis of a report that it had requested from berec , has found an appreciable threat to effective or to end - to - end connectivity between end - users , related to a lack of interoperability of number - independent interpersonal communication services with a particularly broad customer base , within one or several member states or throughout the european union and has adopted implementing measures specifying the nature and scope of any obligations that may be imposed , in accordance with the examination procedure referred to in article 110 . access to emergency services or end - to - end connectivity between end - users will not be considered endangered if the provider does not have a particularly substantial reach or customer base .


### the convergence of the telecommunications , media and information technology sectors means that all electronic communications networks and services should be covered to the extent possible by a single european electronic communications code established by a single directive , with the exception of matters better dealt with through directly applicable rules established through regulations it is necessary to separate the regulation of electronic communications networks and services from the regulation of content . this code does not therefore cover the content of services delivered over electronic communications networks using electronic communications services , such as broadcasting content , financial services and certain information society services , and is therefore without prejudice to measures taken at union or national level in respect of such services , in compliance with union law , in order to promote cultural and linguistic diversity and to ensure the defence of media pluralism . the content of television programmes is covered by directive 2010 / 13 / eu of the european parliament and of the council21 . the regulation of audiovisual policy and content aims at achieving general interest objectives , such as freedom of expression , media pluralism , impartiality , cultural and linguistic diversity , social inclusion , consumer protection and the protection of minors . the separation between the regulation of electronic communications and the regulation of content does not prejudice the taking into account of the links existing between them , in particular in order to guarantee media pluralism , cultural diversity and consumer protection . __________________ 21 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 or administrative action in member states concerning the provision of audiovisual media services . ### the convergence of the telecommunications , media and information technology sectors means that all electronic communications networks and services should be covered to the extent possible by a single european electronic communications code established by a single directive , with the exception of matters better dealt with through directly applicable rules established through regulations . it is necessary to separate the regulation of electronic communications networks and services from the regulation of content . this code does not therefore cover the content of services delivered over electronic communications networks using electronic communications services , such as broadcasting content , financial services and certain information society services , and is therefore without prejudice to measures taken at union or national level in respect of such services , in compliance with union law , in order to promote cultural and linguistic diversity and to ensure the defence of media pluralism . the content of television programmes is covered by directive 2010 / 13 / eu of the european parliament and of the council21 . the regulation of audiovisual policy and content aims at achieving general interest objectives , such as freedom of expression , media pluralism , impartiality , cultural and linguistic diversity , social inclusion , consumer protection and the protection of minors . unless explicitly excluded from the scope of application of the code , electronic communications networks and services are covered by this code . also , the separation between the regulation of electronic communications and the regulation of content does not prejudice the taking into account of the links existing between them , in particular in order to guarantee media pluralism , cultural diversity and consumer protection . __________________ 21 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 or administrative action in member states concerning the provision of audiovisual media services .


### in the case of transnational markets identified in accordance with paragraph 1 , the national regulatory authorities concerned shall jointly conduct the market analysis taking the utmost account of the smp guidelines and , in a concerted fashion , shall decide on any imposition , maintenance , amendment or withdrawal of regulatory obligations referred to in article 65 . the national regulatory authorities concerned shall jointly notify to the commission with their draft measures regarding the market analysis and any regulatory obligations pursuant to articles 32 and 33 . ### in the case of transnational markets identified in the decision referred to in paragraph 1 , the national regulatory authorities concerned shall jointly conduct the market analysis taking the utmost account of the smp guidelines and , in a concerted fashion , shall decide on any imposition , maintenance , amendment or withdrawal of regulatory obligations referred to in article 65 . the national regulatory authorities concerned shall jointly notify to the commission with their draft measures regarding the market analysis and any regulatory obligations pursuant to articles 32 and 33 .


### member states may impose reasonable ‘ must carry’ obligations , for the transmission of specified radio and television broadcast channels and related complementary services , particularly accessibility services to enable appropriate access for disabled end - users and data supporting connected tv services and electronic programme guides , on undertakings under their jurisdiction providing electronic communications networks used for the distribution of radio or television broadcast channels to the public where a significant number of end - users of such networks use them as their principal means to receive radio and television broadcast channels . such obligations shall only be imposed where they are necessary to meet general interest objectives as clearly defined by each member state and shall be proportionate and transparent . ### member states may impose reasonable ' must carry ' obligations , for the transmission of specified radio and television broadcast channels and related complementary services , particularly accessibility services to enable appropriate access to content and electronic programming guide for end - users with disabilities and data supporting connected tv services and electronic programme guides , on undertakings under their jurisdiction providing electronic communications networks and services used for the distribution of radio or television broadcast channels to the public where a significant number of end - users of such networks and services use them as their principal means to receive radio and television broadcast channels . such obligations shall only be imposed where they are necessary to meet general interest objectives as clearly defined by each member state and shall be proportionate and transparent . member states shall only impose ' must carry ' obligations on analogue television broadcast transmissions where a lack of such an obligation would cause a significant disturbance for a significant number of end - users or where there are no other transmission means for specified television broadcast channels . ' must carry ' obligations referred to in the first subparagraph shall only be imposed where they are necessary to meet general interest objectives as clearly defined by each member state and shall be proportionate and transparent .


### neither paragraph 1 of this article nor article 57 shall prejudice the ability of member states to determine appropriate remuneration , if any , in respect of measures taken in accordance with this article while ensuring that , in similar circumstances , there is no discrimination in the treatment of undertakings providing electronic communications networks . where remuneration is provided for , member states shall ensure that it is applied in a proportionate and transparent manner . ### neither paragraph 1 of this article nor article 57 shall prejudice the ability of member states to determine in their legislation appropriate remuneration , if any , in respect of measures taken in accordance with this article while ensuring that , in similar circumstances , there is no discrimination in the treatment of undertakings providing electronic communications networks and services . if remuneration is to be provided for , the requirement for remuneration and its amount may be laid down by law and such remuneration shall be applied in a proportionate and transparent manner .


### member states should be able to lay down proportionate obligations on undertakings under their jurisdiction , in the interest of legitimate public policy considerations ; but such obligations should only be imposed where they are necessary to meet general interest objectives clearly defined by member states in conformity with union law and should be proportionate and transparent . ‘ must carry’ obligations may be applied to specified radio and television broadcast channels and complementary services supplied by a specified media service provider . obligations imposed by member states should be reasonable , that is they should be proportionate and transparent in the light of clearly defined general interest objectives . member states should provide an objective justification for the ‘ must carry’ obligations that they impose in their national law so as to ensure that such obligations are transparent , proportionate and clearly defined . the obligations should be designed in a way which provides sufficient incentives for efficient investment in infrastructure . obligations should be subject to periodic review at least every five years in order to keep them up - to - date with technological and market evolution and in order to ensure that they continue to be proportionate to the objectives to be achieved . obligations could , where appropriate , entail a provision for proportionate remuneration . ### member states should be able to lay down proportionate obligations on undertakings under their jurisdiction , in the interest of legitimate public policy considerations ; but such obligations should only be imposed where they are necessary to meet general interest objectives clearly defined by member states in conformity with union law and should be proportionate and transparent . ‘ must carry’ obligations may be applied to specified radio and television broadcast channels and complementary services supplied by a specified media service provider . obligations imposed by member states should be reasonable , that is they should be proportionate and transparent in the light of clearly defined general interest objectives , for instance , media pluralism and cultural diversity . member states should provide an objective justification for the ‘ must carry’ obligations that they impose in their national law so as to ensure that such obligations are transparent , proportionate and clearly defined . obligations should be subject to periodic review at least every five years in order to keep them up - to - date with technological and market evolution and in order to ensure that they continue to be proportionate to the objectives to be achieved . obligations could , where appropriate , entail a provision for proportionate remuneration .


### end - users should be able to enjoy a guarantee of interoperability in respect of all equipment sold in the union for the reception of digital television . member states should be able to require minimum harmonised standards in respect of such equipment . such standards could be adapted from time to time in the light of technological and market developments . ### end - users should be able to enjoy a guarantee of interoperability in respect of all equipment sold in the union for the reception of radio and digital television . member states should be able to require minimum harmonised standards in respect of such equipment . such standards could be adapted from time to time in the light of technological and market developments .


### a delegated act adopted pursuant to article 2 , shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of two 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 both informed the commission that they will not object . that period shall be extended by two months at the initiative of the european parliament or the council . ### a delegated act adopted pursuant to article 2 , shall enter into force only if no objection has been expressed either by the european parliament or the council within a period 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 both informed the commission that they will not object . that period shall be extended by three months at the initiative of the european parliament or the council . when a delegated act is delivered just before or during a public holiday , the time shall be deemed to run from the date of the first plenary session of the european parliament following the public holiday . in all cases , the period shall be able to be extended to encompass three full plenary sessions .


### the data flows shall be as further specified in annex i . ### in article 5 , paragraph 2 is replaced by the following : the statistics to be produced shall aggregate flows of information on a basis of complete and reliable sources of data .


### the members of the management board , the executive director and the members of the advisory groups shall undertake to act in the public interest . for that purpose they shall issue an annual , written , public statement of commitment . ### the members of the management board , the executive director and the members of the advisory groups shall undertake to act in the public interest . for that purpose they shall issue an annual , written , public statement of commitment , which shall be published on the agency’s website .


### cooperation with union bodies , offices and agencies shall take place within the framework of working arrangements . such arrangements shall have received the commission ' s prior approval . such arrangements may provide for the sharing of services between agencies where appropriate either by proximity of locations or by policy area within the limits of the respective mandates and without prejudice to their core tasks . ### cooperation with union bodies , offices and agencies shall take place within the framework of working arrangements . such arrangements shall be concluded following consultation with the commission . such arrangements may provide for the sharing of services between agencies where appropriate either by proximity of locations or by policy area within the limits of the respective mandates and without prejudice to their core tasks . the working arrangements shall establish the mechanisms for cost recovery .


### the security rules shall be adopted by the management board following approval by the commission . the agency may take all necessary measures to facilitate the exchange of information relevant to its tasks with the commission and the member states and where appropriate , the relevant union agencies . it shall develop and operate an information system capable of exchanging classified information with those actors in accordance with council decision 2013 / 488 / eu and commission decision 2015 / 444 . the management board shall , pursuant to article 2 and article 15 of this regulation , decide on the agency’s internal structure necessary to fulfil the appropriate security principles . ### the security rules shall be adopted by the management board following close consultation with the commission . the agency may take all necessary measures to facilitate the exchange of information relevant to its tasks with the commission and the member states and where appropriate , the relevant union agencies . it shall develop and operate an information system capable of exchanging classified information with those actors in accordance with council decision 2013 / 488 / eu and commission decision 2015 / 444 . the management board shall , pursuant to article 2 and article 15 of this regulation , decide on the agency’s internal structure necessary to fulfil the appropriate security principles .


### no later than five years from the entry into force of this regulation , and every five years thereafter , the commission shall assess the agency ' s performance in relation to its objectives , mandate , tasks and locations in accordance with the commission ' s guidelines . the evaluation shall also assess the contribution of the agency to the establishment of a coordinated , cost - effective and coherent it environment at union level for the management of large scale it systems supporting the implementation of justice and home affairs policies . the evaluation shall in particular assess the possible need to modify the mandate of the agency and the financial implications of any such modification . ### no later than five years from the entry into force of this regulation , and every five years thereafter , the commission , in consultation with the management board , shall evaluate the performance of the agency . the evaluation shall examine the implementation of the provisions of this regulation and the way and extent to which the agency effectively contributes to the operational management of large - scale it systems in the area of freedom , security and justice and fulfils its tasks as laid down in this regulation . the evaluation shall also assess the contribution of the agency to the establishment of a coordinated , cost - effective and coherent it environment at union level for the management of large scale it systems supporting the implementation of justice and home affairs policies . the evaluation shall in particular assess the possible need to modify the mandate of the agency and the financial implications of any such modification .


### the executive director shall manage the agency . the executive director shall assist and be accountable to the management board . the executive director shall report to the european parliament on the performance of his or her duties when invited to do so . the council may invite the executive director to report on the performance of his / her duties . ### the executive director shall manage and represent the agency . the executive director shall assist and be accountable to the management board . the executive director shall report to the european parliament on the performance of his or her duties when invited to do so and , in accordance with article 42 , shall be subject to the procedure for annual discharge by the european parliament for the implementation of the budget . the european parliament and the council may invite the executive director to report on the performance of his / her duties .


### the agency may be requested to provide advice to member states with regard to the national systems ' connection to the central systems and ad - hoc support to member states . the requests for ad - hoc support shall be submitted to the commission which shall transmit them to the agency . it may also be requested to provide advice or support to the commission on technical issues related to existing or new systems including by way of studies and testing . ### any member state may request the agency to provide advice as regards its national systems ' connection to the central systems . any member state may submit a request for ad - hoc support to the commission which , subject to its positive assessment that such support is required , shall transmit it to the agency , which shall inform the management board . the commission shall monitor whether the agency has provided a timely response to the member state ' s request . the agency may also be requested to provide advice or support to the commission on technical issues related to existing or new systems including by way of studies and testing .


### the agency shall on a regular basis keep the european parliament , the council , the commission , and , where data protection issues are concerned , the european data protection supervisor informed on the developments referred to in paragraph 1 . ### the agency shall on a regular basis and at least once a year keep the european parliament , the council , the commission , and , where the processing of personal data is concerned , the european data protection supervisor , informed on the developments referred to in paragraph 1 , without prejudice to the reporting requirements in relation to the implementation of the parts of the framework programme for research and innovation which relate to large - scale it systems in the area of freedom , security and justice .


### the agency may be requested to provide advice to member states with regard to the national systems ' connection to the central systems and ad - hoc support to member states . the requests for ad - hoc support shall be submitted to the commission which shall transmit them to the agency . it may also be requested to provide advice or support to the commission on technical issues related to existing or new systems including by way of studies and testing . ### the agency may be requested to provide advice to member states with regard to the national systems ' connection to the central systems and ad - hoc support to member states . the requests shall be submitted directly to the agency . this shall require prior consultation by the agency with the commission , which shall be handled without delay . the commission shall monitor whether the agency has provided a timely response to the member state&#180 ; s request , where applicable . it may also be requested to provide advice or support to the commission on technical issues related to existing or new systems including by way of studies and testing .


### the agency , together with the commission , shall work towards establishing for all systems under the agency ' s operational responsibility , automated data quality control mechanisms and common data quality indicators and towards developing a central repository for reporting and statistics , subject to specific legislative amendments to the existing systems ' instruments and / or to specific provisions in new instruments . ### without prejudice to member states’ responsibilities with regard to the data entered into the systems , the agency , together with the commission , shall work towards establishing for all systems under the agency ' s operational responsibility , automated data quality control mechanisms and common data quality indicators and towards developing a central repository for reporting and statistics , subject to specific provisions in the legislative instruments governing the development , establishment , operation and use of large - scale it systems managed by the agency .


### the agency should also provide ad - hoc support to member states where required by security or migratory extraordinary needs . in particular , where a member state faces specific and disproportionate migratory challenges at particular areas of its external borders characterised by large inward migratory flows , the member states should be able to rely on technical and operational reinforcements . this should be provided in hotspot areas by migration management support teams composed of experts from relevant union agencies . where the support of eu - lisa would be required in this context with regard to issues related to the large - scale it systems it manages , the request for support should be sent to the agency by the commission . ### the agency should also provide ad - hoc support to member states where required by security or migratory extraordinary needs . in particular , where a member state faces specific and disproportionate migratory challenges at particular areas of its external borders characterised by large inward migratory flows , the member states should be able to rely on technical and operational reinforcements . this should be provided in hotspot areas by migration management support teams composed of experts from relevant union agencies . where the support of eu - lisa would be required in this context with regard to issues related to the large - scale it systems it manages , the request for support should be sent to the agency by the commission . the commission should monitor whether the agency provides a response to the request without delay .


### adopt the security rules on the protection of classified information and non - classified sensitive information following approval by the commission ; ### adopt the security rules on the protection of classified information and non - classified sensitive information following close consultation with the commission ;


### the management board shall appoint the executive director from a list of candidates proposed by the commission following an open and transparent selection procedure . the selection procedure shall provide for publication in the official journal of the european union and elsewhere of a call for expressions of interest . the management board shall appoint the executive director on the basis of personal merit , experience in the field of large - scale it systems and administrative , financial and management skills as well as knowledge in data protection . the management board shall take its decision to appoint the executive director by a two - thirds majority of all its members with a right to vote . ### the management board shall appoint the executive director from a list of at least three candidates proposed by the commission following an open and transparent selection procedure . the selection procedure shall provide for publication in the official journal of the european union and elsewhere of a call for expressions of interest . the management board shall appoint the executive director on the basis of personal merit , experience in the field of large - scale it systems and administrative , financial and management skills as well as knowledge in data protection . the management board shall take its decision to appoint the executive director by a two - thirds majority of all its members with a right to vote .


### where a backup site or a second technical site is provided for in the legislative instruments governing the development , establishment , operation and use of each of the systems , this site shall be installed in sankt johann im pongau , austria . ### where a backup site is required to ensure full functionality of the systems , this site shall be installed in sankt johann im pongau , austria or in any other location following a decision of the management board and after consultation with the commission . the backup site may be used simultaneously for active operation of the large - scale it systems provided that it remains capable of ensuring operation in the event of a failure of one or more of the systems .


### the agency shall cooperate with the commission , with other union institutions and with other union bodies , offices and agencies in particular those established in the area of freedom , security and justice , and in particular the european agency for fundamental rights , in matters covered by this regulation . ### the agency shall cooperate with the commission , with other union institutions and with other union bodies , offices and agencies in particular those established in the area of freedom , security and justice , and in particular the european agency for fundamental rights , in matters covered by this regulation , in order to achieve coordination and financial savings , to avoid duplication and to promote synergy and complementarity as regards their activities .


### each member state which is bound under union law by any legislative instrument governing the development , establishment , operation and use of a particular large - scale it system , as well as the commission , shall appoint one member to the advisory group relating to that large - scale it system , for a four - year term , which may be renewed once . ### each member state which is bound under union law by any legislative instrument governing the development , establishment , operation and use of a particular large - scale it system , as well as the commission and countries associated with the implementation , application and development of the schengen acquis , as well as of dublin and eurodac - related measures , shall appoint one member to the advisory group relating to that large - scale it system , for a four - year term , which may be renewed once .


### the agency shall be open to the participation of third countries that have entered into association agreements with the union to this effect . ### the agency shall be open to the participation of third countries that have entered into any type of association agreement with the union to this effect .


### the number and size of operators vary across the different stages of the food supply chain . differences in bargaining power relate to the different levels of concentration of operators and can enable the unfair exercise of bargaining power by using unfair trading practices . unfair trading practices are in particular harmful for small and medium - sized operators in the food supply chain . agricultural producers , who supply primary agricultural products , are largely small and medium - sized . ### the number and size of operators vary across the different stages of the agricultural and food supply chain . differences in bargaining power relate to the different levels of concentration of operators and can enable the unfair exercise of bargaining power by using unfair trading practices . unfair trading practices are even more harmful for small and medium - sized operators in the agricultural and food supply chain . agricultural producers , who supply primary agricultural products , are often small and medium - sized , but all suppliers irrespective of size are susceptible to unfair trading practices .


### the number and size of operators vary across the different stages of the food supply chain . differences in bargaining power relate to the different levels of concentration of operators and can enable the unfair exercise of bargaining power by using unfair trading practices . unfair trading practices are in particular harmful for small and medium - sized operators in the food supply chain . agricultural producers , who supply primary agricultural products , are largely small and medium - sized . ### the number and size of operators vary across the different stages of the agricultural and food supply chain . differences in bargaining power relate to the different levels of concentration of operators and can enable the unfair exercise of bargaining power by using unfair trading practices . unfair trading practices are even more harmful for small and medium - sized operators in the agricultural and food supply chain . agricultural producers , who supply primary agricultural products , are often small and medium - sized .


### the enforcement authority shall ensure , if so requested by the complainant , the confidentiality of the identity of the complainant and any other information , in respect of which the complainant considers disclosure harmful to his interests . the complainant shall identify such information in a possible request for confidentiality . ### the enforcement authority shall ensure during the investigation , if so requested by the complainant , the confidentiality of the identity of the complainant and any other information , in respect of which the complainant considers disclosure harmful to his interests . the complainant shall identify such information in a possible request for confidentiality .


### the relevant rules should apply to business conduct by larger , that is to say non - small and medium - sized , operators in the food supply chain as they are the ones who normally possess stronger relative bargaining power when trading with small and medium - sized suppliers . ### the relevant rules should apply to all business operators in the agri - food supply chain .


### member states shall ensure that the following trading practices are prohibited : ### member states shall ensure that at least the following trading practices are prohibited :


### as a majority of member states already have national rules on unfair trading practices , albeit diverging , it is appropriate to use the tool of a directive to introduce a minimum protection standard under union law . this should enable member states to integrate the relevant rules into their national legal order in such a way as to bring about a cohesive regime . member states should not be precluded from adopting and applying on their territory stricter national laws protecting small and medium - sized suppliers and buyers against unfair trading practices occurring in business - to - business relationships in the food supply chain , subject to the limits of union law applicable to the functioning of the internal market . ### as a majority of member states already have national rules on unfair trading practices , albeit diverging , it is appropriate to use the tool of a directive to introduce a minimum protection standard under union law . this should enable member states to integrate the relevant rules into their national legal order in such a way as to bring about a cohesive regime . member states should not be precluded from adopting and applying on their territory stricter national laws protecting all suppliers and buyers regardless of their economic dimension against unfair trading practices occurring in business - to - business relationships in the agri - food supply chain , subject to the limits of union law applicable to the functioning of the internal market .


### producer organisations or associations of producer organisations whose member or member of their members consider that they are affected by a prohibited trading practice shall have the right to submit a complaint . ### organisations of producers or of suppliers or associations of organisations of producers or of suppliers whose member or member of their members consider that they are affected by a prohibited trading practice shall have the right to submit a complaint and to be party to the proceedings .


### the enforcement authorities of the member states should have the necessary powers that enable them to effectively gather any factual information by way of information requests . they should have the power to order the termination of a prohibited practice , where applicable . the existence of a deterrent , such as the power to impose fines and the publication of investigation results , can encourage behavioural change and pre - litigation solutions between the parties and should therefore be part of the powers of the enforcement authorities . the commission and the enforcement authorities of the member states should cooperate closely so as to ensure a common approach with respect to the application of the rules set out in this directive . in particular , the enforcement authorities should provide each other mutual assistance , for example by sharing information and assisting in investigations which have a cross - border dimension . ### the enforcement authorities of the member states should have the necessary powers that enable them to effectively gather any factual information by way of information requests . for the effective implementation of this directive , enforcement authorities should have the power to outlaw a prohibited unfair trading practice , impose fines , sanctions and publish the results of investigations . these powers can act as a deterrent and encourage behavioural change and pre - litigation solutions between the parties and should therefore be part of the powers of the enforcement authorities . enforcement authorities should take repeated infringements of this directive into account . the commission and the enforcement authorities of the member states should cooperate closely so as to ensure a common approach with respect to the application of the rules set out in this directive , particularly with regard to fines and sanctions . in particular , the enforcement authorities should provide each other mutual assistance , for example by sharing information and assisting in investigations which have a cross - border dimension .


### member states shall ensure that the following trading practices are prohibited , if they are not agreed in clear and unambiguous terms at the conclusion of the supply agreement : ### member states shall ensure that the following trading practices are prohibited , if they are not agreed in clear and unambiguous terms at the conclusion of the supply agreement , or if they are the result of an abuse of the supplier ' s economic dependence on the buyer , which puts the buyer in a position to force the supplier to accept those terms :


### a buyer pays a supplier for perishable food products later than 30 calendar days after the receipt of the supplier ' s invoice or later than 30 calendar days after the date of delivery of the perishable food products , whichever is the later . this prohibition shall be without prejudice : ### a buyer pays a supplier later than : - 30 calendar days starting from the last day of the month of receipt of the supplier ' s invoice for perishable food products , or 30 calendar days after the date of delivery of the agricultural and perishable food products ; - more than 60 calendar days starting from the last day of the month of receipt of the supplier ' s invoice for non - perishable food products , or 60 calendar days after the date of delivery of non - perishable food products ; this prohibition shall be without prejudice :


### a supplier pays for the wastage of food products that occurs on the buyer ' s premises and that is not caused by the negligence or fault of the supplier . ### a supplier pays for the wastage of food products that occurs once the product has passed into the buyer ' s ownership and that is not caused by the negligence or fault of the supplier .


### producer organisations or associations of producer organisations whose member or member of their members consider that they are affected by a prohibited trading practice shall have the right to submit a complaint . ### supplier organisations or associations of supplier organisations whose member or member of their members consider that they are affected by a prohibited trading practice shall have the right to submit a complaint and to be party in the proceedings .


### a buyer pays a supplier for perishable food products later than 30 calendar days after the receipt of the supplier ' s invoice or later than 30 calendar days after the date of delivery of the perishable food products , whichever is the later . this prohibition shall be without prejudice : ### a buyer pays a supplier later than : - 30 calendar days starting from the last day of the month of receipt of the supplier’s invoice for perishable agricultural and food products , or later than 30 calendar days after the date of delivery of the perishable agricultural and food products , whichever is the later ; or - 60 calendar days starting from the last day of the month of receipt of the supplier’s invoice for agricultural and food products , or later than 60 calendar days after the date of delivery of the agricultural and food products , whichever is the later . member states shall ensure that , in sales transactions and for services provided where the buyer is a public authority , those practices are equally prohibited . these prohibitions shall be without prejudice :


### a supplier pays for the wastage of food products that occurs on the buyer ' s premises and that is not caused by the negligence or fault of the supplier . ### a supplier pays for the wastage of food products that that were delivered in due time and according to the agreed quality occurs on the buyer ' s premises and that is not caused by the negligence or fault of the supplier .


### as a majority of member states already have national rules on unfair trading practices , albeit diverging , it is appropriate to use the tool of a directive to introduce a minimum protection standard under union law . this should enable member states to integrate the relevant rules into their national legal order in such a way as to bring about a cohesive regime . member states should not be precluded from adopting and applying on their territory stricter national laws protecting small and medium - sized suppliers and buyers against unfair trading practices occurring in business - to - business relationships in the food supply chain , subject to the limits of union law applicable to the functioning of the internal market . ### as a majority of member states already have national rules on unfair trading practices , albeit diverging , it is appropriate to use the tool of a directive to introduce a minimum protection standard under union law . this should enable member states to integrate the relevant rules into their national legal order in such a way as to bring about a cohesive regime . member states should not be precluded from adopting and applying on their territory stricter national laws protecting suppliers and buyers against unfair trading practices occurring in business - to - business relationships in the agricultural and food supply chain , subject to the limits of union law applicable to the functioning of the internal market .


### a buyer unilaterally and retroactively changes the terms of the supply agreement concerning the frequency , timing or volume of the supply or delivery , the quality standards or the prices of the food products ; ### a buyer unilaterally changes the terms of the supply agreement concerning the frequency , timing or volume of the supply or delivery , the quality standards or the prices of the agricultural and food products , and / or of the services related to those products ;


### to publish its decisions relating to points and ; ### to publish its decisions relating to points and , including the value of the fine and , where possible , to protect the confidentiality of the complainant if it so requests ;


### the enforcement authorities of the member states should have the necessary powers that enable them to effectively gather any factual information by way of information requests . they should have the power to order the termination of a prohibited practice , where applicable . the existence of a deterrent , such as the power to impose fines and the publication of investigation results , can encourage behavioural change and pre - litigation solutions between the parties and should therefore be part of the powers of the enforcement authorities . the commission and the enforcement authorities of the member states should cooperate closely so as to ensure a common approach with respect to the application of the rules set out in this directive . in particular , the enforcement authorities should provide each other mutual assistance , for example by sharing information and assisting in investigations which have a cross - border dimension . ### the enforcement authorities of the member states should have the necessary powers that enable them to effectively gather any factual information by way of information requests . for the effective implementation of this directive , enforcement authorities should have the power to prohibit unfair trading practice , impose fines and sanctions and publish the results of their investigations . those powers can act as a deterrent and encourage behavioural change and pre - litigation solutions between the parties and should therefore be part of the powers of the enforcement authorities . enforcement authorities should take repeated infringements of this directive into account . the commission and the enforcement authorities of the member states should cooperate closely so as to ensure a common approach with respect to the application of the rules set out in this directive , particularly with regard to fines and sanctions . in particular , the enforcement authorities should provide each other mutual assistance , for example by sharing information and assisting in investigations which have a cross - border dimension .


### the relevant rules should apply to business conduct by larger , that is to say non - small and medium - sized , operators in the food supply chain as they are the ones who normally possess stronger relative bargaining power when trading with small and medium - sized suppliers . ### the relevant rules should apply to business conduct by larger , that is to say non - small and medium - sized , operators and cooperatives in the food supply chain as they are the ones who normally possess stronger relative bargaining power when trading with small and medium - sized suppliers .


### a supplier shall address a complaint to the enforcement authority of the member state in which the buyer suspected to have engaged in a prohibited trading practice is established . ### complaints shall be addressed to the enforcement authority of the member state in which the supplier is located . the enforcement authority which receives the complaint shall forward it for investigation to the competent enforcement authority of the member state in which the buyer suspected of engaging in a prohibited practice is established . when the buyer is established outside the union , the competent enforcement authority that receives the complaint must take action .


### in order to ensure an effective enforcement of the prohibitions laid down in this directive , member states should designate an authority that is entrusted with their enforcement . the authority should be able to act either on its own initiative or by way of complaints by parties affected by unfair trading practices in the food supply chain . where a complainant requests that his identity remain confidential because of fear of retaliation , the enforcement authorities of the member states should honour such a request . ### in order to ensure an effective enforcement of the prohibitions laid down in this directive , member states should designate an authority that is entrusted with their enforcement . the authority should be able to act either on its own initiative or by way of complaints by parties affected by unfair trading practices in the agricultural and food supply chain . where a complainant requests that his identity remain confidential because of fear of retaliation , the enforcement authorities of the member states should honour such a request .


### a minimum union standard of protection against certain manifestly unfair trading practices should be introduced to reduce the occurrence of such practices and to contribute to ensuring a fair standard of living for agricultural producers . it should benefit all agricultural producers or any natural or legal person that supplies food products , including producer organisations and associations of producer organisations , provided that all those persons meet the definition of micro , small and medium - sized enterprises set out in the annex to commission recommendation 2003 / 361 / ec12 . those micro , small or medium suppliers are particularly vulnerable to unfair trading practices and least able to weather them without negative effects on their economic viability . as the financial pressure on small and medium - sized enterprises caused by unfair trading practices often passes through the chain and reaches agricultural producers , rules on unfair trading practices should also protect small and medium - sized intermediary suppliers at the stages downstream of primary production . protection of intermediary suppliers should also avoid unintended consequences of trade diversion away from agricultural producers and their associations , who produce processed products , to non - protected suppliers . __________________ 12 oj l 124 , 20 . 5 . 2003 , p . 36 . ### a minimum union standard of protection against certain manifestly unfair trading practices should be introduced to reduce the occurrence of such practices and to contribute to ensuring a fair standard of living for agricultural producers . it should benefit all agricultural producers or any natural or legal person that supplies agricultural and food products , including producer organisations and associations of producer organisations . those suppliers are particularly vulnerable to unfair trading practices and least able to weather them without negative effects on their economic viability . as the financial pressure caused by unfair trading practices often passes through the chain and reaches agricultural producers , rules on unfair trading practices should also protect intermediary suppliers at the stages downstream of primary production . protection of intermediary suppliers should also avoid unintended consequences of trade diversion away from agricultural producers and their associations , who produce processed products , to non - protected suppliers . __________________ 12 oj l 124 , 20 . 5 . 2003 , p . 36 .


### in order to ensure an effective enforcement of the prohibitions laid down in this directive , member states should designate an authority that is entrusted with their enforcement . the authority should be able to act either on its own initiative or by way of complaints by parties affected by unfair trading practices in the food supply chain . where a complainant requests that his identity remain confidential because of fear of retaliation , the enforcement authorities of the member states should honour such a request . ### in order to ensure an effective enforcement of the prohibitions laid down in this directive , member states should designate an authority that is entrusted with their enforcement . the authority should be able to act either on its own initiative or by way of complaints by parties affected by unfair trading practices in the agri - food supply chain . whenever a complaint is logged the enforcement authority of the member states should ensure that the complainant’s identity remains anonymous .


### “perishable food products” means food products that will become unfit for human consumption unless they are stored , treated , packaged or otherwise conserved to prevent them from becoming unfit . ### ' perishable food products ' means food products that will become unfit for human consumption unless they are stored , treated , packaged or otherwise conserved to prevent them from becoming unfit . account must be taken of the ' use by ' date , as set out in article 24 of regulation no 1169 / 2011 and article 14 of regulation no 178 / 2002 .


### a minimum union standard of protection against certain manifestly unfair trading practices should be introduced to reduce the occurrence of such practices and to contribute to ensuring a fair standard of living for agricultural producers . it should benefit all agricultural producers or any natural or legal person that supplies food products , including producer organisations and associations of producer organisations , provided that all those persons meet the definition of micro , small and medium - sized enterprises set out in the annex to commission recommendation 2003 / 361 / ec12 . those micro , small or medium suppliers are particularly vulnerable to unfair trading practices and least able to weather them without negative effects on their economic viability . as the financial pressure on small and medium - sized enterprises caused by unfair trading practices often passes through the chain and reaches agricultural producers , rules on unfair trading practices should also protect small and medium - sized intermediary suppliers at the stages downstream of primary production . protection of intermediary suppliers should also avoid unintended consequences of trade diversion away from agricultural producers and their associations , who produce processed products , to non - protected suppliers . _________________ 12 oj l 124 , 20 . 5 . 2003 , p . 36 . ### a minimum union standard of protection against certain manifestly unfair trading practices should be introduced to reduce the occurrence of such practices and to contribute to ensuring a fair standard of living for agricultural producers . it should benefit all agricultural producers or any natural or legal person that supplies agricultural and food products , including producer organisations , associations of producer organisations and cooperatives . the financial pressure caused by unfair trading practices often passes through the chain and reaches agricultural producers and therefore rules on unfair trading practices should also protect intermediary suppliers at the stages downstream of primary production . protection of intermediary suppliers should also avoid unintended consequences of trade diversion away from agricultural producers and their associations , who produce processed products .


### the number and size of operators vary across the different stages of the food supply chain . differences in bargaining power relate to the different levels of concentration of operators and can enable the unfair exercise of bargaining power by using unfair trading practices . unfair trading practices are in particular harmful for small and medium - sized operators in the food supply chain . agricultural producers , who supply primary agricultural products , are largely small and medium - sized . ### the number and size of operators vary across the different stages of the agricultural and food supply chain . differences in bargaining power relate to the different levels of concentration of operators and can enable the unfair exercise of bargaining power by using unfair trading practices . unfair trading practices are even more harmful for small and medium - sized operators in the agricultural and food supply chain . agricultural producers , who supply primary agricultural products , are often small and medium - sized .


### member states may provide for rules designed to combat unfair trading practices going beyond those set out in articles 3 , 5 , 6 and 7 , provided that such national rules are compatible with the rules on the functioning of the internal market . ### member states may provide for rules designed to combat unfair trading practices going beyond those set out in articles 1 , 3 , 5 , 6 and 7 , provided that such national rules are compatible with the rules on the functioning of the internal market , including the free movement of goods and services and the freedom of establishment , non - discrimination and access to impartial and independent judicial review .


### &#8220 ; buyer&#8221 ; means any natural or legal person established in the union who buys food products by way of trade . the term ' buyer ' may include a group of such natural and legal persons ; ### &#8220 ; buyer&#8221 ; means any natural or legal person which is not a small or medium - sized enterprise , irrespective of its place of establishment , who buys agricultural or food products by way of trade for processing and distribution in the union , or who provides services in relation to processing and distribution to suppliers . the term ' buyer ' may include a group of such natural and legal persons ;


### “supplier” means any agricultural producer or any natural or legal person , irrespective of their place of establishment , who sells food products . the term “supplier” may include a group of such agricultural producers or such natural and legal persons , including producer organisations and associations of producer organisations ; ### “supplier” means any agricultural producer , food processor or any natural or legal person , established in the union , who sells food products ; the term “supplier” may include a group of such agricultural producers or such natural and legal persons , including producer organisations , associations of producer organisations or agricultural cooperatives ;


### this directive applies to certain unfair trading practices which occur in relation to the sales of food products by a supplier that is a small and medium - sized enterprise to a buyer that is not a small and medium - sized enterprise . ### this directive applies to certain unfair trading practices which occur in relation to the sales of agricultural and food products , as well as to the services related to those products , by a supplier to a buyer that is not a small and medium - sized enterprise .


### a buyer pays a supplier for perishable food products later than 30 calendar days after the receipt of the supplier ' s invoice or later than 30 calendar days after the date of delivery of the perishable food products , whichever is the later . this prohibition shall be without prejudice : ### a buyer pays a supplier later than : - 30 calendar days starting from the last day of the month of receipt of the supplier’s invoice for perishable agricultural and food products , or later than 30 calendar days after the date of delivery of the perishable agricultural and food products , whichever is the later ; or - 60 calendar days starting from the last day of the month of receipt of the supplier’s invoice for agricultural and food products , or later than 60 calendar days after the date of delivery of the agricultural and food products , whichever is the later . member states shall ensure that , in sales transactions and for services provided where the buyer is a public authority , those practices are equally prohibited . these prohibitions shall be without prejudice :


### “perishable food products” means food products that will become unfit for human consumption unless they are stored , treated , packaged or otherwise conserved to prevent them from becoming unfit . ### “perishable food products” means agricultural and food products which are naturally suitable for commercialization and consumption for a period of up to thirty days or that require regulated temperature or packaging conditions for storage , and / or commercialisation and / or transportation ;


### different operators are active in the food supply chain at the stages of production , processing , marketing , distribution and retail of food products . the chain is by far the most important channel for bringing food products from “farm to fork” . those operators trade food products , that is to say primary agricultural products , including fishery and aquaculture products , as listed in annex i to the treaty for use as food , and other food products not listed in that annex but processed from agricultural products for use as food . ### different operators are active in the agricultural and food supply chain at the stages of production , processing , marketing , distribution and retail of agricultural or food products . the chain is by far the most important channel for delivering products . those operators trade agricultural or food products , that is to say primary agricultural products , including fishery and aquaculture products , as listed in annex i to the treaty , other food products not listed in that annex but processed from agricultural products for use as food and agricultural products .


### “supplier” means any agricultural producer or any natural or legal person , irrespective of their place of establishment , who sells food products . the term “supplier” may include a group of such agricultural producers or such natural and legal persons , including producer organisations and associations of producer organisations ; ### “supplier” means any agricultural producer or any natural or legal person , irrespective of their place of establishment , who sells agricultural and food products . the term “supplier” may include a group of such agricultural producers or such natural and legal persons , including producer organisations , associations of producer organisations and cooperatives ;


### when deciding whether an individual trading practice is considered unfair it is important to reduce the risk of limiting the use of fair and efficiency - creating agreements agreed between parties . as a result , it is appropriate to distinguish practices that are foreseen in clear and unambiguous terms in supply agreements between parties from practices that occur after the transaction has started without being agreed in advance in clear and unambiguous terms , so that only unilateral and retrospective changes to those relevant terms of the supply agreement are prohibited . however , certain trading practices are considered as unfair by their very nature and should not be subject to the parties’ contractual freedom to deviate from them . ### when deciding whether an individual trading practice is considered unfair it is important to reduce the risk of limiting the use of fair and efficiency - creating agreements agreed between parties . as a result , it is appropriate to distinguish trading practices that are unfair by their very nature and should not be left to the parties ' contractual freedom from those that are foreseen in clear and unambiguous terms in supply agreements between parties and practices that occur after the transaction has started without being agreed in advance in clear and unambiguous terms , but which are not an attempt by the buyer to use the supplier ' s economic dependence on the buyer to force that supplier to accept its terms , so that only unilateral and retrospective changes to those relevant terms of the supply agreement are prohibited .


### to inform buyers and suppliers about its activities , by way of annual reports , which shall inter alia describe the number of complaints received and the investigations initiated and closed by it . for each investigation , the report shall contain a summary description of the matter and the outcome of the investigation . ### to publish a review of its enforcement actions and activities , by way of annual reports , which shall inter alia describe the number of complaints received and the investigations initiated and closed by it , and those still underway . for each investigation , the report shall contain a summary description of the matter and the outcome of the investigation , in line with the confidentiality rules established under national law .


### in the interest of an effective implementation of the policy in respect of unfair trading practices in business - to - business relationships in the food supply chain , the commission should review the application of this directive and submit a report to the european parliament , the council , the european economic and social committee and the committee of the regions . the review should also pay particular attention to whether protection of small and medium - sized buyers of food products in the supply chain – in addition to the protection of small and medium sized suppliers – in the future would be justified , ### in the interest of an effective implementation of the policy in respect of unfair trading practices in business - to - business relationships in the food supply chain , the commission should review the application of this directive and submit a report to the european parliament , the council , the european economic and social committee and the committee of the regions .


### the enforcement authorities of the member states should have the necessary powers that enable them to effectively gather any factual information by way of information requests . they should have the power to order the termination of a prohibited practice , where applicable . the existence of a deterrent , such as the power to impose fines and the publication of investigation results , can encourage behavioural change and pre - litigation solutions between the parties and should therefore be part of the powers of the enforcement authorities . the commission and the enforcement authorities of the member states should cooperate closely so as to ensure a common approach with respect to the application of the rules set out in this directive . in particular , the enforcement authorities should provide each other mutual assistance , for example by sharing information and assisting in investigations which have a cross - border dimension . ### the enforcement authorities of the member states should have the necessary powers that enable them to effectively gather any factual information by way of information requests . they should be impartial bodies with no conflicts of interest with operators in the agricultural and food supply chain and have an in depth knowledge of the functioning of the chain . they should guarantee the fair and proper functioning of the agricultural and food supply chain and promptly terminate a prohibited practice , where applicable . the existence of a deterrent , such as the power to impose fines and other equally effective sanctions and the publication of investigation results , can encourage behavioural change and pre - litigation solutions between the parties and should therefore be part of the powers of the enforcement authorities . repeated infringements should be taken into account when determining the sanction to be applied . the commission and the enforcement authorities of the member states should cooperate closely so as to ensure a common approach with respect to the application of the rules set out in this directive . in particular , the enforcement authorities should provide each other mutual assistance , for example by sharing all relevant information and assisting in investigations which have a cross - border dimension .


### “food products” means products listed in annex i to the treaty intended for use as food as well as products not listed in that annex , but processed from those products for use as food ; ### “agricultural or food products” means products listed in annex i to the treaty intended for use as food , products not listed in that annex , but processed from those products for use as food , and agricultural products ;


### “perishable food products” means food products that will become unfit for human consumption unless they are stored , treated , packaged or otherwise conserved to prevent them from becoming unfit . ### “perishable food products” means : - fresh fruit and vegetables set out in annex i to regulation no 1308 / 2013 of the european parliament and of the council1a , including - potatoes ; - milk and milk products that are not sterilized ; - pre - packaged and unpackaged fresh meat , minced meat , meat preparations , offal and internal organs ; - non - prepacked preserves and pasteurized meat products ; - fresh fish , crustaceans and molluscs ; - eggs ; - fresh mushrooms and herbs ; - pre - packaged and non - prepacked bread and baked goods ; - non - prepacked fine bakers ' wares . _________________ 1a regulation no 1308 / 2013 of the european parliament and of the council of 17 december 2013 establishing a common organisation of the markets in agricultural products and repealing council regulations no 922 / 72 , no 234 / 79 , no 1037 / 2001 and no 1234 / 2007 .


### “perishable food products” means food products that will become unfit for human consumption unless they are stored , treated , packaged or otherwise conserved to prevent them from becoming unfit . ### “perishable agricultural and food products” means agricultural and food products that will become unfit for proper use or consumption unless they are stored , treated , packaged or otherwise conserved to prevent them from becoming unfit .


### a minimum union standard of protection against certain manifestly unfair trading practices should be introduced to reduce the occurrence of such practices and to contribute to ensuring a fair standard of living for agricultural producers . it should benefit all agricultural producers or any natural or legal person that supplies food products , including producer organisations and associations of producer organisations , provided that all those persons meet the definition of micro , small and medium - sized enterprises set out in the annex to commission recommendation 2003 / 361 / ec12 . those micro , small or medium suppliers are particularly vulnerable to unfair trading practices and least able to weather them without negative effects on their economic viability . as the financial pressure on small and medium - sized enterprises caused by unfair trading practices often passes through the chain and reaches agricultural producers , rules on unfair trading practices should also protect small and medium - sized intermediary suppliers at the stages downstream of primary production . protection of intermediary suppliers should also avoid unintended consequences of trade diversion away from agricultural producers and their associations , who produce processed products , to non - protected suppliers . __________________ 12 oj l 124 , 20 . 5 . 2003 , p . 36 . ### a minimum union standard of protection against certain manifestly unfair trading practices should be introduced to reduce the occurrence of such practices and to contribute to ensuring a fair standard of living for agricultural producers . it should benefit all agricultural producers or any natural or legal person that supplies agricultural and food products , including producer organisations and associations of producer organisations . those suppliers are particularly vulnerable to unfair trading practices and least able to weather them without negative effects on their economic viability . as the financial pressure caused by unfair trading practices often passes through the chain and reaches agricultural producers , rules on unfair trading practices should also protect intermediary suppliers at the stages downstream of primary production . protection of intermediary suppliers should also avoid unintended consequences of trade diversion away from agricultural producers and their associations , who produce processed products , to non - protected suppliers . __________________ 12 oj l 124 , 20 . 5 . 2003 , p . 36 .


### by 15 march of each year , member states shall send to the commission a report on unfair trading practices in business - to - business relationships in the food supply chain . that report shall contain , in particular , all relevant data on the application and enforcement of the rules under this directive in the member state concerned in the previous year . ### by 15 march of each year , member states shall send to the commission a report on the application of the directive , with particular emphasis on unfair trading practices in business - to - business relationships in the food supply chain . that report shall contain , in particular , all relevant data on the application and enforcement of the rules under this directive in the member state concerned in the previous year .


### to inform buyers and suppliers about its activities , by way of annual reports , which shall inter alia describe the number of complaints received and the investigations initiated and closed by it . for each investigation , the report shall contain a summary description of the matter and the outcome of the investigation . ### to inform buyers and suppliers about its activities , by way of annual reports , which shall inter alia describe the number of complaints received and the investigations initiated and closed by it . for each investigation , the report shall contain a summary description of the matter , the conclusions of the investigation and information on the outcome of the procedure as well as the decision taken and a typology of the identified unfair trade practices .


### the enforcement authorities of the member states should have the necessary powers that enable them to effectively gather any factual information by way of information requests . they should have the power to order the termination of a prohibited practice , where applicable . the existence of a deterrent , such as the power to impose fines and the publication of investigation results , can encourage behavioural change and pre - litigation solutions between the parties and should therefore be part of the powers of the enforcement authorities . the commission and the enforcement authorities of the member states should cooperate closely so as to ensure a common approach with respect to the application of the rules set out in this directive . in particular , the enforcement authorities should provide each other mutual assistance , for example by sharing information and assisting in investigations which have a cross - border dimension . ### the enforcement authorities of the member states should have the necessary powers that enable them to effectively gather any factual information by way of information requests . for the effective implementation of this directive , enforcement authorities should have the power to prohibit unfair trading practice , impose fines and sanctions and publish the results of their investigations . those powers can act as a deterrent and encourage behavioural change and pre - litigation solutions between the parties and should therefore be part of the powers of the enforcement authorities . enforcement authorities should take repeated infringements of this directive into account . the commission and the enforcement authorities of the member states should cooperate closely so as to ensure a common approach with respect to the application of the rules set out in this directive , particularly with regard to fines and sanctions . in particular , the enforcement authorities should provide each other mutual assistance , for example by sharing information and assisting in investigations which have a cross - border dimension .