### significant distortions for the product concerned within the meaning of point may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces as they are affected by government intervention . in considering whether or not significant distortions exist regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . ### significant distortions within the meaning of point may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials and other factors of production , are not the result of free market forces as they are affected by government intervention . in considering whether or not significant distortions exist regard shall be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country sacrificing of fact and law an adequate corporate governance ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; the lack of a transparent and effective functioning company law and a bankruptcy regime that prevents the exercise of property laws ; wage rates are not the result of free bargaining between labour and management ; the absence of a transparent set of laws produces discriminatory effects with regard to joint - ventures and others foreign investments ; access to finance granted by institutions implementing public policy objectives and any other circumstance the commission considers appropriate in order to evaluate the existence of significant distortions . the existence of significant distortions in the economy as a whole or in a sector of the economy of the exporting country shall lead automatically to the use of undistorted international , third country or eu prices , costs or benchmarks for each factor of production in the construction of the normal value . if an exporting producer from a country that does not meet those conditions clearly demonstrates that its costs of one or more individual factors of production are not distorted , those costs shall be used in the construction of its normal value .


### the parties to the investigation shall be informed shortly after its initiation of the market economy third country envisaged and shall be given 10 days to comment . ### the parties to the investigation shall be informed shortly after its initiation of the appropriate representative country envisaged and shall be given 10 days to comment .


### in case it is determined , when applying this provision or any other relevant provision of this regulation , that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of significant distortions , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country , provided the relevant cost data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits . ### in case it is determined that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of one or more significant distortions in the economy as a whole or in sector therein , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks for every factor of production , or corresponding costs of production and sale in an appropriate representative country including those in the union . the constructed normal value shall include an undistorted and reasonable amount for administrative , selling and general costs and for profits . the existence of one or more significant distortions in the economy as a whole or in the relevant sector of the economy of the exporting country shall lead automatically to the use of undistorted international , third country or union prices , costs and benchmarks for each factor of production in the construction of the normal value . if exporting producers from a country or a sector in which there exists one or more significant distortions clearly demonstrate that their industry as a whole is not directly or indirectly affected by any significant distortion , their costs shall be used in the construction of the normal value .


### when appropriate , the commission services may issue a report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . ### the commission services shall issue a detailed report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . for those countries for which a substantial number of anti - dumping cases have been opened , the report shall be completed and adopted before the entry into force of this regulation . the union industry shall be consulted during the report drafting process . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . in accordance with its role , the european parliament shall monitor the report drafting process . on the request of the european parliament or on the commission’s own initiative when the circumstances in a specific country or sector have changed , the commission shall update the report . in any event , the european commission shall carry out a review of the report every two years .


### in case it is determined , when applying this provision or any other relevant provision of this regulation , that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of significant distortions , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country , provided the relevant cost data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits . ### in case it is determined that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of significant distortions in the economy as a whole or in sectors of the economy , the normal value shall be based on a price or be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks for every factor of production . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country , including those in the union , and with sufficient level of international social and environmental standards , provided the relevant data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits . where an exporter can clearly demonstrate that its prices or costs of all factors of production are not affected by significant distortions , those prices or costs shall be used in the construction of its normal value .


### in case it is determined , when applying this provision or any other relevant provision of this regulation , that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of significant distortions , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country , provided the relevant cost data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits . ### in case it is determined , when applying this provision or any other relevant provision of this regulation , that it is not appropriate to use domestic prices and costs due to the existence of significant distortions in the exporting country , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources the commission may use include corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country , provided the relevant data are readily available , or , when considered appropriate by the commission , undistorted international prices , costs , or benchmarks . where the commission determines certain domestic costs to be undistorted , in particular where exporters and producers show this conclusively , including in the framework of the provisions on interested parties in point , it shall use such costs . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits .


### in case it is determined , when applying this provision or any other relevant provision of this regulation , that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of significant distortions , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country , provided the relevant cost data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits . ### in case it is determined that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of significant distortions in the economy as a whole or in sectors therein , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country , including those in a member state , provided the relevant cost data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits .


### the union industry may rely on the report referred to in point for the calculation of normal value when filing a complaint in accordance with article 5 or a request for a review in accordance with article 11 . ### the union industry may rely on the evidence in the report referred to in point , where meeting the standard of evidence in view of article 5 when filing a complaint in accordance with article 5 , or a request for a review in accordance with article 11 , or a request for a reinvestigation in accordance with article 12 .


### in the case of imports from countries which are , at the date of initiation , not members of the wto and listed in annex i of regulation 2015 / 755 , normal value shall be determined on the basis of the price or constructed value in a market economy third country , or the price from such a third country to other countries , including the union , or where those are not possible , on any other reasonable basis , including the price actually paid or payable in the union for the like product , duly adjusted if necessary to include a reasonable profit margin . ### in the case of imports from countries which are , at the date of initiation , not members of the wto and listed in annex i of regulation 2015 / 755 , normal value shall be determined on the basis of the price or constructed value in an appropriate representative country that is either member of the wto or not listed in annex i of regulation 2015 / 755 . otherwise , the normal value shall be determined on the basis of the price from such a third country to other countries , including the union , or where those are not possible , on any other reasonable basis , including the price actually paid or payable in the union for the like product , duly adjusted if necessary to include a reasonable profit margin .


### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . it is further appropriate to provide that the commission services may issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . ### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , energy and other factors of production , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists , due account must be paid , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; overcapacity leading to overproduction , a deliberate policy of exchange rate manipulation leading to an undervaluation of the national currency , non - respect by the exporting country of international environmental , social or tax commitments of the exporting country leading to a distortion of competition , public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces , the lack of a transparent and effective functioning company law and a bankruptcy regime that prevents the exercise of property laws , wage rates not the result of free bargaining between labour and management , the absence of a transparent set of laws producing discriminatory effects with regard to joint - ventures and other foreign investments , and access to finance granted by institutions implementing public policy objectives , as well as any other circumstances which the commission considers appropriate for ascertaining the existence of significant distortions . the existence of significant distortions in the economy as a whole or in a sector of the economy of the exporting country shall lead automatically to the use of undistorted international , third country or eu prices , costs or benchmarks for each factor of production in calculating the normal value . however , if an exporting producer from a country that does not meet those conditions clearly demonstrates that its costs of one or more individual factors of production are not distorted , those costs should be used in calculating its normal value . it is further appropriate to provide that the commission services draw up a report , in collaboration with the eu’s industrial sector , describing the specific situation concerning these criteria in a certain country or a certain sector . for those countries for which a substantial number of anti - dumping cases have been recorded , the report should be completed and adopted before the entry into force of this regulation . the eu’s industrial sector should be consulted during the report drafting process . all such reports and the evidence on which they are based may be placed on the file of any investigation relating to that country or sector . interested parties also should have ample opportunity to comment on the reports and the evidence on which it is based in each investigation in which such reports or evidence is used . the european parliament shall monitor the report drafting process . on the request of the european parliament or in the event of a change of circumstances in a specific country or sector , the commission shall draft the report , or if one already exists , update the report . in any event , the european commission should carry out a review of the report every two years .


### in case it is determined , when applying this provision or any other relevant provision of this regulation , that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of significant distortions , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country , provided the relevant cost data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits . ### in case it is determined that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of one or more significant distortions , in the economy as a whole or in a sector or sectors therein , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country . the constructed normal value shall include an undistorted and reasonable amount for administrative , selling and general costs and for profits .


### the union industry may rely on the report referred to in point for the calculation of normal value when filing a complaint in accordance with article 5 or a request for a review in accordance with article 11 . ### the union industry may rely on the report referred to in point for the calculation of normal value when filing a complaint in accordance with article 5 or a request for a review in accordance with article 11 . when the conclusions of the report show the existence of significant distortions , the report pursuant to the paragraph 6 shall constitute sufficient evidence in order to justify the calculation of the normal value pursuant to the methodology referred to in subparagraph . in any event , no additional burden should be imposed on eu industry , and in particular on smes , which must receive guidance when they require it . the absence of a report shall not prevent the commission from using any available information or data to establish the existence of significant distortions and use the methodology referred to in subparagraph if the relevant requirements are met .


### articles 2 and 2 of regulation 2016 / 1036 stipulate the basis on which normal value should be determined in the case of imports from non - market economy countries . in view of developments with respect to certain countries that are members of the wto , it is appropriate that , for those countries , normal value should be determined on the basis of paragraphs 1 to 6a of article 2 of regulation 2016 / 1036 , with effect from the date on which this regulation enters into force , and subject to the provisions of this regulation . in the case of countries which are , at the date of initiation , not members of the wto and listed in annex i of regulation 2015 / 7552 , norma1 value should be determined on the basis of paragraph 7 of article 2 of regulation 2016 / 1036 , as amended by this regulation . this regulation should be without prejudice to establishing whether or not any wto member is a market economy . _________________ 2 regulation 2015 / 755 of the european parliament and of the council of 29 april 2015 on common rules for imports from certain third countries . ### articles 2 and 2 of regulation 2016 / 1036 stipulate the basis on which normal value should be determined in the case of imports from non - market economy countries . for countries that are members of the wto , normal value should be determined on the basis of paragraphs 1 to 6a of article 2 of regulation 2016 / 1036 . in the case of countries which are , at the date of initiation , not members of the wto and listed in annex i of regulation 2015 / 7552 , norma1 value should be determined on the basis of paragraph 7 of article 2 of regulation 2016 / 1036 , as amended by this regulation . _________________ 2 regulation 2015 / 755 of the european parliament and of the council of 29 april 2015 on common rules for imports from certain third countries .


### when appropriate , the commission services may issue a report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . ### when the commission has well - founded indications of the possible existence of significant distortions as referred to in point , and when appropriate for the effective application of this regulation , a report describing the market circumstances as per point in a certain country or a certain sector shall be produced or updated . such reports and the evidence on which they are based shall be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to rebut , supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations relating to the existence of significant distortions shall take into account all of the relevant evidence on the file . the commission shall review and update the report if necessary in the case of a change of market circumstances as per point . a review of the report should be carried out at least once within two years .


### the commission shall also offer consultations to the country of origin and / or export concerned with regard to other subsidies identified in the course of the investigation . in these situations , the commission shall send to the country of origin and / or export a summary of the main elements concerning other subsidies , in particular those referred to in point of paragraph 2 of this article . if the additional subsidies are not covered by the notice of initiation , the notice of initiation shall be amended and the amended version be published in the official journal of the european union , inviting all interested parties to comment . ### the commission shall also offer consultations to the country of origin and / or export concerned with regard to other subsidies identified in the course of the investigation . in these situations , the commission shall send to the country of origin and / or export a summary of the main elements concerning other subsidies , in particular those referred to in point of paragraph 2 of this article . if the additional subsidies are not covered by the notice of initiation , the notice of initiation shall be amended and the amended version be published in the official journal of the european union . all interested parties will be given additional and sufficient time to comment .


### when appropriate , the commission services may issue a report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . ### the commission shall issue , as soon as possible , a public report describing the specific situation concerning the criteria listed in points in a certain country or a certain sector . inter alia , the report shall , where appropriate , include information on the compliance with international environmental and social standards that affect the cost production . such report and the evidence on which it is based , as well as relevant findings from prior union investigations and country reports , shall be placed on the file of any investigation relating to that country or sector . interested parties , including trade unions and smes , shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the commission shall inform the european parliament and the council accordingly . the determinations made shall take into account all relevant evidence on the file , based on reliable , secure and timely information and data available . the report or the evidence on which it is based shall be updated by the commission on a regular basis at least every five years or whenever the situation concerning the criteria laid down in point have changed .


### the parties to the investigation shall be informed shortly after initiation about the relevant sources that the commission intends to use for the purpose of point and shall be given 10 days to comment . for this purpose , interested parties shall be given access to the file , including any evidence on which the investigating authority relies , without prejudice to article 19 . ### the parties to the investigation , including trade unions and smes , shall be informed shortly after initiation about the relevant sources that the commission intends to use for the purpose of point and shall be given 10 days to comment . for this purpose , interested parties shall be given access to the file , including any evidence on which the investigating authority relies , without prejudice to article 19 . a disclosure regarding the methodology to be used shall be communicated to the parties no later than three months from initiation of the investigation .


### in the case of a transition from a normal value calculated pursuant to the former articles 2 or 2 to a normal value calculated pursuant to paragraphs 1 to 6a of article 2 , the reasonable period of time shall be deemed to elapse on the date on which the first expiry review following such transition is initiated . ### where existing anti - dumping measures are based on a normal value calculated pursuant to the former articles 2 or 2 , the methodology of paragraph 6a of article 2 shall not replace the original methodology used for the determination of the normal value until the date on which the first expiry review of those measures , following the entry into force of regulation . . . , is terminated .


### the union industry may rely on the report referred to in point for the calculation of normal value when filing a complaint in accordance with article 5 or a request for a review in accordance with article 11 . ### the union industry and trade unions may rely on the report referred to in point for the calculation of normal value when filing a complaint in accordance with article 5 , request for a review in accordance with article 11 or request for a reinvestigation in accordance with article 12 . that report shall constitute sufficient evidence to justify the calculation of normal value in the complaint or request on the basis of the methodology specified in paragraph 6a . furthermore , where a significant portion of the complaining union industry is made up of smes , the normal value calculations in the complaint or request may be based on information related to costs of production in the union of the product concerned .


### it is further appropriate to recall that costs should normally be calculated on the basis of records kept by the exporter or producer under investigation . however , where there are significant distortions in the exporting country with the consequence that costs reflected in the records of the party concerned are artificially low , such costs may be adjusted or established on any reasonable basis , including information from other representative markets or from international prices or benchmarks . in the light of experience gained in past proceedings , it is appropriate to further clarify that , for the purposes of applying the provisions introduced by this regulation , due account should be taken of all relevant evidence , including relevant assessment reports regarding the circumstances prevailing on the domestic market of the exporting producers and the evidence on which they are based , which has been placed on the file , and upon which interested parties have had an opportunity to comment . ### it is further appropriate to recall that costs should normally be calculated on the basis of records kept by the exporter or producer under investigation . however , where there are significant distortions in the exporting country with the consequence that costs reflected in the records of the party concerned are artificially low , such costs should be established on any reasonable basis , including information from other representative markets , from international prices or benchmarks or from markets in the union . in the light of experience gained in past proceedings , it is appropriate to further clarify that , for the purposes of applying the provisions introduced by this regulation , due account should be taken of all relevant evidence , including relevant assessment reports regarding the circumstances prevailing on the domestic market of the exporting producers and the evidence on which they are based , which has been placed on the file , and upon which interested parties have had an opportunity to comment .


### articles 2 and 2 of regulation 2016 / 1036 stipulate the basis on which normal value should be determined in the case of imports from non - market economy countries . in view of developments with respect to certain countries that are members of the wto , it is appropriate that , for those countries , normal value should be determined on the basis of paragraphs 1 to 6a of article 2 of regulation 2016 / 1036 , with effect from the date on which this regulation enters into force , and subject to the provisions of this regulation . in the case of countries which are , at the date of initiation , not members of the wto and listed in annex i of regulation 2015 / 7552 , norma1 value should be determined on the basis of paragraph 7 of article 2 of regulation 2016 / 1036 , as amended by this regulation . this regulation should be without prejudice to establishing whether or not any wto member is a market economy . __________________ 2 regulation 2015 / 755 of the european parliament and of the council of 29 april 2015 on common rules for imports from certain third countries . ### in view of developments in world trade , concerning also members of the wto , including their effects on domestic industry , it is appropriate to determine normal value on the basis of paragraphs 1 to 6a of article 2 of regulation 2016 / 1036 , with effect from the date on which this regulation enters into force , and subject to the provisions of this regulation . in the case of non - market - economy countries which are members of the wto or that , at the date of initiation , are not members of the wto and listed in annex i of regulation 2015 / 7552 , norma1 value should be determined on the basis of paragraph 7 of article 2 of regulation 2016 / 1036 , as amended by this regulation . __________________ 2 regulation 2015 / 755 of the european parliament and of the council of 29 april 2015 on common rules for imports from certain third countries .


### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . it is further appropriate to provide that the commission services may issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . ### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including of raw materials and other factors of production , are not the result of free market forces because they are affected by other forces such as government intervention , monopoly or oligopoly and others , creating a particular market situation that does not allow for proper comparison of export prices to domestic prices and costs . it is further appropriate to clarify that when assessing the existence of significant distortions , regard should be had , inter alia , to the following : the market in question is to a significant extent served by enterprises which operate - directly or indirectly - under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; direct or indirect state presence in enterprises allowing the state to interfere with prices , costs , or other commercial decisions of such enterprises ; public policies or measures discriminating in favour of certain or all domestic suppliers or otherwise influencing free market forces ; access to finance granted by institutions implementing public policy objectives , including by way of sectoral subsidies or the existence of oligopoly or monopoly in the raw material or factors of production market , and any other circumstances the commission considers appropriate in order to evaluate the existence of significant distortions . it is further appropriate to provide that the commission may issue a report describing the specific situation concerning these criteria in a certain country or a certain sector . all interested parties , including union industry , and foreign exporters from , and the government of , country concerned should be consulted during the report drafting process . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . in accordance with its role , the european parliament should monitor the report drafting process . on the request of the european parliament or in the case of a change of circumstances in a specific country or sector , the commission should update the report . in any event , the european commission should carry out a review of the report every two years . the report should not be binding , but the commission should duly explain its reasoning in respect of found distortions and the methodology used , when imposing measures .


### in the case of a transition from a normal value calculated pursuant to the former articles 2 or 2 to a normal value calculated pursuant to paragraphs 1 to 6a of article 2 , the reasonable period of time shall be deemed to elapse on the date on which the first expiry review following such transition is initiated . ### where existing anti - dumping measures are based on a normal value calculated pursuant to the former articles 2 or 2 , the methodology of paragraphs to of article 2 shall not replace the original methodology used for the determination of the normal value until the date on which the first expiry review of those measures , following the entry into force of this regulation , is initiated .


### an appropriate market economy third country shall be selected in a not unreasonable manner , due account being taken of any reliable information made available at the time of selection . account shall also be taken of time - limits ; where appropriate , a market economy third country which is subject to the same investigation shall be used . ### an appropriate representative country shall be selected in a not unreasonable manner , due account being taken of any reliable information made available at the time of selection . account shall also be taken of time - limits ; where appropriate , an appropriate representative country which is subject to the same investigation shall be used .


### in case it is determined , when applying this provision or any other relevant provision of this regulation , that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of significant distortions , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country , provided the relevant cost data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits . ### in case it is determined , when applying this provision or any other relevant provision of this regulation , that it is not appropriate to use domestic prices and costs due to the existence of significant distortions in the exporting country , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources the commission may use include corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country , provided the relevant data are readily available , or , when considered appropriate by the commission , undistorted international prices , costs , or benchmarks . where the commission determines certain domestic costs to be undistorted , in particular where exporters and producers show this conclusively , including in the framework of the provisions on interested parties in point , it shall use such costs . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits .


### in the case of a transition from a normal value calculated pursuant to the former articles 2 or 2 to a normal value calculated pursuant to paragraphs 1 to 6a of article 2 , any review pursuant to this paragraph shall be deferred to the date on which the first expiry review following such transition is initiated . ### where existing anti - dumping measures are based on a normal value calculated pursuant to the former articles 2 or 2 , the methodology of paragraph 6a of article 2 shall not replace the original methodology used for the determination of the normal value until the date on which the first expiry review of those measures , following the entry into force of regulation . . . , is terminated .


### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . it is further appropriate to provide that the commission services may issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . ### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation occurs when reported prices or costs , including the costs of raw materials and other factors of production , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that when assessing the existence of significant distortions , regard should be had , inter alia , to the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; a high degree of government influence over the allocation of resources and decisions of enterprises , whether directly or indirectly , for example through the use of state - fixed prices , or discrimination in the tax , trade or currency regimes ; the existence of state - induced distortions in the operation of enterprises linked to privatisation and the use of non - market trading or compensation system ; the absence or inadequate implementation of a transparent and non - discriminatory company law which ensures adequate corporate governance ; the absence or inadequate implementation of a coherent , effective and transparent set of laws which ensure the respect of property rights and the operation of a functioning bankruptcy regime ; the absence of a genuine financial sector which operates independently from the state and which in law and practice is subject to sufficient guarantee provisions and adequate supervision ; and any other circumstance the commission considers appropriate in order to evaluate the existence of significant distortion .


### significant distortions for the product concerned within the meaning of point may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces as they are affected by government intervention . in considering whether or not significant distortions exist regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . ### significant distortions for the product concerned within the meaning of point may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces as they are affected by government intervention . in considering whether or not significant distortions exist regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . the commission shall establish a public illustrative list of criteria and circumstances and examples which assist to merit and to justify when the use of the methodology for non - market situations shall be applied .


### it is further appropriate to recall that costs should normally be calculated on the basis of records kept by the exporter or producer under investigation . however , where there are significant distortions in the exporting country with the consequence that costs reflected in the records of the party concerned are artificially low , such costs may be adjusted or established on any reasonable basis , including information from other representative markets or from international prices or benchmarks . in the light of experience gained in past proceedings , it is appropriate to further clarify that , for the purposes of applying the provisions introduced by this regulation , due account should be taken of all relevant evidence , including relevant assessment reports regarding the circumstances prevailing on the domestic market of the exporting producers and the evidence on which they are based , which has been placed on the file , and upon which interested parties have had an opportunity to comment . ### it is further appropriate to recall that costs should normally be calculated on the basis of records kept by the exporter or producer under investigation . however , where there are significant distortions in the exporting country with the consequence that costs reflected in the records of the party concerned are artificially low and do not reflect actual market values , such costs should be adjusted or established on any reasonable basis , including information from other representative markets or from undistorted international prices or benchmarks , including union prices or benchmarks where appropriate . in the light of experience gained in past proceedings , it is appropriate to further clarify that , for the purposes of applying the provisions introduced by this regulation , due account should be taken of all relevant evidence , including relevant assessment reports regarding the circumstances prevailing on the domestic market of the exporting producers and the evidence on which they are based , which has been placed on the file , and upon which interested parties have had an opportunity to comment .


### the nature of the services offered by the provider ; ### a commercial description of the parcel delivery services offered by the provider including delivery options and information provided to the consumer ;


### the commission shall , by means of an implementing act , establish a form for the submission of the information referred to in paragraph 1 of this article . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 9 . ### the commission shall adopt delegated acts in accordance with article 9 . 1 in order to supplement this regulation by laying down a standardized form for the submission of the information referred to in paragraph 1 of this article .


### ' terminal rates ' means payments from the originating universal service provider to the destination universal service provider for the costs of cross - border parcel delivery services in the destination member state . ### ' terminal rates ' means payments performed being either terminal dues , inward land rates , or transfer prices by the parcel delivery services operator of the originating member state to the parcel delivery operator of the destination member state for the costs of distributing the cross - border items in the destination member state .


### universal service providers providing parcel delivery services may conclude multilateral and bilateral agreements on terminal rates and may set up other programmes to facilitate the interconnectivity of their delivery networks . for reasons of non - discrimination , competing parcel delivery service providers shall be granted equal access to the terminal rates applicable between parties under multilateral agreements . it may be justified that terminal rates payable by third - party parcel delivery service providers , in some cases , exceed those payable by universal service providers that are parties to such agreements . this may be the case where the parties to a multilateral agreement on terminal rates are able to demonstrate that the cost of setting up , operating and administering the agreement , the extra cost incurred by accepting and handling items from non - designated parcel delivery service providers and other such costs are not covered by the terminal rates payable by the third - party service provider in the originating member state . ### parcel delivery service providers providing parcel delivery services may conclude multilateral and bilateral agreements on terminal rates and may set up other programmes to facilitate the interconnectivity of their delivery networks . it is important that any practices in this respect that may be in breach of eu competition law principles and the provisions of directive 97 / 67 / ec are properly investigated and addressed by member states , national regulatory authorities and by the european commission in a timely and effective manner .


### the national regulatory authority shall assess the affordability of cross - border tariffs included in the public lists of tariffs obtained in accordance with article 4 within 3 months of receipt of that information . in that assessment , in particular the following elements shall be taken into account : ### the national regulatory authority shall identify for each item listed in the annex , the cross - border tariffs for parcel delivery services originating in its member state that it considers unreasonably high based on the public list of tariffs obtained in accordance with article 4 .


### a parcel delivery service provider which employs fewer than 50 persons shall not be subject to the obligations under paragraph 1 and 2 , unless that provider is established in more than one member state . ### this article shall not apply to parcel delivery service providers and their subsidiaries , with less than 5% of the national market share , which employed on average fewer than 25 persons over the course of the previous calendar year . the number of persons shall be calculated on the basis of the average annual number of full - time , part - time , temporary employees and self - employed , as well as persons working for sub - contracting companies in parcel delivery services . a breakdown of the calculations shall be made available upon request .


### terminal rates are based on multilateral and bilateral agreements between universal service providers and ensure that the destination universal service provider is remunerated for the costs of the service provided to the originating universal service provider . terminal rates should be defined in such a way that it includes both terminal dues , as defined in point 15 of article 2 of directive 97 / 67 / ec that are applied for letter mail items and inward land rates that are applied to parcels . ### terminal rates are based on multilateral and bilateral agreements between parcel delivery service providers and ensure that the destination parcel delivery service provider is remunerated for the costs of the service provided to the originating parcel delivery service provider . terminal rates should be defined in such a way that it includes both terminal dues , as defined in point 15 of article 2 of directive 97 / 67 / ec that are applied for letter mail items and inward land rates that are applied to parcels . terminal rates are commercially sensitive business data .


### the commission shall , by means of an implementing act , establish a form for the submission of the information referred to in paragraph 1 of this article . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 9 . ### the commission shall adopt delegated acts in accordance with article 9a in order to supplement this directive by laying down a form for the submission of the information referred to in paragraph 1 of this article .


### significant differences between domestic and cross - border tariffs for parcel delivery services should be justified by objective criteria , such as additional costs for transport and a reasonable profit margin . universal service providers providing parcel delivery services should be required to provide such justification without delay . ### significant differences between domestic and cross - border tariffs for parcel delivery services should be justified by objective criteria , such as , for example , additional costs for transport and a reasonable profit margin . universal service providers providing cross - border parcel delivery services should be required to provide such justification without delay .


### terminal rates are based on multilateral and bilateral agreements between universal service providers and ensure that the destination universal service provider is remunerated for the costs of the service provided to the originating universal service provider . terminal rates should be defined in such a way that it includes both terminal dues , as defined in point 15 of article 2 of directive 97 / 67 / ec that are applied for letter mail items and inward land rates that are applied to parcels . ### terminal rates are based on multilateral and bilateral agreements between parcel delivery service providers and ensure that the destination parcel delivery service provider is remunerated for the costs of the service provided to the originating parcel delivery service provider . terminal rates should be considered in such a way that it includes both terminal dues , as defined in point 15 of article 2 of directive 97 / 67 / ec that are applied for letter mail items and inward land rates that are applied to parcels , as well as the transfer costs between the subsidiaries of the parcel delivery services providers . terminal rates are commercially sensitive business data .


### before xx / xx / 2019 , and thereafter every four years , the commission shall submit to the european parliament , the council and the economic and social committee an evaluation report on the application of this regulation accompanied where appropriate by a proposal for its review . ### before 31 january 2019 , and thereafter every two years , the commission shall submit to the european parliament , the council and the economic and social committee an evaluation report on the application of this regulation accompanied where appropriate by a legislative proposal for its review .


### where the national regulatory authority concludes that cross - border tariffs referred to in paragraph 1 are not affordable , it shall request further necessary information and / or justification in relation to the level of those tariffs from the universal service provider . ### where the national regulatory authority concludes that cross - border tariffs referred to in paragraph 1 are unreasonably high , it shall request further necessary information and / or justification in relation to the level of those tariffs from the parcel delivery provider .


### the national regulatory authority shall submit its assessment , including any information and / or justification provided in accordance with paragraph 3 , to the commission , the national regulatory authorities of the other member states and the national authorities within the member state of the submitting national regulatory authority entrusted with the implementation of competition law . a non - confidential version of that assessment shall also be provided to the commission . that information shall be provided by 31 march of each calendar year at the latest . ### the national regulatory authority shall submit its assessment , including any information and / or justification provided in accordance with paragraph 3 , to the commission and the national regulatory authorities of the member states concerned . the national regulatory authority and the commission shall ensure that the assessments and any information and / or justifications provided are treated with the strictest confidentiality .


### universal service providers providing parcel delivery services may conclude multilateral and bilateral agreements on terminal rates and may set up other programmes to facilitate the interconnectivity of their delivery networks . for reasons of non - discrimination , competing parcel delivery service providers shall be granted equal access to the terminal rates applicable between parties under multilateral agreements . it may be justified that terminal rates payable by third - party parcel delivery service providers , in some cases , exceed those payable by universal service providers that are parties to such agreements . this may be the case where the parties to a multilateral agreement on terminal rates are able to demonstrate that the cost of setting up , operating and administering the agreement , the extra cost incurred by accepting and handling items from non - designated parcel delivery service providers and other such costs are not covered by the terminal rates payable by the third - party service provider in the originating member state . ### parcel delivery service providers may conclude multilateral and bilateral agreements on terminal rates and may set up other programmes to facilitate the interconnectivity of their delivery networks . for reasons of non - discrimination , competing parcel delivery service providers shall be granted equal access to the terminal rates applicable between parties under multilateral agreements . it may be justified that terminal rates payable by third - party parcel delivery service providers , in some cases , exceed those payable by parcel delivery service providers that are parties to such agreements . this may be the case where the parties to a multilateral agreement on terminal rates are able to demonstrate that the cost of setting up , operating and administering the agreement , the extra cost incurred by accepting and handling items from third - party parcel delivery service providers and other such costs are not covered by the terminal rates payable by the third - party service provider in the originating member state . whenever the parcel delivery service provider concludes multilateral agreements on terminal rates , equal and non - discriminatory third party access to certain cross - border parcel delivery services provided under such multilateral agreements should encourage competition , be cost - oriented , benefit consumers and result in a more efficient use of existing networks , particularly in rural and remote areas .


### article 4transparency of tariffs and terminal rates ### article 4transparency of tariffs


### the nature of the services offered by the provider ; ### a description of the parcel delivery services offered by the provider , including delivery options and information provided to the consumer ;


### therefore , it is important to provide a clear definition of parcel delivery services and to specify which postal items are covered by that definition . this concerns in particular postal items , other than items of correspondence , which because of their weight are commonly used for sending goods and merchandise . this regulation should therefore cover , in line with consistent practice , postal items weighing up to 31 . 5 kg , as heavier items cannot be handled by a single average individual without mechanical aids . in line with current practice and directive 97 / 67 / ec , each step in the postal chain , i . e . clearance , sorting and delivery should be considered parcel delivery services . transport alone that is not undertaken in conjunction with one of those steps should fall outside the scope of parcel delivery services as it can in this case be assumed that this activity is part of the transport sector . ### therefore , it is important to provide a clear definition of parcels and parcel delivery services and to specify which postal items are covered by those definitions . this concerns in particular postal items , other than items of correspondence , which because of their weight are commonly used for sending goods and merchandise . this regulation should therefore cover , in line with consistent practice , postal items weighing up to 31 . 5 kg , as heavier items cannot be handled by a single average individual without mechanical aids . in line with current practice and directive 97 / 67 / ec , each step in the postal chain , i . e . clearance , sorting and delivery should be considered parcel delivery services . transport alone that is not undertaken in conjunction with one of those steps should fall outside the scope of parcel delivery services as it can in this case be assumed that this activity is part of the transport sector .


### the number of postal items other than items of correspondence and not exceeding 31 , 5 kg handled in the member state in which the provider is established in the previous calendar year , broken down into national , incoming and outgoing cross - border postal items . ### the number of parcels handled over the previous calendar year in the member state in which the provider is established , broken down into domestic and incoming and outgoing cross - border parcels ;


### the number of persons working for the provider and involved in the provision of parcel delivery services in the member state in which the provider is established in the previous calendar year ### the number of persons working for the provider and involved in the provision of parcel delivery services in the member state in which the provider is established over the previous calendar year , which is to be calculated on the basis of the average annual number of full - time , part - time , temporary employees and self - employed , as well as persons working for sub - contracting companies in clearance , sorting , transport or distribution of parcels ;


### therefore , it is important to provide a clear definition of parcel delivery services and to specify which postal items are covered by that definition . this concerns in particular postal items , other than items of correspondence , which because of their weight are commonly used for sending goods and merchandise . this regulation should therefore cover , in line with consistent practice , postal items weighing up to 31 . 5 kg , as heavier items cannot be handled by a single average individual without mechanical aids . in line with current practice and directive 97 / 67 / ec , each step in the postal chain , i . e . clearance , sorting and delivery should be considered parcel delivery services . transport alone that is not undertaken in conjunction with one of those steps should fall outside the scope of parcel delivery services as it can in this case be assumed that this activity is part of the transport sector . ### therefore , it is important to provide a clear definition of parcels and parcel delivery services and to specify which postal and parcel items are covered by those definitions . this concerns in particular items delivered or not by the universal service provider , other than items of correspondence , which because of their weight are commonly used for sending goods and merchandise with or without commercial value . this regulation should therefore cover , in line with consistent practice , parcels , delivered or not by the universal service provider , weighing up to 31 . 5 kg , as heavier items cannot be handled by a single average individual without mechanical aids . in line with the current practice , each step of the postal chain , i . e . clearance , sorting and delivery should be considered parcel delivery services including when provided by express and courier service providers , as well as consolidators . providers of parcel delivery services using alternative business models and e - commerce platforms should also be subject to this regulation , if they provide at least one of these steps in the postal delivery chain . transport alone that is not undertaken in conjunction with one of those steps should fall outside the scope of parcel delivery services as it can in this case be assumed this activity is part of the postal sector .


### this directive shall apply to any contract where the supplier supplies digital content to the consumer or undertakes to do so and , in exchange , a price is to be paid or the consumer actively provides counter - performance other than money in the form of personal data or any other data . ### this directive shall apply to any contract where the supplier supplies digital content to the consumer or undertakes to do so and , in exchange , a price is to be paid or the consumer actively provides counter - performance other than money in the form of personal data .


### the directive should address problems across different categories of digital content and its supply . in order to cater for fast technological developments and to maintain the future - proof nature of the notion of digital content , this notion as used in this directive should be broader than in directive 2011 / 83 / eu of the european parliament and of the council1 . in particular it should cover services which allow the creation , processing or storage of data . while there are numerous ways for digital content to be supplied , such as transmission on a durable medium , downloading by consumers on their devices , web - streaming , allowing access to storage capabilities of digital content or access to the use of social media , this directive should apply to all digital content independently of the medium used for its transmission . differentiating between different categories in this technologically fast changing market is not desirable because it would hardly be possible to avoid discriminations between suppliers . a level - playing field between suppliers of different categories of digital content should be ensured . however this directive should not apply to digital content which is embedded in goods in such a way that it operates as an integral part of the goods and its functions are subordinate to the main functionalities of the goods . __________ oj l 304 , 22 . 11 . 2011 , p . 64 . ### the directive should address problems across different categories of digital content and its supply . in order to cater for fast technological developments and to maintain the future - proof nature of the notion of digital content , this notion as used in this directive should be broader than in directive 2011 / 83 / eu of the european parliament and of the council1 . in particular it should cover services which allow the creation , processing or storage of data . while there are numerous ways for digital content to be supplied , such as transmission on a durable medium , downloading by consumers on their devices , web - streaming , allowing access to storage capabilities of digital content or access to the use of social media , this directive should apply to all digital content independently of the medium used for its transmission . differentiating between different categories in this technologically fast changing market is not desirable because it would hardly be possible to avoid discriminations between suppliers . a level - playing field between suppliers of different categories of digital content should be ensured . __________ oj l 304 , 22 . 11 . 2011 , p . 64 .


### the directive should address problems across different categories of digital content and its supply . in order to cater for fast technological developments and to maintain the future - proof nature of the notion of digital content , this notion as used in this directive should be broader than in directive 2011 / 83 / eu of the european parliament and of the council . 30 in particular it should cover services which allow the creation , processing or storage of data . while there are numerous ways for digital content to be supplied , such as transmission on a durable medium , downloading by consumers on their devices , web - streaming , allowing access to storage capabilities of digital content or access to the use of social media , this directive should apply to all digital content independently of the medium used for its transmission . differentiating between different categories in this technologically fast changing market is not desirable because it would hardly be possible to avoid discriminations between suppliers . a level - playing field between suppliers of different categories of digital content should be ensured . however this directive should not apply to digital content which is embedded in goods in such a way that it operates as an integral part of the goods and its functions are subordinate to the main functionalities of the goods . _________________ 30 oj l 304 , 22 . 11 . 2011 , p . 64 . ### the directive should address problems across different categories of digital content and its supply . in order to cater for fast technological developments and to maintain the future - proof nature of the notion of digital content , this notion as used in this directive should be broader than in directive 2011 / 83 / eu of the european parliament and of the council . 30 in particular it should cover services which allow the creation , processing or storage of data . while there are numerous ways for digital content to be supplied , such as transmission on a durable medium , downloading by consumers on their devices , web - streaming , allowing access to storage capabilities of digital content or access to the use of social media , this directive should apply to all digital content independently of the medium used for its transmission . differentiating between different categories in this technologically fast changing market is not desirable because it would hardly be possible to avoid discriminations between suppliers . a level - playing field between suppliers of different categories of digital content should be ensured . _________________ 30 oj l 304 , 22 . 11 . 2011 , p . 64 .


### the supplier shall take all measures which could be expected in order to refrain from the use of the counter - performance other than money which the consumer has provided in exchange for the digital content and any other data collected by the supplier in relation to the supply of the digital content including any content provided by the consumer with the exception of the content which has been generated jointly by the consumer and others who continue to make use of the content ; ### in respect of personal data and data other than personal data of the consumer , the supplier shall comply with the obligations applicable under regulation 2016 / 679 ;


### the supplier shall take all measures which could be expected in order to refrain from the use of the counter - performance other than money which the consumer has provided in exchange for the digital content and any other data collected by the supplier in relation to the supply of the digital content including any content provided by the consumer with the exception of the content which has been generated jointly by the consumer and others who continue to make use of the content ; ### the supplier shall take all necessary measures in order to refrain from the use of personal data as the counter - performance other than money which the consumer has consciously provided in exchange for the digital content and any other data produced by the consumer in relation to the use of the digital content including any content provided by the consumer with the exception of the content which has been produced jointly by the consumer and others who continue to make use of the content . in relation to the prossessing of personal data provided or generated by the user , or collected in any other way , the supplier shall comply with the obligations applicable under regulation 2016 / 679 ;


### this directive shall not apply to digital content provided against counter - performance other than money to the extent the supplier requests the consumer to provide personal data the processing of which is strictly necessary for the performance of the contract or for meeting legal requirements and the supplier does not further process them in a way incompatible with this purpose . it shall equally not apply to any other data the supplier requests the consumer to provide for the purpose of ensuring that the digital content is in conformity with the contract or of meeting legal requirements , and the supplier does not use that data for commercial purposes . ### this directive shall not apply to digital content provided against counter - performance other than money to the extent the supplier requests the consumer to provide personal data which is strictly necessary for the performance of the contract or for meeting legal requirements and the supplier does not further process them .


### the protection of individuals with regard to the processing of personal data is governed by directive 95 / 46 / ec of the european parliament and of the council31 and by directive 2002 / 58 / ec of the european parliament and of the council32 which are fully applicable in the context of contracts for the supply of digital content . those directives already establish a legal framework in the field of personal data in the union . the implementation and application of this directive should be made in full compliance with that legal framework . _________________ 31 oj l 281 , 23 / 11 / 1995 , p . 31 - 50 ) [ to be replaced by the general data protection regulation , once adopted ] . 32 oj l 201 , 31 . 7 . 2002 , p . 37–47 . ### the protection of individuals with regard to the processing of personal data is governed by by regulation 2016 / 679 and by directive 2002 / 58 / ec of the european parliament and of the council32 which are fully applicable in the context of contracts for the supply of digital content . those legal acts already establish a legal framework in the field of personal data in the union . the implementation and application of this directive should be made in full compliance with that legal framework . _________________ 32 oj l 201 , 31 . 7 . 2002 , p . 37–47 .


### the supplier shall take all measures which could be expected in order to refrain from the use of other counter - performance than money which the consumer has provided in exchange for the digital content and any other data collected by the supplier in relation to the supply of the digital content including any content provided by the consumer ; ### in respect of personal data and data other than personal data , the supplier shall comply with the obligations applicable under regulation 2016 / 678 ;


### the supplier shall take all measures which could be expected in order to refrain from the use of other counter - performance than money which the consumer has provided in exchange for the digital content and any other data collected by the supplier in relation to the supply of the digital content including any content provided by the consumer ; ### the supplier shall take all necessary measures in order to refrain from the use of personal data as counter - performance other than money which the consumer has provided in exchange for the digital content and any other data provided or produced by the consumer in relation to the use of the digital content including any content provided by the consumer , with the exception of the content which has been produced jointly by the consumer and others who continue to make use of the content . in relation to the processing of personal data provided or generated by the user , or collected in any other way , the supplier shall comply with the obligations applicable under regulation 2016 / 679 ;


### as a second step , the consumer should be entitled to have the price reduced or the contract terminated . the right of a consumer to have the contract terminated should be limited to those cases where for instance bringing the digital content to conformity is not possible and the non - conformity impairs the main performance features of the digital content . where the consumer terminates the contract , the supplier should reimburse the price paid by the consumer or , where the digital content is supplied not in exchange for a price but against access to data provided by the consumer , the supplier should refrain from using it , from transferring that data to third parties or allowing third parties to access it after termination of the contract . fulfilling the obligation to refrain from using data should mean in the case when the counter - performance consists of personal data , that the supplier should take all measures in order to comply with data protection rules by deleting it or rendering it anonymous in such a way that the consumer cannot be identified by any means likely reasonably to be used either by the supplier or by any other person . without prejudice to obligations of a controller under directive 95 / 46 / ec the supplier should not be obliged to undertake any further steps in relation to data which the supplier has lawfully provided to third parties in the course of the duration of the contract for the supply of the digital content . ### as a second step , the consumer should be entitled to have the price reduced or the contract terminated . the right of a consumer to have the contract terminated should be limited to those cases where for instance bringing the digital content to conformity is not possible and the non - conformity impairs the main performance features of the digital content . where the consumer terminates the contract , the supplier should reimburse the price paid by the consumer or , where the digital content is supplied not in exchange for a price but against access to data provided by the consumer as a counter - performance for the digital content supplied or data produced by the consumer during the duration of the contract , the supplier should refrain from using it , from transferring that data to third parties or allowing third parties to access it after termination of the contract . fulfilling the obligation to refrain from using data should mean in the case when the counter - performance consists of personal data , that the supplier should take all measures in order to comply with data protection rules by deleting it or rendering it anonymous in such a way that the consumer cannot be identified by any means likely reasonably to be used either by the supplier or by any other person . if personal data protection technics , such as pseudonimisation , as prescribed in the regulation 2016 / 679 are used by the supplier , only after the request made by the consumer , the supplier should refrain from using these data . without prejudice to obligations of a controller under regulation 2016 / 679 the supplier should not be obliged to undertake any further steps in relation to data which the supplier has lawfully provided to third parties in the course of the duration of the contract for the supply of the digital content .


### the supplier shall be liable to the consumer for any economic damage to the digital environment of the consumer caused by a lack of conformity with the contract or a failure to supply the digital content . damages shall put the consumer as nearly as possible into the position in which the consumer would have been if the digital content had been duly supplied and been in conformity with the contract . ### the supplier shall be liable to the consumer for any damage caused by a lack of conformity with the contract or a failure to supply the digital content . damages shall put the consumer as nearly as possible into the position in which the consumer would have been if the digital content had been duly supplied and been in conformity with the contract .


### upon termination the supplier should also refrain from using the content generated by the consumer . however , in those cases where more than one consumer generated particular content , the supplier is entitled to continue to use the content generated by the consumer where those other consumers make use of it . ### upon termination the supplier should also refrain from using the content produced by the consumer . however , in those cases where more than one consumer produced particular content , the supplier is entitled to continue to use the content produced by the consumer where those other consumers make use of it .


### whether the digital content is supplied in exchange for a price or other counter - performance than money ; ### whether the digital content is supplied in exchange for a price or other counter - performance than money , by providing personal data or any other data ;


### the supplier shall provide the consumer with technical means to retrieve all content provided by the consumer and any other data produced or generated through the consumer ' s use of the digital content to the extent that data has been retained by the supplier . the consumer shall be entitled to retrieve the content free of charge , without significant inconvenience , in reasonable time and in a commonly used data format ; ### the supplier , on request made by the consumer , shall provide the consumer with technical means to retrieve all content provided by the consumer and any other data produced or generated through the consumer ' s use of the digital content to the extent that data has been retained by the supplier . the consumer shall be entitled to retrieve the content free of charge , without significant inconvenience , in reasonable time and in a commonly used and machine - readable format ;


### in cases where the contract does not stipulate sufficiently clear and comprehensive benchmarks to ascertain the conformity of the digital content with the contract , it is necessary to set objective conformity criteria to ensure that consumers are not deprived of their rights . in such cases the conformity with the contract should be assessed considering the purpose for which digital content of the same description would normally be used . ### in cases where the contract does not stipulate sufficiently clear and comprehensive benchmarks , adjusted to the consumers it is dedicated for , to ascertain the conformity of the digital content with the contract , it is necessary to set objective conformity criteria to ensure that consumers are not deprived of their rights . in such cases the conformity with the contract should be assessed considering the purpose for which digital content of the same description would normally be used and the legitimately expected technical standards which digital content of the same description would normally have .


### in order to ensure that the consumer benefits from effective protection in relation to the right to terminate the contract , the supplier should allow the consumer to retrieve all data uploaded by the consumer , produced by the consumer with the use of the digital content or generated through the consumer ' s use of the digital content . this obligation should extend to data which the supplier is obliged to retain under the contract for the supply of the digital content as well as to data which the supplier has effectively retained in relation to the contract . ### in order to ensure that the consumer benefits from effective protection in relation to the right to terminate the contract , the supplier , on request made by the consumer , should allow the consumer to retrieve all data uploaded by the consumer or produced by the consumer with the use of the digital content . this obligation should extend to data which the supplier is obliged to retain under the contract for the supply of the digital content as well as to data which the supplier has effectively retained in relation to the contract .


### in order to conform with the contract , the digital content shall , where relevant : ### the contract shall include all relevant characteristics for the assessment of the conformitity of the digital content , as well as all relevant information regarding the processing of personal data in compliance with the obligation under regulation 2016 / 679 . in order to conform with the contract , the digital content shall , where relevant :


### the supplier shall provide the consumer with technical means to retrieve all any content provided by the consumer and any other data produced or generated through the consumer ' s use of the digital content to the extent this data has been retained by the supplier . the consumer shall be entitled to retrieve the content without significant inconvenience , in reasonable time and in a commonly used data format ; and ### the supplier , on request made by the consumer , shall provide the consumer with technical means to retrieve all any content provided by the consumer and any other data produced or generated through the consumer ' s use of the digital content to the extent this data has been retained by the supplier . the consumer shall be entitled to retrieve the content without significant inconvenience , in reasonable time and in a commonly used and machine - readable format ; and


### in other cases , internal channels could not reasonably be expected to function properly , for instance , where the reporting persons have valid reasons to believe that they would suffer retaliation in connection with the reporting ; that their confidentiality would not be protected ; that the ultimate responsibility holder within the work - related context is involved in the breach ; that the breach might be concealed ; that evidence may be concealed or destroyed ; that the effectiveness of investigative actions by competent authorities might be jeopardised or that urgent action is required ( for instance because of an imminent risk of a substantial and specific danger to the life , health and safety of persons , or to the environment . in all such cases , persons reporting externally to the competent authorities and , where relevant , to bodies , offices or agencies of the union shall be protected . moreover , protection is also to be granted in cases where union legislation allows for the reporting person to report directly to the competent national authorities or bodies , offices or agencies of the union , for example in the context of fraud against the union budget , prevention and detection of money laundering and terrorist financing or in the area of financial services . ### in other cases , internal channels could not reasonably be expected to function properly , for instance , where the reporting persons have valid reasons to believe that they would suffer retaliation in connection with the reporting ; that their confidentiality would not be protected ; that the ultimate responsibility holder within the work - related context is involved in the breach ; that the breach might be concealed ; that evidence may be concealed or destroyed ; that the effectiveness of investigative actions by competent authorities might be jeopardised or that urgent action is required ( for instance because of an imminent risk of a substantial and specific danger to the life , health and safety of persons , or to the environment . in all such cases , persons reporting externally to the competent authorities and , where relevant , to bodies , offices or agencies of the union shall be protected . moreover , protection is also to be granted in cases where union legislation allows for the reporting person to report directly to the competent national authorities or bodies , offices or agencies of the union , for example in the context of fraud against the union budget , the fight against and detection of money laundering and terrorist financing or in the area of financial services .


### with a view to enhancing the enforcement of union law and policies in specific areas , this directive lays down common minimum standards for the protection of persons reporting on the following unlawful activities or abuse of law : ### with a view to enhancing enforcement of the law when implementing union policies in specific areas , this directive lays down common minimum standards for the protection of persons reporting on the following unlawful activities or abuse of law :


### physical meetings with the person or department designated to receive reports . ### physical meetings with the person or department designated to receive reports , properly minuted and with the minutes dated and signed by the reporter .


### physical meeting with dedicated staff members of the competent authority . ### physical meeting with dedicated staff members of the competent authority , properly minuted and with the minutes dated and signed by the reporter .


### a reporting person shall qualify for protection under this directive provided he or she has reasonable grounds to believe that the information reported was true at the time of reporting and that this information falls within the scope of this directive . ### a reporting person shall qualify for protection under this directive if he or she does not come forwards anonymously and provided he or she has reasonable grounds to believe that the information reported was true at the time of reporting and that this information falls within the scope of this directive .


### development of infrastructure , including in the areas of transport , particularly in industrial centres ; energy , in particular energy interconnections ; and digital infrastructure ; ### development of infrastructure , including in the areas of transport , particularly in industrial centres ; energy , in particular energy interconnections and the synchronisation of&#160 ; energy systems ; and digital infrastructure ;


### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . ### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of project structuring and project financing , and investment projects , and in different sectors , such as research and development , energy , transport and ict . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies .


### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib . ### the purpose of the efsi shall be to support investments in the union as described in article 5 , in a non - discriminatory way , and to ensure increased access to financing for companies having up to 1500 employees , with a particular focus on micro , small and medium - sized enterprises , including social economy enterprises such as cooperatives , mutual societies , associations and foundations , through the supply of risk bearing capacity to the eib .


### development of infrastructure , including in the areas of transport , particularly in industrial centres ; energy , in particular energy interconnections ; and digital infrastructure ; ### development of a truly european single market by tackling missing infrastructure , including in the areas of transport , particularly in industrial , urban and rural&#160 ; centres ; energy , in particular energy interconnections and storage ; and digital and telecommunications infrastructure ;


### development of infrastructure , including in the areas of transport , particularly in industrial centres ; energy , in particular energy interconnections ; and digital infrastructure ; ### development of transport , energy and digital infrastructure , including transport and energy interconnections ;


### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib . ### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , and innovative enterprises , through the supply of risk bearing capacity to the eib .