### the supplier shall bring the digital content in conformity with the contract pursuant to paragraph 1 within a reasonable time from the time the supplier has been informed by the consumer about the lack of conformity with the contract and without any significant inconvenience to the consumer , taking account of the nature of digital content and the purpose for which the consumer required this digital content . ### the supplier shall bring the digital content or digital service in conformity with the contract pursuant to paragraph 1 without undue delay from the time the supplier has been informed by the consumer about the lack of conformity with the contract and without any significant inconvenience to the consumer , taking account of the nature of the digital content or digital service and the purpose for which the consumer required this digital content or digital service .


### the commission shall , not later than on [ the date of five years after entry into force ] review the application of this directive and submit a report to the european parliament and the council . the report shall examine , inter alia , the case for harmonisation of rules applicable to contracts for the supply of digital content against counter - performance other than that covered by this directive , in particular supplied against advertisement or indirect collection of data . ### the commission shall , not later than on [ the date of three years after entry into force ] review the application of this directive and submit a report to the european parliament and the council . the report shall examine , inter alia , the interaction and compliance with regulation 2016 / 679 , and the case for harmonisation of rules applicable to contracts for the supply of digital content against counter - performance other than that covered by this directive , in particular supplied against advertisement or indirect collection of data .


### in the digital economy , information about individuals is often and increasingly seen by market participants as having a value comparable to money . digital content is often supplied not in exchange for a price but against counter - performance other than money i . e . by giving access to personal data or other data . those specific business models apply in different forms in a considerable part of the market . introducing a differentiation depending on the nature of the counter - performance would discriminate between different business models ; it would provide an unjustified incentive for businesses to move towards offering digital content against data . a level playing field should be ensured . in addition , defects of the performance features of the digital content supplied against counter - performance other than money may have an impact on the economic interests of consumers . therefore the applicability of the rules of this directive should not depend on whether a price is paid for the specific digital content in question . ### in the digital economy , information about individuals is often and increasingly seen by market participants as having a value comparable to money . digital content or digital services are often supplied not in exchange for a price but against personal data , i . e . by giving access to it . those specific business models apply in different forms in a considerable part of the market . introducing a differentiation depending on the nature of the counter - performance would discriminate between different business models , which could provide an unjustified incentive for businesses to move towards offering digital content or digital services against data . in addition , defects of the performance features of the digital content or digital services supplied against personal data may have an impact on the economic interests of consumers . in order to ensure a level - playing field the applicability of the rules of this directive should not depend on whether a price is paid for the specific digital content or digital service in question .


### due to the specific nature of digital content with its high complexity as well as the supplier ' s better knowledge and access to know how , technical information and high - tech assistance , it is the supplier who is in a better position than the consumer to know the reasons for the digital content not being in conformity with the contract . the supplier is also in a better position to assess whether the lack of conformity with the contract is due to incompatibility of the consumer ' s digital environment with the technical requirements for the digital content . therefore in case of a dispute it should be for the supplier to prove that the digital content is in conformity with the contract , unless the supplier proves that the consumer ' s digital environment is not compatible with the digital content . only where the supplier proves that the consumer ' s digital environment is not compatible with the interoperability and other technical requirements , it should be for the consumer to prove that the digital content is not in conformity with the contract . ### in order to allow businesses to rely on a single set of rules across the union , it is necessary to fully harmonise the period of time during which the burden of proof for the lack of conformity is reversed in favour of the consumer . within the first six months , in order to benefit from the presumption of lack of conformity , the consumer should only establish that the digital content or digital service is not conforming and that the lack of conformity became apparent within six months of delivery of the digital content or digital service , without needing to demonstrate that the lack of conformity actually existed at the relevant time for establishing conformity . in order to increase legal certainty in relation to available remedies for lack of conformity with the contract and in order to eliminate one of the major obstacles inhibiting the single market , a fully harmonised order in which remedies can be exercised should be provided for .


### any lack of conformity which exists at the time the digital content is supplied ; and ### any lack of conformity with the contract which exists at the time the digital content or digital service is supplied ; or where the contract provides that the digital content or digital service shall be supplied over a period of time , any lack of conformity which occurs during the duration of that period .


### differences in national mandatory consumer contract law rules and a lack of clear contract law rules are among the key obstacles which hinder the development of the supply of digital content , as very few tailor - made rules exist at union level . businesses face additional costs stemming from differences in national mandatory consumer contract law rules and legal uncertainty when selling digital content across borders . businesses also face costs when adapting their contracts to specific mandatory rules for the supply of digital content are already emerging in several member states , creating differences in scope and content between specific national rules governing these contracts . in those member states where there are not yet specific rules for the supply of digital content , traders willing to sell cross - border face uncertainty , as they will often not know which rules apply to digital content in the member state they want to export to , nor the content of those rules and whether they are mandatory . ### differences in national mandatory consumer contract law rules and a lack of clear and uniform contract law rules are among the key obstacles which hinder the development of the supply of digital content and digital services , as very few tailor - made rules exist at union level . businesses face additional costs stemming from differences in national mandatory consumer contract law rules and legal uncertainty when supplying digital content and digital services across borders . businesses also face costs when adapting their contracts to specific mandatory rules for the supply of digital content in member states in which those rules exist . creating differences in scope and content between specific national rules governing these contracts . in those member states where there are not yet specific rules for the supply of digital content or digital services , traders willing to make crossborder sales face uncertainty and a lack of legal certainty , as they will often not know which rules apply to digital content or digital services in the member states to which they want to supply their digital content and digital services , nor the content of those rules and whether they are mandatory .


### 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 or digital services and their supply . in order to ensure consistency with the acquis the notion of digital content should correspond with the one used in directive 2011 / 83 / eu of the european parliament and of the council and should cover for example video , audio , applications , digital games and any other software . 30 in order to cater for fast technological developments and to ensure this directive is future - proof , this directive should also cover digital services which allow the creation , processing or storage of data , for example cloud storage or file hosting services . it should also cover digital services allowing sharing and other interaction , for example social media , video or audio sharing websites or platforms . while there are numerous ways for digital content or digital services to be supplied , such as transmission on a tangible medium , downloading by consumers on their devices , web - streaming , allowing access to storage capabilities of digital services or access to the use of social media , this directive should apply to all digital content or digital services 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 or digital services should be ensured . this directive should also apply to digital content which is embedded in goods , including dvds and cds , unless the supplier proves that the defect lies in the hardware of the good . _________________ 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 . 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 digital services and their supply . while there are numerous ways for digital content or digital services 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 .


### many types of digital content are supplied over a period of time . for instance , consumers access cloud services over a period of time . it is therefore important to ensure that the digital content is in conformity with the contract throughout the duration of the contract . moreover , given the frequent improvement of digital content , notably by updates , the version of digital content supplied to the consumer should be the most recent one available at the time of the conclusion of the contract . ### many types of digital content or digital service are supplied over a period of time . for instance , consumers access cloud services over a period of time . it is therefore important to ensure that the digital content or digital service is in conformity with the contract throughout the duration of the contract . moreover , given the frequent improvement of digital content , notably by updates , the version of digital content supplied to the consumer should be the most recent one available at the time of the conclusion of the contract .


### proposal for a directive of the european parliament and of the council on certain aspects concerning contracts for the supply of digital content ### proposal for a directive of the european parliament and of the council on certain aspects concerning contracts for the supply of digital content and digital services


### due to the specific nature of digital content with its high complexity as well as the supplier ' s better knowledge and access to know how , technical information and high - tech assistance , it is the supplier who is in a better position than the consumer to know the reasons for the digital content not being in conformity with the contract . the supplier is also in a better position to assess whether the lack of conformity with the contract is due to incompatibility of the consumer ' s digital environment with the technical requirements for the digital content . therefore in case of a dispute it should be for the supplier to prove that the digital content is in conformity with the contract , unless the supplier proves that the consumer ' s digital environment is not compatible with the digital content . only where the supplier proves that the consumer ' s digital environment is not compatible with the interoperability and other technical requirements , it should be for the consumer to prove that the digital content is not in conformity with the contract . ### in case of a dispute it should be for the supplier to prove that the digital content is in conformity with the contract , unless this would be incompatible with the nature of the digital content or the nature of the lack of conformity with the contract . this should be the case in particular where the supplier proves that the consumer ' s digital environment is not compatible with the digital content . in the case of contracts having as their object the one - off supply of digital content , it should therefore be for the supplier , in principle , to prove that the digital content was in conformity with the contract at the time of supply if within six months of supply a lack of conformity with the contract becomes apparent . in the case of long - term obligations , this presumption should apply during the course of the contract and for a period of six months after the end of the contract . in assessing whether the lack of conformity with the contract is due to incompatibility of the consumer ' s digital environment with the technical requirements for the digital content , the supplier is dependent on the cooperation of the consumer .


### in the case of a lack of conformity with the contract , the consumer shall be entitled to have the digital content brought into conformity with the contract free of charge , unless this is impossible , disproportionate or unlawful . ### in the case of a lack of conformity with the contract , the consumer shall be entitled to have the digital content or digital facility brought into conformity with the contract free of charge , unless this is factually or legally impossible , or would impose costs on the supplier that would be disproportionate .


### 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 or digital services and their supply . in order to ensure consistency with the acquis and cater for fast technological developments and to maintain the future - proof nature of the notion of digital content , the notion as used in this directive should correspond to the one used in directive 2011 / 83 / eu of the european parliament and of the council30 . this notion should cover , for example , video and audio content , applications , digital games and any other software . in order to cater for rapid technological developments and to ensure this directive remains abreast of the times , it should also cover services which allow the creation , processing or storage of data , such as cloud storage services or file hosting services . the notion of digital services should also cover social media platforms , instant messaging services , and video or audio - sharing websites or platforms which fall outside the scope of electronic communication services . while there are numerous ways for digital content or digital services 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 and digital services independently of the medium used for their 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 and digital services 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 .


### consumers are not confident when buying cross border and especially online . one of the major factors for this lack of confidence is uncertainty about their key contractual rights and the lack of a clear contractual framework for digital content . many consumers of digital content experience problems related to the quality of , or access to , digital content . for instance , they receive wrong or faulty digital content , or they are not able to access the digital content in question . as a result , consumers suffer financial and non - financial detriment . ### consumers are not confident when buying cross border and especially online . one of the major factors for this lack of confidence is uncertainty about their key contractual rights and the lack of a clear contractual framework for digital content and digital services . many consumers of digital content or digital services experience problems related to the quality of , or access to , digital content or digital services . for instance , they receive wrong or faulty digital content or digital services , or they are not able to access the digital content or digital services in question . as a result , consumers suffer financial and non - financial detriment .


### differences in national mandatory consumer contract law rules and a lack of clear contract law rules are among the key obstacles which hinder the development of the supply of digital content , as very few tailor - made rules exist at union level . businesses face additional costs stemming from differences in national mandatory consumer contract law rules and legal uncertainty when selling digital content across borders . businesses also face costs when adapting their contracts to specific mandatory rules for the supply of digital content are already emerging in several member states , creating differences in scope and content between specific national rules governing these contracts . in those member states where there are not yet specific rules for the supply of digital content , traders willing to sell cross - border face uncertainty , as they will often not know which rules apply to digital content in the member state they want to export to , nor the content of those rules and whether they are mandatory . ### differences in national mandatory consumer contract law rules and a lack of clear contract law rules are among the major obstacles which hinder the development of the supply of digital content , as very few tailor - made rules exist at union level . businesses face additional costs stemming from differences in national mandatory consumer contract law rules and legal uncertainty when selling digital content across borders . businesses also face costs when adapting their contracts to specific mandatory rules for the supply of digital content are already emerging in several member states , creating differences in scope and content between specific national rules governing these contracts . in those member states where there are not yet specific rules for the supply of digital content , traders selling cross - border face uncertainty , as they will often not know which rules apply to digital content in the member state they want to export to , nor the content of those rules and whether they are mandatory .


### the consumer may terminate the contract only if the lack of conformity with the contract impairs functionality , interoperability and other main performance features of the digital content such as its accessibility , continuity and security where required by article 6 paragraphs and . the burden of proof that the lack of conformity with the contract does not impair functionality , interoperability and other main performance features of the digital content shall be on the supplier . ### where the digital content or digital service has been supplied in exchange for a price the consumer may terminate the contract only if the lack of conformity with the contract is not only minor but also impairs functionality , interoperability and or other main performance features of the digital content such as its accessibility , continuity and security where required by article 6 and 6a . the burden of proof that the lack of conformity with the contract is not only minor and impairs functionality , interoperability and other main performance features of the digital content or digital service shall be on the supplier .


### due to its nature digital content needs to interact with other digital equipment to function properly ; interoperability should therefore form a part of the conformity criteria . in particular it needs to interact with hardware including processor speed and graphics card features and software including a specific version of the operating system or specific multi - media player . the notion of functionality should refer to the ways in which digital content can be used ; it should also refer to the absence or presence of any technical restrictions such as protection via digital rights management or regional coding . ### due to their nature , digital content and digital services need to interact with other digital equipment to function properly ; interoperability should therefore form a part of the conformity criteria . in particular , the digital content or digital services need to interact with hardware including processor speed and graphics card features and software including a specific version of the operating system or specific multi - media player . the notion of functionality should refer to the ways in which digital content or digital services can be used ; it should also refer to the absence or presence of any technical restrictions such as protection via digital rights management or regional coding .


### a failure of the supplier to supply the digital content to the consumer in accordance with the contract is a serious breach of the main contractual obligation of the supplier , which should allow the consumer to immediately terminate the contract . where the supplier has initially not failed to supply the digital content , interruptions of the supply making the digital content not available or accessible to the consumer over a short period of time should be treated as non - conformity with the contract , and not a failure to supply . in particular , the requirement of proper continuity of the digital content should also cover more than negligible short term interruptions of the supply . ### where the supplier fails to supply the digital content or digital services to the consumer in accordance with the contract the consumer should call upon the supplier to make the supply within an additional and appropriate period of time . any failure to supply within this additional period of time should allow the consumer to terminate the contract . where the supplier has initially not failed to supply the digital content or digital services , interruptions of the supply making the digital content or digital services not available or accessible to the consumer over a short period of time should be treated as non - conformity with the contract , and not a failure to supply . in particular , the requirement of proper continuity of the digital content should also cover more than negligible short term interruptions of the supply which are significant , continuous and recurring .


### the supplier shall bring the digital content in conformity with the contract pursuant to paragraph 1 within a reasonable time from the time the supplier has been informed by the consumer about the lack of conformity with the contract and without any significant inconvenience to the consumer , taking account of the nature of digital content and the purpose for which the consumer required this digital content . ### the supplier shall bring the digital content or digital service in conformity with the contract pursuant to paragraph 1 within a reasonable time from the time the supplier has been informed by the consumer about the lack of conformity with the contract and without any significant inconvenience to the consumer , taking account of the nature of digital content or digital service and the purpose for which the consumer required this digital content or digital service .


### 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 the lack of non - conformity is not only minor and where bringing the digital content or digital service to conformity is not possible , and the non - conformity impairs functionality , interoperability or performance features of the digital content or digital service such as its accessibility , continuity and security as required by objective or subjective conformity criteria . where the consumer terminates the contract , the supplier should reimburse the price paid by the consumer .


### differences in national mandatory consumer contract law rules and a lack of clear contract law rules are among the key obstacles which hinder the development of the supply of digital content , as very few tailor - made rules exist at union level . businesses face additional costs stemming from differences in national mandatory consumer contract law rules and legal uncertainty when selling digital content across borders . businesses also face costs when adapting their contracts to specific mandatory rules for the supply of digital content are already emerging in several member states , creating differences in scope and content between specific national rules governing these contracts . in those member states where there are not yet specific rules for the supply of digital content , traders willing to sell cross - border face uncertainty , as they will often not know which rules apply to digital content in the member state they want to export to , nor the content of those rules and whether they are mandatory . ### differences in national mandatory consumer contract law rules and a lack of clear contract law rules are among the key obstacles which hinder the development of the supply of digital content or digital services , as very few tailor - made rules exist at union level . businesses face additional costs stemming from differences in national mandatory consumer contract law rules and legal uncertainty when supplying digital content or digital services across borders . businesses also face costs when adapting their contracts to specific mandatory rules for the supply of digital content or digital services of member states where such rules already exist . the emergence of such rules results in differences in scope and content between specific national rules governing these contracts . in those member states where there are not yet specific rules for the supply of digital content or digital services , suppliers willing to supply cross - border face uncertainty , as they will often not know which rules apply to digital content or digital services in the member state they want to supply to , nor the content of those rules and whether they are mandatory .


### the reduction in price shall be proportionate to the decrease in the value of the digital content which was received by the consumer compared to the value of the digital content that is in conformity with the contract . ### the reduction in price shall be proportionate to the decrease in the value of the digital content or digital service which was received by the consumer compared to the value of the digital content or digital service would have if in conformity with the contract .


### content generated by consumers should be treated on the same basis as any other digital content that the consumer provides or stores throughout the period of duration of the contract such as music and video files , pictures , games or applications . content generated by consumers comprises a wide range of examples including digital images , video and audio files , blogs , discussion forums , text - based collaboration formats , posts , chats , tweets , logs , podcasting , content created on mobile devices , content created in the context of online virtual environments , ratings and collections of links referring to online content . ### digital content generated by consumers should be treated on the same basis as any other digital content that the consumer provides or stores throughout the period of duration of the contract such as music and video files , pictures , games or applications . digital content generated by consumers comprises a wide range of examples including digital images , video and audio files , blogs , discussion forums , text - based collaboration formats , posts , chats , tweets , logs , podcasting , content created on mobile devices , content created in the context of online virtual environments , ratings and collections of links referring to online content .


### in order to meet the expectations of consumers and ensure a clear - cut and simple legal framework for suppliers of digital content offered on a durable medium , in relation to conformity requirements and remedies available to consumers for non - conformity , this directive should apply to goods such as dvds and cds , incorporating digital content in such a way that the goods function only as a carrier of the digital content . the directive should apply to the digital content supplied on a durable medium , independently whether it is sold at a distance or in face - to - face situations , so as to avoid fragmentation between the different distribution channels . the directive 2011 / 83 should continue to apply to those goods , including to obligations related to the delivery of goods , remedies in case of the failure to deliver and the nature of the contract under which those goods are supplied . the directive is also without prejudice to the distribution right applicable to these goods under copyright law . ### in order to meet the expectations of consumers and ensure a clear - cut and simple legal framework for suppliers of digital content offered on a durable medium , in relation to conformity requirements and remedies available to consumers for non - conformity , this directive should not apply to digital content integrated in goods such as household appliances or toys where the digital content is embedded in such a way that its functions are subordinate to the main functionalities of the goods and it operates as an integral part of the goods . this directive should also not apply to goods like dvds and cds incorporating digital content in such a way that the goods function only as a carrier of the digital content , so as to avoid fragmentation between the different distribution channels . the directive 2011 / 83 should continue to apply to those goods , including to obligations related to the delivery of goods , remedies in case of the failure to deliver and the nature of the contract under which those goods are supplied . the directive is also without prejudice to the distribution right applicable to these goods under copyright law .


### this directive should fully harmonise a set of key rules that are so far not regulated at union level . it should include therefore rules on conformity of the digital content , remedies available to consumers in cases of lack of conformity of digital content with the contract and certain modalities for the exercise of those remedies . this directive should also harmonise certain aspects concerning the right to terminate a long term contract , as well as certain aspects concerning the modification of the digital content . ### this directive should fully harmonise a set of key rules that are so far not regulated at union level . it should include therefore rules on conformity of the digital content and digital services , remedies available to consumers in cases of lack of conformity of digital content or digital services with the contract and certain modalities for the exercise of those remedies . this directive should also harmonise certain aspects concerning the right to terminate a long term contract , as well as certain aspects concerning the modification of the digital content or digital services .


### 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 or digital services and their supply . in order to ensure consistency with the acquis the notion of digital content should correspond with the one used in directive 2011 / 83 / eu of the european parliament and of the council and should cover for example video , audio , applications , digital games and any other software . 30 in order to cater for fast technological developments and to ensure this directive is future - proof , this directive should also cover digital services which allow the creation , processing or storage of data , for example cloud storage or file hosting services . it should also cover digital services allowing sharing and other interaction , for example social media , video or audio sharing websites or platforms . while there are numerous ways for digital content or digital services to be supplied , such as transmission on a tangible medium , downloading by consumers on their devices , web - streaming , allowing access to storage capabilities of digital services or access to the use of social media , this directive should apply to all digital content or digital services 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 or digital services should be ensured . this directive should also apply to digital content which is embedded in goods , including dvds and cds , unless the supplier proves that the defect lies in the hardware of the good . _________________ 30 oj l 304 , 22 . 11 . 2011 , p . 64 .


### in order to meet the expectations of consumers and ensure a clear - cut and simple legal framework for suppliers of digital content offered on a durable medium , in relation to conformity requirements and remedies available to consumers for non - conformity , this directive should apply to goods such as dvds and cds , incorporating digital content in such a way that the goods function only as a carrier of the digital content . the directive should apply to the digital content supplied on a durable medium , independently whether it is sold at a distance or in face - to - face situations , so as to avoid fragmentation between the different distribution channels . the directive 2011 / 83 should continue to apply to those goods , including to obligations related to the delivery of goods , remedies in case of the failure to deliver and the nature of the contract under which those goods are supplied . the directive is also without prejudice to the distribution right applicable to these goods under copyright law . ### the directive should apply to the digital content supplied on a tangible medium , independently whether it is supplied at a distance or in face - to - face situations , so as to avoid fragmentation between the different distribution channels . the directive 2011 / 83 should continue to apply to those goods , including the obligations related to the delivery of goods , remedies in case of the failure to deliver and the nature of the contract under which those goods are supplied . the directive is also without prejudice to the distribution right applicable to these goods under copyright law .


### the consumer may terminate the contract only if the lack of conformity with the contract impairs functionality , interoperability and other main performance features of the digital content such as its accessibility , continuity and security where required by article 6 paragraphs and . the burden of proof that the lack of conformity with the contract does not impair functionality , interoperability and other main performance features of the digital content shall be on the supplier . ### the consumer may terminate the contract only if the lack of conformity with the contract impairs functionality and other main features of the digital content such as its performance , accessibility , continuity and security where required by article 6 paragraphs and . the burden of proof that the lack of conformity with the contract does not impair functionality and other main features of the digital content shall be on the supplier .


### in the digital economy , information about individuals is often and increasingly seen by market participants as having a value comparable to money . digital content is often supplied not in exchange for a price but against counter - performance other than money i . e . by giving access to personal data or other data . those specific business models apply in different forms in a considerable part of the market . introducing a differentiation depending on the nature of the counter - performance would discriminate between different business models ; it would provide an unjustified incentive for businesses to move towards offering digital content against data . a level playing field should be ensured . in addition , defects of the performance features of the digital content supplied against counter - performance other than money may have an impact on the economic interests of consumers . therefore the applicability of the rules of this directive should not depend on whether a price is paid for the specific digital content in question . ### in the digital economy , information about individuals is often and increasingly seen by market participants as having a value comparable to money . digital content and digital services are often supplied not in exchange for a price but against counter - performance other than money i . e . by giving access to personal data or other data . those specific business models apply in different forms in a considerable part of the market . introducing a differentiation depending on the nature of the counter - performance would discriminate between different business models , and provide an unjustified incentive for businesses to move towards offering digital content or digital services against data . a level playing field should be ensured . in addition , defects of the performance features of the digital content or digital services supplied against counter - performance other than money may have an impact on the economic interests of consumers . with a view to ensuring a level playing - field and a high level of consumer protection , the applicability of the rules of this directive should not depend on whether a price is paid for the specific digital content or digital service in question .


### in the case of non - conformity with the contract , consumers should as a first step be entitled to have the digital content brought to conformity with the contract . depending on technical characteristics of the digital content , the supplier may select a specific way of bringing the digital content to conformity with the contract , for example by issuing updates or requiring the consumer to access a new copy of the digital content . given the diversity of digital content , it is not appropriate to set fixed deadlines for the exercise of rights or the fulfilling of obligations related to that digital content . such deadlines may not capture this diversity and be either too short or too long , depending on the case . it is therefore more appropriate to refer to reasonable deadlines . the digital content should be brought into conformity with the contract within a reasonable time and free of any costs ; in particular the consumer should not incur any costs associated with the development of an update for the digital content . ### in the case of non - conformity with the contract , consumers should as a first step be entitled to have the digital content or digital service brought to conformity with the contract . depending on technical characteristics of the digital content or digital service , the supplier may select a specific way of bringing the digital content or digital service to conformity with the contract , for example by issuing updates or requiring the consumer to access a new copy of the digital content . given the diversity of digital content or digital services , it is not appropriate to set fixed deadlines for the exercise of rights or the fulfilling of obligations related to that digital content or digital service . such deadlines may not capture this diversity and be either too short or too long , depending on the case . it is therefore more appropriate to refer to reasonable deadlines . the digital content or digital service should be brought into conformity with the contract within a reasonable time and free of any costs . the consumer should not incur any costs associated with the development of an update for the digital content or digital service .


### there are various ways for digital content to reach consumers . it is opportune to set simple and clear rules as to the modalities and the time for performing the supplier ' s main contractual obligation to supply digital content to the consumer . considering that the supplier is not in principle responsible for acts or omissions of an internet provider or an electronic platform which the consumer selected for receiving the digital content , it should be sufficient for the supplier to supply the digital content to this third party . with regard to the time of supply , in line with market practices and technical possibilities , the digital content should be supplied immediately , unless the parties decide to agree otherwise in order to cater for other supply models . ### there are various ways for digital content or digital services to reach consumers . it is opportune to set simple and clear rules as to the modalities and the time for performing the supplier ' s main contractual obligation to supply digital content or digital services to the consumer . considering that the supplier is not in principle responsible for acts or omissions of an internet provider or an electronic platform which the consumer selected for receiving the digital content or digital service , it should be sufficient for the supplier to supply the digital content or digital service to that third party . with regard to the time of supply , in line with market practices and technical possibilities , the digital content or digital service should be supplied without undue delay , and not later than 30 days from the date of conclusion of the contract , unless the parties decide to agree otherwise in order to cater for other supply models .


### the consumer shall cooperate with the supplier to the extent possible and necessary to determine the consumer ' s digital environment . the obligation to cooperate shall be limited to the technically available means which are the least intrusive for the consumer . where the consumer fails to cooperate , the burden of proof with respect to the non - conformity with the contract shall be on the consumer . ### the consumer shall cooperate with the supplier to the extent possible and necessary to ascertain the consumer ' s digital environment in order to be able to establish whether the lack of conformity existed at the time of supply . the obligation to cooperate shall be limited to the technically available means which are the least intrusive for the consumer . only in exceptional and duly justified circumstances where there are no other means available the consumer shall grant the supplier upon request virtual access to the consumer ' s digital environment . where the consumer fails to cooperate , the burden of proof with respect to the non - conformity with the contract shall be on the consumer .


### by fully harmonising all requirements related to the topics regulated by this directive , it precludes member states , within its scope of application , from providing any further formal or substantive requirements , such as a period during which the lack of conformity has to become apparent , an obligation for the consumer to notify the supplier of a lack of conformity within a specific period or an obligation for the consumer to pay for the use of the digital content until the moment of termination because of a lack of conformity with the contract . ### by fully harmonising all requirements related to the topics regulated by this directive , it precludes member states , within its scope of application , from providing any further formal or substantive requirements , such an obligation for the consumer to notify the supplier of a lack of conformity within a specific period or an obligation for the consumer to pay for the use of the digital content or digital service until the moment of termination because of a lack of conformity with the contract .


### in the digital economy , information about individuals is often and increasingly seen by market participants as having a value comparable to money . digital content is often supplied not in exchange for a price but against counter - performance other than money i . e . by giving access to personal data or other data . those specific business models apply in different forms in a considerable part of the market . introducing a differentiation depending on the nature of the counter - performance would discriminate between different business models ; it would provide an unjustified incentive for businesses to move towards offering digital content against data . a level playing field should be ensured . in addition , defects of the performance features of the digital content supplied against counter - performance other than money may have an impact on the economic interests of consumers . therefore the applicability of the rules of this directive should not depend on whether a price is paid for the specific digital content in question . ### in the digital economy , information about individuals is often and increasingly seen by market participants as having a value comparable to money . digital content or digital services are often supplied not in exchange for a price but against personal data , i . e . by giving access to it . those specific business models apply in different forms in a considerable part of the market . introducing a differentiation depending on the nature of the counter - performance would discriminate between different business models , which could provide an unjustified incentive for businesses to move towards offering digital content or digital services against data . in addition , defects of the performance features of the digital content or digital services supplied against personal data may have an impact on the economic interests of consumers . in order to ensure a level - playing field the applicability of the rules of this directive should not depend on whether a price is paid for the specific digital content or digital service in question .


### where the contract provides that the digital content shall be supplied over the period of time stipulated in the contract , the supplier may alter functionality , interoperability and other main performance features of the digital content such as its accessibility , continuity and security , to the extent those alternations adversely affect access to or use of the digital content by the consumer , only if : ### where the contract provides that the digital content or digital service shall be supplied over the period of time stipulated in the contract , the supplier may alter the functionality , interoperability and other main performance features of the digital content or digital service , to the extent those alternations adversely affect access to or use of the digital content or digital service by the consumer , only if : the contract allows for and gives a valid reason for such an alteration ; such an alteration can reasonably be expected by the consumer ; the consumer is notified reasonably in advance of the modification and the corresponding right to terminate in a clear and comprehensive manner notice on a durable medium ; and the consumer is allowed to terminate the contract free of any charges within no less than 30 days from day of the receipt of the notice or from the time the digital content is altered by the supplier , whichever is later ;


### 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 or service and their supply . in order to ensure legal consistency , the notion of digital content should correspond with that used in directive 2011 / 83 / eu of the european parliament and of the council and should cover , for example , video , audio , applications , digital games and any other software . in order to cater for current and future technological developments , this directive should also cover digital services which allow the creation , processing or storage of data , for example cloud storage or file hosting services . it should likewise cover digital services allowing sharing and other interaction , for example social media , instant messaging services , video or audio - sharing websites or platforms , provided they fall outside the scope of electronic communication services within the meaning of directive 2002 / 21 / ec . while there are numerous ways for digital content or digital services to be supplied , such as downloading by consumers on their devices , web - streaming , allowing access to storage capabilities of digital services or access to the use of social media , this directive should apply to all digital content or digital services independently of the medium used for their 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 or service should be ensured .


### this directive should fully harmonise a set of key rules that are so far not regulated at union level . it should include therefore rules on conformity of the digital content , remedies available to consumers in cases of lack of conformity of digital content with the contract and certain modalities for the exercise of those remedies . this directive should also harmonise certain aspects concerning the right to terminate a long term contract , as well as certain aspects concerning the modification of the digital content . ### this directive should fully harmonise a set of key rules that are so far not regulated at union level . it should include therefore rules on conformity of the digital content or digital services , remedies available to consumers in cases of lack of conformity of digital content or digital services with the contract and certain modalities for the exercise of those remedies .


### due to the specific nature of digital content with its high complexity as well as the supplier ' s better knowledge and access to know how , technical information and high - tech assistance , it is the supplier who is in a better position than the consumer to know the reasons for the digital content not being in conformity with the contract . the supplier is also in a better position to assess whether the lack of conformity with the contract is due to incompatibility of the consumer ' s digital environment with the technical requirements for the digital content . therefore in case of a dispute it should be for the supplier to prove that the digital content is in conformity with the contract , unless the supplier proves that the consumer ' s digital environment is not compatible with the digital content . only where the supplier proves that the consumer ' s digital environment is not compatible with the interoperability and other technical requirements , it should be for the consumer to prove that the digital content is not in conformity with the contract . ### in case of a dispute it should be for the supplier to prove that the digital content is in conformity with the contract , unless this would be incompatible with the nature of the digital content or the nature of the lack of conformity with the contract . this should be the case in particular where the supplier proves that the consumer ' s digital environment is not compatible with the digital content . in the case of contracts having as their object the one - off supply of digital content , it should therefore be for the supplier , in principle , to prove that the digital content was in conformity with the contract at the time of supply if within six months of supply a lack of conformity with the contract becomes apparent . in the case of long - term obligations , this presumption should apply during the course of the contract and for a period of six months after the end of the contract . in assessing whether the lack of conformity with the contract is due to incompatibility of the consumer ' s digital environment with the technical requirements for the digital content , the supplier is dependent on the cooperation of the consumer .


### 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 .


### there are various ways for digital content to reach consumers . it is opportune to set simple and clear rules as to the modalities and the time for performing the supplier ' s main contractual obligation to supply digital content to the consumer . considering that the supplier is not in principle responsible for acts or omissions of an internet provider or an electronic platform which the consumer selected for receiving the digital content , it should be sufficient for the supplier to supply the digital content to this third party . with regard to the time of supply , in line with market practices and technical possibilities , the digital content should be supplied immediately , unless the parties decide to agree otherwise in order to cater for other supply models . ### there are various ways for digital content or digital services to reach consumers . it is opportune to set simple and clear rules as to the modalities and the time for performing the supplier ' s main contractual obligation to supply digital content or digital services to the consumer . considering that the supplier is not in principle responsible for acts or omissions of an internet provider or an electronic platform which the consumer selected for receiving the digital content or digital service , it should be sufficient for the supplier to supply the digital content or digital service to this third party or to a third party designated by the consumer . with regard to the time of supply , in line with market practices and technical possibilities , the digital content or digital service should be supplied without undue delay after conclusion of the contract , unless the parties decide to agree otherwise in order to cater for other supply models .


### a failure of the supplier to supply the digital content to the consumer in accordance with the contract is a serious breach of the main contractual obligation of the supplier , which should allow the consumer to immediately terminate the contract . where the supplier has initially not failed to supply the digital content , interruptions of the supply making the digital content not available or accessible to the consumer over a short period of time should be treated as non - conformity with the contract , and not a failure to supply . in particular , the requirement of proper continuity of the digital content should also cover more than negligible short term interruptions of the supply . ### where the supplier fails to supply the digital content or digital services to the consumer in accordance with the contract the consumer should call upon the supplier to make the supply within an additional and appropriate period of time . any failure to supply within this additional period of time should allow the consumer to terminate the contract . where the supplier has initially not failed to supply the digital content or digital services , interruptions of the supply making the digital content or digital services not available or accessible to the consumer over a short period of time should be treated as non - conformity with the contract , and not a failure to supply . in particular , the requirement of proper continuity of the digital content should also cover more than negligible short term interruptions of the supply which are significant , continuous and recurring .


### in order to ensure a common set of rights for consumers and a level playing field for business , consumers should have the same remedies for digital content which is not in conformity with the contract irrespective of the way the content has been developed . consequently the directive should apply to contracts for the development of digital content tailor made to the specific requirements of the consumer including tailor made software . this directive should also apply to the supply of visual modelling files required in the context of 3d printing . however this directive should not regulate goods produced with the use of 3d printing technology or the damage caused to them . ### in order to ensure a high and uniform level of consumer protection , through the introduction of a common set of rights for consumers and a business - friendly environment , by guaranteeing a level playing field for businesses , consumers should have the same remedies for digital content or digital services which are not in conformity with the contract , irrespective of the way in which the content has been developed . consequently , the directive should apply to contracts for the development of digital content or digital services tailor - made to the specific requirements of the consumer , including tailor - made software . this directive should also apply to the supply of visual modelling files required in the context of 3d printing . however this directive should not regulate goods produced with the use of 3d printing technology or the damage caused to them .


### in the case of a lack of conformity with the contract , the consumer shall be entitled to have the digital content brought into conformity with the contract free of charge , unless this is impossible , disproportionate or unlawful . ### in the case of a lack of conformity with the contract , the consumer shall be entitled to have the digital content or digital facility brought into conformity with the contract free of charge , unless this is factually or legally impossible , or would impose costs on the supplier that would be disproportionate .


### the consumer shall cooperate with the supplier to the extent possible and necessary to determine the consumer ' s digital environment . the obligation to cooperate shall be limited to the technically available means which are the least intrusive for the consumer . where the consumer fails to cooperate , the burden of proof with respect to the non - conformity with the contract shall be on the consumer . ### the consumer shall allow the supplier to ascertain the consumer ' s digital environment to the extent possible for determining whether the lack of conformity existed at the time of the supply of digital content . in particular , the consumer shall tolerate the use of the least intrusive technical means , which are at the disposal of both parties . where the consumer fails to cooperate , the burden of proof with respect to the non - conformity with the contract shall be on the consumer .


### without prejudice to the fundamental rights to the protection of private life , including confidentiality of communications , and the protection of personal data of the consumer , the consumer should cooperate with the supplier in order to allow the supplier to ascertain the consumer ' s digital environment with the use of the least intrusive means which are at the disposal of both parties in the circumstances . this may often be done for instance by providing the supplier with automatically generated incident reports or details of the consumer ' s internet connection . only in exceptional and duly justified circumstances where with the best use of all other means there is no other way possible , this may also be done by allowing virtual access to the consumer ' s digital environment . however , where the consumer does not cooperate with the supplier , it should be for the consumer to prove that the digital content is not in conformity with the contract . ### without prejudice to the fundamental rights to the protection of private life , including confidentiality of communications , and the protection of personal data of the consumer , the consumer should cooperate with the supplier in order to allow the supplier to ascertain the consumer ' s digital environment with the use of the least intrusive means which are at the disposal of both parties in the circumstances . this may often be done for instance by providing the supplier with automatically generated incident reports or details of the consumer ' s internet connection . only in exceptional and duly justified circumstances where with the best use of all other means there is no other way possible , this may also be done by allowing virtual access to the consumer ' s digital environment .


### a failure of the supplier to supply the digital content to the consumer in accordance with the contract is a serious breach of the main contractual obligation of the supplier , which should allow the consumer to immediately terminate the contract . where the supplier has initially not failed to supply the digital content , interruptions of the supply making the digital content not available or accessible to the consumer over a short period of time should be treated as non - conformity with the contract , and not a failure to supply . in particular , the requirement of proper continuity of the digital content should also cover more than negligible short term interruptions of the supply . ### a failure of the supplier to supply the digital content or digital service to the consumer in accordance with the contract is a serious breach of the main contractual obligation of the supplier , which should allow the consumer to immediately terminate the contract . where the supplier has initially not failed to supply the digital content or digital service , interruptions of the supply making the digital content is not available or the digital services not accessible to the consumer over a short period of time should be treated as non - conformity with the contract , and not a failure to supply . in particular , the requirement of proper continuity of the digital content or digital services should also cover more than negligible short term interruptions of the supply .


### content generated by consumers should be treated on the same basis as any other digital content that the consumer provides or stores throughout the period of duration of the contract such as music and video files , pictures , games or applications . content generated by consumers comprises a wide range of examples including digital images , video and audio files , blogs , discussion forums , text - based collaboration formats , posts , chats , tweets , logs , podcasting , content created on mobile devices , content created in the context of online virtual environments , ratings and collections of links referring to online content . ### digital content generated by consumers should be treated on the same basis as any other digital content that the consumer provides or stores throughout the period of duration of the contract such as music and video files , pictures , games or applications . digital content generated by consumers comprises a wide range of examples including digital images , video and audio files , blogs , discussion forums , text - based collaboration formats , posts , chats , tweets , logs , podcasting , content created on mobile devices , content created in the context of online virtual environments , ratings and collections of links referring to online content .


### – security and privacy ; ### – minimum security and high - level privacy ;


### in order to deter money laundering throughout the union , member states should lay down minimum types and levels of penalties when the criminal offences defined in this directive are committed . where the offence is committed within a criminal organisation within the meaning of council framework decision 2008 / 841 / jha378 or where the perpetrator abused their professional position to enable money laundering , member states should provide for aggravating circumstances in accordance with the applicable rules established by their legal systems . _________________ 37 council framework decision 2008 / 841 / jha of 24 october 2008 on the fight against organised crime , ### in order to deter money laundering throughout the union , member states should ensure that such offences carry a maximum of at least four years ' imprisonment . this obligation is without prejudice to the imposition and application of penalties and enforcement of judgments in accordance with the factual circumstances of each individual case .


### the temporary or permanent disqualification of that legal person from the practice of commercial activities ; ### temporary or permanent disqualification from the practice of commercial activities ;


### a central role in the implementation of the programme should be attributed to digital innovation hubs , which should stimulate the broad adoption of advanced digital technologies by industry , by public organisations and academia . a network of digital innovation hubs should ensure the widest geographical coverage across europe59 . a first set of digital innovation hubs will be selected based on member states’ proposals and then the network will be enlarged through an open and competitive process . the digital innovation hubs will serve as access points to latest digital capacities including high performance computing , artificial intelligence , cybersecurity , as well as other existing innovative technologies such as key enabling technologies , available also in fablabs or citylabs . they shall act as single - entry points in accessing tested and validated technologies and promote open innovation . they will also provide support in the area of advanced digital skills . the network of digital innovation hubs should also contribute to the participation of the outermost regions in the digital single market . _________________ 59 as indicated in the communication on digitising european industry 180 final ) ### a central role in the implementation of the programme should be attributed to digital innovation hubs , which should stimulate the broad adoption of advanced digital technologies by industry , by public organisations and academia . a network of digital innovation hubs should ensure the widest geographical coverage across europe59 . a first set of digital innovation hubs will be selected based on member states’ proposals and then the network will be enlarged through an open , transparent and competitive process . the digital innovation hubs will serve as access points to latest digital capacities including high performance computing , artificial intelligence , cybersecurity , as well as other existing innovative technologies such as key enabling technologies , available also in fablabs or citylabs . they shall act as single - entry points in accessing tested and validated technologies and promote open innovation . they will also provide support in the area of advanced digital skills . the network of digital innovation hubs should also contribute to the participation of the outermost regions in the digital single market . _________________ 59 as indicated in the communication on digitising european industry 180 final )


### the programme has the following general objective : to support the digital transformation of the european economy and society and bring its benefits to european citizens and businesses . the programme will : ### the programme has the following general objective : to support the digital transformation of the european economy and society and bring its benefits to european citizens , public administrations and businesses . the programme will :


### in duly justified circumstances irrespective of a declaration of emergency , the competent authority may require gas undertakings to provide the information referred to in paragraph 1 or additional information necessary to assess the overall situation of the gas supply in the member state or other member states , including contractual information . the commission may request from the competent authorities the information provided by natural gas undertakings . ### irrespective of a declaration of emergency , the competent authority may require natural gas undertakings to provide the information referred to in paragraph 1 or additional information necessary to assess the overall situation of the gas supply in the member state or other member states , including contractual information . the commission may request from the competent authorities the information provided by natural gas undertakings .


### an emergency plan containing the measures to be taken to remove or mitigate the impact of a gas supply disruption in the region , including events of purely national dimension , in accordance with article 9 . ### an emergency plan containing the measures to be taken to remove or mitigate the impact of a gas supply disruption in accordance with article 9 .


### mandatory comprehensive templates including all the risks to be covered by the risk assessment and all the components of the preventive action plans and emergency plans are needed to facilitate the risk assessment and preparation of the plans , their peer review and their assessment by the commission . ### mandatory comprehensive templates including all the risks to be covered by the risk assessment and all the components of the preventive action plans and the emergency plans are needed to facilitate the risk assessment and preparation of the plans , their peer review and their assessment by the commission .


### to facilitate communication between member states and the commission , the risk assessments , the preventive action plans , the emergency plans and all other documents and information exchanges covered by this regulation must be notified using a standard electronic notification system . ### to facilitate communication between member states and the commission , the risk assessments , the preventive action plans , the emergency plans and all other documents and information exchanges provided for in this regulation should be notified using a standard electronic notification system .


### demand - side measures , such as fuel switching or reducing the gas supply to large industrial consumers in an economically efficient order , may have a valuable role to play in ensuring energy security , if they can be applied quickly and significantly reduce demand in response to a supply disruption . more should be done to promote efficient energy use , particularly where demand - side measures are needed . the environmental impact of any demand and supply - side measures proposed must be taken into account , with preference being given , as far as possible , to measures that have least impact on the environment . at the same time , security of supply and competitiveness aspects must be taken into account . ### demand - side measures , such as fuel switching or reducing the gas supply to large industrial consumers in an economically efficient manner , as well as a market - based system for industrial consumers , such as voluntary reduction of demand offered by industrial consumers against fair and timely financial compensation , may have a valuable role to play in ensuring energy security , if they can be applied quickly and significantly reduce demand in response to a supply disruption . more should be done to promote efficient energy use , particularly where demand - side measures are needed . the environmental impact of any demand and supply - side measures proposed must be taken into account , with preference being given , as far as possible , to measures that have least impact on the environment . at the same time , security of gas supply should remain a priority for measures undertaken in the case of disruption to supply , while competitiveness aspects should also be properly taken into account .


### the measures to ensure the security of supply contained in the preventive action plans and in the emergency plans shall be clearly defined , transparent , proportionate , non - discriminatory and verifiable , shall not unduly distort competition and the effective functioning of the internal market in gas and shall not endanger the security of gas supply of other member states or of the union as a whole . ### the measures to ensure the security of gas supply contained in the preventive action plans and in the emergency plans shall be clearly defined , transparent , proportionate , non - discriminatory and verifiable , shall not unduly distort competition and the effective functioning of the internal market in gas and shall not endanger the security of gas supply of other member states , regions or the union .


### to ensure maximum preparedness , so as to avoid a supply disruption and mitigate its effects should it nevertheless occur , the competent authorities of a given region must draw up preventive action plans and emergency , after consulting stakeholders . regional plans should take account of the specific characteristics of each member state . they should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities . national measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan . they should be so designed as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation . the plans should be technical and operational in nature , their function being to help prevent the occurrence or escalation of an emergency and to mitigate its effects . the plans should take the security of electricity systems into account and be consistent with the energy union ' s strategic planning and reporting tools . ### to ensure maximum preparedness , so as to avoid a supply disruption and mitigate the effects of such a disruption should it nevertheless occur , the competent authorities of a given region should draw up preventive action plans and emergency plans , after consulting the stakeholders . regional plans should take account of the specific characteristics of each member state . they should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities . national measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan . they should be designed so as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation . the plans should be technical and operational in nature , their function being to help prevent the occurrence or escalation of an emergency and to mitigate its effects . the plans should take the security of electricity systems into account and be consistent with the energy union ' s strategic planning and reporting tools .


### in duly justified circumstances , where the competent authority or the commission considers that a gas supply contract not covered by paragraph 6 of this article might affect the security of supply of a member state , region or of the union as whole , the competent authority of the member state where the natural gas undertaking who has concluded the contract operates or the commission may request the natural gas undertaking to provide the contract for the assessment of its impact on security of supply . the request may cover also any other commercial agreements relevant for the execution of the gas supply contract . ### in duly justified circumstances where the competent authority or the commission considers that a gas supply contract not covered by paragraph 6 of this article might affect the security of gas supply of a member state , region or of the union as whole , the competent authority of the member state where the natural gas undertaking who has concluded the contract operates or the commission may request the natural gas undertaking to provide the necessary contractual information for the assessment of its impact on security of supply . the request may cover also any other commercial agreements relevant for the execution of the gas supply contract .


### as demonstrated by the october 2014 stress test , solidarity is needed to ensure security of supply across the union and to keep overall costs to a minimum . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . firstly , all member states which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . secondly , if the first step fails to provide the necessary supply , further measures by neighbouring member states , even if not in an emergency situation , should be triggered to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency . member states should identify and describe the details of these solidarity measures in their emergency plans , ensuring fair and equitable compensation of the natural gas undertakings . ### as demonstrated by the october 2014 stress test , solidarity is needed to ensure security of supply across the union and to keep overall costs to a minimum . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . all member states which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . if the first step fails to provide the necessary supply , further measures by neighbouring member states , even if not in an emergency situation , should be taken to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency . member states should identify and describe the details of these solidarity measures in their emergency plans , ensuring fair and equitable compensation for the natural gas undertakings .


### by 1 november 2017 entso for gas shall carry out a union wide simulation of supply and infrastructure disruption scenarios . the scenarios shall be defined by entso for gas in consultation with the gas coordination group . the competent authorities shall provide entso for gas with the necessary data for the simulations such as peak demand values , production capacity and demand side measures . the competent authorities shall take into account the results of the simulations for the preparation of the risk assessments , preventive action plans and emergency plans . the union - wide simulation of supply and infrastructure disruption scenarios shall be updated every four years unless circumstances warrant more frequent updates . ### the competent authorities shall take into account the results of the union wide simulations carried out by entso for gas for the preparation of the risk assessments , preventive action plans and emergency plans .


### to allow for a swift union response to changing circumstances as regards security of gas supply , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of amendment of regions and templates for risk assessment and plans . it is particularly important that the commission carry out appropriate consultations during its preparatory work , including at expert level . when preparing and drawing up delegated acts , it should ensure that relevant documents are simultaneously sent to the european parliament and the council , in good time and in the appropriate manner . ### in order to allow for a swift union response to changing circumstances with regard to security of gas supply , the power to adopt acts in accordance with article 290 tfeu should be delegated to the commission in respect of amendment of the structure of the emergency supply corridors and the templates for risk assessments , preventive action plans and emergency plans . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level and involving the competent authorities and the national regulatory authorities where they are not the competent authorities , and that those consultations be concluded in accordance with the principles laid down in the interinstitutional agreement on better law - making of 13 april 2016 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council receive all documents at the same time as member states ' experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts .


### the commission communication ' framework strategy for a resilient energy union with a forward - looking climate change policy ' 14 from february 2015 , highlights the fact that the energy union rests on solidarity and trust , which are necessary features of energy security . this regulation should aim to boost solidarity and trust between the member states and should put in place the measures needed to achieve these aims , thus paving the way for implementing the energy union . __________________ 14 communication from the commission to the european parliament and the council , the european economic and social committee , the committee of the regions and the european investment bank , com 80 final . ### energy security constitutes one of the objectives of the energy union strategy , as set out in the commission communication of 25 february 2015 , entitled ' framework strategy for a resilient energy union with a forward - looking climate change policy ' . the communication highlighted the fact that the energy union rests on solidarity , a principle enshrined in article 194 teu , and trust , which are necessary features of energy security . this regulation is intended to boost solidarity and trust between the member states and put in place the measures needed to achieve these aims , thus paving the way for achieving a vital objective of the energy union .


### to the competent authority and to the commission immediately after their conclusion or modification the gas supply contracts with a duration of more than 1 year concluded or modified after [ op : please insert the date of entry in force of this regulation ] that individually or cumulatively with other contracts with the same supplier or its affiliates provide more than 40% of yearly natural gas consumption in the member state concerned . the notification obligation shall not apply to the modifications related only to the gas price . the notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract . ### to the competent authority and to the commission immediately after their conclusion or modification the gas supply contracts with the same supplier from a third country or from its affiliates , with a duration of more than 1 year concluded or modified after [ op : please insert the date of entry in force of this regulation ] that individually or cumulatively with contracts with the same supplier or its affiliates provide more than 40% of yearly natural gas consumption in the member state concerned . the notification obligation shall not apply to the gas price or other clauses not relevant for a comprehensive risk assessment of the security of supply . the notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract . to that end , the national regulatory authorities shall monitor the market supply structure and inform the relevant natural gas undertakings once the 40% threshold is exceeded


### in order to make the regional cooperation feasible , member states should establish a cooperation mechanism within each region . such mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans at regional level . member states are free to agree on a cooperation mechanism best suited for a given region . the commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies . in absence of an agreement on the cooperation mechanism , the commission may propose a suitable cooperation mechanism for a given region . ### in order to make the regional cooperation feasible , member states directly connected , or in certain cases indirectly via a non - eu member state , should establish a cooperation mechanism . such mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans . member states are free to agree on a cooperation mechanism . the commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role for the preparation of the different documents or establishing dedicated bodies . in absence of an agreement on the cooperation mechanism , the commission may propose a suitable cooperation mechanism for connected member states .


### competent authorities shall regularly report to the gas coordination group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans . in particular competent authorities shall report to the gas coordination group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans . the commission may have a facilitating role overall in the preparation of the plans , in particular for the establishment of the cooperation mechanism . if competent authorities within a region do not agree on a cooperation mechanism , the commission may propose a cooperation mechanism for that region . they shall ensure the regular monitoring of the implementation of such plans . ### competent authorities shall regularly report to the gas coordination group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans . in particular competent authorities shall report to the gas coordination group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans . the commission shall have a facilitating role overall in the preparation of the plans , in particular for the establishment of the cooperation mechanism . if competent authorities within a region do not agree on a cooperation mechanism , the commission shall develop a cooperation mechanism for that region . they shall ensure the regular monitoring of the implementation of such plans .