Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on a Single Market For Digital Services (Digital Services Act) and amending Directive 2000/31/EC
Date: 2020-12-15
Institutions: Directorate-General for Communications Networks, Content and Technology, European Commission
Subjects: Internet, cloud computing, consumer protection, digital single market, digital technology, dissemination of information, information society, provision of services, service

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   EUROPEAN COMMISSION  Brussels, 15.12.2020  COM(2020) 825 final 2020/0361 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on a Single Market For Digital Services (Digital Services Act) and amending Directive 2000/31/EC (Text with EEA relevance) {SEC(2020) 432 final} - {SWD(2020) 348 final} - {SWD(2020) 349 final}  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

• 
Since  the  adoption  of  Directive  2000/31/EC1  (the  “e-Commerce  Directive”),  new  and 
innovative  information  society  (digital)  services  have  emerged,  changing  the  daily  lives  of 
Union citizens and shaping and transforming how they communicate, connect, consume and 
do business. Those services have contributed deeply to societal and economic transformations 
in  the  Union  and  across  the  world.  At  the  same  time,  the  use  of  those  services  has  also 
become the source of new risks and challenges,  both  for society  as a whole and individuals 
using  such  services.  Digital  services  can  support  achieving  Sustainable  Development  Goals 
by contributing to  economic, social  and environmental  sustainability. The coronavirus crisis 
has shown the importance of digital technologies in all aspects of modern life. It has clearly 
shown the dependency of our economy and society on digital  services and highlighted both 
the benefits and the risks stemming from the current framework for the functioning of digital 
services. 

In  the  Communication  ‘Shaping  Europe’s  Digital  Future’2,  the  Commission  committed  to 
update  the  horizontal  rules  that  define  the  responsibilities  and  obligations  of  providers  of 
digital services, and online platforms in particular.  

In  doing  so,  the  Commission  has  taken  account  of  the  issues  identified  in  the  European 
Parliament’s  own  initiative  reports  and  analysed  the  proposals  therein.  The  European 
Parliament  adopted  two  resolutions  on  the  basis  of  Article  225  of  the  Treaty  on  the 
Functioning  of  the  European  Union  (TFEU)  on  the  ‘Digital  Services  Act  –  Improving  the 
functioning of the Single Market’3 and on the ‘Digital Services Act: adapting commercial and 
civil  law  rules  for  commercial  entities  operating  online’4.  The  European  Parliament  also 
adopted  a  resolution  under  the  non-legislative  procedure  on  the  ‘Digital  Services  Act  and 
fundamental  rights  issues posed’5.  In substance, the resolutions  are complementary in  many 
aspects.  They  include  a  strong  call  for  maintaining  the  core  principles  of  the  e-Commerce 
Directive and for protecting fundamental rights in the online environment, as well as online 
anonymity wherever technically possible. They call for transparency, information obligations 
and  accountability  for  digital  services  providers  and  advocate  for  effective  obligations  to 
tackle illegal content online. They also advocate for public oversight at EU and national level, 
and  cooperation  between  competent  authorities  across  jurisdictions  in  enforcing  the  law, 
especially when addressing cross-border matters.  

The  resolution  on  ‘Digital  Services  Act  –  Improving  the  functioning  of  the  Single  Market’ 
calls  for  an  ambitious  reform  of  the  existing  EU  e-commerce  legal  framework  while 
maintaining  the  core  principles  of  its  liability  regime,  the  prohibition  of  general  monitoring 

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

2  https://ec.europa.eu/info/sites/info/files/communication-shaping-europes-digital-future-feb2020_en_4.pdf  
3  European Parliament, Resolution on improving the functioning of the Single Market (2020/2018(INL)). 
4  European Parliament, Resolution on adapting commercial and civil law rules for commercial entities operating 

online (2020/2019(INL)). 

5  European  Parliament,  Resolution  on  the  Digital  Services  Act  and  fundamental  rights  issues  posed 

(2020/2022(INI)) 

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and  the  internal  market  clause,  which  it  considers  to  be  still  valid  today.  Confirming  the 
objectives  of  the  e-Commerce  Directive,  the  resolution  calls  for  measures  which  have 
consumer protection at their core, by including a detailed section on online marketplaces, and 
which  ensure  consumer  trust  in  the  digital  economy,  while  respecting  users’  fundamental 
rights. The resolution also advocates for rules to underpin a competitive digital environment 
in Europe, and envisages the Digital Services Act as a standard-setter at global level.   

The  resolution  on  ‘Digital  Services  Act:  adapting  commercial  and  civil  law  rules  for 
commercial entities operating online’ calls for more fairness, transparency and accountability 
for  digital  services’  content  moderation  processes,  ensuring  that  fundamental  rights  are 
respected,  and  guaranteeing  independent  recourse  to  judicial  redress.  The  resolution  also 
includes the request for a detailed ‘notice-and-action’ mechanism addressing illegal content, 
comprehensive rules about online advertising, including targeted advertising, and enabling the 
development and use of smart contracts. 

The  non-legislative  resolution  on  the  ‘Digital  Services  Act  and  fundamental  rights  issues 
posed’  highlights  the  need  for  legal  clarity  for  platforms  and  users,  and  respect  for 
fundamental rights  given the rapid development of technology.  It calls for harmonised rules 
for addressing illegal content online and for liability exemptions and content moderation. The 
resolution  also  includes  clear  reporting  and  transparency  responsibilities  for  platforms  and 
authorities.The Council’s Conclusions6 also welcomed the Commission’s announcement of a 
Digital Services Act, emphasising ‘the need for clear and harmonised evidence-based rules on 
responsibilities  and  accountability  for  digital  services  that  would  guarantee  internet 
intermediaries  an  appropriate  level  of  legal  certainty’,  and  stressing  ‘the  need  to  enhance 
European capabilities and the cooperation of national authorities, preserving and reinforcing 
the fundamental principles of the Single Market and the need to enhance citizens’ safety and 
to protect their rights in the digital sphere across the Single Market’. This call for action was 
reiterated in the Council’s Conclusions of 2 October 20207. 

Building  on  the  key  principles  set  out  in  the  e-Commerce  Directive,  which  remain  valid 
today, this proposal seeks to ensure the best conditions for the provision of innovative digital 
services  in  the  internal  market,  to  contribute  to  online  safety  and  the  protection  of 
fundamental  rights,  and  to  set  a  robust  and  durable  governance  structure  for  the  effective 
supervision of providers of intermediary services.  

The  proposal  defines  clear  responsibilities  and  accountability  for  providers  of  intermediary 
services, and in particular online platforms, such as social media and marketplaces. By setting 
out  clear  due-diligence  obligations  for  certain  intermediary  services,  including  notice-and-
action  procedures  for  illegal  content  and  the  possibility  to  challenge  the  platforms’  content 
moderation  decisions,  the  proposal  seeks  to  improve  users’  safety  online  across  the  entire 
Union and improve the protection of their fundamental rights. Furthermore, an obligation for 
certain  online  platforms  to  receive,  store  and  partially  verify  and  publish  information  on 
traders  using  their  services  will  ensure  a  safer  and  more  transparent  online  environment  for 
consumers. Recognising the particular impact of very large online platforms on our economy 
and society, the proposal sets a higher standard of transparency and accountability on how the 
providers of such platforms moderate content, on advertising and on algorithmic processes. It 
sets obligations to assess the risks their systems pose to develop appropriate risk management 

6  Council  Conclusions 

on  Shaping  Europe’s  Digital  Future, 

8711/20 

of 

9 

June 

2020, 

https://www.consilium.europa.eu/media/44389/st08711-en20.pdf   

7  https://www.consilium.europa.eu/media/45910/021020-euco-final-conclusions.pdf  

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tools to protect the integrity of their services against the use of manipulative techniques. The 
operational threshold for service providers in scope of these obligations includes those online 
platforms with a significant reach in the Union, currently estimated to be amounting to more 
than 45 million recipients of the service. This threshold is proportionate to the risks brought 
by the reach of the platforms in the Union; where the Union’s population changes by a certain 
percentage, the Commission will adjust the number of recipients considered for the threshold, 
so that it consistently corresponds to 10 % of the Union’s population. Additionally, the Digital 
Services  Act  will  set  out  a  co-regulatory  backstop,  including  building  on  existing  voluntary 
initiatives. 

The proposal maintains the liability rules for providers of intermediary services set out in the 
e-Commerce  Directive  –  by  now  established  as  a  foundation  of  the  digital  economy  and 
instrumental to the protection of fundamental rights online. Those rules have been interpreted 
by  the  Court  of  Justice  of  the  European  Union,  thus  providing  valuable  clarifications  and 
guidance. Nevertheless, to ensure an effective harmonisation across the Union and avoid legal 
fragmentation, it is necessary to include those rules in a Regulation. It is also appropriate to 
clarify some aspects of those rules to eliminate existing disincentives towards voluntary own-
investigations  undertaken  by providers of intermediary services to  ensure their users’ safety 
and  to  clarify  their  role  from  the  perspective  of  consumers  in  certain  circumstances.  Those 
clarifications should help smaller, innovative providers scale up and grow by benefitting from 
greater legal certainty.  

A deeper, borderless single market for digital services requires enhanced cooperation among 
Member States to  guarantee effective oversight  and enforcement of the  new rules set  out  in 
the  proposed  Regulation.  The  proposal  sets  clear  responsibilities  for  the  Member  State 
supervising the compliance of service providers established in its territory with the obligations 
set by the proposed Regulation. This ensures the swiftest and most effective enforcement of 
rules and protects all EU citizens. It aims at providing the simple and clear processes for both 
citizens and service providers to find relief in their interactions with supervising authorities. 
Where  systemic  risks  emerge  across  the  Union,  the  proposed  Regulation  provides  for 
supervision and enforcement at Union level.  

• 

Consistency with existing policy provisions in the policy area  

The current EU legal framework regulating digital services is underpinned, first and foremost, 
by  the  e-Commerce  Directive.  This  proposed  Regulation  is  without  prejudice  to  the  e-
Commerce Directive, and builds on the provisions laid down therein, notably on the internal 
market principle set out in Article 3. The proposed Regulation provides for a cooperation and 
coordination mechanism for the supervision of the obligations it imposes. With regard to the 
horizontal  framework  of  the  liability  exemption  for  providers  of  intermediary  services,  this 
Regulation  deletes  Articles  12-15  in  the  e-Commerce  Directive  and  reproduces  them  in  the 
Regulation, maintaining the liability exemptions of such providers, as interpreted by the Court 
of Justice of the European Union. 

Depending on the legal  system of each Member State and the field of law at issue, national 
judicial  or  administrative  authorities  may  order  providers  of  intermediary  services  to  act 
against certain specific items of illegal content. Such orders, in particular where they require 
the  provider  to  prevent  that  illegal  content  reappears,  must  be  issued  in  compliance  with 
Union law, in particular with the prohibition of general monitoring obligations, as interpreted 

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by  the  Court  of  Justice  of  the  European  Union8.  This  proposal,  in  particular  its  Article  8, 
leaves this case-law unaffected. This proposal should constitute the appropriate basis for the 
development  of  robust  technologies  to  prevent  the  reappearance  of  illegal  information, 
accompanied  with  the  highest  safeguards  to  avoid  that  lawful  content  is  taken  down 
erroneously; such tools could be developed on the basis of voluntary agreements between all 
parties  concerned  and  should  be  encouraged  by  Member  States;  it  is  in  the  interest  of  all 
parties  involved  in  the  provision  of  intermediary  services  to  adopt  and  implement  such 
procedures;  the  provisions  of  this  Regulation  relating  to  liability  should  not  preclude  the 
development and effective operation, by the different interested parties, of technical systems 
of  protection  and  identification  and  of  automated  recognition  made  possible  by  digital 
technology within the limits laid down by Regulation 2016/679. 

• 

Consistency with other Union policies 

The  proposed  Regulation  introduces  a  horizontal  framework  for  all  categories  of  content, 
products, services and activities on intermediary services. The illegal nature of such content, 
products  or  services  is  not  defined  in  this  Regulation  but  results  from  Union  law  or  from 
national law in accordance with Union law.  

Sector-specific  instruments  do  not  cover  all  the  regulatory  gaps  evidenced  in  the  impact 
assessment  report:  they  do  not  provide  fully-fledged  rules  on  the  procedural  obligations 
related to illegal content and they only include basic rules on transparency and accountability 
of service providers and limited oversight mechanisms. In addition, sector-specific laws cover 
situations where adapted approaches are necessary. In terms of scope, they are limited from 
two perspectives. First, the sector-specific interventions address a small subset of issues (e.g. 
copyright infringements, terrorist content, child sexual abuse material or illegal hate speech, 
some illegal products). Second, they only cover the dissemination of such content on certain 
types  of  services  (e.g.  sub-set  of  online  platforms  for  copyright  infringements,  only  video-
sharing platforms and only as regards audiovisual terrorist content or hate speech). However, 
it  is  important  that  the  relationship  between  the  new  proposed  Regulation  and  the  sector-
specific instruments is clarified. 

The proposed Regulation complements existing sector-specific legislation and does not affect 
the application of existing EU laws regulating certain aspects of the provision of information 
society services, which apply as lex specialis. By way of example, the obligations set out in 
Directive 2010/13/EC, as amended by Directive (EU) 2018/1808, on video-sharing platform 
providers  (“AVSMD”)  as  regards  audiovisual  content  and  audiovisual  commercial 
communications will continue to apply. However, this Regulation applies to those providers 
to the extent that the AVSMD or other Union legal acts, such as the proposal for a Regulation 
on  addressing  the  dissemination  on  terrorist  content  online,  do  not  contain  more  specific 
provisions applicable to them.  

The  framework  established  in  the  Regulation  (EU)  2019/1150  on  promoting  fairness  and 
transparency for business users of online intermediation services to ensure that business users 
of such services and corporate website users in relation to online search engines are granted 
appropriate  transparency,  fairness  and  effective  redress  possibilities,  will  apply  as  lex 
specialis.  

8 

For instance, Judgment of 3 October 2019, Glawischnig-Piesczek (C-18/18). 

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Furthermore, the rules set out in the present proposal will be complementary to the consumer 
protection acquis and specifically with regard to Directive (EU) 2019/2161 amending Council 
Directive  93/13/EEC  and  Directives  98/6/EC,  2005/29/EC  and  2011/83/EU  which  establish 
specific  rules  to  increase  transparency  as  to  certain  features  offered  by  certain  information 
society services. 

This  proposal  is  without  prejudice  to  the  Regulation  (EU)  2016/679  (the  General  Data 
Protection  Regulation)  and  other  Union  rules  on  protection  of  personal  data  and  privacy  of 
communications.  For  example,  the  measures  concerning  advertising  on  online  platforms 
complement but do not amend existing rules on consent and the right to object to processing 
of personal data. They impose transparency obligations towards users of online platforms, and 
this information will also enable them to make use of their rights as data subjects. They also 
enable scrutiny by authorities and vetted researchers on how advertisements are displayed and 
how they are targeted. 

This  proposal  will  be  complemented  by  further  actions  under  the  European  Democracy 
Action  Plan  COM(2020)  790  final,  with  the  objective  of  empowering  citizens  and  building 
more  resilient  democracies  across  the  Union.  In  particular,  the  rules  on  codes  of  conduct 
established in this Regulation could serve as a basis and be complemented by a revised and 
strengthened  Code  of  practice  on  disinformation,  building  on  the  guidance  of  the 
Commission.   

The  proposal  is  also  fully  consistent  and  further  supports  equality  strategies  adopted  by  the 
Commission in the context of the Union of Equality. The proposal is without prejudice to the 
Commission’s initiative aimed at improving the labour conditions of people working through 
digital platforms. 
Finally, the proposed regulation builds on the Recommendation on illegal content of 2018.9 It 
takes  account  of  experiences  gained  with  self-regulatory  efforts  supported  by  the 
Commission, such as the Product Safety Pledge10, the Memorandum of Understanding against 
counterfeit  goods11,  the  Code  of  Conduct  against  illegal  hate  speech12,  and  the  EU  Internet 
Forum with regard to terrorist content. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY  

Legal basis  

The  legal  basis  for  the  proposal  is  Article  114  of  the  Treaty  on  the  Functioning  of  the 
European Union, which provides for the establishment of measures to ensure the functioning 
of the Internal Market.  

The  primary  objective  of  this  proposal  is  to  ensure  the  proper  functioning  of  the  internal 
market,  in  particular  in  relation  to  the  provision  of  cross-border  digital  services  (more 
specifically,  intermediary  services).  In  line  with  this  objective,  the  proposal  aims  to  ensure 
harmonised  conditions  for  innovative  cross-border  services  to  develop  in  the  Union,  by 

9  Commission  Recommendation  of  1.3.2018  on  measures  to  effectively  tackle  illegal  content  online  (C(2018) 

1177 final) 

10 https://ec.europa.eu/info/business-economy-euro/product-safety-and-requirements/product-safety/product-

safety-pledge_en  

11 https://ec.europa.eu/growth/industry/policy/intellectual-property/enforcement/memorandum-understanding-

sale-counterfeit-goods-internet_en  

12 https://ec.europa.eu/info/policies/justice-and-fundamental-rights/combatting-discrimination/racism-and-

xenophobia/eu-code-conduct-countering-illegal-hate-speech-online_en  

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addressing  and  preventing  the  emergence  of  obstacles  to  such  economic  activity  resulting 
from differences in the way national laws develop, taking into account that several Member 
States  have  legislated  or  intend  to  legislate  on  issues  such  as  the  removal  of  illegal  content 
online,  diligence,  notice  and  action  procedures  and  transparency.  At  the  same  time,  the 
proposal provides for the appropriate supervision of digital services and cooperation between 
authorities  at  Union  level,  therefore  supporting  trust,  innovation  and  growth  in  the  internal 
market. 

• 

Subsidiarity  

Taking  into  account  that  the  Internet  is  by  its  nature  cross-border,  the  legislative  efforts  at 
national level referred to above hamper the provision and reception of services throughout the 
Union and are ineffective in ensuring the safety and uniform protection of the rights of Union 
citizens and businesses online. Harmonising the conditions for innovative cross-border digital 
services  to  develop  in  the Union, while maintaining a safe online environment, can only be 
served at Union level. 

Union level  action provides predictability  and legal certainty, and reduces compliance costs 
across  the  Union.  At  the  same  time,  it  fosters  the  equal  protection  of  all  Union  citizens,  by 
ensuring  that  action  against  illegal  content  online  by  providers  of  intermediary  services  is 
consistent, regardless of their place of establishment. A well coordinated supervisory system, 
reinforced  at  Union  level,  also  ensures  a  coherent  approach  applicable  to  providers  of 
intermediary services operating in all Member States. 

To effectively protect users online, and to avoid that Union-based digital service providers are 
subject  to  a  competitive  disadvantage,  it  is  necessary  to  also  cover  to  relevant  service 
providers established outside of the Union whose operate on the internal market. 

• 

Proportionality 

The proposal seeks to foster responsible and diligent behaviour by providers of intermediary 
services to ensure a safe online environment, which allows Union citizens and other parties to 
freely  exercise  their  fundamental  rights,  in  particular  the  freedom  of  expression  and 
information. Key features of the proposal limit the Regulation to what is strictly necessary to 
achieve those objectives. 

In  particular,  the  proposal  sets  asymmetric  due  diligence  obligations  on  different  types  of 
digital  service  providers  depending  on  the  nature  of  their  services  and  their  size,  to  ensure 
their  services  are  not  misused  for  illegal  activities  and  providers  operate  responsibly.  This 
approach  addresses  certain  identified  problems  only  there  where  they  materialise,  while  not 
overburdening providers unconcerned by those problems. Certain substantive obligations are 
limited only to very large online platforms, which due to their reach have acquired a central, 
systemic role in facilitating the public debate and economic transactions. Very small providers 
are exempt from the obligations altogether. 

As regards digital service providers established outside of the Union offering services in the 
Union,  the  Regulation  requires  the  appointment  of  a  legal  representative  in  the  Union  to 
ensure effective oversight and, where necessary, enforcement.  

Proportionate  to  the  obligations,  and  taking  into  account  the  cross-border  nature  of  digital 
services,  the  proposal  will  introduce  a  cooperation  mechanism  across  Member  States  with 
enhanced  Union  level  oversight  of  very  large  online  platforms.  Additionally,  the  proposal 
does not amend sector-specific legislation or the enforcement and governance mechanisms set 
thereunder,  but  provides  for  a  horizontal  framework  to  rely  on,  for  aspects  beyond  specific 
content or subcategories of services regulated in sector-specific acts. 

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By  establishing  a  clear framework, accompanied by  cooperation between and  with  Member 
States, as well as by self-regulation, this proposal aims to enhance legal certainty and increase 
trust levels, while staying relevant and effective in the long term because of the flexibility of 
the cooperation framework.  

• 

Choice of the instrument  

Article 114 of the Treaty on the Functioning of the European Union gives the legislator the 
possibility to adopt regulations and directives.  

The Commission has decided to put forward a proposal for a Regulation to ensure a consistent 
level  of  protection  throughout  the  Union  and  to  prevent  divergences  hampering  the  free 
provision of the relevant services within the internal market, as well as guarantee the uniform 
protection  of  rights  and  uniform  obligations  for  business  and  consumers  across  the  internal 
market. This is necessary to provide legal certainty and transparency for economic operators 
and  consumers  alike.  The  proposed  Regulation  also  ensures  consistent  monitoring  of  the 
rights  and  obligations,  and  equivalent  sanctions  in  all  Member  States,  as  well  as  effective 
cooperation  between  the  supervisory  authorities  of  different  Member  States  and  at  Union 
level. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

This proposal builds on the evaluation of the e-Commerce Directive, conducted as a ‘back to 
back’  evaluation  with  the  Impact  Assessment  accompanying  the  proposal.  The  specific 
objectives of the e-Commerce Directive were to ensure (i) a well-functioning internal market 
for  digital  services,  (ii)  the  effective  removal  of  illegal  content  online  in  full  respect  of 
fundamental rights, and (iii) an adequate level of information and transparency for consumers.

As  regards  the  effectiveness  of  the  e-Commerce  Directive,  the  evaluation  shows  that  while 
the e-Commerce Directive has provided an important incentive for the growth of the internal 
market  for  digital  services,  and  enabled  entry  and  scaling  up  of  new  providers  of  such 
services, the initial objectives have not been fully achieved.  

In particular, the dynamic growth of the digital economy and the appearance of new types of 
service  providers  raises  certain  new  challenges,  dealt  with  differently  by  Member  States, 
where the initial set of objectives need to be clarified. In addition, these developments put an 
additional strain on achieving already existing objectives as the increased legal fragmentation 
shows.  

The  evaluation  also  showed  that  while  several  new  regulatory  instruments  make  valuable 
contributions  to  the  attainment  of  some  of  the  policy  objectives  set  out  in  the  e-Commerce 
Directive,  they  provide  only  sector-specific  solutions  for  some  of  the  underlying  problems 
(e.g. in addressing the proliferation of specific types of illegal activity). They therefore do not 
address such issues consistently for the entire digital ecosystem, as they are limited to certain 
types  of  services  or  certain  types  of  illegal  content.  Furthermore,  while  self-regulatory 
initiatives have generally shown positive results, they cannot be legally enforced, nor do they 
cover  all  participants  in  the  digital  economy.  As  regards  the  efficiency  of  the  e-Commerce 
Directive,  the  Directive  imposed  only  limited  additional  costs  for  Member  States' 
administrations and providers of information society services. The evaluation has not revealed 
particularly  high  or  disproportionate  costs  and  no  substantial  concerns  have  been  raised 

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regarding impacts on small and medium-sized enterprises. The main concern in this regard is 
related  to  the  lack  of  clarity  in  the  cooperation  mechanism  across  Member  States,  creating 
burdens and duplication of costs, despite the opposite objective of the Directive, in particular 
where  the  supervision  of  online  platforms  is  concerned.  This  has  essentially  reduced  its 
efficiency in maintaining the functioning of the internal market. 

In  relation  to  questions  about  the  continued  relevance  of  the  objectives  pursued  by  the  e-
Commerce Directive, the evaluation  shows that  the objectives of the e-Commerce Directive 
continue to remain valid, while at the same time there are several new developments that are 
not well reflected in the existing public policy objectives. 

First, the open public consultation, targeted submissions by stakeholders, reports issued by the 
European  Parliament13  as  well  as  Council  conclusions14  confirm  that  the  existing  principles 
and objectives  of the e-Commerce Directive remain  valid today. However, new information 
asymmetries and risks have arisen since the entry into force of the Directive, notably related 
to the emergence of online platforms, in particular very large ones, and the scale of the digital 
transformation. This is for example the case in the areas of algorithmic decision making (with 
an  impact  on  how  information  flows  are  intermediated  online),  or  in  online  advertising 
systems.  

The  evaluation  showed  that  the  e-Commerce  Directive  is  coherent  with  other  EU 
interventions  that  took  place  since  its  adoption.  The  evaluation  also  did  not  identify  any 
internal in-coherence of the e-Commerce Directive. 

Finally, at least parts of the actual benefits of the e-Commerce Directive that the evaluation 
identified could be considered as EU added value. It is likely that Member States would have 
continued applying their own regulatory systems without any common set  of principles and 
that some Member States would have continued to have no horizontal rules in place at all. In 
the  absence  of  robust  evidence,  it  is  however  not  possible  to  draw  firm  conclusions  on  the 
extent of this EU added value.  

• 

Stakeholder consultations  

Over  the  past  five  years,  the  Commission  has  consulted  a  wide  range  of  different 
stakeholders,  including  providers  of  digital  services  such  as  online  platforms  and  other 
intermediary  services,  businesses  trading  online,  media  publishers,  brand  owners  and  other 
businesses,  social  partners,  users  of  digital  services,  civil  society  organisations,  national 
authorities,  academia,  the  technical  community,  international  organisations  and  the  general 
public. An array of targeted consultation steps have captured thoroughly stakeholder views on 
issues related to digital services and platforms over the last years. 
The open public consultation on the Digital Services Act was open for 14 weeks, between 2nd 
of  June  and  8th  of  September  and  received  2,863  responses  and  around  300  position  papers 
from  a  diverse  group  of  stakeholders.  Most  feedback  was  submitted  by  the  general  public 
(66%  from  Union  citizens,  8%  from  non-EU  citizens),  companies/  businesses  organizations 
(7.4%),  business  associations  (6%),  and  NGOs  (5.6%).  This  was  followed  by  public 
authorities (2.2%), academic/research institutions (1.2%), trade unions (0.9%), and consumer 
and environmental organisations (0.4%). 

13 European Parliament, ibidem 
14 Shaping  Europe’s  digital  future,  available  at:  https://data.consilium.europa.eu/doc/document/ST-8711-2020-

INIT/en/pdf.  

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Overall,  there  is  a  general  agreement  amongst  stakeholders  for  a  need  for  action,  both  in 
addressing online safety and in furthering the internal market for digital services.  

Stakeholders converge on the continued relevance of the main principles of the e-Commerce 
Directive and agree that they should be maintained, including the internal market principle for 
the  supervision  of  digital  services,  the  liability  regime,  and  the  prohibition  of  general 
monitoring obligations.  

Stakeholders  also  broadly  agree  on  the  need  to  upgrade  the  framework  in  light  of  today’s 
challenges by establishing clear obligations for service providers, harmonised across the EU. 
A majority of respondents, all categories included, indicated that they have encountered both 
harmful and illegal content, goods or services online, and specifically noted an alarming spike 
during  the  Covid-19  pandemic.  A  large  share  of  respondents  who  say  they  have  notified 
illegal  content  or  goods  to  digital  service  providers  expressed  their  dissatisfaction  with  the 
response  and  the  ineffectiveness  of  reporting  mechanisms  after  the  exposure  took  place. 
Moreover,  users  perceive  there  to  be  a  mismatch  between  providers’  policies  as  stated  and 
their concrete actions. 

There is broad consensus, including among service providers responding to the consultation, 
on  the  need  for  simple,  standardised,  transparent  notice  and  action  obligations,  harmonised 
across the internal market. This is considered as essential to enable rapid responses to illegal 
content  and  enhance  legal  clarity  for  users  of  platforms  and  for  small  platforms  seeking  to 
scale  in  the  internal  market.  Respondents  also  agree  on  the  importance  of  a  redress 
mechanisms.  

Concerning  online  marketplaces,  several  stakeholders  flagged  the  need  for  more  targeted 
measures such as the identification of sellers.  

Respondents also generally agree that the territorial scope for these obligations should include 
all players offering  goods, information  or services in  the Union, regardless of their place of 
establishment. A large share of respondents also emphasized the importance of these issues in 
particular where large platforms are concerned. 

There  is  a  general  agreement  among  stakeholders  that  ‘harmful’  (yet  not,  or  at  least  not 
necessarily, illegal) content should not be defined in the Digital Services Act and should not 
be  subject  to  removal  obligations,  as  this  is  a  delicate  area  with  severe  implications  for  the 
protection of freedom of expression.  

However, the way algorithmic systems shape information flows online is an area of concern 
among  a  wide  category  of  stakeholders.  Several  stakeholders,  in  particular  civil  society  and 
academics,  pointed  out  the  need  for  algorithmic  accountability  and  transparency  audits, 
especially  with  regard  to  how  information  is  prioritized  and  targeted.  Similarly,  regarding 
online  advertising,  stakeholder  views  echoed  the  broad  concerns  around  the  lack  of  user 
empowerment and lack of meaningful oversight and enforcement.  
When  it  comes  to  enforcement,  there  is  a  general  understanding  among  stakeholders  that 
cooperation  between  authorities  should  be  improved  both  cross-border  and  within  each 
Member State. EU oversight  is  considered crucial  and the majority of respondents  seems  to 
favour a unified oversight entity.  

• 

Collection and use of expertise  

The preparatory steps for the proposal rest on an array of studies and expert advice, including 
a number of legal studies commissioned focusing on the implementation of the E-Commerce 

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Directive  and  the  state  of  legal  fragmentation15,  studies  on  algorithmic  transparency  and 
accountability16, as well as  internal  studies on costs  of content moderation, liability regimes 
for intermediaries, and cost of non-Europe, with the support of the Joint Research Centre of 
the European Commission. For gathering the views and perceptions of the general public, the 
Commission ran a Eurobarometer survey in 2018 with a representative sample of over 33,000 
respondents from all Member States17. 

The  legal  analysis  also  rests  on  a  rich  collection  of  case  law,  in  particular  by  the  Court  of 
Justice of the European Union, of several provisions of the e-Commerce Directive and related 
acts,  such  as  provisions  concerning  the  interpretation  of  the  notion  of  “information  society 
services”18  or  provisions  concerning  the  liability  of  intermediary  services  providers19  The 
Commission  also  gathered  expertise  and  views 
targeted  consultations  and 
engagement activities, including a series of workshops, conferences, interviews with experts 
and judges, consultations of the Expert Group on e-commerce, as well as numerous bilateral 
meetings  and  analysis  of  ad  hoc  position  and  research  papers  from  organizations,  industry 
representatives, civil society and academia.  

through 

Finally,  the  analysis  rests  on  additional  literature  review,  studies  and  research  papers 
submitted  by  academics  in  the  open  public  consultation  and  other  independent  studies, 
including the collection of studies carried out for the European Parliament20.  

• 

Impact assessment 

The  Regulatory  Scrutiny  Board  issued  a  positive  opinion  with  reservations  on  the  impact 
assessment,  including  suggestions  for  improvement21.  The  Impact  Assessment  report  was 
further  revised  along  these  lines,  notably  in  clarifying  the  interlinks  between  the  Digital 
Services Act and the broader regulatory framework, providing more detailed descriptions of 
the policy options, and a more detailed analysis of the underlying evidence addressed in the 
revised impact assessment report.  

The  importance  in  our  economy  and  society,  but  also  the  growing  risks  brought  by  digital 
services  will  continue  to  scale.  In  the  baseline  scenario,  the  Commission  will  continue  to 
enforce existing rules, including on sector-specific issues, and will support the self-regulatory 

15 Van  Hoboken  J.  et  al  (2018),  Hosting  Intermediary  Services  and  Illegal  Content  Online,  and  Schwemer,  S., 
Mahler, T. & Styri, H. (2020). Legal analysis of the intermediary service providers of non-hosting nature, ICF, 
Grimaldi, The Liability Regime and Notice-and-Action Procedures, SMART 2016/0039 

16 Optimity  Advisors, SMART 2017/ 0055  Algorithmic  Awareness building  – State of the art report and  LNE, 

Governance and Accountability Mechanisms for Algorithmic Systems (forthcoming). SMART 2018/37  

17 Eurobarometer TNS. (2018, July). Flash Eurobarometer 469: Illegal content online 
18 For  example,  Case  C-108/09,  Ker-Optika,  ECLI:EU:C:2010:725,  Case  C-291/13,  Papasavvas, 
ECLI:EU:C:2014:2209,  Case  C-484/14,  Tobias  McFadden  v.  Sony  Music,  ECLI:EU:C:2016:689;  Case  C-
434/15  Asociación  Profesional  Élite  Taxi,  ECLI:EU:C:2017:981  or  Case  C-390/18  Airbnb  Ireland  UC, 
ECLI:EU:C:2019:1112. 

20 Digital  Services  Act: 

19 Cases  C-236/08  to  C-238/08,  Google  France  and  Google  v.  Vuitton,  ECLI:EU:C:2010:159;  Case  C-324/09, 
eBay,  ECLI:EU:C:2011:474;  Case  C-70/10,  Scarlet,  ECLI:EU:C:2011:771;  Case  C-360/10,  Netlog, 
ECLI:EU:C:2012:85;  Case  C-314/12,  UPC  Telekabel  Wien,  EU:C:2014:192;  Case  C-484/14,  Tobias 
McFadden v. Sony Music, ECLI:EU:C:2016:689 or Case C‑ 18/18, Glawischnig. ECLI:EU:C:2019:821. 
available 

at: 
functioning 
https://www.europarl.europa.eu/doceo/document/TA-9-2020-0272_EN.html.  Digital  Services  Act:  adapting 
at: 
commercial 
available 
commercial 
https://www.europarl.europa.eu/doceo/document/TA-9-2020-0273_EN.html.  Digital  Services  Act 
and 
fundamental  rights  issues  posed,  available  at:  https://www.europarl.europa.eu/doceo/document/TA-9-2020-
0274_EN.html. 

entities  operating  online, 

the  Single  Market, 

Improving 

rules 

civil 

and 

law 

the 

for 

of 

21 Links to the summary sheet and the positive opinion of the RSB will be included after their publication. 

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efforts in place. However, faced with the evolving problems, Member States will continue to 
legislate  independently.  The  legal  fragmentation  with  the  resulting  patchwork  of  national 
measures  will  not  just  fail  to  effectively  tackle  illegal  activities  and  protect  citizens’ 
fundamental  rights  throughout  the  EU,  it  will  also  hinder  new,  innovative  services  from 
scaling up in the internal market, cementing the position of the few players which can afford 
the additional compliance costs. This leaves the rule setting and enforcement mostly to very 
large private companies, with ever-growing information asymmetry between online services, 
their users and public authorities.  

Three main policy options were assessed, in addition to the baseline. Option 1 would codify 
the Recommendation of 2018: it would lay down a range of procedural obligations for online 
platforms  to  tackle  illegal  activities  conducted  by  their  users.  The  obligations  would  also 
include  the  necessary  safeguards  in  order  to  protect  users’  fundamental  rights  and  ensure 
transparency.  It  would  also  enhance  the  administrative  cooperation  mechanisms  for 
authorities  to  resolve  cross-border  issues  through  a  digital  clearing  house,  facilitating 
information flows. Option 2 would in addition to measures in option 1, remove disincentives 
for  service  providers  to  take  voluntary  measures  against  illegal  content,  and  introduce 
measures  to  enhance  transparency  around  recommender  systems  and  advertising.  The 
enforcement  and  cooperation  mechanism  would  be  enhanced  with  the  appointment  of  a 
central coordinator in each Member State. Option 3, building on the measures outlined in the 
previous options, includes targeted, asymmetric  measures  with  stronger  obligations for very 
large online platforms which are prone to  the highest  levels  of risks  for  the EU society and 
economy,  as  well  as  certain  limited  clarifications  of  the  liability  regime  for  providers  of 
intermediary  services  and  an  EU  governance  system  with  reinforced  oversight  and 
enforcement powers. 

The  assessment  of  the  economic  and  social  impacts  identified,  and  the  comparison  of  its 
effectiveness,  efficiency,  coherence  and  proportionality  showed  that  Option  3  would  most 
effectively  meet  the  objectives  of  the  intervention  by  establishing  the  proportionate 
framework  fit  for  adapting  to  emerging  challenges  in  the  dynamic  digital  world.  The 
components  included  in  Option  3  are  also  broadly  supported  by  stakeholders,  including 
positions from the European Parliament and Member States.  

The  preferred  option  would  support  the  access  to  the  internal  market  for  European  Union 
intermediary  service  providers  and  their  ability  to  scale-up  by  reducing  costs  related  to  the 
legal fragmentation. While costs for compliance with due diligence obligations are expected, 
it is estimated this is offset by reducing the current fragmentation through harmonisation. It is 
expected to have a positive impact on competitiveness, innovation and investment in digital 
services,  in  particular  European  Union  start-ups  and  scale-ups  offering  platform  business 
models  but  also,  to  varying  extents,  on  sectors  underpinned  and  amplified  by  digital 
commerce.  

The  preferred  option  intends  to  define  the  appropriate  division  of  responsibilities  between 
intermediary  services,  their  recipients  and  authorities  when  fighting  against  illegal  content 
online.  To  do  so,  it  introduces  an  asymmetric  approach  to  the  due  diligence  obligations 
imposed on very large online platforms: this is a supervised risk management approach, with 
an important role of the governance system for enforcement. The asymmetric obligations are 
only imposed on very large online platforms, which have, based on the current data, not only 
the broadest reach, but are also the large companies with important turnover. Consequently, 
while  the  targeted  measures  are  more  restrictive  than  for  other  companies,  they  are 
proportionate to the ability of the companies to comply.  

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For public authorities, the proposed option would cut the costs brought by the inefficiencies 
and  duplications  in  the  existing  set-up  for  the  cooperation  of  authorities.  While  Member 
States would bear the costs of appointing a competent authority, new or already established, 
the  efficiency  gains  are  expected  to  outweigh  them:  for  the  individual  authorities  through 
mutualisation  of  resources,  better  information  flows,  and  straight-forward  processes  for 
interacting  with  their  counterparts  across  the  internal  market,  as  well  as  with  service 
providers. 

• 

Regulatory fitness and simplification 

The Impact Assessment accompanying this proposal identifies the sole added value of Union 
intervention addressing the risk of legal fragmentation triggered by divergent regulatory and 
supervisory approaches (hence without accounting for the increased safety and trust on digital 
services) in a possible increase of cross-border digital trade of 1 to 1.8%, i.e. the equivalent of 
an increase in turnover generated cross-border of EUR 8.6 billion and up to EUR 15.5 billion.  

With  regard  to  added  value  in  the  enforcement  of  measures,  the  initiative  creates  important 
efficiency gains in the cooperation across Member States and mutualising some resources for 
technical  assistance  at  EU  level,  for  inspecting  and  auditing  content  moderation  systems, 
recommender  systems  and  online  advertising  on  very  large  online  platforms.  This,  in  turn, 
leads  to  an  increased  effectiveness  of  enforcement  and  supervision  measures,  whereas  the 
current  system  relies  to  a  large  extent  on  the  limited  capability  for  supervision  in  a  small 
number of Member States.  

• 

Fundamental rights  

Union  citizens  and  others  are  exposed  to  ever-increasing  risks  and  harms  online  –  from  the 
spread of illegal content and activities, to limitations to express themselves and other societal 
harms. The envisaged policy measures in this legislative proposal will substantially improve 
this  situation  by  providing  a  modern,  future-proof  governance  framework,  effectively 
safeguarding  the  rights  and  legitimate  interests  of  all  parties  involved,  most  of  all  Union 
citizens.  The  proposal  introduces  important  safeguards  to  allow  citizens  to  freely  express 
themselves, while enhancing user agency in the online environment, as well as the exercise of 
other fundamental rights such as the right to an effective remedy, non-discrimination, rights of 
the child as well as the protection of personal data and privacy online. 

The  proposed  Regulation  will  mitigate  risks  of  erroneous  or  unjustified  blocking  speech, 
address the chilling effects on speech, stimulate the freedom to receive information and hold 
opinions, as well as reinforce users’ redress possibilities. Specific groups or persons may be 
vulnerable  or  disadvantaged  in  their  use  of  online  services  because  of  their  gender,  race  or 
ethnic  origin,  religion  or  belief,  disability,  age  or  sexual  orientation.  They  can  be 
disproportionately affected by restrictions and removal measures following from (unconscious 
or  conscious)  biases  potentially  embedded  in  the  notification  systems  by  users  and  third 
parties,  as  well  as  replicated  in  automated  content  moderation  tools  used  by  platforms.  The 
proposal will mitigate discriminatory risks, particularly for those groups or persons and will 
contribute to  the protection of the rights  of the child and the right  to  human dignity online. 
The  proposal  will  only  require  removal  of  illegal  content  and  will  impose  mandatory 
safeguards  when  users’  information  is  removed,  including  the  provision  of  explanatory 
information to the user, complaint mechanisms supported by the service providers as well as 
external  out-of-court  dispute  resolution  mechanism.  Furthermore,  it  will  ensure  EU  citizens 
are also protected when using services provided by providers not established in the Union but 
active on the internal market, since those providers are covered too.  

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With  regard  to  service  providers’  freedom  to  conduct  a  business,  the  costs  incurred  on 
businesses  are  offset  by  reducing  fragmentation  across  the  internal  market.  The  proposal 
introduces safeguards to alleviate the burden on service providers, including measures against 
repeated  unjustified  notices  and  prior  vetting  of  trusted  flaggers  by  public  authorities. 
Furthermore, certain  obligations are targeted to  very large online platforms,  where the most 
serious risks often occur and which have the capacity absorb the additional burden.  

The proposed legislation will preserve the prohibition of general monitoring obligations of the 
e-Commerce Directive, which in itself is crucial to the required fair balance of fundamental 
rights  in  the  online  world.  The  new  Regulation  prohibits  general  monitoring  obligations,  as 
they  could  disproportionately  limit  users’  freedom  of  expression  and  freedom  to  receive 
information,  and  could  burden  service  providers  excessively  and  thus  unduly  interfere  with 
their  freedom  to  conduct  a  business.  The  prohibition  also  limits  incentives  for  online 
surveillance and has positive implications for the protection of personal data and privacy. 

All  measures  in  the  proposal  are  fully  compliant  and  aligned  with  the  high  standard  of 
personal data protection and protection of privacy of communications and private life, set  in 
EU legislation. 

4. 

BUDGETARY IMPLICATIONS  

The budgetary impact of the proposal will be covered by the allocations foreseen in the MFF 
2021-27 under the  financial envelopes of the Digital  Europe Programme and Single Market 
Programme as detailed in the legislative financial statement accompanying this proposal for a 
regulation.These  implications  require  also  reprogramming  of  Heading  7  of  the  Financial 
Perspective.  

The  legislative  financial  statement  accompanying  this  proposal  for  a  Regulation  covers  the 
budgetary impacts for the Regulation itself. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements  

The Commission will establish a comprehensive framework for continuously monitoring the 
output, results and impact of this legislative instrument upon the date of its application. Based 
on the established monitoring programme, an evaluation of the instrument is envisaged within 
five years from its entry into force.  

• 

Detailed explanation of the specific provisions of the proposal  

Chapter I sets out general provisions, including the subject matter and scope of the Regulation 
(Article 1) and the definitions of key terms used in the Regulation (Article 2). 

Chapter  II  contains  provisions  on  the  exemption  of  liability  of  providers  of  intermediary 
services. More specifically, it includes the conditions under which providers of mere conduit 
(Article 3), caching (Article 4) and hosting services (Article 5) are exempt from liability for 
the  third-party  information  they  transmit  and  store.  It  also  provides  that  the  liability 
exemptions  should  not  be  disapplied  when  providers  of  intermediary  services  carry  out 
voluntary own-initiative investigations or comply with the law (Article 6) and it lays down a 
prohibition  of  general  monitoring  or  active  fact-finding  obligations  for  those  providers 
(Article 7). Finally, it imposes an obligation on providers of intermediary services in respect 
of  orders  from  national  judicial  or  administrative  authorities  to  act  against  illegal  content 
(Article 8) and to provide information (Article 9).  

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Chapter  III  sets  out  the  due  diligence  obligations  for  a  transparent  and  safe  online 
environment, in five different sections. 

Section  1  lays  down  obligations  applicable  to  all  providers  of  intermediary  services,  in 
particular:  the  obligation  to  establish  a  single  point  of  contact  to  facilitate  direct 
communication with Member States’ authorities, the Commission and the Board (Article 10); 
the obligation to designate a legal representative in the Union for providers not established in 
any Member State, but offering their services in the Union (Article 11); the obligation to set 
out  in  their  terms  and  conditions  any  restrictions  that  they  may  impose  on  the  use  of  their 
services and to act responsibly in applying and enforcing those restrictions (Article 12); and 
transparency reporting obligations in relation to the removal and the disabling of information 
considered to be illegal content or contrary to the providers’ terms and conditions (Article 13). 

Section 2 lays down obligations, additional to those under Section 1, applicable to providers 
of  hosting  services.  In  particular,  that  section  obliges  those  providers  to  put  in  place 
mechanisms to allow third parties to notify the presence of alleged illegal content (Article 14). 
Furthermore,  if  such  a  provider  decides  to  remove  or  disable  access  to  specific  information 
provided by a recipient of the service, it imposes the obligation to provide that recipient with a 
statement of reasons (Article 15).  

Section 3 lays down obligations applicable to all online platforms, additional to those under 
Sections  1  and  2.  The  Section  specifies  that  it  does  not  apply  to  online  platforms  that  are 
micro or small enterprises within the meaning of the Annex to Recommendation 2003/361/EC 
(Article 16). The Section lays down the obligation for online platforms to provide an internal 
complaint-handling system in respect of decisions taken in relation to alleged illegal content 
or information incompatible with their terms and conditions (Article 17). It also obliges online 
platforms  to  engage  with  certified  out-of-court  dispute  settlement  bodies  to  resolve  any 
dispute with users of their services (Article 18). It further obliges online platforms to ensure 
that notices submitted by entities granted the status of trusted flaggers are treated with priority 
(Article 19) and sets  out  the measures online platforms  are to  adopt  against misuse (Article 
20).  Furthermore,  this  Section  includes  a  requirement  for  online  platforms  to  inform 
competent enforcement authorities in the event they become aware of any information giving 
rise  to  a  suspicion  of  serious  criminal  offences  involving  a  threat  to  the  life  or  safety  of 
persons  (Article  21).  The  Section  also  obliges  online  platforms  to  receive,  store,  make 
reasonable efforts  to  assess  the reliability of and publish specific information on the traders 
using  their  services  where  those  online  platforms  allow  consumers  to  conclude  distance 
contracts with those traders (Article 22). Those online platforms are also obliged to organise 
their interface in a way that enables traders to respect Union consumer and product safety law 
(Article 22a). Online platforms are also obliged to publish reports on their activities relating to 
the  removal  and  the  disabling  of  information  considered  to  be  illegal  content  or  contrary  to 
their terms and conditions (Article 23). The Section also includes transparency obligations for 
online platforms in respect of online advertising (Article 24).  

Section 4 lays down obligations, additional to the obligations laid down in Sections 1 to 3, for 
very large online platforms  (as defined by Article 25) to  manage systemic risks. Very large 
online platforms are obliged to conduct risk assessments on the systemic risks brought about 
by or relating to the functioning and use of their services (Article 26) and to take reasonable 
and effective measures aimed at mitigating those risks (Article 27). They are also to submit 
themselves  to  external  and  independent  audits  (Article  28).  The  Section  includes  also  a 
specific obligation in case very large online platforms use recommender systems (Article 29) 
or display online advertising on their online interface (Article 30).  Furthermore, the Section 

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sets out the conditions under which very large online platforms provide access to data to the 
Digital  Services  Coordinator  of  establishment  or  the  Commission  and  vetted  researchers 
(Article 31), the obligation to appoint one or more compliance officers to ensure compliance 
with  the  obligations  laid  down  in  the  Regulation  (Article  32)  and  specific,  additional 
transparency reporting obligations (Article 33).  

Section  5  contains  transversal  provisions  concerning  due  diligence  obligations,  namely  the 
processes  for  which  the  Commission  will  support  and  promote  the  development  and 
implementation  of  harmonised  European  standards  (Article  34);  the  framework  for  the 
development  of  codes  of  conduct  (Article  35);  and  the  framework  for  the  development  of 
specific  codes  of  conduct  for  online  advertising  (Article  36).  There  is  also  a  provision  on 
crisis  protocols  to  address  extraordinary  circumstances  affecting  public  security  or  public 
health (Article 37). 

Chapter IV contains the provisions concerning the implementation and enforcement of this 
Regulation.  

Section 1 lays down provisions concerning national competent authorities, including Digital 
Services Coordinators, which are the primary national authorities designated by the Member 
States  for  the  consistent  application  of  this  Regulation  (Article  38).  The  Digital  Services 
Coordinators, like other designated competent authorities, are independent and perform their 
tasks impartially, transparently and in a timely manner (Article 39). Member States where the 
main  establishment  of  the  provider  is  located  have  jurisdiction  to  enforce  this  Regulation 
(Article  40).  The  Digital  Services  Coordinators  are  granted  specific  powers  (Article  41). 
Member States are to lay down rules on penalties applicable to breaches of the obligations by 
providers  of  intermediary  services  under  this  Regulation  (Article  42).  Digital  Services 
Coordinators can receive complaints  against providers of intermediary services  for breaches 
of the obligations laid down in this Regulation (Article 43). Digital Services Coordinators are 
required to publish annual reports on their activities (Article 44) and to cooperate with Digital 
Services Coordinators of other Member States (Article 45). Digital Services Coordinators can 
also  participate  in  joint  investigations  with  regard  to  matters  covered  by  the  Regulation 
(Article 46).  

Section  2  lays  down  provisions  regarding  the  European  Board  for  Digital  Services,  an 
independent advisory group of Digital Services Coordinators (Article 47). It also sets out the 
structure of that Board (Article 48) and its tasks (Article 49).  

Section 3 concerns the supervision, investigation, enforcement and monitoring of very large 
online platforms. It provides for enhanced supervision in the event such platforms infringe the 
provisions  of  Chapter  III,  Section  4  (Article  50).  It  also  provides  the  possibility  for  the 
Commission  to  intervene  vis  à  vis  very  large  online  platforms  in  case  the  infringements 
persist  (Article  51).  In  these  cases  the  Commission  can  carry  out  investigations,  including 
through requests for information (Article 52), interviews (Article 53) and on-site inspections 
(Article 54), can adopt interim measures (Article 55) and make binding commitments by very 
large online platforms (Article 56), as well as monitor their compliance with the Regulation 
(Article 57). In case of non-compliance, the Commission can adopt non-compliance decisions 
(Article  58),  as  well  as  fines  (Article  59)  and  periodic  penalty  payments  (Article  60)  for 
breaches of the Regulation by very large online platforms as well as for supply of incorrect, 
incomplete or misleading information in the context of the investigation. The Regulation sets 
also a limitation period for the imposition of penalties (Article 61) and for their enforcement 
(Article  62).  Finally,  the  Regulation  sets  the  procedural  guarantees  in  front  of  the 

EN 

15 

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Commission, in particular the right to be heard and of access to the file (Article 63) and the 
publication  of  decisions  (Article  64).  The  Section  also  provides  for  the  cooperation  of  the 
Commission  with  national  courts (Article 65) and for the adoption of implementing  acts  on 
practical arrangement on the proceedings (Article 66).  

Section  4  includes  the  common  provisions  on  enforcement.  It  first  lays  down  rules  on  an 
information-sharing 
supporting  communications  between  Digital  Services 
Coordinators,  the  Commission  and  the  Board  (Article  67).  It  also  includes  the  right  of 
recipients of intermediary services to mandate a body, organisation and association to exercise 
their rights on their behalf (article 68). 

system 

Section  5  relates  to  the  adoption  of  delegated  and  implementing  acts  in  accordance  with 
Articles  290  and  291  of  the  Treaty  on  the  Functioning  of  the  European  Union,  respectively 
(Articles 69 and 70). 

Finally,  Chapter  V  contains  the  final  provisions  of  this  Regulation,  which  concern  the 
deletion  of  Articles  12  to  15  of  the  e-Commerce  Directive  given  that  they  have  been 
incorporated  in  the  Regulation  (Article  71),  amendments  to  Directive  2020/XX/EC  (Article 
72), evaluation of the Regulation (Article 73), and its entry into force and application (Article 
74). 

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2020/0361 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on a Single Market For Digital Services (Digital Services Act) and amending Directive 
2000/31/EC 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 114 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee22, 
Having regard to the opinion of the Committee of the Regions23, 
Having regard to the opinion of the European Data Protection Supervisor24, 

Acting in accordance with the ordinary legislative procedure, 

Whereas:  

(1) 

Information  society  services  and  especially  intermediary  services  have  become  an 
important part of the Union’s economy and daily life of Union citizens. Twenty years 
after  the  adoption  of  the  existing  legal  framework  applicable  to  such  services  laid 
down in Directive 2000/31/EC of the European Parliament and of the Council25, new 
and  innovative  business  models  and  services,  such  as  online  social  networks  and 
marketplaces,  have  allowed  business  users  and  consumers  to  impart  and  access 
information  and  engage  in  transactions  in  novel  ways.  A  majority  of  Union  citizens 
now  uses  those  services  on  a  daily  basis.  However,  the  digital  transformation  and 
increased use of those services has also resulted in new risks and challenges, both for 
individual users and for society as a whole.  

(2)  Member  States  are  increasingly  introducing,  or  are  considering  introducing,  national 
laws  on  the  matters  covered  by  this  Regulation,  imposing,  in  particular,  diligence 
requirements  for  providers  of  intermediary  services.  Those  diverging  national  laws 
negatively  affect  the  internal  market,  which,  pursuant  to  Article  26  of  the  Treaty, 
comprises an area without internal frontiers in which the free movement of goods and 
services and freedom of establishment are ensured, taking into account the inherently 

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

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cross-border nature of the internet, which is generally used to provide those services. 
The  conditions  for  the  provision  of  intermediary  services  across  the  internal  market 
should  be  harmonised,  so  as  to  provide  businesses  with  access  to  new  markets  and 
opportunities to exploit the benefits of the internal market, while allowing consumers 
and other recipients of the services to have increased choice.  

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

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

This  Regulation  should  apply  to  providers  of  certain  information  society  services  as 
defined in Directive (EU) 2015/1535 of the European Parliament and of the Council26, 
that  is,  any  service  normally  provided  for  remuneration,  at  a  distance,  by  electronic 
means and at the individual request of a recipient. Specifically, this Regulation should 
apply  to  providers  of  intermediary  services,  and  in  particular  intermediary  services 
consisting  of  services  known  as  ‘mere  conduit’,  ‘caching’  and  ‘hosting’  services, 
given  that  the  exponential  growth  of  the  use  made  of  those  services,  mainly  for 
legitimate and socially beneficial purposes of all kinds, has also increased their role in 
the  intermediation  and  spread  of  unlawful  or  otherwise  harmful  information  and 
activities.  

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

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

(3) 

(4) 

(5) 

(6) 

(7) 

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

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18 

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(8) 

(9) 

Such  a  substantial  connection  to  the  Union  should  be  considered  to  exist  where  the 
service provider has an establishment in the Union or, in its absence, on the basis of 
the existence of a significant  number of users in  one or more Member States,  or the 
targeting of activities towards one or more Member States. The targeting of activities 
towards  one  or  more  Member  States  can  be  determined  on  the  basis  of  all  relevant 
circumstances, including factors such as the use of a language or a currency generally 
used in that Member State, or the possibility of ordering products or services, or using 
a national top level domain. The targeting of activities towards a Member State could 
also  be  derived  from  the  availability  of  an  application  in  the  relevant  national 
application store, from the provision of local advertising or advertising in the language 
used  in  that  Member  State,  or  from  the  handling  of  customer  relations  such  as  by 
providing  customer  service  in  the  language  generally  used  in  that  Member  State.  A 
substantial  connection  should  also  be  assumed  where  a  service  provider  directs  its 
activities  to  one  or  more  Member  State  as  set  out  in  Article  17(1)(c)  of  Regulation 
(EU) 1215/2012 of the European Parliament and of the Council27. On the other hand, 
mere technical accessibility of a website from the Union cannot, on that ground alone, 
be considered as establishing a substantial connection to the Union.  

This  Regulation  should  complement,  yet  not  affect  the  application  of  rules  resulting 
from  other  acts  of  Union  law  regulating  certain  aspects  of  the  provision  of 
intermediary services, in particular Directive 2000/31/EC, with the exception of those 
changes  introduced  by  this  Regulation,  Directive  2010/13/EU  of  the  European 
Parliament  and  of  the  Council  as  amended,28  and  Regulation  (EU)  …/..  of  the 
European  Parliament  and  of  the  Council29  –  proposed  Terrorist  Content  Online 
Regulation.  Therefore,  this  Regulation  leaves  those  other  acts,  which  are  to  be 
considered  lex  specialis  in  relation  to  the  generally  applicable  framework  set  out  in 
this Regulation, unaffected. However, the rules of this Regulation apply in respect of 
issues that are not or not fully addressed by those other acts as well as issues on which 
those  other  acts  leave  Member  States  the  possibility  of  adopting  certain  measures  at 
national level.  

(10)  For  reasons  of  clarity,  it  should  also  be  specified  that  this  Regulation  is  without 
prejudice  to  Regulation  (EU)  2019/1148  of  the  European  Parliament  and  of  the 
Council30  and  Regulation  (EU)  2019/1150  of  the  European  Parliament  and  of  the 
Council,31, Directive 2002/58/EC of the European Parliament and of the Council32 and 

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

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

29 Regulation  (EU)  …/..  of  the  European  Parliament  and  of  the  Council    –  proposed  Terrorist  Content  Online 

Regulation 

30 Regulation  (EU)  2019/1148  of  the  European  Parliament  and  of  the  Council  on  the  marketing  and  use  of 
explosives precursors,  amending  Regulation (EC) No 1907/2006 and repealing Regulation (EU) No 98/2013 
(OJ L 186, 11.7.2019, p. 1). 

31 Regulation  (EU)  2019/1150  of  the  European  Parliament  and  of  the  Council  of  20  June  2019  on  promoting 
fairness and transparency for business users of online intermediation services (OJ L 186, 11.7.2019, p. 57). 
32 Directive  2002/58/EC  of  the  European  Parliament  and  of  the  Council  of  12  July  2002  concerning  the 
processing of personal data and the protection of privacy in the electronic communications sector (Directive on 
privacy and electronic communications), OJ L 201, 31.7.2002, p. 37. 

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19 

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(11) 

(12) 

Regulation  […/…]  on  temporary  derogation  from  certain  provisions  of  Directive 
2002/58/EC33  as  well  as  Union  law  on  consumer  protection,  in  particular  Directive 
2005/29/EC of the European Parliament and of the Council34, Directive 2011/83/EU of 
the  European  Parliament  and  of  the  Council35  and  Directive  93/13/EEC  of  the 
European Parliament and of the Council36, as amended by Directive (EU) 2019/2161 
of  the  European  Parliament  and  of  the  Council37,  and  on  the  protection  of  personal 
data,  in  particular  Regulation  (EU)  2016/679  of  the  European  Parliament  and  of  the 
Council.38 The protection of individuals with regard to the processing of personal data 
is solely governed by the rules of Union law on that subject, in particular Regulation 
(EU) 2016/679 and Directive 2002/58/EC. This Regulation is also without prejudice to 
the rules of Union law on working conditions. 

It should be clarified that this Regulation is without prejudice to the rules of Union law 
on  copyright  and  related  rights,  which  establish  specific  rules  and  procedures  that 
should remain unaffected. 

In  order  to  achieve  the  objective  of  ensuring  a  safe,  predictable  and  trusted  online 
environment, for the purpose of this Regulation the concept of “illegal content” should 
be  defined  broadly  and  also  covers  information  relating  to  illegal  content,  products, 
services  and  activities.  In  particular,  that  concept  should  be  understood  to  refer  to 
information,  irrespective  of  its  form,  that  under  the  applicable  law  is  either  itself 
illegal,  such  as  illegal  hate  speech  or  terrorist  content  and  unlawful  discriminatory 
content,  or  that  relates  to  activities  that  are  illegal,  such  as  the  sharing  of  images 
depicting  child  sexual  abuse,  unlawful  non-consensual  sharing  of  private  images, 
online stalking, the sale of non-compliant or counterfeit products, the non-authorised 
use of copyright protected material or activities involving infringements of consumer 
protection law. In this regard, it is immaterial whether the illegality of the information 
or activity results from Union law or from national law that is consistent with Union 
law and what the precise nature or subject matter is of the law in question.  

(13)  Considering  the  particular  characteristics  of  the  services  concerned  and  the 
corresponding  need  to  make  the  providers  thereof  subject  to  certain  specific 
obligations, it is necessary to distinguish, within the broader category of providers of 
hosting  services  as  defined  in  this  Regulation,  the  subcategory  of  online  platforms. 
Online platforms, such as social networks or online marketplaces, should be defined as 

33 Regulation […/…] on temporary derogation from certain provisions of Directive 2002/58/EC.  
34 Directive  2005/29/EC  of  the  European  Parliament  and  of  the  Council  of  11  May  2005  concerning  unfair 
business-to-consumer  commercial  practices  in  the  internal  market  and  amending  Council  Directive 
84/450/EEC,  Directives  97/7/EC,  98/27/EC  and  2002/65/EC  of  the  European  Parliament  and  of  the  Council 
and  Regulation  (EC)  No  2006/2004  of  the  European  Parliament  and  of  the  Council  (‘Unfair  Commercial 
Practices Directive’)  

35 Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, 
amending  Council  Directive  93/13/EEC  and  Directive  1999/44/EC  of  the  European  Parliament  and  of  the 
Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of 
the Council. 

Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts. 

36 
37 Directive  (EU)  2019/2161  of  the  European  Parliament  and  of  the  Council  of  27  November  2019  amending 
Council  Directive  93/13/EEC  and  Directives  98/6/EC,  2005/29/EC  and  2011/83/EU  of  the  European 
Parliament  and  of  the  Council  as  regards  the  better  enforcement  and  modernisation  of  Union  consumer 
protection rules 

38 Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of 
natural  persons  with  regard  to  the  processing  of  personal  data  and  on  the  free  movement  of  such  data,  and 
repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1). 

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providers of hosting services that not only store information provided by the recipients 
of the service at their request, but that also disseminate that information to the public, 
again at their request. However, in order to avoid imposing overly broad obligations, 
providers of hosting services should not be considered as online platforms where the 
dissemination to the public is merely a minor and purely ancillary feature of another 
service  and  that  feature  cannot,  for  objective  technical  reasons,  be  used  without  that 
other, principal service, and the integration of that feature is not a means to circumvent 
the  applicability  of  the  rules  of  this  Regulation  applicable  to  online  platforms.  For 
example, the comments section in an online newspaper could constitute such a feature, 
where it is clear that it is ancillary to the main service represented by the publication of 
news under the editorial responsibility of the publisher. 

(14)  The concept of ‘dissemination to the public’, as used in this Regulation, should entail 
the making available of information to a potentially unlimited number of persons, that 
is, making the information easily accessible to users in general without further action 
by the recipient of the service providing the information being required, irrespective of 
whether  those  persons  actually  access  the  information  in  question.  The  mere 
possibility  to  create  groups  of  users  of  a  given  service  should  not,  in  itself,  be 
understood  to  mean  that  the  information  disseminated  in  that  manner  is  not 
disseminated  to  the  public.  However,  the  concept  should  exclude  dissemination  of 
information  within  closed  groups  consisting  of  a  finite  number  of  pre-determined 
persons.  Interpersonal  communication  services,  as  defined  in  Directive  (EU) 
2018/1972 of the European Parliament and of the Council,39 such as emails or private 
messaging  services,  fall  outside  the  scope  of  this  Regulation.  Information  should  be 
considered  disseminated  to  the  public  within  the  meaning  of  this  Regulation  only 
where that occurs upon the direct request by the recipient of the service that provided 
the information.  

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

(16)  The  legal  certainty  provided  by  the  horizontal  framework  of  conditional  exemptions 
from  liability  for  providers  of  intermediary  services,  laid  down  in  Directive 
2000/31/EC,  has  allowed  many  novel  services  to  emerge  and  scale-up  across  the 
internal market. That framework should therefore be preserved. However, in view of 
the divergences when transposing and applying the relevant rules at national level, and 
for  reasons  of  clarity  and  coherence,  that  framework  should  be  incorporated  in  this 
Regulation.  It is also necessary to  clarify certain elements of that framework, having 
regard to case law of the Court of Justice of the European Union.  

(17)  The  relevant  rules  of  Chapter  II  should  only  establish  when  the  provider  of 
intermediary  services  concerned  cannot  be  held  liable  in  relation  to  illegal  content 
provided  by  the  recipients  of  the  service.  Those  rules  should  not  be  understood  to 
provide a positive basis for establishing when a provider can be held liable, which is 
for  the  applicable  rules  of  Union  or  national  law  to  determine.  Furthermore,  the 
exemptions from liability established in this Regulation should apply in respect of any 

39 Directive (EU) 2018/1972 of the European Parliament and of the Council of 11 December 2018 establishing 

the European Electronic Communications Code (Recast), OJ L 321, 17.12.2018, p. 36 

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type  of  liability  as  regards  any  type  of  illegal  content,  irrespective  of  the  precise 
subject matter or nature of those laws. 

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

(19) 

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

(20)  A  provider  of  intermediary  services  that  deliberately  collaborates  with  a  recipient  of 
the  services  in  order  to  undertake  illegal  activities  does  not  provide  its  service 
neutrally and should therefore not be able to benefit from the exemptions from liability 
provided for in this Regulation.  

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

(22) 

(23) 

In order to benefit from the exemption from liability for hosting services, the provider 
should,  upon  obtaining  actual  knowledge  or  awareness  of  illegal  content,  act 
expeditiously to remove or to disable access to that content. The removal or disabling 
of  access  should  be  undertaken  in  the  observance  of  the  principle  of  freedom  of 
expression. The provider can obtain such actual knowledge or awareness through, in 
particular, its own-initiative investigations or notices submitted to it by individuals or 
entities  in  accordance  with  this  Regulation  in  so  far  as  those  notices  are  sufficiently 
precise  and  adequately  substantiated  to  allow  a  diligent  economic  operator  to 
reasonably  identify,  assess  and  where  appropriate  act  against  the  allegedly  illegal 
content. 

In  order  to  ensure  the  effective  protection  of  consumers  when  engaging  in 
intermediated  commercial  transactions  online,  certain  providers  of  hosting  services, 
namely,  online  platforms  that  allow  consumers  to  conclude  distance  contracts  with 
traders,  should  not  be  able  to  benefit  from  the  exemption  from  liability  for  hosting 
service  providers  established  in  this  Regulation,  in  so  far  as  those  online  platforms 
present the relevant information relating to the transactions at issue in such a way that 
it  leads  consumers  to  believe  that  the  information  was  provided  by  those  online 
platforms  themselves  or  by  recipients  of  the  service  acting  under  their  authority  or 
control,  and  that  those  online  platforms  thus  have  knowledge  of  or  control  over  the 
information,  even  if  that  may  in  reality  not  be  the  case.  In  that  regard,  is  should  be 
determined  objectively,  on  the  basis  of  all  relevant  circumstances,  whether  the 

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presentation could lead to such a belief on the side of an average and reasonably well-
informed consumer.  

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

(25) 

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

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

(27)  Since 2000, new technologies have emerged that improve the availability, efficiency, 
speed, reliability, capacity and security of systems for the transmission and storage of 
data  online,  leading  to  an  increasingly  complex  online  ecosystem.  In  this  regard,  it 
should  be  recalled  that  providers  of  services  establishing  and  facilitating  the 
underlying  logical  architecture  and  proper  functioning  of  the  internet,  including 
technical  auxiliary  functions,  can  also  benefit  from  the  exemptions  from  liability  set 
out  in  this  Regulation,  to  the  extent  that  their  services  qualify  as  ‘mere  conduits’, 

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‘caching’ or hosting services. Such services include, as the case may be, wireless local 
area  networks,  domain  name  system  (DNS)  services,  top–level  domain  name 
registries,  certificate  authorities  that  issue  digital  certificates,  or  content  delivery 
networks,  that  enable  or  improve  the  functions  of  other  providers  of  intermediary 
services.  Likewise,  services  used  for  communications  purposes,  and  the  technical 
means of their delivery, have also evolved considerably, giving rise to online services 
such as Voice over IP, messaging services and web-based e-mail services, where the 
communication  is  delivered  via  an  internet  access  service.  Those  services,  too,  can 
benefit  from  the  exemptions  from  liability,  to  the  extent  that  they  qualify  as  ‘mere 
conduit’, ‘caching’ or hosting service.  

(28)  Providers  of  intermediary  services  should  not  be  subject  to  a  monitoring  obligation 
with  respect  to  obligations  of  a  general  nature.  This  does  not  concern  monitoring 
obligations  in  a  specific  case  and,  in  particular,  does  not  affect  orders  by  national 
authorities in  accordance with  national  legislation, in  accordance  with  the conditions 
established  in  this  Regulation.  Nothing  in  this  Regulation  should  be  construed  as  an 
imposition of a general monitoring obligation or active fact-finding obligation, or as a 
general  obligation  for  providers  to  take  proactive  measures  to  relation  to  illegal 
content.  

(29)  Depending  on  the  legal  system  of  each  Member  State  and  the  field  of  law  at  issue, 
national  judicial  or  administrative  authorities  may  order  providers  of  intermediary 
services  to  act  against  certain  specific  items  of  illegal  content  or  to  provide  certain 
specific items of information. The national laws on the basis of which such orders are 
issued  differ  considerably  and  the  orders  are  increasingly  addressed  in  cross-border 
situations. In order to ensure that those orders can be complied with in an effective and 
efficient manner, so that the public authorities concerned can carry out their tasks and 
the providers are not subject to any disproportionate burdens, without unduly affecting 
the  rights  and  legitimate  interests  of  any  third  parties,  it  is  necessary  to  set  certain 
conditions  that  those  orders  should  meet  and  certain  complementary  requirements 
relating to the processing of those orders.  

(30)  Orders  to  act  against  illegal  content  or  to  provide  information  should  be  issued  in 
compliance  with  Union  law,  in  particular  Regulation  (EU)  2016/679  and  the 
prohibition of  general  obligations  to  monitor information  or to  actively seek facts  or 
circumstances indicating illegal activity laid down in this Regulation. The conditions 
and  requirements  laid  down  in  this  Regulation  which  apply  to  orders  to  act  against 
illegal content are without prejudice to other Union acts providing for similar systems 
for  acting  against  specific  types  of  illegal  content,  such  as  Regulation  (EU)  …/…. 
[proposed  Regulation  addressing  the  dissemination  of  terrorist  content  online],  or 
Regulation  (EU)  2017/2394  that  confers  specific  powers  to  order  the  provision  of 
information  on  Member  State  consumer  law  enforcement  authorities,  whilst  the 
conditions  and  requirements  that  apply  to  orders  to  provide  information  are  without 
prejudice to other Union acts providing for similar relevant rules for specific sectors. 
Those  conditions  and  requirements  should  be  without  prejudice  to  retention  and 
preservation  rules  under  applicable  national  law,  in  conformity  with  Union  law  and 
confidentiality requests by law enforcement authorities related to the non-disclosure of 
information. 

(31)  The territorial scope of such orders to act against illegal content should be clearly set 
out on the basis of the applicable Union or national law enabling the issuance of the 
order and should not exceed what is strictly necessary to achieve its objectives. In that 
regard,  the  national  judicial  or  administrative  authority  issuing  the  order  should 

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balance the objective that the order seeks to achieve, in accordance with the legal basis 
enabling  its  issuance,  with  the  rights  and  legitimate  interests  of  all  third  parties  that 
may be affected by the order, in particular their fundamental rights under the Charter. 
In  addition,  where  the  order  referring  to  the  specific  information  may  have  effects 
beyond  the  territory  of  the  Member  State  of  the  authority  concerned,  the  authority 
should assess whether the information at issue is likely to constitute illegal content in 
other Member States concerned and, where relevant, take account of the relevant rules 
of Union law or international law and the interests of international comity. 

(32)  The orders to provide information regulated by this Regulation concern the production 
of  specific  information  about  individual  recipients  of  the  intermediary  service 
concerned  who  are  identified  in  those  orders  for  the  purposes  of  determining 
compliance by the recipients  of the services  with  applicable  Union or national rules. 
Therefore, orders about information on a group of recipients of the service who are not 
specifically identified, including orders to provide aggregate information required for 
statistical purposes or evidence-based policy-making, should remain unaffected by the 
rules of this Regulation on the provision of information.  

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

(34) 

(35) 

In order to achieve the objectives of this Regulation, and in particular to improve the 
functioning  of  the  internal  market  and  ensure  a  safe  and  transparent  online 
environment,  it  is  necessary  to  establish  a  clear  and  balanced  set  of  harmonised  due 
diligence obligations for providers of intermediary services. Those obligations should 
aim in particular to guarantee different public policy objectives such as the safety and 
trust of the recipients of the service, including minors and vulnerable users, protect the 
relevant  fundamental  rights  enshrined 
to  ensure  meaningful 
accountability of those providers and to empower recipients and other affected parties, 
whilst facilitating the necessary oversight by competent authorities. 

the  Charter, 

in 

In that regard, it is important that the due diligence obligations are adapted to the type 
and  nature  of  the  intermediary  service  concerned.  This  Regulation  therefore  sets  out 
basic  obligations  applicable  to  all  providers  of  intermediary  services,  as  well  as 
additional obligations for providers of hosting services and, more specifically, online 
platforms and very large online platforms. To the extent that providers of intermediary 
services  may  fall  within  those  different  categories  in  view  of  the  nature  of  their 
services and their size, they should comply with all of the corresponding obligations of 
this  Regulation.  Those  harmonised  due  diligence  obligations,  which  should  be 
reasonable  and  non-arbitrary,  are  needed  to  achieve  the  identified  public  policy 
concerns, such as safeguarding the legitimate interests of the recipients of the service, 
addressing illegal practices and protecting fundamental rights online.  

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(36) 

In order to facilitate smooth and efficient communications relating to matters covered 
by this Regulation, providers of intermediary services should be required to establish a 
single  point  of  contact  and  to  publish  relevant  information  relating  to  their  point  of 
contact,  including  the  languages  to  be  used  in  such  communications.  The  point  of 
contact  can  also  be  used  by  trusted  flaggers  and  by  professional  entities  which  are 
under a specific relationship with the provider of intermediary services. In contrast to 
the  legal  representative,  the  point  of  contact  should  serve  operational  purposes  and 
should not necessarily have to have a physical location . 

(37)  Providers  of  intermediary  services  that  are  established  in  a  third  country  that  offer 
services in the Union should designate a sufficiently mandated legal representative in 
the Union and provide information relating to their legal representatives, so as to allow 
for  the  effective  oversight  and,  where  necessary,  enforcement  of  this  Regulation  in 
relation  to  those  providers.  It  should  be  possible  for  the  legal  representative  to  also 
function as point of contact, provided the relevant requirements of this Regulation are 
complied with.  

(38)  Whilst  the  freedom  of  contract  of  providers  of  intermediary  services  should  in 
principle be respected, it is appropriate to set certain rules on the content, application 
and  enforcement  of  the  terms  and  conditions  of  those  providers  in  the  interests  of 
transparency, the protection of recipients of the service and the avoidance of unfair or 
arbitrary outcomes. 

(39)  To  ensure  an  adequate  level  of  transparency  and  accountability,  providers  of 
intermediary  services  should  annually  report,  in  accordance  with  the  harmonised 
requirements contained in this Regulation, on the content moderation they engage in, 
including  the  measures  taken  as  a  result  of  the  application  and  enforcement  of  their 
terms  and  conditions.  However,  so  as  to  avoid  disproportionate  burdens,  those 
transparency  reporting  obligations  should  not  apply  to  providers  that  are  micro-  or 
small enterprises as defined in Commission Recommendation 2003/361/EC.40 

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

(41)  The rules on such notice and action mechanisms should be harmonised at Union level, 
so as to provide for the timely, diligent and objective processing of notices on the basis 
of rules that are uniform, transparent and clear and that provide for robust safeguards 
to  protect  the  right  and  legitimate  interests  of  all  affected  parties,  in  particular  their 

40 Commission  Recommendation  2003/361/EC  of  6  May  2003  concerning  the  definition  of  micro,  small  and 

medium-sized enterprises (OJ L 124, 20.5.2003, p. 36). 

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26 

  EN 

                                                 
fundamental  rights  guaranteed  by  the  Charter,  irrespective  of  the  Member  State  in 
which  those  parties  are  established  or  reside  and  of  the  field  of  law  at  issue.  The 
fundamental rights include, as the case may be, the right to freedom of expression and 
information, the right to  respect  for private and family life, the right to protection of 
personal data, the right to non-discrimination and the right to an effective remedy of 
the recipients of the service; the freedom to conduct a business, including the freedom 
of contract, of service providers; as well as the right to human dignity, the rights of the 
child, the right to protection of property, including intellectual property, and the right 
to non-discrimination of parties affected by illegal content.  

(42)  Where a hosting service provider decides to  remove or disable information provided 
by a recipient of the service, for instance following receipt of a notice or acting on its 
own  initiative,  including  through  the  use  of  automated  means,  that  provider  should 
inform  the  recipient  of  its  decision,  the  reasons  for  its  decision  and  the  available 
redress possibilities to contest the decision, in view of the negative consequences that 
such  decisions  may  have  for  the  recipient,  including  as  regards  the  exercise  of  its 
fundamental right to freedom of expression. That obligation should apply irrespective 
of the reasons for the decision, in particular whether the action has been taken because 
the  information  notified  is  considered  to  be  illegal  content  or  incompatible  with  the 
applicable terms and conditions. Available recourses to challenge the decision of the 
hosting service provider should always include judicial redress.  

(43)  To  avoid  disproportionate  burdens,  the  additional  obligations  imposed  on  online 
platforms  under  this  Regulation  should  not  apply  to  micro  or  small  enterprises  as 
defined in Recommendation 2003/361/EC of the Commission,41 unless their reach and 
impact  is  such  that  they  meet  the  criteria  to  qualify  as  very  large  online  platforms 
under this Regulation. The consolidation rules laid down in that Recommendation help 
ensure  that  any  circumvention  of  those  additional  obligations  is  prevented.  The 
exemption  of  micro-  and  small  enterprises  from  those  additional  obligations  should 
not be understood as affecting their ability to set up, on a voluntary basis, a system that 
complies with one or more of those obligations. 

(44)  Recipients  of  the  service  should  be  able  to  easily  and  effectively  contest  certain 
decisions of online platforms that negatively affect them. Therefore, online platforms 
should  be  required  to  provide  for  internal  complaint-handling  systems,  which  meet 
certain conditions aimed at ensuring that the systems are easily accessible and lead to 
swift  and  fair  outcomes.  In  addition,  provision  should  be  made  for  the  possibility  of 
out-of-court dispute settlement of disputes, including those that could not be resolved 
in  satisfactory  manner  through  the  internal  complaint-handling  systems,  by  certified 
bodies  that  have  the  requisite  independence,  means  and  expertise  to  carry  out  their 
activities  in  a  fair,  swift  and  cost-effective  manner.  The  possibilities  to  contest 
decisions of online platforms thus created should complement, yet leave unaffected in 
all respects, the possibility to seek judicial redress in accordance with the laws of the 
Member State concerned. 

(45)  For contractual consumer-to-business disputes over the purchase of goods or services, 
Directive  2013/11/EU  of  the  European  Parliament  and  of  the  Council42  ensures  that 

41 Commission  Recommendation  2003/361/EC  of  6  May  2003  concerning  the  definition  of  micro,  small  and 

medium-sized enterprises (OJ L 124, 20.5.2003, p. 36). 

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

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Union  consumers  and  businesses  in  the  Union  have  access  to  quality-certified 
alternative dispute resolution entities. In this regard, it should be clarified that the rules 
of  this  Regulation  on  out-of-court  dispute  settlement  are  without  prejudice  to  that 
Directive, including the right of consumers under that Directive to withdraw from the 
procedure at any stage if they are dissatisfied with the performance or the operation of 
the procedure.  

(46)  Action  against  illegal  content  can  be  taken  more  quickly  and  reliably  where  online 
platforms  take  the  necessary  measures  to  ensure  that  notices  submitted  by  trusted 
flaggers  through  the  notice  and  action  mechanisms  required  by  this  Regulation  are 
treated with priority, without prejudice to the requirement to process and decide upon 
all  notices  submitted  under  those  mechanisms  in  a  timely,  diligent  and  objective 
manner.  Such  trusted  flagger  status  should  only  be  awarded  to  entities,  and  not 
individuals,  that  have  demonstrated,  among  other  things,  that  they  have  particular 
expertise  and  competence  in  tackling  illegal  content,  that  they  represent  collective 
interests and that they work in  a diligent  and objective manner. Such entities can be 
public  in  nature,  such  as,  for  terrorist  content,  internet  referral  units  of  national  law 
enforcement  authorities  or  of  the  European  Union  Agency  for  Law  Enforcement 
Cooperation  (‘Europol’)  or  they  can  be  non-governmental  organisations  and  semi-
public bodies, such as  the organisations  part of the  INHOPE network of  hotlines for 
reporting child sexual abuse material and organisations committed to notifying illegal 
racist  and  xenophobic  expressions  online.  For 
rights, 
organisations of industry and of right-holders could be awarded trusted flagger status, 
where they have demonstrated that they meet  the applicable conditions.  The rules of 
this  Regulation  on  trusted  flaggers  should  not  be  understood  to  prevent  online 
platforms from giving similar treatment to notices submitted by entities or individuals 
that  have  not  been  awarded  trusted  flagger  status  under  this  Regulation,  from 
otherwise  cooperating  with  other  entities,  in  accordance  with  the  applicable  law, 
including this Regulation and Regulation (EU) 2016/794 of the European Parliament 
and of the Council.43  

intellectual  property 

(47)  The misuse of services of online platforms by frequently providing manifestly illegal 
content or by frequently submitting manifestly unfounded notices or complaints under 
the  mechanisms  and  systems,  respectively,  established  under  this  Regulation 
undermines trust and harms the rights and legitimate interests of the parties concerned. 
Therefore,  there  is  a  need  to  put  in  place  appropriate  and  proportionate  safeguards 
against such misuse. Information should be considered to be manifestly illegal content 
and  notices  or  complaints  should  be  considered  manifestly  unfounded  where  it  is 
evident  to  a  layperson,  without  any  substantive  analysis,  that  the  content  is  illegal 
respectively  that  the  notices  or  complaints  are  unfounded.  Under  certain  conditions, 
online platforms should temporarily suspend their relevant activities in respect of the 
person  engaged  in  abusive  behaviour.  This  is  without  prejudice  to  the  freedom  by 
online  platforms  to  determine  their  terms  and  conditions  and  establish  stricter 
measures in the case of manifestly illegal content related to serious crimes. For reasons 
of transparency, this possibility should be set out, clearly and in sufficiently detail, in 
the terms and conditions of the online platforms. Redress should always be open to the 
decisions  taken  in  this  regard  by  online  platforms  and  they  should  be  subject  to 

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

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oversight by the competent Digital Services Coordinator. The rules of this Regulation 
on misuse should not prevent online platforms from taking other measures to address 
the provision  of illegal  content by  recipients  of their service or other misuse of their 
services,  in  accordance  with  the  applicable  Union  and  national  law.  Those  rules  are 
without  prejudice  to  any  possibility  to  hold  the  persons  engaged  in  misuse  liable, 
including for damages, provided for in Union or national law.  

(48)  An online platform may in some instances become aware, such as through a notice by 
a  notifying  party  or  through  its  own  voluntary  measures,  of  information  relating  to 
certain activity of a recipient of the service, such as the provision of certain types of 
illegal content, that reasonably justify, having regard to all relevant circumstances of 
which  the  online  platform  is  aware,  the  suspicion  that  the  recipient  may  have 
committed,  may  be  committing  or  is  likely  to  commit  a  serious  criminal  offence 
involving a threat to the life or safety of person, such as offences specified in Directive 
2011/93/EU  of  the  European  Parliament  and  of  the  Council44.  In  such  instances,  the 
online  platform  should  inform  without  delay  the  competent  law  enforcement 
authorities  of  such  suspicion,  providing  all  relevant  information  available  to  it, 
including where  relevant  the content in  question  and an  explanation of its suspicion. 
This  Regulation  does  not  provide  the  legal  basis  for  profiling  of  recipients  of  the 
services  with  a  view  to  the  possible  identification  of  criminal  offences  by  online 
platforms.  Online  platforms  should  also  respect  other  applicable  rules  of  Union  or 
national  law  for  the  protection  of  the  rights  and  freedoms  of  individuals  when 
informing law enforcement authorities.  

(49) 

In  order  to  contribute  to  a  safe,  trustworthy  and  transparent  online  environment  for 
consumers,  as  well  as  for  other  interested  parties  such  as  competing  traders  and 
holders  of  intellectual  property  rights,  and  to  deter  traders  from  selling  products  or 
services  in  violation  of  the  applicable  rules,  online  platforms  allowing  consumers  to 
conclude distance contracts with traders should ensure that such traders are traceable. 
The trader should therefore be required to provide certain essential information to the 
online  platform,  including  for  purposes  of  promoting  messages  on  or  offering 
products. That requirement should also be applicable to traders that promote messages 
on products  or services  on behalf of brands, based on underlying agreements. Those 
online  platforms  should  store  all  information  in  a  secure  manner  for  a  reasonable 
period  of  time  that  does  not  exceed  what  is  necessary,  so  that  it  can  be  accessed,  in 
accordance  with  the  applicable  law,  including  on  the  protection  of  personal  data,  by 
public authorities and private parties with a legitimate interest, including through the 
orders to provide information referred to in this Regulation.  

(50)  To  ensure  an  efficient  and  adequate  application  of  that  obligation,  without  imposing 
any  disproportionate  burdens,  the  online  platforms  covered  should  make  reasonable 
efforts to verify the reliability of the information provided by the traders concerned, in 
particular by using freely available official online databases and online interfaces, such 
as  national  trade  registers  and  the  VAT  Information  Exchange  System45,  or  by 
requesting the traders concerned to provide trustworthy supporting documents, such as 
copies of identity documents, certified bank statements, company certificates and trade 
register certificates. They may also use other sources, available for use at a distance, 

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

45 https://ec.europa.eu/taxation_customs/vies/vieshome.do?selectedLanguage=en  

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which  offer  a  similar  degree  of  reliability  for  the  purpose  of  complying  with  this 
obligation. However, the online platforms covered should not be required to engage in 
excessive  or  costly  online  fact-finding  exercises  or  to  carry  out  verifications  on  the 
spot.  Nor  should  such  online  platforms,  which  have  made  the  reasonable  efforts 
required  by  this  Regulation,  be  understood  as  guaranteeing  the  reliability  of  the 
information  towards  consumer  or  other  interested  parties.  Such  online  platforms 
should also design and organise their online interface in a way that enables traders to 
comply with their obligations under Union law, in particular the requirements set out 
in  Articles  6  and  8  of  Directive  2011/83/EU  of  the  European  Parliament  and  of  the 
Council46,  Article  7  of  Directive  2005/29/EC  of  the  European  Parliament  and  of  the 
Council47  and  Article  3  of  Directive  98/6/EC  of  the  European  Parliament  and  of  the 
Council48. 

In  view  of  the  particular  responsibilities  and  obligations  of  online  platforms,  they 
should be made subject to transparency reporting obligations, which apply in addition 
to  the  transparency  reporting  obligations  applicable  to  all  providers  of  intermediary 
services  under  this  Regulation.  For  the  purposes  of  determining  whether  online 
platforms  may  be  very  large  online  platforms  that  are  subject  to  certain  additional 
obligations  under  this  Regulation,  the  transparency  reporting  obligations  for  online 
platforms  should 
the  publication  and 
communication of information on the average monthly active recipients of the service 
in the Union.  

include  certain  obligations  relating 

to 

(51) 

(52)  Online advertisement plays an important role in the online environment, including in 
relation  to  the  provision  of  the  services  of  online  platforms.  However,  online 
advertisement  can  contribute  to  significant  risks,  ranging  from  advertisement  that  is 
itself  illegal  content,  to  contributing  to  financial  incentives  for  the  publication  or 
amplification  of  illegal  or  otherwise  harmful  content  and  activities  online,  or  the 
discriminatory  display  of  advertising  with  an  impact  on  the  equal  treatment  and 
opportunities  of  citizens.  In  addition  to  the  requirements  resulting  from  Article  6  of 
Directive 2000/31/EC, online platforms should therefore be required to ensure that the 
recipients of the service have certain individualised information necessary for them to 
understand  when  and  on  whose  behalf  the  advertisement  is  displayed.  In  addition, 
recipients  of  the  service  should  have  information  on  the  main  parameters  used  for 
determining that specific advertising is to be displayed to them, providing meaningful 
explanations of the logic used to  that end,  including when this is  based on profiling. 
The  requirements  of  this  Regulation  on  the  provision  of  information  relating  to 
advertisement  is  without  prejudice  to  the  application  of  the  relevant  provisions  of 
Regulation (EU) 2016/679, in particular those regarding the right to object, automated 
individual  decision-making,  including  profiling  and  specifically  the  need  to  obtain 

46 Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, 
amending  Council  Directive  93/13/EEC  and  Directive  1999/44/EC  of  the  European  Parliament  and  of  the 
Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of 
the Council 

47 Directive  2005/29/EC  of  the  European  Parliament  and  of  the  Council  of  11  May  2005  concerning  unfair 
business-to-consumer  commercial  practices  in  the  internal  market  and  amending  Council  Directive 
84/450/EEC,  Directives  97/7/EC,  98/27/EC  and  2002/65/EC  of  the  European  Parliament  and  of  the  Council 
and  Regulation  (EC)  No  2006/2004  of  the  European  Parliament  and  of  the  Council  (‘Unfair  Commercial 
Practices Directive’) 

48 Directive 98/6/EC of the European Parliament and of the Council of 16 February 1998 on consumer protection 

in the indication of the prices of products offered to consumers 

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consent  of  the  data  subject  prior  to  the  processing  of  personal  data  for  targeted 
advertising. Similarly, it is without prejudice to the provisions laid down in Directive 
2002/58/EC  in  particular  those  regarding  the  storage  of  information  in  terminal 
equipment and the access to information stored therein.   

(53)  Given the importance of very large online platforms, due to their reach, in particular as 
expressed  in  number  of  recipients  of  the  service,  in  facilitating  public  debate, 
economic transactions and the dissemination of information, opinions and ideas and in 
influencing how recipients obtain and communicate information online, it is necessary 
to  impose  specific  obligations  on  those  platforms,  in  addition  to  the  obligations 
applicable  to  all  online  platforms.  Those  additional  obligations  on  very  large  online 
platforms  are  necessary  to  address  those  public  policy  concerns,  there  being  no 
alternative and less restrictive measures that would effectively achieve the same result. 

(54)  Very  large  online  platforms  may  cause  societal  risks,  different  in  scope  and  impact 
from those caused by smaller platforms. Once the number of recipients of a platform 
reaches  a  significant  share  of  the  Union  population,  the  systemic  risks  the  platform 
poses have a disproportionately negative impact  in the Union. Such significant reach 
should be considered to  exist where the number  of recipients  exceeds an  operational 
threshold  set  at  45  million,  that  is,  a  number  equivalent  to  10%  of  the  Union 
population. The operational threshold should be kept up to date through amendments 
enacted by delegated acts, where necessary. Such very large online platforms should 
therefore bear the highest standard of due diligence obligations, proportionate to their 
societal impact and means. 

(55) 

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

(56)  Very large online platforms  are used in  a  way that  strongly influences  safety  online, 
the shaping of public opinion and discourse, as well as on online trade. The way they 
design  their  services  is  generally  optimised  to  benefit  their  often  advertising-driven 
business models and can cause societal concerns. In the absence of effective regulation 
and  enforcement,  they  can  set  the  rules  of  the  game,  without  effectively  identifying 
and mitigating the risks and the societal and economic harm they can cause. Under this 
Regulation,  very  large  online  platforms  should  therefore  assess  the  systemic  risks 
stemming from the functioning and use of their service, as well as by potential misuses 
by the recipients of the service, and take appropriate mitigating measures.  

(57)  Three  categories  of  systemic  risks  should  be  assessed  in-depth.  A  first  category 
concerns  the  risks  associated  with  the  misuse  of  their  service  through  the 
dissemination  of  illegal  content,  such  as  the  dissemination  of  child  sexual  abuse 
material or illegal hate speech, and the conduct of illegal activities, such as the sale of 
products  or  services  prohibited  by  Union  or  national  law,  including  counterfeit 
products.  For  example,  and  without  prejudice  to  the  personal  responsibility  of  the 

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recipient of the service of very large online platforms for possible illegality of his or 
her activity under the applicable law, such dissemination or activities may constitute a 
significant  systematic  risk  where  access  to  such  content  may  be  amplified  through 
accounts with a particularly wide reach. A second category concerns the impact of the 
service  on  the  exercise  of  fundamental  rights,  as  protected  by  the  Charter  of 
Fundamental Rights, including the freedom of expression and information, the right to 
private life, the right to non-discrimination and the rights of the child. Such risks may 
arise, for example, in relation to the design of the algorithmic systems used by the very 
large online platform or the misuse of their service through the submission of abusive 
notices  or  other  methods  for  silencing  speech  or  hampering  competition.  A  third 
category of risks concerns the intentional and, oftentimes, coordinated manipulation of 
the platform’s service, with a foreseeable impact  on health, civic discourse, electoral 
processes,  public  security  and  protection  of  minors,  having  regard  to  the  need  to 
safeguard public order, protect privacy and fight fraudulent and deceptive commercial 
practices. Such risks may arise, for example, through the creation of fake accounts, the 
use of bots, and other automated or partially automated behaviours, which may lead to 
the  rapid  and  widespread  dissemination  of  information  that  is  illegal  content  or 
incompatible with an online platform’s terms and conditions. 

(58)  Very large online platforms should deploy the necessary means to diligently mitigate 
the systemic risks identified in the risk assessment. Very large online platforms should 
under  such  mitigating  measures  consider,  for  example,  enhancing  or  otherwise 
adapting  the  design  and  functioning  of  their  content  moderation,  algorithmic 
recommender  systems  and  online  interfaces,  so  that  they  discourage  and  limit  the 
dissemination of illegal content, adapting their decision-making processes, or adapting 
their  terms  and  conditions.  They  may  also  include  corrective  measures,  such  as 
discontinuing  advertising  revenue  for  specific  content,  or  other  actions,  such  as 
improving  the  visibility  of  authoritative  information  sources.  Very  large  online 
platforms  may  reinforce  their  internal  processes  or  supervision  of  any  of  their 
activities,  in  particular  as  regards  the  detection  of  systemic  risks.  They  may  also 
initiate  or  increase  cooperation  with  trusted  flaggers,  organise  training  sessions  and 
exchanges  with  trusted  flagger  organisations,  and  cooperate  with  other  service 
providers,  including  by  initiating  or  joining  existing  codes  of  conduct  or  other  self-
regulatory  measures.  Any  measures  adopted  should  respect  the  due  diligence 
requirements  of  this  Regulation  and  be  effective  and  appropriate  for  mitigating  the 
specific risks identified, in the interest of safeguarding public order, protecting privacy 
and  fighting  fraudulent  and  deceptive  commercial  practices,  and  should  be 
proportionate  in  light  of  the  very  large  online  platform’s  economic  capacity  and  the 
need to avoid unnecessary restrictions on the use of their service, taking due account 
of potential negative effects on the fundamental rights of the recipients of the service.  

(59)  Very large online platforms should, where appropriate, conduct their risk assessments 
and  design  their  risk  mitigation  measures  with  the  involvement  of  representatives  of 
the  recipients  of  the  service,  representatives  of  groups  potentially  impacted  by  their 
services, independent experts and civil society organisations.  

(60)  Given  the  need  to  ensure  verification  by  independent  experts,  very  large  online 
platforms  should  be  accountable,  through  independent  auditing,  for  their  compliance 
with  the  obligations  laid  down  by  this  Regulation  and,  where  relevant,  any 
complementary  commitments  undertaking  pursuant  to  codes  of  conduct  and  crises 
protocols. They should give the auditor access to all relevant data necessary to perform 
the  audit  properly.  Auditors  should  also  be  able  to  make  use  of  other  sources  of 

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32 

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objective  information,  including  studies  by  vetted  researchers.  Auditors  should 
guarantee  the  confidentiality,  security  and  integrity  of  the  information,  such  as  trade 
secrets, that they obtain when performing their tasks and have the necessary expertise 
in the area of risk management and technical competence to audit algorithms. Auditors 
should  be  independent,  so  as  to  be  able  to  perform  their  tasks  in  an  adequate  and 
trustworthy manner. If their independence is not beyond doubt, they should resign or 
abstain from the audit engagement.  

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

(62)  A  core  part  of  a  very  large  online  platform’s  business  is  the  manner  in  which 
information  is  prioritised  and  presented  on  its  online  interface  to  facilitate  and 
optimise  access  to  information  for  the  recipients  of  the  service.  This  is  done,  for 
example,  by  algorithmically  suggesting,  ranking  and  prioritising 
information, 
distinguishing  through  text  or  other  visual  representations,  or  otherwise  curating 
information provided by recipients. Such recommender systems can have a significant 
impact  on  the  ability  of  recipients  to  retrieve  and  interact  with  information  online. 
They  also  play  an  important  role  in  the  amplification  of  certain  messages,  the  viral 
dissemination  of  information  and  the  stimulation  of  online  behaviour.  Consequently, 
very  large  online  platforms  should  ensure  that  recipients  are  appropriately  informed, 
and can influence the information presented to them. They should clearly present the 
main parameters for such recommender systems  in an easily comprehensible manner 
to ensure that the recipients understand how information is prioritised for them. They 
should  also  ensure  that  the  recipients  enjoy  alternative  options  for  the  main 
parameters, including options that are not based on profiling of the recipient.  

(63)  Advertising  systems  used  by  very  large  online  platforms  pose  particular  risks  and 
require further public and regulatory supervision on account of their scale and ability 
to  target  and  reach  recipients  of  the  service  based  on  their  behaviour  within  and 
outside  that  platform’s  online  interface.  Very  large  online  platforms  should  ensure 
public access to repositories of advertisements displayed on their online interfaces to 
facilitate  supervision  and  research  into  emerging  risks  brought  about  by  the 
distribution of advertising online, for example in relation to illegal advertisements or 
manipulative  techniques  and  disinformation  with  a  real  and  foreseeable  negative 
impact  on  public  health,  public  security,  civil  discourse,  political  participation  and 
equality. Repositories should include the content of advertisements and related data on 

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33 

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(64) 

the  advertiser  and  the  delivery  of  the  advertisement,  in  particular  where  targeted 
advertising is concerned.  

In order to appropriately supervise the compliance of very large online platforms with 
the  obligations  laid  down  by  this  Regulation,  the  Digital  Services  Coordinator  of 
establishment or the Commission may require access to or reporting of specific data. 
Such  a  requirement  may  include,  for  example,  the  data  necessary  to  assess  the  risks 
and  possible  harms  brought  about  by  the  platform’s  systems,  data  on  the  accuracy, 
functioning and testing  of algorithmic systems  for content moderation, recommender 
systems  or  advertising  systems,  or  data  on  processes  and  outputs  of  content 
moderation  or  of  internal  complaint-handling  systems  within  the  meaning  of  this 
Regulation.  Investigations  by  researchers  on  the  evolution  and  severity  of  online 
systemic  risks  are  particularly  important  for  bridging  information  asymmetries  and 
establishing  a  resilient  system  of  risk  mitigation,  informing  online  platforms,  Digital 
Services  Coordinators,  other  competent  authorities,  the  Commission  and  the  public. 
This  Regulation  therefore  provides  a  framework  for  compelling  access  to  data  from 
very large online platforms to vetted researchers. All requirements for access to data 
under that framework should be proportionate and appropriately protect the rights and 
legitimate interests, including trade secrets  and other confidential  information,  of the 
platform and any other parties concerned, including the recipients of the service. 

(65)  Given  the  complexity  of  the  functioning  of  the  systems  deployed  and  the  systemic 
risks  they  present  to  society,  very  large  online  platforms  should  appoint  compliance 
officers,  which  should  have  the  necessary  qualifications  to  operationalise  measures 
and  monitor  the  compliance  with  this  Regulation  within  the  platform’s  organisation. 
Very  large  online  platforms  should  ensure  that  the  compliance  officer  is  involved, 
properly and in a timely manner, in all issues which relate to this Regulation. In view 
of the additional risks relating to their activities and their additional obligations under 
this Regulation, the other transparency requirements set out in this Regulation should 
be  complemented  by  additional  transparency  requirements  applicable  specifically  to 
very large online platforms,  notably to  report on the risk assessments  performed and 
subsequent measures adopted as provided by this Regulation.  

(66)  To  facilitate  the  effective  and  consistent  application  of  the  obligations  in  this 
Regulation  that  may  require  implementation  through  technological  means,  it  is 
important  to  promote  voluntary  industry  standards  covering  certain  technical 
procedures,  where the industry  can help  develop  standardised means  to  comply with 
this  Regulation,  such  as  allowing  the  submission  of  notices,  including  through 
application  programming  interfaces,  or  about  the  interoperability  of  advertisement 
repositories. Such standards could in particular be useful for relatively small providers 
of  intermediary  services.  The  standards  could  distinguish  between  different  types  of 
illegal content or different types of intermediary services, as appropriate. 

(67)  The Commission and the Board should encourage the drawing-up of codes of conduct 
to contribute to the application of this Regulation. While the implementation of codes 
of  conduct  should  be  measurable  and  subject  to  public  oversight,  this  should  not 
impair  the  voluntary  nature  of  such  codes  and  the  freedom  of  interested  parties  to 
decide whether to participate. In certain circumstances, it is important that very large 
online platforms cooperate in the drawing-up and adhere to specific codes of conduct. 
Nothing in this Regulation prevents other service providers from adhering to the same 
standards of due diligence, adopting best practices and benefitting from the guidance 
provided  by  the  Commission  and  the  Board,  by  participating  in  the  same  codes  of 
conduct. 

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(68) 

It  is  appropriate  that  this  Regulation  identify  certain  areas  of  consideration  for  such 
codes of conduct. In particular, risk mitigation measures concerning specific types of 
illegal  content  should  be  explored  via  self-  and  co-regulatory  agreements.  Another 
area for consideration is the possible negative impacts of systemic risks on society and 
democracy,  such  as  disinformation  or  manipulative  and  abusive  activities.  This 
including 
includes  coordinated  operations  aimed  at  amplifying 
disinformation,  such  as  the  use  of  bots  or  fake  accounts  for  the  creation  of  fake  or 
misleading information, sometimes with a purpose of obtaining economic gain, which 
are  particularly  harmful  for  vulnerable  recipients  of  the  service,  such  as  children.  In 
relation to such areas, adherence to and compliance with a given code of conduct by a 
very  large  online  platform  may  be  considered  as  an  appropriate  risk  mitigating 
measure.  The  refusal  without  proper  explanations  by  an  online  platform  of  the 
Commission’s  invitation  to  participate  in  the  application  of  such  a  code  of  conduct 
could  be  taken  into  account,  where  relevant,  when  determining  whether  the  online 
platform has infringed the obligations laid down by this Regulation. 

information, 

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

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

(71) 

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

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35 

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(72)  The task of ensuring adequate oversight and enforcement of the obligations laid down 
in this Regulation should in principle be attributed to the Member States. To this end, 
they  should  appoint  at  least  one  authority  with  the  task  to  apply  and  enforce  this 
Regulation.  Member  States  should  however  be  able  to  entrust  more  than  one 
competent authority, with specific supervisory or enforcement tasks and competences 
concerning the application of this Regulation, for example for specific sectors, such as 
electronic  communications’  regulators,  media  regulators  or  consumer  protection 
authorities,  reflecting  their  domestic  constitutional,  organisational  and  administrative 
structure.  

(73)  Given  the  cross-border  nature  of  the  services  at  stake  and  the  horizontal  range  of 
obligations  introduced  by  this  Regulation,  the  authority  appointed  with  the  task  of 
supervising the application and, where necessary, enforcing this Regulation should be 
identified as a Digital Services Coordinator in each Member State. Where more than 
one  competent  authority  is  appointed  to  apply  and  enforce  this  Regulation,  only  one 
authority in that Member State should be identified as a Digital Services Coordinator. 
The Digital Services Coordinator should act as the single contact point with regard to 
all matters related to the application of this Regulation for the Commission, the Board, 
the  Digital  Services  Coordinators  of  other  Member  States,  as  well  as  for  other 
competent  authorities  of  the  Member  State  in  question.  In  particular,  where  several 
competent  authorities  are  entrusted  with  tasks  under  this  Regulation  in  a  given 
Member State, the Digital Services Coordinator should coordinate and cooperate with 
those authorities in accordance with the national law setting their respective tasks, and 
should ensure effective involvement of all relevant authorities in the supervision and 
enforcement at Union level.  

(74)  The  Digital  Services  Coordinator,  as  well  as  other  competent  authorities  designated 
under this Regulation, play a crucial role in ensuring the effectiveness of the rights and 
obligations  laid  down  in  this  Regulation  and  the  achievement  of  its  objectives. 
Accordingly,  it  is  necessary  to  ensure  that  those  authorities  act  in  complete 
independence from private and public bodies, without the obligation or possibility to 
seek or receive instructions, including from the government, and without prejudice to 
the specific duties to cooperate with other competent authorities, the Digital Services 
Coordinators, the Board and the Commission. On the other hand, the independence of 
these  authorities  should  not  mean  that  they  cannot  be  subject,  in  accordance  with 
national  constitutions  and  without  endangering  the  achievement  of  the  objectives  of 
this Regulation, to national control or monitoring mechanisms regarding their financial 
expenditure or to judicial review, or that they should not have the possibility to consult 
other national authorities, including law enforcement authorities or crisis management 
authorities, where appropriate.  

that  any  such  appointed  authority  complies  with 

(75)  Member  States  can  designate  an  existing  national  authority  with  the  function  of  the 
Digital  Services  Coordinator,  or  with  specific  tasks  to  apply  and  enforce  this 
the 
Regulation,  provided 
requirements  laid  down  in  this  Regulation,  such  as  in  relation  to  its  independence. 
Moreover,  Member  States  are  in  principle  not  precluded  from  merging  functions 
within  an  existing  authority,  in  accordance  with  Union  law.  The  measures  to  that 
effect  may  include,  inter  alia,  the  preclusion  to  dismiss  the  President  or  a  board 
member of a collegiate body of an existing authority before the expiry of their terms of 
office,  on  the  sole  ground  that  an  institutional  reform  has  taken  place  involving  the 
merger  of  different  functions  within  one  authority,  in  the  absence  of  any  rules 

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(76) 

guaranteeing that such dismissals do not jeopardise the independence and impartiality 
of such members. 

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

to  ensure  effective 

(77)  Member  States  should  provide  the  Digital  Services  Coordinator,  and  any  other 
competent  authority  designated  under  this  Regulation,  with  sufficient  powers  and 
means 
investigation  and  enforcement.  Digital  Services 
Coordinators should in particular be able to search for and obtain information which is 
located in its territory, including in the context of joint investigations, with due regard 
to  the fact  that oversight and enforcement measures concerning a provider under the 
jurisdiction  of  another  Member  State  should  be  adopted  by  the  Digital  Services 
Coordinator  of  that  other  Member  State,  where  relevant  in  accordance  with  the 
procedures relating to cross-border cooperation. 

(78)  Member States should set out in their national law, in accordance with Union law and 
in particular this Regulation and the Charter, the detailed conditions and limits for the 
exercise  of  the  investigatory  and  enforcement  powers  of  their  Digital  Services 
Coordinators, and other competent authorities where relevant, under this Regulation.  

(79) 

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

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relevant  facts  and  circumstances  of  the  case  into  account,  including  information 
gathered by competent authorities in other Member States.  

(80)  Member  States  should  ensure  that  violations  of  the  obligations  laid  down  in  this 
Regulation  can  be  sanctioned  in  a  manner  that  is  effective,  proportionate  and 
dissuasive,  taking  into  account  the  nature,  gravity,  recurrence  and  duration  of  the 
violation,  in  view  of  the  public  interest  pursued,  the  scope  and  kind  of  activities 
carried out, as  well as the economic capacity of the infringer. In particular, penalties 
should  take  into  account  whether  the  provider  of  intermediary  services  concerned 
systematically  or  recurrently  fails  to  comply  with  its  obligations  stemming  from  this 
Regulation,  as  well  as,  where  relevant,  whether  the  provider  is  active  in  several 
Member States.  

(81) 

In  order  to  ensure  effective  enforcement  of  this  Regulation,  individuals  or 
representative  organisations  should  be  able  to  lodge  any  complaint  related  to 
compliance with this Regulation with the Digital Services Coordinator in the territory 
where  they  received  the  service,  without  prejudice  to  this  Regulation’s  rules  on 
jurisdiction.  Complaints  should  provide  a  faithful  overview  of  concerns  related  to  a 
particular  intermediary  service  provider’s  compliance  and  could  also  inform  the 
Digital  Services  Coordinator  of  any  more  cross-cutting  issues.  The  Digital  Services 
Coordinator should involve other national competent authorities as well as the Digital 
Services  Coordinator  of  another  Member  State,  and  in  particular  the  one  of  the 
Member State where the provider of intermediary services concerned is established, if 
the issue requires cross-border cooperation. 

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

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

(84)  The  Digital  Services  Coordinator  should  regularly  publish  a  report  on  the  activities 
carried out under this Regulation. Given that the Digital Services Coordinator is also 
made aware of orders to take action against illegal content or to provide information 
regulated  by  this  Regulation  through  the  common  information  sharing  system,  the 
Digital  Services  Coordinator  should  include  in  its  annual  report  the  number  and 
categories  of  these  orders  addressed  to  providers  of  intermediary  services  issued  by 
judicial and administrative authorities in its Member State. 

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(85)  Where a Digital Services Coordinator requests another Digital Services Coordinator to 
take action, the requesting Digital Services Coordinator, or the Board in case it issued 
a recommendation to  assess issues involving more than three Member States, should 
be  able  to  refer  the  matter  to  the  Commission  in  case  of  any  disagreement  as  to  the 
assessments or the measures taken or proposed or a failure to adopt any measures. The 
Commission,  on  the  basis  of  the  information  made  available  by  the  concerned 
authorities,  should  accordingly  be  able  to  request  the  competent  Digital  Services 
Coordinator  to  re-assess  the  matter  and  take  the  necessary  measures  to  ensure 
compliance  within  a  defined  time  period.  This  possibility  is  without  prejudice  to  the 
Commission’s general duty to oversee the application of, and where necessary enforce, 
Union  law  under  the  control  of  the  Court  of  Justice  of  the  European  Union  in 
accordance  with  the  Treaties.  A  failure  by  the  Digital  Services  Coordinator  of 
establishment  to  take  any  measures  pursuant  to  such  a  request  may  also  lead  to  the 
Commission’s  intervention  under  Section  3  of  Chapter  IV  of  this  Regulation,  where 
the suspected infringer is a very large online platform 

(86) 

(87) 

(88) 

In  order  to  facilitate  cross-border  supervision  and  investigations  involving  several 
Member States, the Digital Services Coordinators should be  able to  participate, on a 
permanent  or  temporary  basis,  in  joint  oversight  and  investigation  activities 
concerning  matters  covered  by  this  Regulation.  Those  activities  may  include  other 
competent authorities and may cover a variety of issues, ranging from coordinated data 
gathering exercises to requests for information or inspections of premises, within the 
limits and scope of powers available to each participating authority. The Board may be 
requested  to  provide  advice  in  relation  to  those  activities,  for  example  by  proposing 
roadmaps  and 
task-forces  with 
timelines  for  activities  or  proposing  ad-hoc 
participation of the authorities involved.  

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

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

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

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(90)  For  that  purpose,  the  Board  should  be  able  to  adopt  opinions,  requests  and 
recommendations  addressed  to  Digital  Services  Coordinators  or  other  competent 
national  authorities.  While  not  legally  binding,  the  decision  to  deviate  therefrom 
should be properly explained and could be taken into account by the Commission in 
assessing the compliance of the Member State concerned with this Regulation.  

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

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

(93) 

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

(94)  Given the importance of very large online platforms, in view of their reach and impact, 
their  failure  to  comply  with  the  specific  obligations  applicable  to  them  may  affect  a 
substantial  number  of  recipients  of  the  services  across  different  Member  States  and 
may cause large societal harms, while such failures may also be particularly complex 
to identify and address.  

(95) 

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

(96)  Where  the  infringement  of  the  provision  that  solely  applies  to  very  large  online 
platforms is not effectively addressed by that platform pursuant to the action plan, only 
the  Commission  may,  on  its  own  initiative  or  upon  advice  of  the  Board,  decide  to 

EN 

40 

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further investigate the infringement concerned and the measures that the platform has 
subsequently  taken,  to  the  exclusion  of  the  Digital  Services  Coordinator  of 
establishment.  After  having  conducted  the  necessary  investigations,  the  Commission 
should  be  able  to  issue  decisions  finding  an  infringement  and  imposing  sanctions  in 
respect of very large online platforms where that is justified. It should also have such a 
possibility  to  intervene  in  cross-border  situations  where  the  Digital  Services 
Coordinator  of  establishment  did  not  take  any  measures  despite  the  Commission’s 
request, or in situations where the Digital Services Coordinator of establishment itself 
requested for the Commission to intervene, in respect of an infringement of any other 
provision of this Regulation committed by a very large online platform.  

initiated 

the  proceedings, 

(97)  The Commission should remain free to decide whether or not it wishes to intervene in 
any of the situations where it is empowered to do so under this Regulation. Once the 
the  Digital  Services  Coordinators  of 
Commission 
establishment  concerned should be precluded from  exercising their investigatory  and 
enforcement  powers  in  respect  of  the  relevant  conduct  of  the  very  large  online 
platform  concerned,  so  as  to  avoid  duplication,  inconsistencies  and  risks  from  the 
viewpoint of the principle of ne bis in idem. However, in the interest of effectiveness, 
those  Digital  Services  Coordinators  should  not  be  precluded  from  exercising  their 
powers  either  to  assist  the  Commission,  at  its  request  in  the  performance  of  its 
supervisory tasks, or in respect of other conduct, including conduct by the same very 
large online platform that is suspected to constitute a new infringement. Those Digital 
Services  Coordinators,  as  well  as  the  Board  and  other  Digital  Services  Coordinators 
where  relevant,  should  provide  the  Commission  with  all  necessary  information  and 
assistance  to  allow  it  to  perform  its  tasks  effectively,  whilst  conversely  the 
Commission should keep them informed on the exercise of its powers as appropriate. 
In that regard, the Commission should, where appropriate, take account of any relevant 
assessments  carried  out  by  the  Board  or  by  the  Digital  Services  Coordinators 
concerned  and  of  any  relevant  evidence  and  information  gathered  by  them,  without 
prejudice  to  the  Commission’s  powers  and  responsibility  to  carry  out  additional 
investigations as necessary.  

(98) 

(99) 

In  view  of  both  the  particular  challenges  that  may  arise  in  seeking  to  ensure 
compliance by very large online platforms and the importance of doing so effectively, 
considering their size and impact and the harms that they may cause, the Commission 
should  have  strong  investigative  and  enforcement  powers  to  allow  it  to  investigate, 
enforce and monitor certain of the rules laid down in this Regulation, in full respect of 
the principle of proportionality and the rights and interests of the affected parties. 

In particular, the Commission should have access to any relevant documents, data and 
information  necessary  to  open  and  conduct  investigations  and  to  monitor  the 
compliance with the relevant obligations laid down in this Regulation, irrespective of 
who possesses the documents, data or information in question, and regardless of their 
form or format, their storage medium, or the precise place where they are stored. The 
Commission  should  be  able  to  directly  require  that  the  very  large  online  platform 
concerned or relevant third parties, or than individuals, provide any relevant evidence, 
data  and  information.  In  addition,  the  Commission  should  be  able  to  request  any 
relevant  information  from  any  public  authority,  body  or  agency  within  the  Member 
State,  or  from  any  natural  person  or  legal  person  for  the  purpose  of  this  Regulation. 
The Commission should be empowered to require access to, and explanations relating 
to, data-bases and algorithms of relevant persons, and to interview, with their consent, 
any  persons  who  may  be  in  possession  of  useful  information  and  to  record  the 

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41 

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statements  made.  The  Commission  should  also  be  empowered  to  undertake  such 
inspections  as  are  necessary  to  enforce  the  relevant  provisions  of  this  Regulation. 
Those  investigatory  powers  aim  to  complement  the  Commission’s  possibility  to  ask 
Digital Services Coordinators and other Member States’ authorities for assistance, for 
instance by providing information or in the exercise of those powers 

(100)  Compliance  with  the  relevant  obligations  imposed  under  this  Regulation  should  be 
enforceable by means of fines and periodic penalty payments. To that end, appropriate 
levels  of  fines  and  periodic  penalty  payments  should  also  be  laid  down  for  non-
compliance  with  the  obligations  and  breach  of  the  procedural  rules,  subject  to 
appropriate limitation periods. 

(101)  The very large online platforms concerned and other persons subject to the exercise of 
the  Commission’s  powers  whose  interests  may  be  affected  by  a  decision  should  be 
given  the  opportunity  of  submitting  their  observations  beforehand,  and  the  decisions 
taken should be widely publicised. While ensuring the rights of defence of the parties 
concerned, in particular, the right of access to the file, it is essential that confidential 
information  be  protected.  Furthermore,  while  respecting  the  confidentiality  of  the 
information,  the  Commission  should  ensure  that  any  information  relied  on  for  the 
purpose  of  its  decision  is  disclosed  to  an  extent  that  allows  the  addressee  of  the 
decision to understand the facts and considerations that lead up to the decision.  

(102)  In the interest of effectiveness and efficiency, in addition to the general evaluation of 
the Regulation, to be performed within five  years of entry into force, after the initial 
start-up phase and on the basis of the first three years of application of this Regulation, 
the Commission should also perform an evaluation of the activities of the Board and 
on its structure.  

(103)  In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing powers should be conferred on the Commission. Those powers should 
be  exercised  in  accordance  with  Regulation  (EU)  No  182/2011  of  the  European 
Parliament and of the Council49. 

(104)  In  order  to  fulfil  the  objectives  of  this  Regulation,  the  power  to  adopt  acts  in 
accordance with Article 290 of the Treaty should be delegated to the Commission to 
supplement this Regulation. In particular, delegated acts should be adopted in respect 
of  criteria  for  identification  of  very  large  online  platforms  and  of  technical 
specifications  for  access requests.  It is  of particular importance that the  Commission 
carries  out  appropriate  consultations  and  that  those  consultations  be  conducted  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. 

(105)  This  Regulation  respects  the  fundamental  rights  recognised  by  the  Charter  and  the 
fundamental  rights  constituting  general  principles  of  Union  law.  Accordingly,  this 
Regulation  should  be  interpreted  and  applied  in  accordance  with  those  fundamental 

49 Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011  laying 
down  the  rules  and  general  principles  concerning  mechanisms  for  control  by  Member  States  of  the 
Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 

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42 

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rights,  including  the  freedom  of  expression  and  information,  as  well  as  the  freedom 
and pluralism of the media. When exercising the powers set out in this Regulation, all 
public  authorities  involved  should  achieve,  in  situations  where  the  relevant 
fundamental rights conflict, a fair balance between the rights concerned, in accordance 
with the principle of proportionality. 

(106)  Since  the  objective  of  this  Regulation,  namely  the  proper  functioning  of  the  internal 
market and to ensure a safe, predictable and trusted online environment in which the 
fundamental rights enshrined in the Charter are duly protected, cannot be sufficiently 
achieved  by  the  Member  States  because  they  cannot  achieve  the  necessary 
harmonisation  and  cooperation  by  acting  alone,  but  can  rather,  by  reason  of  its 
territorial  and  personal  scope,  be  better  achieved  at  the  Union  level,  the  Union  may 
adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 
of the Treaty on European Union. In accordance with the principle of proportionality, 
as set out in that Article, this Regulation does not go beyond what is necessary in order 
to achieve that objective, 

HAVE ADOPTED THIS REGULATION: 

Chapter I – General provisions 

Article 1 
Subject matter and scope 

1. 

This  Regulation  lays  down  harmonised  rules  on  the  provision  of  intermediary 
services in the internal market. In particular, it establishes: 

(a) 

(b) 

(c) 

a  framework  for  the  conditional  exemption  from  liability  of  providers  of 
intermediary services; 

rules on specific due diligence obligations tailored to certain specific categories 
of providers of intermediary services;  

rules on the implementation  and enforcement of this  Regulation,  including  as 
regards the cooperation of and coordination between the competent authorities. 

2. 

The aims of this Regulation are to: 

(a) 

(b) 

contribute  to  the  proper  functioning  of  the  internal  market  for  intermediary 
services; 

set  out  uniform  rules  for  a  safe,  predictable  and  trusted  online  environment, 
where fundamental rights enshrined in the Charter are effectively protected.  

This  Regulation  shall  apply  to  intermediary  services  provided  to  recipients  of  the 
service that have their place of establishment or residence in the Union, irrespective 
of the place of establishment of the providers of those services. 

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

3. 

4. 

5. 

This Regulation is without prejudice to the rules laid down by the following: 

(a)  Directive 2000/31/EC; 

(b)  Directive 2010/13/EC; 

(c)  Union law on copyright and related rights;  

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43 

  EN 

(d)  Regulation  (EU)  …/….  on  preventing  the  dissemination  of  terrorist  content 

online [TCO once adopted]; 

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

(f)  Regulation (EU) 2019/1148;  

(g)  Regulation (EU) 2019/1150; 

(h)  Union  law  on  consumer  protection  and  product  safety,  including  Regulation 

(EU) 2017/2394;  

(i)  Union  law  on  the  protection  of  personal  data,  in  particular  Regulation  (EU) 

2016/679 and Directive 2002/58/EC. 

Article 2 
Definitions 

For the purpose of this Regulation, the following definitions shall apply: 

(a) 

(b) 

(c) 

(d) 

(e) 

‘information society services’ means services within the meaning of Article 1(1)(b) 
of Directive (EU) 2015/1535; 

‘recipient  of  the  service’  means  any  natural  or  legal  person  who  uses  the  relevant 
intermediary service; 

‘consumer’ means  any natural  person who is  acting for purposes which are outside 
his or her trade, business or profession; 

‘to  offer  services  in  the  Union’  means  enabling  legal  or  natural  persons  in  one  or 
more  Member  States  to  use  the  services  of  the  provider  of  information  society 
services  which  has  a  substantial  connection    to  the  Union;  such  a  substantial 
connection is deemed to exist where the provider has an establishment in the Union; 
in the absence of such an establishment, the assessment of a substantial connection is 
based on specific factual criteria, such as: 

– 

– 

a significant number of users in one or more Member States; or 

the targeting of activities towards one or more Member States. 

‘trader’  means  any  natural  person,  or  any  legal  person  irrespective  of  whether 
privately  or  publicly  owned,  who  is  acting,  including  through  any  person  acting  in 
his  or  her  name  or  on  his  or  her  behalf,  for  purposes  relating  to  his  or  her  trade, 
business, craft or profession; 

(f) 

‘intermediary service’ means one of the following services: 

– 

– 

a ‘mere conduit’ service that consists of the transmission in a communication 
network of information provided by a recipient of the service, or the provision 
of access to a communication network; 

a  ‘caching’  service  that  consists  of  the  transmission  in  a  communication 
network  of  information  provided  by  a  recipient  of  the  service,  involving  the 
automatic, intermediate and temporary storage of that information, for the sole 
purpose  of  making  more  efficient  the  information's  onward  transmission  to 
other recipients upon their request; 

EN 

44 

  EN 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

(m) 

(n) 

(o) 

(p) 

– 

a ‘hosting’ service that consists of the storage of information provided by, and 
at the request of, a recipient of the service; 

‘illegal  content’  means  any  information,,  which,  in  itself  or  by  its  reference  to  an 
activity, including the sale of products or provision of services is not in compliance 
with  Union  law  or  the  law  of  a  Member  State,  irrespective  of  the  precise  subject 
matter or nature of that law;  

 ‘online  platform’  means  a  provider  of  a  hosting  service  which,  at  the  request  of  a 
recipient of the service, stores and disseminates to the public information, unless that 
activity is a minor and purely ancillary feature of another service and, for objective 
and technical reasons  cannot be used without that other service, and the integration 
of the feature into the other service is not a means to circumvent the applicability of 
this Regulation. 

‘dissemination to the public’ means making information available, at the request of 
the recipient of the service who provided the information, to a potentially unlimited 
number of third parties;  

‘distance contract’ means a contract within the meaning of Article 2(7) of Directive 
2011/83/EU; 

‘online  interface’  means  any  software,  including  a  website  or  a  part  thereof,  and 
applications, including mobile applications; 

‘Digital  Services  Coordinator  of  establishment’  means  the  Digital  Services 
Coordinator  of  the  Member  State  where  the  provider  of  an  intermediary  service  is 
established or its legal representative resides or is established; 

‘Digital Services Coordinator of destination’ means the Digital Services Coordinator 
of a Member State where the intermediary service is provided; 

‘advertisement’  means  information  designed  to  promote  the  message  of  a  legal  or 
natural  person,  irrespective  of  whether  to  achieve  commercial  or  non-commercial 
purposes,  and  displayed  by  an  online  platform  on  its  online  interface  against 
remuneration specifically for promoting that information;  

‘recommender system’ means a fully or partially automated system used by an online 
platform  to  suggest  in  its  online  interface  specific  information  to  recipients  of  the 
service,  including  as  a  result  of  a  search  initiated  by  the  recipient  or  otherwise 
determining the relative order or prominence of information displayed; 

‘content  moderation’  means  the  activities  undertaken  by  providers  of  intermediary 
services aimed at detecting, identifying and addressing illegal content or information 
incompatible with their terms and conditions, provided by recipients of the service, 
including  measures  taken  that  affect  the  availability,  visibility  and  accessibility  of 
that illegal content or that information, such as demotion, disabling of access to, or 
removal  thereof,  or  the  recipients’  ability  to  provide  that  information,  such  as  the 
termination or suspension of a recipient’s account; 

(q) 

‘terms and conditions’ means all terms and conditions or specifications, irrespective 
of  their  name  or  form,  which  govern  the  contractual  relationship  between  the 
provider of intermediary services and the recipients of the services. 

EN 

45 

  EN 

1. 

2. 

3. 

1. 

Chapter II – Liability of providers of intermediary services  

Article 3 
‘Mere conduit’  

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

(a) 

does not initiate the transmission; 

(b)  does not select the receiver of the transmission; and 

(c) 

does not select or modify the information contained in the transmission. 

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

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

Article 4 
‘Caching’  

Where an information society service is provided that consists of the transmission in 
a communication network of information provided by a recipient of the service, the 
service  provider  shall  not  be  liable  for  the  automatic,  intermediate  and  temporary 
storage of that information, performed for the sole purpose of making more efficient 
the  information's  onward  transmission  to  other  recipients  of  the  service  upon  their 
request, on condition that: 

(a) 

the provider does not modify the information; 

(b) 

the provider complies with conditions on access to the information; 

(c) 

(d) 

(e) 

the  provider  complies  with  rules  regarding  the  updating  of  the  information, 
specified in a manner widely recognised and used by industry; 

the  provider  does  not  interfere  with  the  lawful  use  of  technology,  widely 
recognised and used by industry, to obtain data on the use of the information; 
and 

the  provider  acts  expeditiously  to  remove  or  to  disable  access  to  the 
information it has stored upon obtaining actual knowledge of the fact that the 
information at the initial source of the transmission has been removed from the 
network, or access to it has been disabled, or that a court or an administrative 
authority has ordered such removal or disablement. 

2. 

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

EN 

46 

  EN 

Article 5 
Hosting 

1. 

2. 

3. 

4. 

Where  an  information  society  service  is  provided  that  consists  of  the  storage  of 
information  provided by a  recipient of the service the service provider shall not  be 
liable  for  the  information  stored  at  the  request  of  a  recipient  of  the  service  on 
condition that the provider: 

(a) 

does  not  have  actual  knowledge  of  illegal  activity  or  illegal  content  and,  as 
regards claims for damages, is not aware of facts or circumstances from which 
the illegal activity or illegal content is apparent; or 

(b)  upon obtaining such knowledge or awareness, acts expeditiously to remove or 

to disable access to the illegal content. 

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

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

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

Article 6 
Voluntary own-initiative investigations and legal compliance 

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

Article 7 
No general monitoring or active fact-finding obligations 

No  general  obligation  to  monitor  the  information  which  providers  of  intermediary  services 
transmit or store, nor actively to seek facts or circumstances indicating illegal activity shall be 
imposed on those providers.  

Article 8 
Orders to act against illegal content 

1. 

Providers of intermediary services shall, upon the receipt of an order to act against a 
specific  item  of  illegal  content,  issued  by  the  relevant  national  judicial  or 
administrative  authorities,  on  the  basis  of  the  applicable  Union  or  national  law,  in 
conformity with Union law, inform the authority issuing the order of the effect given 
to the orders, without undue delay, specifying the action taken and the moment when 
the action was taken. 

EN 

47 

  EN 

2. 

Member  States  shall  ensure  that  the  orders  referred  to  in  paragraph  1  meet  the 
following conditions: 

(a) 

the orders contains the following elements: 

– 

– 

– 

a statement of reasons explaining why the information is illegal content, 
by reference to the specific provision of Union or national law infringed; 

one  or  more  exact  uniform  resource  locators  and,  where  necessary, 
additional  information  enabling  the  identification  of  the  illegal  content 
concerned;  

information about redress available to the provider of the service and to 
the recipient of the service who provided the content; 

(b) 

the territorial scope of the order, on the basis of the applicable rules of Union 
and national law, including the Charter, and, where relevant, general principles 
of  international  law,  does  not  exceed  what  is  strictly  necessary  to  achieve  its 
objective; 

(c) 

the order is drafted in the language declared by the provider and is sent to the 
point of contact, appointed by the provider, in accordance with Article 10. 

The  Digital  Services  Coordinator  from  the  Member  State  of  the  judicial  or 
administrative authority issuing the order shall, without undue delay, transmit a copy 
of  the  orders  referred  to  in  paragraph  1  to  all  other  Digital  Services  Coordinators 
through the system established in accordance with Article 67. 

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

Article 9 
Orders to provide information 

Providers  of  intermediary  services  shall,  upon  receipt  of  an  order  to  provide  a 
specific item  of information  about  one or more specific individual recipients  of the 
service,  issued  by  the  relevant  national  judicial  or  administrative  authorities  on  the 
basis of the applicable Union or national law, in conformity with Union law, inform 
without  undue  delay  the  authority  of  issuing  the  order  of  its  receipt  and  the  effect 
given to the order.  

Member States shall ensure that orders referred to in paragraph 1 meet the following 
conditions:  

(a) 

the order contains the following elements:  

– 

a statement of reasons explaining the objective for which the information 
is  required  and  why  the  requirement  to  provide  the  information  is 
necessary and proportionate to determine compliance by the recipients of 
the intermediary services with applicable Union or national rules, unless 
such a statement cannot be provided for reasons related to the prevention, 
investigation, detection and prosecution of criminal offences;  

– 

information about redress available to the provider and to the recipients 
of the service concerned; 

3. 

4. 

1. 

2. 

EN 

48 

  EN 

(b) 

(c) 

the  order  only  requires  the  provider  to  provide  information  already  collected 
for the purposes of providing the service and which lies within its control;  

the order is drafted in the language declared by the provider and is sent to the 
point of contact appointed by that provider, in accordance with Article 10; 

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

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

Chapter III 
Due diligence obligations for a transparent and safe online 
environment 

SECTION 1 
PROVISIONS APPLICABLE TO ALL PROVIDERS OF INTERMEDIARY SERVICES 

Article 10 
Points of contact  

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

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

Providers  of  intermediary  services  shall  specify  in  the  information  referred  to  in 
paragraph 2, the official  language or languages of the Union, which can be used to 
communicate with their points of contact and which shall include at least one of the 
official  languages  of  the  Member  State  in  which  the  provider  of  intermediary 
services  has  its  main  establishment  or  where  its  legal  representative  resides  or  is 
established. 

Article 11 
Legal representatives 

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

Providers  of  intermediary  services  shall  mandate  their  legal  representatives  to  be 
addressed in addition to or instead of the provider by the Member States’ authorities, 
the Commission and the Board on all issues necessary for the receipt of, compliance 
with and enforcement of decisions issued in relation to this Regulation. Providers of 
intermediary  services  shall  provide  their  legal  representative  with  the  necessary 

3. 

4. 

1. 

2. 

3. 

1. 

2. 

EN 

49 

  EN 

3. 

4. 

5. 

1. 

2. 

1. 

powers  and  resource  to  cooperate  with  the  Member  States’  authorities,  the 
Commission and the Board and comply with those decisions. 

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

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

The  designation  of  a  legal  representative  within  the  Union  pursuant  to  paragraph  1 
shall not amount to an establishment in the Union. 

Article 12 
Terms and conditions 

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

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

Article 13 
Transparency reporting obligations for providers of intermediary services 

Providers  of  intermediary  services  shall  publish,  at  least  once  a  year,  clear,  easily 
comprehensible  and  detailed  reports  on  any  content  moderation  they  engaged  in 
during the relevant period. Those reports shall include, in particular, information on 
the following, as applicable:  

(a) 

(b) 

the number of orders received from Member States’ authorities, categorised by 
the  type  of  illegal  content  concerned,  including  orders  issued  in  accordance 
with  Articles  8  and  9,  and  the  average  time  needed  for  taking  the  action 
specified in those orders; 

the number of notices submitted in accordance with Article 14, categorised by 
the type of alleged illegal content concerned, any action taken pursuant to the 
notices by differentiating whether the action was taken on the basis of the law 
or  the  terms  and  conditions  of  the  provider,  and  the  average  time  needed  for 
taking the action; 

(c) 

the  content  moderation  engaged  in  at  the  providers’  own  initiative,  including 
the  number  and  type  of  measures  taken  that  affect  the  availability,  visibility 
and  accessibility  of  information  provided  by  the  recipients  of  the  service  and 

EN 

50 

  EN 

the recipients’ ability to provide information, categorised by the type of reason 
and basis for taking those measures; 

(d) 

the  number  of  complaints  received  through  the  internal  complaint-handling 
system referred to in Article 17, the basis for those complaints, decisions taken 
in  respect  of  those  complaints,  the  average  time  needed  for  taking  those 
decisions and the number of instances where those decisions were reversed. 

2. 

Paragraph  1  shall  not  apply  to  providers  of  intermediary  services  that  qualify  as 
micro  or  small  enterprises  within  the  meaning  of  the  Annex  to  Recommendation 
2003/361/EC. 

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

1. 

2. 

3. 

4. 

5. 

Article 14 
Notice and action mechanisms 

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

The  mechanisms  referred  to  in  paragraph  1  shall  be  such  as  to  facilitate  the 
submission of sufficiently precise and adequately substantiated notices, on the basis 
of  which  a  diligent  economic  operator  can  identify  the  illegality  of  the  content  in 
question. To that end, the providers shall take the necessary measures to enable and 
facilitate the submission of notices containing all of the following elements: 

(a) 

(b) 

(c) 

(d) 

an  explanation  of  the  reasons  why  the  individual  or  entity  considers  the 
information in question to be illegal content; 

a clear indication of the electronic location of that information, in particular the 
exact URL or URLs, and, where necessary, additional information enabling the 
identification of the illegal content; 

the name and an electronic mail address of the individual or entity submitting 
the notice, except  in the case of information  considered to  involve one of the 
offences referred to in Articles 3 to 7 of Directive 2011/93/EU; 

a  statement  confirming  the  good  faith  belief  of  the  individual  or  entity 
submitting the notice that the information and allegations contained therein are 
accurate and complete. 

Notices  that  include  the  elements  referred  to  in  paragraph  2  shall  be  considered  to 
give rise to actual knowledge or awareness for the purposes of Article 5 in respect of 
the specific item of information concerned. 

Where the notice contains the name and an electronic mail address of the individual 
or  entity  that  submitted  it,  the  provider  of  hosting  services  shall  promptly  send  a 
confirmation of receipt of the notice to that individual or entity.  

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

EN 

51 

  EN 

6. 

1. 

2. 

3. 

4. 

Providers  of  hosting  services  shall  process  any  notices  that  they  receive  under  the 
mechanisms  referred  to  in  paragraph  1,  and  take  their  decisions  in  respect  of  the 
information  to  which  the  notices  relate,  in  a  timely,  diligent  and  objective  manner. 
Where they use automated means for that processing or decision-making, they shall 
include information on such use in the notification referred to in paragraph 4.  

Article 15 
Statement of reasons 

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

The  statement  of  reasons  referred  to  in  paragraph  1  shall  at  least  contain  the 
following information: 

(a)  whether the decision entails either the removal of, or the disabling of access to, 
the  information  and,  where  relevant,  the  territorial  scope  of  the  disabling  of 
access; 

(b) 

the  facts  and  circumstances  relied  on  in  taking  the  decision,  including  where 
relevant  whether  the  decision  was  taken  pursuant  to  a  notice  submitted  in 
accordance with Article 14; 

(c)  where applicable, information on the use made of automated means  in  taking 
the  decision,  including  where  the  decision  was  taken  in  respect  of  content 
detected or identified using automated means; 

(d)  where the decision concerns allegedly  illegal  content, a reference to  the  legal 
ground relied on and explanations as to why the information is considered to be 
illegal content on that ground; 

(e)  where  the  decision  is  based  on  the  alleged  incompatibility  of  the  information 
with  the  terms  and  conditions  of  the  provider,  a  reference  to  the  contractual 
ground relied on and explanations as to why the information is considered to be 
incompatible with that ground; 

(f) 

information on the redress possibilities available to the recipient of the service 
in  respect  of  the  decision,  in  particular  through  internal  complaint-handling 
mechanisms, out-of-court dispute settlement and judicial redress. 

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

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

EN 

52 

  EN 

SECTION 3 
ADDITIONAL PROVISIONS APPLICABLE TO ONLINE PLATFORMS 

Article 16 
Exclusion for micro and small enterprises 

This  Section  shall  not  apply  to  online  platforms  that  qualify  as  micro  or  small  enterprises 
within the meaning of the Annex to Recommendation 2003/361/EC. 

1. 

2. 

3. 

4. 

5. 

1. 

Article 17 
Internal complaint-handling system 

Online  platforms  shall  provide  recipients  of  the  service,  for  a  period  of  at  least  six 
months following the decision referred to in this paragraph, the access to an effective 
internal  complaint-handling  system,  which  enables  the  complaints  to  be  lodged 
electronically and free of charge, against the following decisions taken by the online 
platform  on  the  ground  that  the  information  provided  by  the  recipients  is  illegal 
content or incompatible with its terms and conditions: 

(a) 

decisions to remove or disable access to the information; 

(b)  decisions  to  suspend or  terminate the provision  of the service, in  whole  or in 

part, to the recipients; 

(c) 

decisions to suspend or terminate the recipients’ account. 

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

Online platforms shall handle complaints submitted through their internal complaint-
handling  system  in  a  timely,  diligent  and  objective  manner.  Where  a  complaint 
contains sufficient grounds for the online platform to consider that the information to 
which the complaint relates is not illegal and is not incompatible with its terms and 
conditions,  or  contains  information  indicating  that  the  complainant’s  conduct  does 
not  warrant  the  suspension  or  termination  of  the  service  or  the  account,  it  shall 
reverse its decision referred to in paragraph 1 without undue delay. 

Online platforms shall inform complainants without undue delay of the decision they 
have  taken  in  respect  of  the  information  to  which  the  complaint  relates  and  shall 
inform complainants of the possibility of out-of-court dispute settlement provided for 
in Article 18 and other available redress possibilities.  

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

Article 18 
Out-of-court dispute settlement 

Recipients of the service addressed by the decisions referred to in Article 17(1), shall 
be  entitled  to  select  any  out-of-court  dispute  that  has  been  certified  in  accordance 
with  paragraph  2  in  order  to  resolve  disputes  relating  to  those  decisions,  including 
complaints  that  could  not  be  resolved  by  means  of  the  internal  complaint-handling 
system referred to in that Article. Online platforms shall engage, in good faith, with 

EN 

53 

  EN 

the  body  selected  with  a  view  to  resolving  the  dispute  and  shall  be  bound  by  the 
decision taken by the body.  

The first subparagraph is without prejudice to the right of the recipient concerned to 
redress against the decision before a court in accordance with the applicable law. 

2. 

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

(a) 

(b) 

(c) 

(d) 

(e) 

it is impartial and independent of online platforms and recipients of the service 
provided by the online platforms; 

it  has  the  necessary  expertise  in  relation  to  the  issues  arising  in  one  or  more 
particular  areas  of  illegal  content,  or  in  relation  to  the  application  and 
enforcement of terms and conditions of one or more types of online platforms, 
allowing the body to contribute effectively to the settlement of a dispute; 

the  dispute  settlement  is  easily  accessible  through  electronic  communication 
technology; 

it  is  capable  of  settling  dispute  in  a  swift,  efficient  and  cost-effective  manner 
and in at least one official language of the Union; 

the  dispute  settlement  takes  place  in  accordance  with  clear  and  fair  rules  of 
procedure. 

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

If  the  body  decides  the  dispute  in  favour  of  the  recipient  of  the  service,  the  online 
platform shall reimburse the recipient for any fees and other reasonable expenses that 
the  recipient  has  paid  or  is  to  pay  in  relation  to  the  dispute  settlement.  If  the  body 
decides  the  dispute  in  favour  of  the  online  platform,  the  recipient  shall  not  be 
required to reimburse any fees or other expenses that the online platform paid or is to 
pay in relation to the dispute settlement.  

The fees charged by the body for the dispute settlement shall be reasonable and shall 
in any event not exceed the costs thereof.  

Certified  out-of-court  dispute  settlement  bodies  shall  make  the  fees,  or  the 
mechanisms  used  to  determine  the  fees,  known  to  the  recipient  of  the  services  and 
the online platform concerned before engaging in the dispute settlement. 

Member States may establish out-of-court dispute settlement bodies for the purposes 
of paragraph 1 or support the activities of some or all out-of-court dispute settlement 
bodies that they have certified in accordance with paragraph 2. 

Member  States  shall  ensure  that  any  of  their  activities  undertaken  under  the  first 
subparagraph do not affect the ability of their Digital Services Coordinators to certify 
the bodies concerned in accordance with paragraph 2. 

Digital Services Coordinators shall notify to the Commission the out-of-court dispute 
settlement bodies that they have certified in accordance with paragraph 2, including 
where  applicable  the  specifications  referred  to  in  the  second  subparagraph  of  that 

3. 

4. 

5. 

EN 

54 

  EN 

6. 

1. 

2. 

3. 

4. 

5. 

6. 

paragraph.  The  Commission  shall  publish  a  list  of  those  bodies,  including  those 
specifications, on a dedicated website, and keep it updated. 

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

Article 19 
Trusted flaggers 

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

The  status  of  trusted  flaggers  under  this  Regulation  shall  be  awarded,  upon 
application by any entities, by the Digital Services Coordinator of the Member State 
in which the applicant is established, where the applicant has demonstrated to meet 
all of the following conditions: 

(a) 

it  has  particular  expertise  and  competence  for  the  purposes  of  detecting, 
identifying and notifying illegal content; 

(b) 

it represents collective interests and is independent from any online platform; 

(c) 

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

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

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

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

The  Digital  Services  Coordinator  that  awarded  the  status  of  trusted  flagger  to  an 
entity shall revoke that status if it determines, following an investigation either on its 
own  initiative  or  on  the  basis  information  received  by  third  parties,  including  the 
information provided by an online platform pursuant to paragraph 5, that the entity 
no longer meets the conditions set out in paragraph 2. Before revoking that status, the 
Digital  Services  Coordinator  shall  afford  the  entity  an  opportunity  to  react  to  the 
findings  of its investigation and its intention to  revoke the entity’s status as trusted 
flagger 

7. 

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

EN 

55 

  EN 

1. 

2. 

3. 

4. 

1. 

2. 

Article 20 
Measures and protection against misuse 

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

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

Online platforms shall assess, on a case-by-case  basis and in  a timely, diligent  and 
objective  manner,  whether  a  recipient,  individual,  entity  or  complainant  engages  in 
the  misuse  referred  to  in  paragraphs  1  and  2,  taking  into  account  all  relevant  facts 
and  circumstances  apparent  from  the  information  available  to  the  online  platform. 
Those circumstances shall include at least the following: 

(a) 

(b) 

the  absolute  numbers  of  items  of  manifestly  illegal  content  or  manifestly 
unfounded notices or complaints, submitted in the past year; 

the  relative  proportion  thereof  in  relation  to  the  total  number  of  items  of 
information provided or notices submitted in the past year; 

(c) 

the gravity of the misuses and its consequences; 

(d) 

the intention of the recipient, individual, entity or complainant. 

Online platforms shall set out, in a clear and detailed manner, their policy in respect 
of  the  misuse  referred  to  in  paragraphs  1  and  2  in  their  terms  and  conditions, 
including  as  regards  the  facts  and  circumstances  that  they  take  into  account  when 
assessing  whether  certain  behaviour  constitutes  misuse  and  the  duration  of  the 
suspension.  

Article 21 
Notification of suspicions of criminal offences 

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

Where  the  online  platform  cannot  identify  with  reasonable  certainty  the  Member 
State concerned, it shall inform the law enforcement authorities of the Member State 
in which it is established or has its legal representative or inform Europol.  

For  the  purpose  of  this  Article,  the  Member  State  concerned  shall  be  the  Member 
State where the offence is suspected to have taken place, be taking place and  likely 
to take place, or the Member State where the suspected offender resides or is located, 
or the Member State where the victim of the suspected offence resides or is located. 

EN 

56 

  EN 

Article 22 
Traceability of traders  

1. 

Where  an  online  platform  allows  consumers  to  conclude  distance  contracts  with 
traders, it shall ensure that traders can only use its services to promote messages on 
or to offer products or services to consumers located in the Union if, prior to the use 
of its services, the online platform has obtained the following information:  

(a) 

(b) 

(c) 

(d) 

the name, address, telephone number and electronic mail address of the trader;  

a  copy  of  the  identification  document  of  the  trader  or  any  other  electronic 
identification as  defined  by Article 3 of Regulation  (EU) No 910/2014  of the 
European Parliament and of the Council50; 

the bank account details of the trader, where the trader is a natural person; 

the  name,  address,  telephone  number  and  electronic  mail  address  of  the 
economic  operator,  within  the  meaning  of  Article  3(13)  and  Article  4  of 
Regulation  (EU)  2019/1020  of  the  European  Parliament  and  the  Council51  or 
any relevant act of Union law;  

(e)  where  the trader is  registered in  a trade register  or similar public register, the 
trade  register  in  which  the  trader  is  registered  and  its  registration  number  or 
equivalent means of identification in that register; 

(f) 

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

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

Where the online platform obtains indications that any item of information referred 
to in paragraph 1 obtained from the trader concerned is inaccurate or incomplete, that 
platform shall request the trader to correct the information in so far as necessary to 
ensure that all information is accurate and complete, without delay or within the time 
period set by Union and national law.  

Where  the  trader  fails  to  correct  or  complete  that  information,  the  online  platform 
shall  suspend the provision of its service to  the trader until  the request  is  complied 
with. 

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

Without prejudice to paragraph 2, the platform shall only disclose the information to 
third parties where so required in accordance with the applicable law, including the 

2. 

3. 

4. 

5. 

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

51 Regulation  (EU)  2019/1020  of  the  European  Parliament  and  of  the  Council  of  20  June  2019  on  market 
surveillance  and  compliance  of  products  and  amending  Directive  2004/42/EC  and  Regulations  (EC)  No 
765/2008 and (EU) No 305/2011 (OJ L 169, 25.6.2019, p. 1). 

EN 

57 

  EN 

                                                 
orders  referred to  in Article 9  and any  orders issued by Member States’  competent 
authorities  or  the  Commission  for  the  performance  of  their  tasks  under  this 
Regulation. 

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

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

to  comply  with 

traders 

6. 

7. 

Article 23 
Transparency reporting obligations for providers of online platforms 

1. 

In addition to the information referred to in Article 13, online platforms shall include 
in the reports referred to in that Article information on the following: 

(a) 

(b) 

(c) 

the number of disputes submitted to the out-of-court dispute settlement bodies 
referred to in Article 18, the outcomes of the dispute settlement and the average 
time needed for completing the dispute settlement procedures; 

the  number  of  suspensions  imposed  pursuant  to  Article  20,  distinguishing 
between suspensions enacted for the provision of manifestly illegal content, the 
submission of manifestly unfounded notices and the submission of manifestly 
unfounded complaints; 

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

Online  platforms  shall  publish,  at  least  once  every  six  months,  information  on  the 
average monthly active recipients of the service in each Member State, calculated as 
an  average  over  the  period  of  the  past  six  months,  in  accordance  with  the 
methodology laid down in the delegated acts adopted pursuant to Article 25(2).  

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

The Commission may adopt implementing acts to lay down templates concerning the 
form, content and other details of reports pursuant to paragraph 1. 

2. 

3. 

4. 

Article 24 
Online advertising transparency 

Online  platforms  that  display  advertising  on  their  online  interfaces  shall  ensure  that  the 
recipients  of  the  service  can  identify,  for  each  specific  advertisement  displayed  to  each 
individual recipient, in a clear and unambiguous manner and in real time: 

(a) 

(b) 

EN 

that the information displayed is an advertisement; 

the natural or legal person on whose behalf the advertisement is displayed; 

58 

  EN 

(c) 

meaningful information about the main parameters used to determine the recipient to 
whom the advertisement is displayed. 

SECTION 4 
 ADDITIONAL OBLIGATIONS FOR VERY LARGE ONLINE PLATFORMS TO MANAGE 
SYSTEMIC RISKS 

1. 

2. 

3. 

4. 

1. 

Article 25
Very large online platforms

This Section shall apply to online platforms which provide their services to a number 
of  average  monthly  active  recipients  of  the  service  in  the  Union  equal  to  or  higher 
than  45  million,  calculated  in  accordance  with  the  methodology  set  out  in  the 
delegated acts referred to in paragraph 3. 

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

The  Commission  shall  adopt  delegated  acts  in  accordance  with  Article  69,  after 
consulting the Board, to lay down a specific methodology for calculating the number 
of average monthly active recipients of the service in the Union, for the purposes of 
paragraph  1.  The  methodology  shall  specify,  in  particular,  how  to  determine  the 
Union’s population and criteria to determine the average monthly active recipients of 
the service in the Union, taking into account different accessibility features.  

The  Digital  Services  Coordinator  of  establishment  shall  verify,  at  least  every  six 
months,  whether  the  number  of  average  monthly  active  recipients  of  the  service  in 
the Union of online platforms under their jurisdiction is equal to or higher than the 
number referred to in paragraph 1. On the basis of that verification, it shall adopt a 
decision  designating  the  online  platform  as  a  very  large  online  platform  for  the 
purposes  of  this  Regulation,  or  terminating  that  designation,  and  communicate  that 
decision,  without  undue  delay,  to  the  online  platform  concerned  and  to  the 
Commission.  

The Commission shall ensure that the list of designated very large online platforms is 
published in the Official Journal of the European Union and keep that list updated. 
The obligations of this Section shall apply, or cease to apply, to the very large online 
platforms concerned from four months after that publication. 

Article 26 
Risk assessment  

Very  large  online  platforms  shall  identify,  analyse  and  assess,  from  the  date  of 
application  referred  to  in  the  second  subparagraph  of  Article  25(4),  at  least  once  a 
year thereafter, any significant systemic risks stemming from the functioning and use 
made  of  their  services  in  the  Union.  This  risk  assessment  shall  be  specific  to  their 
services and shall include the following systemic risks: 

EN 

59 

  EN 

 
 
2. 

1. 

(a) 

(b) 

(c) 

the dissemination of illegal content through their services; 

any  negative  effects  for  the  exercise  of  the  fundamental  rights  to  respect  for 
private and family life, freedom of expression and information, the prohibition 
of discrimination and the rights of the child, as enshrined in Articles 7, 11, 21 
and 24 of the Charter respectively; 

intentional manipulation of their service, including by means of inauthentic use 
or automated exploitation of the service, with an actual or foreseeable negative 
effect  on  the  protection  of  public  health,  minors,  civic  discourse,  or  actual  or 
foreseeable effects related to electoral processes and public security.  

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

Article 27 
Mitigation of risks 

Very large online platforms shall put in place reasonable, proportionate and effective 
mitigation  measures,  tailored  to  the  specific  systemic  risks  identified  pursuant  to 
Article 26. Such measures may include, where applicable: 

(a) 

(b) 

(c) 

(d) 

(e) 

adapting  content  moderation  or  recommender  systems,  their  decision-making 
processes,  the  features  or  functioning  of  their  services,  or  their  terms  and 
conditions; 

targeted  measures  aimed  at  limiting  the  display  of  advertisements  in 
association with the service they provide; 

reinforcing  the  internal  processes  or  supervision  of  any  of  their  activities  in 
particular as regards detection of systemic risk;  

initiating  or  adjusting  cooperation  with  trusted  flaggers  in  accordance  with 
Article 19; 

 initiating  or  adjusting  cooperation  with  other  online  platforms  through  the 
codes  of  conduct  and  the  crisis  protocols  referred  to  in  Article  35  and  37 
respectively.  

2. 

The  Board,  in  cooperation  with  the  Commission,  shall  publish  comprehensive 
reports, once a year, which shall include the following:  

(a) 

identification  and  assessment  of  the  most  prominent  and  recurrent  systemic 
risks  reported  by  very  large  online  platforms  or  identified  through  other 
information sources, in particular those provided in compliance with Article 31 
and 33; 

(b)  best  practices  for  very  large  online  platforms  to  mitigate  the  systemic  risks 

identified.  

3. 

The Commission,  in  cooperation with  the Digital Services Coordinators,  may issue 
general  guidelines on the application of paragraph 1 in  relation  to  specific risks, in 
particular  to  present  best  practices  and  recommend  possible  measures,  having  due 
regard to the possible consequences of the measures on fundamental rights enshrined 

EN 

60 

  EN 

in  the  Charter  of  all  parties  involved.  When  preparing  those  guidelines  the 
Commission shall organise public consultations. 

Article 28 
Independent audit 

1. 

2. 

Very large online platforms shall be subject, at their own expense and at least once a 
year, to audits to assess compliance with the following: 

(a) 

(b) 

the obligations set out in Chapter III;  

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

Audits  performed  pursuant  to  paragraph  1  shall  be  performed  by  organisations 
which:  

(a) 

are independent from the very large online platform concerned;  

(b)  have  proven  expertise  in  the  area  of  risk  management,  technical  competence 

and capabilities; 

(c) 

have  proven  objectivity  and  professional  ethics,  based  in  particular  on 
adherence to codes of practice or appropriate standards. 

3. 

The  organisations  that  perform  the  audits  shall  establish  an  audit  report  for  each 
audit. The report shall be in writing and include at least the following:  

(a) 

the  name,  address  and  the  point  of  contact  of  the  very  large  online  platform 
subject to the audit and the period covered; 

(b) 

the name and address of the organisation performing the audit; 

(c) 

a description of the specific elements audited, and the methodology applied;  

(d) 

a description of the main findings drawn from the audit; 

(e) 

an audit opinion on whether the very large online platform subject to the audit 
complied  with  the  obligations  and  with  the  commitments  referred  to  in 
paragraph 1, either positive, positive with comments or negative;  

(f)  where  the  audit  opinion  is  not  positive,  operational  recommendations  on 

specific measures to achieve compliance.  

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

4. 

Article 29 
Recommender systems  

1. 

Very large online platforms that use recommender systems shall set out in their terms 
and  conditions,  in  a  clear,  accessible  and  easily  comprehensible  manner,  the  main 
parameters  used  in  their  recommender  systems,  as  well  as  any  options  for  the 

EN 

61 

  EN 

2. 

1. 

recipients of the service to modify or influence those main parameters that they may 
have made  available, including at least  one option which is  not based on profiling, 
within the meaning of Article 4 (4) of Regulation (EU) 2016/679. 

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

Article 30 
Additional online advertising transparency  

Very  large  online  platforms  that  display  advertising  on  their  online  interfaces  shall 
compile  and  make  publicly  available  through  application  programming  interfaces  a 
repository containing the information referred to in paragraph 2, until one year after 
the  advertisement  was  displayed  for  the  last  time  on  their  online  interfaces.  They 
shall ensure that the repository does not contain any personal data of the recipients of 
the service to whom the advertisement was or could have been displayed. 

2. 

The repository shall include at least all of the following information: 

(a) 

the content of the advertisement; 

(b) 

the natural or legal person on whose behalf the advertisement is displayed; 

(c) 

the period during which the advertisement was displayed; 

(d)  whether the advertisement was intended to be displayed specifically to one or 
more  particular  groups  of  recipients  of  the  service  and  if  so,  the  main 
parameters used for that purpose;  

(e) 

the  total  number  of  recipients  of  the  service  reached  and,  where  applicable, 
aggregate  numbers  for  the  group  or  groups  of  recipients  to  whom  the 
advertisement was targeted specifically. 

Article 31 
Data access and scrutiny 

1. 

2. 

3. 

4. 

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

Upon a reasoned request from  the Digital  Services Coordinator of establishment or 
the  Commission,  very  large  online  platforms  shall,  within  a  reasonable  period,  as 
specified  in  the  request,  provide  access  to  data  to  vetted  researchers  who  meet  the 
requirements  in  paragraphs  4  of  this  Article,  for  the  sole  purpose  of  conducting 
research that contributes to the identification and understanding of systemic risks as 
set out in Article 26(1).  

Very large online platforms shall provide access to data pursuant to paragraphs 1 and 
2 through online databases or application programming interfaces, as appropriate. 

In  order  to  be  vetted,  researchers  shall  be  affiliated  with  academic  institutions,  be 
independent from commercial interests, have proven records of expertise in the fields 

EN 

62 

  EN 

5. 

6. 

7. 

1. 

2. 

related to the risks investigated or related research methodologies, and shall commit 
and  be  in  a  capacity  to  preserve  the  specific  data  security  and  confidentiality 
requirements corresponding to each request. 

The  Commission  shall,  after  consulting  the  Board,  adopt  delegated  acts  laying 
down the technical  conditions under which very large online platforms are to  share 
data pursuant to paragraphs 1 and 2 and the purposes for which the data may be used. 
Those delegated acts shall lay down the specific conditions under which such sharing 
of  data  with  vetted  researchers  can  take  place  in  compliance  with  Regulation  (EU) 
2016/679,  taking  into  account  the  rights  and  interests  of  the  very  large  online 
platforms  and  the  recipients  of  the  service  concerned,  including  the  protection  of 
confidential  information, in  particular trade secrets, and maintaining the security of 
their service.  

Within 15 days following receipt of a request as referred to in paragraph 1 and 2, a 
very  large  online  platform  may  request  the  Digital  Services  Coordinator  of 
establishment  or  the  Commission,  as  applicable,  to  amend  the  request,  where  it 
considers  that  it  is  unable  to  give  access  to  the  data  requested  because  one  of 
following two reasons:  

(a) 

it does not have access to the data;  

(b)  giving access to the data will lead to significant vulnerabilities for the security 
of  its  service  or  the  protection  of  confidential  information,  in  particular  trade 
secrets. 

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

The  Digital  Services  Coordinator  of  establishment  or  the  Commission  shall  decide 
upon the request for amendment within 15 days and communicate  to the very large 
online  platform  its  decision  and,  where  relevant,  the  amended  request  and  the  new 
time period to comply with the request.  

Article 32 
Compliance officers 

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

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

3. 

Compliance officers shall have the following tasks: 

(a) 

cooperating  with  the  Digital  Services  Coordinator  of  establishment  and  the 
Commission for the purpose of this Regulation; 

(b)  organising and supervising the very large online platform’s activities relating to 

the independent audit pursuant to Article 28; 

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(c) 

informing  and  advising  the  management  and  employees  of  the  very  large 
online platform about relevant obligations under this Regulation; 

(d)  monitoring  the  very  large  online  platform’s  compliance  with  its  obligations 

under this Regulation. 

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

Very  large  online  platforms  shall  communicate  the  name  and  contact  details  of  the 
compliance  officer  to  the  Digital  Services  Coordinator  of  establishment  and  the 
Commission.  

Very large online platforms shall support the compliance officer in the performance 
of his or her tasks and provide him or her with the resources necessary to adequately 
carry  out  those  tasks.  The  compliance  officer  shall  directly  report  to  the  highest 
management level of the platform. 

Article 33 
Transparency reporting obligations for very large online platforms 

Very large online platforms shall publish the reports referred to in Article 13 within 
six  months  from  the  date  of  application  referred  to  in  Article  25(4),  and  thereafter 
every six months.  

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

(a) 

(b) 

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

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

(c) 

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

(d) 

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

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

 SECTION 5 
OTHER PROVISIONS CONCERNING DUE DILIGENCE OBLIGATIONS 

Article 34 
Standards 

The Commission shall support and promote the development and implementation of 
international 
voluntary 
standardisation bodies at least for the following: 

industry  standards  set  by 

relevant  European  and 

4. 

5. 

6. 

1. 

2. 

3. 

1. 

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(a) 

(b) 

(c) 

electronic submission of notices under Article 14; 

electronic submission of notices by trusted flaggers under Article 19, including 
through application programming interfaces; 

specific  interfaces,  including  application  programming  interfaces,  to  facilitate 
compliance with the obligations set out in Articles 30 and 31; 

(d) 

auditing of very large online platforms pursuant to Article 28; 

(e) 

(f) 

interoperability of the advertisement repositories referred to in Article 30(2); 

transmission  of  data  between  advertising  intermediaries  in  support  of 
transparency obligations pursuant to points (b) and (c) of Article 24.  

The  Commission  shall  support  the  update  of  the  standards  in  the  light  of 
technological  developments  and  the  behaviour  of  the  recipients  of  the  services  in 
question. 

Article 35 
Codes of conduct 

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

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

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

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

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

2. 

1. 

2. 

3. 

4. 

5. 

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1. 

2. 

3. 

1. 

2. 

3. 

Article 36 
Codes of conduct for online advertising 

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

The  Commission  shall  aim  to  ensure  that  the  codes  of  conduct  pursue  an  effective 
transmission of information, in full respect for the rights and interests of all parties 
involved, and a competitive, transparent and fair environment in online advertising, 
in  accordance  with  Union  and  national  law,  in  particular  on  competition  and  the 
protection  of  personal  data.  The  Commission  shall  aim  to  ensure  that  the  codes  of 
conduct address at least:  

(a) 

the  transmission  of  information  held  by  providers  of  online  advertising 
intermediaries  to  recipients  of  the  service  with  regard  to  requirements  set  in 
points (b) and (c) of Article 24; 

(b) 

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

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

Article 37 
Crisis protocols 

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

The  Commission  shall  encourage  and  facilitate  very  large  online  platforms  and, 
where appropriate, other online platforms, with the involvement of the Commission, 
to  participate  in  the  drawing  up,  testing  and  application  of  those  crisis  protocols, 
which include one or more of the following measures:  

(a) 

(b) 

displaying prominent  information  on the  crisis  situation  provided by Member 
States’ authorities or at Union level;  

ensuring  that  the  point  of  contact  referred  to  in  Article  10  is  responsible  for 
crisis management; 

(c)  where  applicable,  adapt  the  resources  dedicated  to  compliance  with  the 
obligations set out in Articles 14, 17, 19, 20 and 27 to the needs created by the 
crisis situation. 

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

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4. 

The Commission shall aim to ensure that the crisis protocols set out clearly all of the 
following:  

(a) 

(b) 

(c) 

(d) 

(e) 

the specific parameters to determine what constitutes the specific extraordinary 
circumstance the crisis protocol seeks to address and the objectives it pursues; 

the  role  of  each  participant  and  the  measures  they  are  to  put  in  place  in 
preparation and once the crisis protocol has been activated;  

a clear procedure for determining when the crisis protocol is to be activated; 

a clear procedure for determining the period during which the measures to be 
taken  once  the  crisis  protocol  has  been  activated  are  to  be  taken,  which  is 
strictly  limited  to  what  is  necessary  for  addressing  the  specific  extraordinary 
circumstances concerned; 

safeguards to  address  any  negative effects  on the exercise of the fundamental 
rights  enshrined  in  the  Charter,  in  particular  the  freedom  of  expression  and 
information and the right to non-discrimination; 

(f) 

a  process  to  publicly  report  on  any  measures  taken,  their  duration  and  their 
outcomes, upon the termination of the crisis situation. 

5. 

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

Chapter IV 
Implementation, cooperation, sanctions and enforcement  

SECTION 1 
COMPETENT AUTHORITIES AND NATIONAL DIGITAL SERVICES COORDINATORS  

1. 

2. 

Article 38 
Competent authorities and Digital Services Coordinators 

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

Member  States  shall  designate  one  of  the  competent  authorities  as  their  Digital 
Services  Coordinator.  The  Digital  Services  Coordinator  shall  be  responsible  for  all 
matters  relating  to  application  and  enforcement  of  this  Regulation  in  that  Member 
State,  unless  the  Member  State  concerned  has  assigned  certain  specific  tasks  or 
sectors to other competent authorities. The Digital Services Coordinator shall in any 
event  be  responsible  for  ensuring  coordination  at  national  level  in  respect  of  those 
matters  and  for  contributing  to  the  effective  and  consistent  application  and 
enforcement of this Regulation throughout the Union. 

For that purpose, Digital Services Coordinators shall cooperate with each other, other 
national competent authorities, the Board and the Commission, without prejudice to 
the  possibility  for  Member  States  to  provide  for  regular  exchanges  of  views  with 
other  authorities  where  relevant  for  the  performance  of  the  tasks  of  those  other 
authorities and of the Digital Services Coordinator. 

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

Member States shall designate the Digital Services Coordinators within two months 
from the date of entry into force of this Regulation.  

Member States shall make publicly available, and communicate to the Commission 
and the Board, the name of their competent authority designated as Digital Services 
Coordinator and information on how it can be contacted.  

The requirements applicable to Digital Services Coordinators set out in Articles 39, 
40 and 41 shall also apply to any other competent authorities that the Member States 
designate pursuant to paragraph 1.  

Article 39 
Requirements for Digital Services Coordinators 

Member  States  shall  ensure  that  their  Digital  Services  Coordinators  perform  their 
tasks under this Regulation in an impartial, transparent and timely manner. Member 
States shall ensure that their Digital Services Coordinators have adequate technical, 
financial and human resources to carry out their tasks. 

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

Paragraph 2 is without prejudice to the tasks of Digital Services Coordinators within 
the  system  of  supervision  and  enforcement  provided  for  in  this  Regulation  and  the 
cooperation  with  other  competent  authorities  in  accordance  with  Article  38(2). 
Paragraph 2 shall not prevent supervision of the authorities concerned in accordance 
with national constitutional law.  

Article 40 
Jurisdiction 

The Member State in which the main establishment of the provider of intermediary 
services is located shall have jurisdiction for the purposes of Chapters III and IV of 
this Regulation.  

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

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

3. 

4. 

1. 

2. 

3. 

1. 

2. 

3. 

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4. 

1. 

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

Article 41 
Powers of Digital Services Coordinators 

Where needed for carrying out their tasks, Digital Services Coordinators shall have at 
least  the  following  powers  of  investigation,  in  respect  of  conduct  by  providers  of 
intermediary services under the jurisdiction of their Member State: 

(a) 

(b) 

the  power  to  require  those  providers,  as  well  as  any  other  persons  acting  for 
purposes  related  to  their  trade,  business,  craft  or  profession  that  may 
reasonably be aware of information relating to a suspected infringement of this 
Regulation,  including,  organisations  performing  the  audits  referred  to  in 
Articles  28  and  50(3),  to  provide  such  information  within  a  reasonable  time 
period; 

the power to carry out on-site inspections of any premises that those providers 
or  those  persons  use  for  purposes  related  to  their  trade,  business,  craft  or 
profession, or to request other public authorities to do so, in order to examine, 
seize, take or obtain copies of information relating to a suspected infringement 
in any form, irrespective of the storage medium;  

(c) 

the  power  to  ask  any  member  of  staff  or  representative  of  those  providers  or 
those  persons  to  give  explanations  in  respect  of  any  information  relating  to  a 
suspected infringement and to record the answers. 

2. 

Where needed for carrying out their tasks, Digital Services Coordinators shall have at 
least  the  following  enforcement  powers,  in  respect  of  providers  of  intermediary 
services under the jurisdiction of their Member State: 

(a) 

(b) 

(c) 

(d) 

the power to accept the commitments offered by those providers in relation to 
their compliance with this Regulation and to make those commitments binding; 

the  power  to  order  the  cessation  of  infringements  and,  where  appropriate,  to 
impose remedies proportionate to the infringement and necessary to bring the 
infringement effectively to an end; 

the power to impose fines in accordance with Article 42 for failure to comply 
with  this  Regulation,  including  with  any  of  the  orders  issued  pursuant  to 
paragraph 1; 

the power to impose a periodic penalty payment in accordance with Article 42 
to ensure that an infringement is terminated in compliance with an order issued 
pursuant to point (b) of this paragraph or for failure to comply with any of the 
orders issued pursuant to paragraph 1; 

(e) 

the power to adopt interim measures to avoid the risk of serious harm. 

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

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3. 

periodic  payments  that  may  be  imposed  for  failure  to  comply  and  redress 
possibilities. 

Where  needed  for  carrying  out  their  tasks,  Digital  Services  Coordinators  shall  also 
have, in respect of providers of intermediary services under the jurisdiction of their 
Member  State,  where  all  other  powers  pursuant  to  this  Article  to  bring  about  the 
cessation  of  an  infringement  have  been  exhausted,  the  infringement  persists  and 
causes serious harm which cannot  be avoided through the exercise of other powers 
available under Union or national law, the power to take the following measures:  

(a) 

require the management body of the providers, within a reasonable time period,  
to  examine  the  situation,  adopt  and  submit  an  action  plan  setting  out  the 
necessary  measures  to  terminate  the  infringement,  ensure  that  the  provider 
takes those measures, and report on the measures taken; 

(b)  where  the  Digital  Services  Coordinator  considers  that  the  provider  has  not 
sufficiently  complied  with  the  requirements  of  the  first  indent,  that  the 
infringement persists and causes serious harm, and that the infringement entails 
a  serious  criminal  offence  involving  a  threat  to  the  life  or  safety  of  persons, 
request  the  competent  judicial  authority  of  that  Member  State  to  order  the 
temporary  restriction  of  access  of  recipients  of  the  service  concerned  by  the 
infringement  or,  only  where  that  is  not  technically  feasible,  to  the  online 
interface  of  the  provider  of  intermediary  services  on  which  the  infringement 
takes place.  

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

The restriction shall be for a period of four weeks, subject to the possibility for the 
competent judicial authority, in its order, to allow the Digital Services Coordinator to 
extend  that  period  for  further  periods  of  the  same  lengths,  subject  to  a  maximum 
number of extensions set by that judicial authority. The Digital Services Coordinator 
shall  only  extend  the  period  where  it  considers,  having  regard  to  the  rights  and 
interests  of  all  parties  affected  by  the  restriction  and  all  relevant  circumstances, 
including  any  information  that  the  provider,  the  addressee  or  addressees  and  any 
other third party that demonstrated a legitimate interest may provide to it, that both of 
the following conditions have been met: 

(a) 

(b) 

the  provider  has  failed  to  take  the  necessary  measures  to  terminate  the 
infringement; 

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

Where  the  Digital  Services  Coordinator  considers  that  those  two  conditions  have 
been met but it cannot further extend the period pursuant to the third subparagraph, it 

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4. 

5. 

6. 

1. 

2. 

3. 

4. 

shall submit a new request to the competent judicial authority, as referred to in point 
(b) of the first subparagraph.     

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

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

Member States shall ensure that any exercise of the powers pursuant to paragraphs 1, 
2 and 3 is subject to adequate safeguards laid down in the applicable national law in 
conformity  with  the  Charter  and  with  the  general  principles  of  Union  law.  In 
particular, those measures shall only be taken in accordance with the right to respect 
for  private  life  and  the  rights  of  defence,  including  the  rights  to  be  heard  and  of 
access  to  the  file,  and  subject  to  the  right  to  an  effective  judicial  remedy  of  all 
affected parties. 

Article 42 
Penalties  

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

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

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

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

Article 43 
Right to lodge a complaint 

Recipients  of  the  service  shall  have  the  right  to  lodge  a  complaint  against  providers  of 
intermediary  services  alleging  an  infringement  of  this  Regulation  with  the  Digital  Services 
Coordinator  of  the  Member  State  where  the  recipient  resides  or  is  established.  The  Digital 
Services  Coordinator  shall  assess  the  complaint  and,  where  appropriate,  transmit  it  to  the 
Digital  Services  Coordinator  of  establishment.  Where  the  complaint  falls  under  the 

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responsibility  of  another  competent  authority  in  its  Member  State,  the  Digital  Service 
Coordinator receiving the complaint shall transmit it to that authority.  

Article 44 
Activity reports 

1. 

Digital Services Coordinators shall draw up an annual report on their activities under 
this Regulation. They shall make the annual reports available to the public, and shall 
communicate them to the Commission and to the Board. 

2. 

The annual report shall include at least the following information: 

3. 

1. 

(a) 

the number and subject matter of orders to act against illegal content and orders 
to  provide  information  issued  in  accordance  with  Articles  8  and  9  by  any 
national judicial or administrative authority of the Member State of the Digital 
Services Coordinator concerned;  

(b) 

the  effects  given  to  those  orders,  as  communicated  to  the  Digital  Services 
Coordinator pursuant to Articles 8 and 9. 

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

Article 45 
Cross-border cooperation among Digital Services Coordinators 

Where  a  Digital  Services  Coordinator  has  reasons  to  suspect  that  a  provider  of  an 
intermediary  service,  not  under  the  jurisdiction  of  the  Member  State  concerned, 
infringed  this  Regulation,  it  shall  request  the  Digital  Services  Coordinator  of 
establishment  to  assess  the  matter  and  take  the  necessary  investigatory  and 
enforcement measures to ensure compliance with this Regulation.  

Where  the  Board  has  reasons  to  suspect  that  a  provider  of  intermediary  services 
infringed this Regulation in a manner involving at least three Member States, it may 
recommend  the  Digital  Services  Coordinator  of  establishment  to  assess  the  matter 
and take the necessary investigatory and enforcement measures to ensure compliance 
with this Regulation. 

2. 

A request or recommendation pursuant to paragraph 1 shall at least indicate: 

(a) 

(b) 

(c) 

the point of contact of the provider of the intermediary services concerned as 
provided for in Article 10; 

a description of the relevant facts, the provisions of this Regulation concerned 
and the reasons why the Digital Services Coordinator that sent the request, or 
the Board, suspects that the provider infringed this Regulation; 

any  other  information  that  the  Digital  Services  Coordinator  that  sent  the 
request,  or  the  Board,  considers  relevant,  including,  where  appropriate, 
information  gathered  on  its  own  initiative  or  suggestions  for  specific 
investigatory or enforcement measures to be taken, including interim measures.  

3. 

The Digital Services Coordinator of establishment shall take into utmost account the 
request  or  recommendation  pursuant  to  paragraph  1.  Where  it  considers  that  it  has 

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insufficient information to act upon the request or recommendation and has reasons 
to consider that the Digital Services Coordinator that sent the request, or the Board, 
could  provide  additional  information,  it  may  request  such  information.  The  time 
period laid down in paragraph 4 shall be suspended until that additional information 
is provided. 

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

Where the Digital Services Coordinator that sent the request, or, where appropriate, 
the Board, did not receive a reply within the time period laid down in paragraph 4 or 
where  it  does  not  agree  with  the  assessment  of  the  Digital  Services  Coordinator  of 
establishment,  it  may  refer  the  matter  to  the  Commission,  providing  all  relevant 
information.  That  information  shall  include  at  least  the  request  or  recommendation 
sent to the Digital Services Coordinator of establishment, any additional information 
provided pursuant to paragraph 3 and the communication referred to in paragraph 4. 

The Commission shall assess the matter within three months following the referral of 
the  matter  pursuant  to  paragraph  5,  after  having  consulted  the  Digital  Services 
Coordinator of establishment and, unless it referred the matter itself, the Board.  

Where,  pursuant  to  paragraph  6,  the  Commission  concludes  that  the  assessment  or 
the investigatory or enforcement measures taken or envisaged pursuant to paragraph 
4  are  incompatible  with  this  Regulation,  it  shall  request  the  Digital  Service 
Coordinator  of  establishment  to  further  assess  the  matter  and  take  the  necessary 
investigatory  or  enforcement  measures  to  ensure  compliance  with  this  Regulation, 
and to inform it about those measures taken within two months from that request.  

Article 46 
Joint investigations and requests for Commission intervention 

Digital Services Coordinators may participate in  joint investigations, which may be 
coordinated  with  the  support  of  the  Board,  with  regard  to  matters  covered  by  this 
Regulation,  concerning  providers  of  intermediary  services  operating  in  several 
Member States. 

Such  joint  investigations  are  without  prejudice  to  the  tasks  and  powers  of  the 
participating  Digital  Coordinators  and 
the 
performance of those tasks and exercise of those powers provided in this Regulation. 
The  participating  Digital  Services  Coordinators  shall  make  the  results  of  the  joint 
investigations available to other Digital Services Coordinators, the Commission and 
the  Board  through  the  system  provided  for  in  Article  67  for  the  fulfilment  of  their 
respective tasks under this Regulation.  

the  requirements  applicable 

to 

Where a Digital Services Coordinator of establishment has reasons to suspect that a 
very large online platform infringed this Regulation, it may request the Commission 
to take the necessary investigatory and enforcement measures to ensure compliance 
with  this  Regulation  in  accordance  with  Section  3.  Such  a  request  shall  contain  all 

4. 

5. 

6. 

7. 

1. 

2. 

EN 

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information  listed  in  Article  45(2)  and  set  out  the  reasons  for  requesting  the 
Commission to intervene.   

SECTION 2 
EUROPEAN BOARD FOR DIGITAL SERVICES 

Article 47 
European Board for Digital Services 

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

The  Board  shall  advise  the  Digital  Services  Coordinators  and  the  Commission  in 
accordance with this Regulation to achieve the following objectives: 

(a)  Contributing  to  the  consistent  application  of  this  Regulation  and  effective 
cooperation  of  the  Digital  Services  Coordinators  and  the  Commission  with 
regard to matters covered by this Regulation; 

(b) 

coordinating and contributing to guidance and analysis of the Commission and 
Digital  Services  Coordinators  and  other  competent  authorities  on  emerging 
issues  across  the  internal  market  with  regard  to  matters  covered  by  this 
Regulation; 

(c) 

assisting  the  Digital  Services  Coordinators  and  the  Commission  in  the 
supervision of very large online platforms. 

Article 48 
Structure of the Board  

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

Each  Member  State  shall  have  one  vote.  The  Commission  shall  not  have  voting 
rights.  

The Board shall adopt its acts by simple majority. 

The Board shall be chaired by the Commission. The Commission shall convene the 
meetings  and  prepare  the  agenda  in  accordance  the  tasks  of  the  Board  pursuant  to 
this Regulation and with its rules of procedure.  

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

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

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

1. 

2. 

1. 

2. 

3. 

4. 

5. 

6. 

EN 

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Article 49 
Tasks of the Board 

1. 

Where  necessary  to  meet  the  objectives  set  out  in  Article  47(2),  the  Board  shall  in 
particular: 

(a) 

(b) 

(c) 

(d) 

(e) 

support the coordination of joint investigations; 

support the competent authorities in the analysis of reports and results of audits 
of very large online platforms to be transmitted pursuant to this Regulation; 

issue opinions, recommendations or advice to Digital Services Coordinators in 
accordance with this Regulation; 

advise  the  Commission  to  take  the  measures  referred  to  in  Article  51  and, 
where  requested  by  the  Commission,  adopt  opinions  on  draft  Commission 
measures  concerning  very  large  online  platforms  in  accordance  with  this 
Regulation; 

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

2. 

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

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

1. 

2. 

Article 50 
Enhanced supervision for very large online platforms 

Where  the  Digital  Services  Coordinator  of  establishment  adopts  a  decision  finding 
that a very large online platform has infringed any of the provisions of Section 4 of 
Chapter III, it shall make use of the enhanced supervision system laid down in this 
Article.  It  shall  take  utmost  account  of  any  opinion  and  recommendation  of  the 
Commission and the Board pursuant to this Article.  

The Commission acting on its own initiative, or the Board acting on its own initiative 
or  upon  request  of  at  least  three  Digital  Services  Coordinators  of  destination,  may, 
where  it  has  reasons  to  suspect  that  a  very  large  online  platform  infringed  any  of 
those  provisions,  recommend  the  Digital  Services  Coordinator  of  establishment  to 
investigate  the  suspected  infringement  with  a  view  to  that  Digital  Services 
Coordinator adopting such a decision within a reasonable time period. 

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

EN 

75 

  EN 

3. 

4. 

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

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

The  Digital  Services  Coordinator  of  establishment  shall  communicate  to  the 
Commission, the Board and the very large online platform concerned its views as to 
whether the very large online platform has terminated or remedied the infringement 
and  the  reasons  thereof.  It  shall  do  so  within  the  following  time  periods,  as 
applicable: 

(a)  within one month from the receipt of the audit report referred to in the second 

subparagraph of paragraph 3, where such an audit was performed; 

(b)  within three months from the decision on the action plan referred to in the first 

subparagraph of paragraph 3, where no such audit was performed; 

(c) 

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

Pursuant  to  that  communication,  the  Digital  Services  Coordinator  of  establishment 
shall  no  longer  be  entitled  to  take  any  investigatory  or  enforcement  measures  in 
respect of the relevant conduct by the very large online platform concerned, without 
prejudice to  Article 66 or any other measures that  it may take  at  the request  of the 
Commission. 

Article 51 
Intervention by the Commission and opening of proceedings 

1. 

The  Commission,  acting  either  upon  the  Board’s  recommendation  or  on  its  own 
initiative after consulting the Board, may initiate proceedings in view of the possible 
adoption  of  decisions  pursuant  to  Articles  58  and  59  in  respect  of  the  relevant 
conduct by the very large online platform that: 

(a) 

is  suspected  of  having  infringed  any  of  the  provisions  of  this  Regulation  and 
the  Digital  Services  Coordinator  of  establishment  did  not 
take  any 
investigatory  or  enforcement  measures,  pursuant  to  the  request  of  the 
Commission referred to in Article 45(7), upon the expiry of the time period set 
in that request; 

(b) 

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

EN 

76 

  EN 

2. 

3. 

4. 

1. 

2. 

3. 

(c) 

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

Where  the  Commission  decides  to  initiate  proceedings  pursuant  to  paragraph  1,  it 
shall  notify  all  Digital  Services  Coordinators,  the  Board  and  the  very  large  online 
platform concerned. 

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

The  Digital  Services  Coordinator  referred  to  in  Articles  45(7),  46(2)  and  50(1),  as 
applicable,  shall,  without  undue  delay  upon  being  informed,  transmit  to  the 
Commission: 

(a) 

(b) 

(c) 

any  information  that  that  Digital  Services  Coordinator  exchanged  relating 
to   the  infringement  or  the  suspected  infringement,  as  applicable,  with  the 
Board and with the very large online platform concerned; 

the case file of that Digital Services Coordinator relating to the infringement or 
the suspected infringement, as applicable;  

any  other  information  in  the  possession  of  that  Digital  Services  Coordinator 
that may be relevant to the proceedings initiated by the Commission. 

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

Article 52 
Requests for information 

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

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

Where  the  Commission  requires  the  very  large  online  platform  concerned  or  other 
person referred to in Article 52(1) to supply information by decision, it shall state the 
legal basis and the purpose of the request, specify what information is required and 
set  the  time  period  within  which  it  is  to  be  provided.  It  shall  also  indicate  the 
penalties  provided  for  in  Article  59  and  indicate  or  impose  the  periodic  penalty 

EN 

77 

  EN 

4. 

5. 

payments  provided  for  in  Article  60.  It  shall  further  indicate  the  right  to  have  the 
decision reviewed by the Court of Justice of the European Union. 

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

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

Article 53 
Power to take interviews and statements 

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

1. 

2. 

3. 

4. 

1. 

Article 54 
Power to conduct on-site inspections 

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

On-site inspections may also be carried out with the assistance of auditors or experts 
appointed by the Commission pursuant to Article 57(2).  

During  on-site  inspections  the  Commission  and  auditors  or  experts  appointed  by  it 
may require the very large online platform concerned or other person referred to in 
Article  52(1)  to  provide  explanations  on  its  organisation,  functioning,  IT  system, 
algorithms,  data-handling  and  business  conducts.  The  Commission  and  auditors  or 
experts  appointed  by  it  may  address  questions  to  key  personnel  of  the  very  large 
online platform concerned or other person referred to in Article 52(1).  

The very large online platform concerned or other person referred to in Article 52(1) 
is required to submit to an on-site inspection ordered by decision of the Commission. 
The decision shall specify the subject matter and purpose of the visit, set the date on 
which it is to begin and indicate the penalties provided for in Articles 59 and 60 and 
the  right  to  have  the  decision  reviewed  by  the  Court  of  Justice  of  the  European 
Union.  

Article 55 
Interim measures 

In the context of proceedings which may lead to the adoption of a decision of non-
compliance  pursuant  to  Article  58(1),  where  there  is  an  urgency  due  to  the  risk  of 
serious damage for the recipients of the service, the Commission may, by decision, 

EN 

78 

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2. 

1. 

order interim measures against the very large online platform concerned on the basis 
of a prima facie finding of an infringement. 

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

Article 56 
Commitments 

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

2. 

The Commission may, upon request or on its own initiative, reopen the proceedings: 

(a)  where  there  has  been  a  material  change  in  any  of  the  facts  on  which  the 

decision was based; 

(b)  where  the  very  large  online  platform  concerned  acts  contrary  to  its 

commitments; or 

(c)  where  the  decision  was  based  on  incomplete,  incorrect  or  misleading 
information  provided  by  the  very  large  online  platform  concerned  or  other 
person referred to in Article 52(1). 

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

Article 57 
Monitoring actions  

For  the  purposes  of  carrying  out  the  tasks  assigned  to  it  under  this  Section,  the 
Commission may take the necessary actions to monitor the effective implementation 
and  compliance  with  this  Regulation  by  the  very  large  online  platform  concerned. 
The Commission may also order that platform to provide access to, and explanations 
relating to, its databases and algorithms. 

The  actions  pursuant  to  paragraph  1  may  include  the  appointment  of  independent 
external  experts  and  auditors  to  assist  the  Commission  in  monitoring  compliance 
with  the  relevant  provisions  of  this  Regulation  and  to  provide  specific  expertise  or 
knowledge to the Commission.  

3. 

1. 

2. 

Article 58 
Non-compliance 

1. 

The Commission shall adopt a non-compliance decision where it finds that the very 
large online platform concerned does not comply with one or more of the following: 

(a) 

the relevant provisions of this Regulation;  

(b) 

interim measures ordered pursuant to Article 55;  

(c) 

commitments made binding pursuant to Article 56, 

EN 

79 

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2. 

3. 

4. 

5. 

1. 

2. 

3. 

4. 

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

In the decision adopted pursuant to paragraph 1 the Commission shall order the very 
large online platform concerned to take the necessary measures to ensure compliance 
with  the  decision  pursuant  to  paragraph  1  within  a  reasonable  time  period  and  to 
provide  information  on  the  measures  that  that  platform  intends  to  take  to  comply 
with the decision. 

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

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

Article 59 
Fines 

In the decision pursuant to Article 58, the Commission may impose on the very large 
online  platform  concerned  fines  not  exceeding  6%  of  its  total  turnover  in  the 
preceding  financial  year  where  it  finds  that  that  platform,  intentionally  or 
negligently: 

(a) 

infringes the relevant provisions of this Regulation;  

(b) 

fails to comply with a decision ordering interim measures under Article 55; or 

(c) 

fails to comply with a voluntary measure made binding by a decision pursuant 
to Articles 56. 

The  Commission  may  by  decision  impose  on  the  very  large  online  platform 
concerned or other person referred to in Article 52(1) fines not exceeding 1% of the 
total turnover in the preceding financial year, where they intentionally or negligently: 

(a) 

(b) 

supply incorrect, incomplete or misleading information in response to a request 
pursuant to Article 52 or, when the information is requested by decision, fail to 
reply to the request within the set time period; 

fail  to  rectify  within  the  time  period  set  by  the  Commission,  incorrect, 
incomplete  or  misleading  information  given  by  a  member  of  staff,  or  fail  or 
refuse to provide complete information; 

(c) 

refuse to submit to an on-site inspection pursuant to Article 54. 

Before  adopting  the  decision  pursuant  to  paragraph  2,  the  Commission  shall 
communicate its preliminary findings to the very large online platform concerned or 
other person referred to in Article 52(1). 

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

EN 

80 

  EN 

1. 

2. 

1. 

2. 

3. 

4. 

Article 60 
Periodic penalty payments 

The  Commission  may,  by  decision,  impose  on  the  very  large  online  platform 
concerned or other person referred to in Article 52(1), as applicable, periodic penalty 
payments not exceeding 5 % of the average daily turnover in the preceding financial 
year per day, calculated from the date appointed by the decision, in order to compel 
them to: 

(a) 

(b) 

(c) 

(d) 

supply  correct  and  complete  information  in  response  to  a  decision  requiring 
information pursuant to Article 52; 

submit  to  an  on-site  inspection  which  it  has  ordered  by  decision  pursuant  to 
Article 54; 

comply with a decision ordering interim measures pursuant to Article 55(1); 

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

(e) 

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

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

Article 61 
Limitation period for the imposition of penalties 

The powers conferred on the Commission by Articles 59 and 60 shall be subject to a 
limitation period of five years. 

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

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

(a) 

requests  for  information  by  the  Commission  or  by  a  Digital  Services 
Coordinator; 

(b)  on-site inspection; 

(c) 

the opening of a proceeding by the Commission pursuant to Article 51(2). 

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

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  EN 

5. 

1. 

2. 

3. 

4. 

5. 

1. 

2. 

3. 

4. 

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

Article 62 
Limitation period for the enforcement of penalties 

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

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

The limitation period for the enforcement of penalties shall be interrupted: 

(a) 

by notification of a decision varying the original amount of the fine or periodic 
penalty payment or refusing an application for variation; 

(b)  by any action of the Commission, or of a Member State acting at the request of 
the  Commission,  designed  to  enforce  payment  of  the  fine  or  periodic  penalty 
payment. 

Each interruption shall start time running afresh. 

The limitation period for the enforcement of penalties shall be suspended for so long 
as: 

(a) 

(b) 

time to pay is allowed; 

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

Article 63 
Right to be heard and access to the file 

Before  adopting  a  decision  pursuant  to  Articles  58(1),  59  or  60,  the  Commission 
shall  give  the  very  large  online  platform  concerned  or  other  person  referred  to  in 
Article 52(1) the opportunity of being heard on:  

(a) 

preliminary  findings  of  the  Commission,  including  any  matter  to  which  the 
Commission has taken objections; and 

(b)  measures  that  the  Commission  may  intend  to  take  in  view  of  the  preliminary 

findings referred to point (a).  

The very large online platform concerned or other person referred to in Article 52(1) 
may  submit  their  observations  on  the  Commission’s  preliminary  findings  within  a 
reasonable time period set by the Commission in its preliminary findings, which may 
not be less than 14 days. 

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

The  rights  of  defence  of  the  parties  concerned  shall  be  fully  respected  in  the 
proceedings. They shall be entitled to have access to the Commission's file under the 
terms  of  a  negotiated  disclosure,  subject  to  the  legitimate  interest  of  the  very  large 
online  platform  concerned  or  other  person  referred  to  in  Article  52(1)  in  the 
protection of their business secrets. The right of access to the file shall not extend to 
confidential  information  and  internal  documents  of  the  Commission  or  Member 

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5. 

6. 

1. 

2. 

1. 

2. 

States’  authorities.  In  particular, 
to 
correspondence  between  the  Commission  and  those  authorities.  Nothing  in  this 
paragraph  shall  prevent  the  Commission  from  disclosing  and  using  information 
necessary to prove an infringement. 

the  right  of  access  shall  not  extend 

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

Without  prejudice  to  the  exchange  and  to  the  use  of  information  referred  to  in 
Articles 51(3) and 52(5), the Commission, the Board, Member States’ authorities and 
their  respective  officials,  servants  and  other  persons  working  under 
their 
supervision,; and any other natural or legal person involved, including auditors and 
experts appointed pursuant to Article 57(2) shall not disclose information acquired or 
exchanged by them pursuant to this Section and of the kind covered by the obligation 
of professional secrecy. 

Article 64 
Publication of decisions 

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

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

Article 65 
Requests for access restrictions and cooperation with national courts 

Where  all  powers  pursuant  to  this  Article  to  bring  about  the  cessation  of  an 
infringement  of  this  Regulation  have  been  exhausted,  the  infringement  persists  and 
causes serious harm which cannot  be avoided through the exercise of other powers 
available  under  Union  or  national  law,  the  Commission  may  request  the  Digital 
Services Coordinator of establishment of the very large online platform concerned to 
act pursuant to Article 41(3).  

Prior  to  making  such  request  to  the  Digital  Services  Coordinator,  the  Commission 
shall invite interested parties to submit written observations within a time period that 
shall  not  be  less  than  two  weeks,  describing  the  measures  it  intends  to  request  and 
identifying the intended addressee or addressees thereof.  

Where  the  coherent  application  of  this  Regulation  so  requires,  the  Commission, 
acting  on  its  own  initiative,  may  submit  written  observations  to  the  competent 
judicial  authority  referred  to  Article  41(3).  With  the  permission  of  the  judicial 
authority in question, it may also make oral observations. 

For  the  purpose  of  the  preparation  of  its  observations  only,  the  Commission  may 
request  that  judicial  authority  to  transmit  or  ensure  the  transmission  to  it  of  any 
documents necessary for the assessment of the case. 

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Article 66 
Implementing acts relating to Commission intervention 

1. 

In relation to the Commission intervention covered by this Section, the Commission 
may adopt implementing acts concerning the practical arrangements for:  

(c) 

(a) 

the proceedings pursuant to Articles 54 and 57; 

the hearings provided for in Article 63; 

(b) 

the negotiated disclosure of information provided for in Article 63. 

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

SECTION 4 
COMMON PROVISIONS ON ENFORCEMENT  

Article 67 
Information sharing system 

The  Commission  shall  establish  and  maintain  a  reliable  and  secure  information 
sharing  system  supporting  communications  between  Digital  Services  Coordinators, 
the Commission and the Board.  

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

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

2. 

1. 

2. 

3. 

Article 68 
Representation 
Without prejudice to Directive 2020/XX/EU of the European Parliament and of the Council52, 
recipients  of  intermediary  services  shall  have  the  right  to  mandate  a  body,  organisation  or 
association to exercise the rights referred to in Articles 17, 18 and 19 on their behalf, provided 
the body, organisation or association meets all of the following conditions:  

(a) 

(b) 

(c) 

it operates on a not-for-profit basis; 

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

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

52 

[Reference] 

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SECTION 5 
DELEGATED ACTS 

Article 69 
Exercise of the delegation 

1. 

2. 

3. 

4. 

5. 

1. 

2. 

1. 

2. 

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

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

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

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

A delegated act adopted pursuant to Articles 23, 25 and 31 shall enter into force only 
if no objection has been expressed by either the European Parliament or the Council 
within a period of three months of notification of that act to the European Parliament 
and the Council or if, before the expiry of that period, the European Parliament and 
the  Council  have  both  informed  the  Commission  that  they  will  not  object.  That 
period shall be extended by three months at the initiative of the European Parliament 
or of the Council.  

Article 70 
Committee 

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

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

Chapter V 
Final provisions 

Article 71 
Deletion of certain provisions of Directive 2000/31/EC 

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

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

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Article 72 
Amendments to Directive 2020/XX/EC on Representative Actions for the Protection of the 
Collective Interests of Consumers 

3. 

The following is added to Annex I:  

“(X) Regulation of the European Parliament and of the Council on a Single Market 
for Digital Services (Digital Services Act) and amending Directive 2000/31/EC”  

Article 73 
Evaluation 

1. 

2. 

3. 

4. 

1. 

2. 

By five years after the entry into force of this Regulation at the latest, and every five 
years  thereafter,  the  Commission  shall  evaluate  this  Regulation  and  report  to  the 
European  Parliament,  the  Council  and  the  European  Economic  and  Social 
Committee.  

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

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

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

Article 74 
Entry into force and application 

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

It shall apply from [date - three months after its entry into force].  

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned  

1.3.  The proposal/initiative relates to 

1.4.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management mode(s) planned  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system(s)  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  new  expenditure 
budget line(s) proposed  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Summary of estimated impact on appropriations of an administrative nature 

3.2.3. Third-party contributions  

3.3.  Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Regulation of the European Parliament  and of the Council on A Single Market For 
Digital Services (Digital Services Act) and amending Directive 2000/31/EC 
Policy area(s) concerned in the ABM/ABB structure53  

1.2. 

Policy  area:  Communications  Networks,  Content  and  Technology;  Internal  Market, 
Industry, Entrepreneurship and SMEs  

The  budgetary  impact  concerns  the  new  tasks  entrusted  with  the  Commission, 
including the direct supervisory tasks and the support to the Board..  

Activity: Shaping Europe's digital future 

1.3. 

The proposal/initiative relates to:  

 a new action  
 a new action following a pilot project/preparatory action54  

 the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action  

1.4. 

Grounds for the proposal/initiative  

1.4.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

The Regulation should be directly applicable after [3 months] from its adoption, and 
by  that  time  the  EU  governance  should  allow  the  effective  supervision  of  digital 
services  cross-border.  By  that  moment,  therefore,  Member  States  shall  have 
appointed existing authorities and/or established new authorities performing the tasks 
of  the  DSCs.  At  the  same  time,  an  ad  hoc  independent  advisory  group  (the  Board) 
should  be  set-up  and  effective  in  order  to  be  able  to  plan  its  actions  and  start 
receiving and processing information from DSCs and the Commission, with a view 
to  provide  its  advises,  opinion  and  recommendations  in  ensuring  consistent 
application  of  the  Regulation.  Moreover,  the  Commission  will  be  empowered  to 
eventually  perform  direct  supervision  of  certain  platforms,  in  accordance  with  the 
procedures  and  criteria  laid  down  in  a  delegated  acts.  By  the  same  time,  the 
European platform supporting the exchange of information should be fully operative. 

In the initial start-up phase and until the first short-term review of the Regulation, the 
supporting  activities  to  the  Board,  as  well  as  IT  and  internal  applications 
the  possible 
infrastructure,  should  be  provided  by 
contribution/involvement of personnel from national DSCs as well.  

the  Commission  with 

1.4.2.  Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this point 'added value of Union involvement' is the value resulting 

53 
54 

ABM: activity-based management; ABB: activity-based budgeting. 
As referred to in Article 58(2)(a) or (b) of the Financial Regulation. 

EN 

88 

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from  Union  intervention  which  is  additional  to  the  value  that  would  have  been 
otherwise created by Member States alone. 

Reasons  for  action  at  European  level  (ex-ante):  In  order  to  ensure  the  proper 
functioning  of  the  single  market,  the  intervention  provides,  inter  alia,  for  the 
appropriate supervision of digital services and cooperation between authorities at EU 
level, therefore supporting trust, innovation and growth in the single market. This is 
necessary to ensure the best conditions for innovative cross-border digital services to 
develop  in  the  EU  across  national  territories  and  at  the  same  time  maintain  a  safe 
online environment for all EU citizens, goals which can only be served at European 
level.  With  specific  regard  to  very  large  platforms,  moreover,  a  strengthened 
European layer of supervision, coordinating and complementing national regulators, 
is  also  necessary  in  view  of  the  pan-EU  reach  and  effects  of  regulation  and 
supervision of these actors.  

Expected  generated  Union  added  value  (ex-post):  The  Impact  Assessment 
accompanying  this  proposal  identifies  the  sole  added  value  of  Union  intervention 
addressing  the  risk  of  legal  fragmentation  triggered  by  divergent  regulatory  and 
supervisory approaches (hence without accounting for the increased safety and trust 
on digital services) in a possible increase of cross-border digital trade of 1 to 1.8%, 
i.e.  the  equivalent  of  an  increase  in  turnover  generated  cross-border  of  EUR  8.6 
billion and up to EUR 15.5 billion.  

With  regard  to  added  value  in  the  enforcement  of  measures,  the  initiative  creates 
important efficiency gains in the cooperation across Member States and mutualising 
some  resources  for  technical  assistance  at  EU  level,  for  inspecting  and  auditing 
content  moderation  systems,  recommender  systems  and  online  advertising  on  very 
large  online  platforms.  This,  in  turn,  leads  to  an  increased  effectiveness  of 
enforcement and supervision measures, whereas the current system relies to a large 
extent on the limited capability for supervision in a small number of Member States. 

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1.4.3.  Lessons learned from similar experiences in the past 

The  E-commerce  Directive  2000/31/EC  provides  the  core  framework  for  the 
functioning  of  the  single  market  and  the  supervision  of  digital  services  and  sets  a 
basic  structure  for  a  general  cooperation  mechanism  among  Member  States  , 
covering  in  principle  all  requirements  applicable  to  digital  services.  The  evaluation 
of  the  Directive  pointed  to  shortcomings  in  several  aspects  of  this  cooperation 
mechanism  ,  including  important  procedural  aspects  such  as  the  lack  of  clear 
timeframes  for  response  from  Member  States  coupled  with  a  general  lack  of 
responsiveness  to  requests  from  their counterparts. This  has led over the  years to  a 
lack of trust between Member States in addressing concerns about providers offering 
digital  services  cross-border,  in  particular  in  what  concerns  online  platforms. 
Member  States  have  instead  regulated  independently,  in  particular  in  imposing 
different  rules  covering  obligations  for  online  platforms  and  other  online 
intermediaries as regards illegal content, goods or services providers by their users. 
This  legal  fragmentation  has  serious  repercussions  both  on  the  ability  of  European 
service  providers  to  scale  in  the  single  market,  and  on  the  protection  and  safety 
online  of  EU  citizens.  The  evaluation  of  the  Directive  and  the  impact  assessment 
showed the need to define a differentiated set of rules and requirements at European 
level,  including  specific  obligations  for  very  large  platforms,  which  would  require 
appropriate and consistent supervisory tools and mechanisms at European level. For 
this  reason  the  implementation  of  the  specific  obligations  laid  down  in  this 
Regulation  would  require  a  specific  cooperation  mechanism  at  EU  level,  with  a 
governance structure ensuring coordinator of specific responsible bodies at EU level, 
and a reinforced and agile EU level supervision of very large online platforms.  

1.4.4.  Compatibility and possible synergy with other appropriate instruments  

The  Digital  Services  Act  defines  a  new  common  framework  of  requirements 
applicable  to  certain  information  society  services  (intermediaries),  which  goes  well 
beyond the basic framework provided by the E-commerce Directive. For this reason, 
a  new  national  and  European  regulatory  and  supervisory  function  needs  to  be 
established with this proposal.   

As  regards  possible  synergies  with  the  current  cooperation  model  under  the  E-
Commerce Directive, this Regulation could trigger synergies in particular at national 
level,  where  Digital  Services  Coordinator  could  also  be  entrusted  with  the  task  to 
handle the notifications pursuant to Article 3 of the E-commerce Directive, although 
the Regulation does not mandate it.  

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1.5. 

Duration and financial impact  

 limited duration  

–    in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–    Financial  impact  from  YYYY  to  YYYY  for  commitment  appropriations  and 

from YYYY to YYYY for payment appropriations.  

 unlimited duration 

–  Implementation with a start-up period from 2023 to 2026, 

–  followed by full-scale operation. 
1.6.  Management mode(s) planned55  

 Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

–  the EIB and the European Investment Fund; 

–   bodies referred to in Articles 208 and 209 of the Financial Regulation; 

–   public law bodies; 

–   bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  provide  adequate 
financial guarantees; 

–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

If more than one management mode is indicated, please provide details in the ‘Comments’ section. 

Comments  

55 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the 
BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The Regulation will be reviewed and evaluated periodically. within five years from 
the entry into force of the regulation, and then every five years thereafter. In addition 
to that, several monitoring actions should be carried out by the Commission, possibly 
upon advise of the Board, in evaluating continuously the effectiveness and efficiency 
of  the  measures,  in  the  context  of  the  application  of  the  measures,  including 
supervision and analysis of emerging issues.  

Moreover,  the  Commission  should  specifically  perform  a  short  term    evaluation  to 
assess the Board’s performance in relation to its objectives, mandate and tasks. The 
evaluation  will,  in  particular,  address  the  possible  need  to  establish  an  autonomous 
agency,  and  the  financial  implications  of  any  such  modification.  The  Commission 
must report on the findings of the evaluation to the European Parliament, the Council 
and the European Economic and Social Committee.  

2.2.  Management and control system  

2.2.1. 

Justification of the management mode(s), the funding implementation mechanism(s), 
the payment modalities and the control strategy proposed 

The  Regulation  establishes  a  new  policy  with  regard  to  harmonised  rules  for  the 
provision  of  information  society  services  in  the  internal  market  while  ensuring  the 
safety and trustworthy of on-line services and the fundamental  rights  online. These 
new rules require also  a consistency mechanism for the cross-border application of 
the  obligations  under  this  Regulation,  a  new  advisory  group  coordinating  the 
activities of national authorities and of the Commission as well as direct enforcement 
powers  for  the  Commission  and  the  set-up  of  an  information  system  facilitating 
information flows between Digital Services Coordinators. 

In  order  to  face  these  new  tasks,  it  is  necessary  to  appropriately  resource  the 
Commission’s  services.  The  enforcement  of  the  new  Regulation  is  estimated  to 
require 50 FTE à regime (15FTE for the management of the new direct supervisory 
tasks  and  decisions  and  35FTE  for  the  support  to  the  activities  of  the  Board  in  the 
investigations  of  the  Commission  or  joint  investigations  of  Digital  Services 
Coordinators.). 

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

In order to ensure that the Board fulfils its mandate as established in this Regulation, 
it  is  foreseen  that  the  Chair  of  the  Board  should  be  provided  by  the  Commission, 
which will be able to prepare the agenda for decision of the members in accordance 
with the tasks enshrined in this Regulation. 

Moreover, in  order to  ensure that the members of the Board have the possibility to 
make informed decisions on the basis of factual elements and background analysis, it 
is provided that the Board should be supported by the administrative structure of the 
Commission. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

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The existing fraud prevention measuers applicable to the Commission will cover the 
additional appropriations necessary for this Regulation. 

EN 

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3. 

3.1. 

Heading 
of 
multiann
ual 
financial 
framewo
rk 

1 

1 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading  of  the  multiannual  financial  framework  and  new  expenditure  budget 
line(s) proposed  

Budget line 

Number  
Heading 1 

Type  of  
expendit
ure 

Contribution  

Diff./No
n-diff.56 

from 
EFTA 
countrie
s57 

from 
candidat
e 
countries
58 

from 
third 
count
ries 

the 
of 

within 
meaning 
Article [21(2)(b)] 
of 
Regulation  

the  Financial 

02 04 05 01 

Digital  Europe  Programme  (DEP)  - 
Deployment,  best  use  of  digital 
capacities and Interoperability 

03 02 01 01 

Single  Market  Programme  (SMP)  - 
Operation  and  development  of  the 
internal market of goods and services   

03 01 01 01  

Support expenditure for the "Single 
Market Programme (incl. SMEs)" 

Diff. 

YES 

NO 

NO 

NO 

Non-diff  YES 

NO 

NO 

NO 

56 
57 
58 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

EN 

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3.2. 

Estimated impact on expenditure  

The  budgetary  impact  of  the  proposal  will  be  entirely  covered  by  the  allocations  foreseen  in  the  MFF  2021-27  under  the  financial 
envelopes of the Digital Europe and Single Market programmes. No expenditure is foreseen in the context of the current MFF. 

3.2.1. 

Summary of estimated impact on expenditure  

Heading 
framework  

of 

multiannual 

financial  

1 

Heading 1 

Operational appropriations  

2021  2022 

2023 

2024 

2025 

2026 

2027 

Post 
202759 

TOTAL 
2023-
2027 

GRAND 
TOTAL 

02 04 05 01 

Digital  Europe  Programme  (DEP)  - 
Deployment,  best  use  of  digital 
capacities and Interoperability 

03 02 01 01 

Single  Market  Programme  (SMP)  - 
Operation  and  development  of  the 
internal market of goods and services   

Commitments 

(1) 

4,526 

6,076 

9,802 

9,802 

9,802 

9,802  

40,008 

49,810 

Payments 

(2) 

2,525 

4,526 

5,075 

8,800 

9,000 

19,584 

30,226 

49,810 

Commitments 

(3) 

2,600 

5,400 

5,400 

5,400 

5,400 

18,800 

24,200 

Payments 

(4) 

2,600 

5,400 

5,400 

5,400 

5,400 

18,800 

24,200 

03 01 01 01  

Support  expenditure  for  the    Single 
Market Programme 

Commitments 
= Payments 

(5) 

0,025 

0,230 

0,220 

0,220 

0,220 

0,915 

0,915 

TOTAL 
envelope of the programme 

appropriations 

for 

the 

Commitments 

(1)+(3)+(5) 

4,551 

8,906 

15,422 

15,422 

15,422 

15,202 

59,723 

74,925 

Payments 

(2)+(4)+(5) 

2,550 

7,356 

10,695 

14,420 

14,920 

24,984 

49,941 

74,925 

59 

All figures in this column are indicative and subject to the continuation of the programmes and availability of appropriations 

EN 

95 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Heading 
framework  

of 

multiannual 

financial  

7 

‘Administrative expenditure’ 

Human resources  

Other administrative expenditure  

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Post 
202760 

TOTAL 
(2023-2027) 

EUR million (to three decimal places) 

0,750 

3,750 

6,295 

6,295 

6,295 

6,295 

23,385 

0,140 

0,250 

0,275 

0,300 

0,325 

0,325 

1,290 

TOTAL appropriations under HEADING 
7 of the multiannual financial framework 

(Total  commitments  = 
Total payments) 

0,890 

4,000 

6,570 

6,595 

6,620 

6,620 

24,675 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Post 
2027 

TOTAL 
(2023-2027) 

EUR million (to three decimal places) 

TOTAL 
across 
of the multiannual financial framework  

appropriations  
HEADINGS  

Commitments 

Payments 

5,441 

12,906 

21,992 

22,017 

22,042 

21,822 

84,398 

3,440 

11,356 

17,265 

21,015 

21,540 

31,640 

74,616 

60 

All figures in this column are indicative and subject to the continuation of the programmes and the availability of appropriations 

EN 

96 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2. 

Summary of estimated impact on appropriations of an administrative nature 

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–    The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Years 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

TOTAL 

HEADING 7 
of the multiannual 
financial framework 

Human resources  

0.75 

3.75 

6.295 

6.295 

6.295 

23.385 

Other administrative 
expenditure  

Subtotal HEADING 7 
of the multiannual 
financial framework  

Outside HEADING 761 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 7 
of the multiannual 
financial framework  

TOTAL 

0,140 

0,250 

0,275 

0,300 

0,325 

1,290 

0,890 

4,000 

6,570 

6,595 

6,620 

24,675 

0,025 

0,230 

0,220 

0,220 

0,220 

0,915 

0,025 

0,230 

0,220 

0,220 

0,220 

0,915 

0,915 

4,230 

6,790 

6,815 

6,840 

25,590 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the 
DG,  together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the  managing  DG  under  the  annual 
allocation procedure and in the light of budgetary constraints62. 

61 

62 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of 
EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 
As the initiative is of horizontal nature and cross-cuts various competence domains of the Commission, 
such as those related to internal market, digital services, consumer protection, protection of fundamental 
freedoms on-line, the plan is to pull together resources from all Commission DGs, subject to agreement 
of HR and concerned DGs, to be discussed. 

EN 

97 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2.1.  Estimated requirements of human resources 

–    The proposal/initiative does not require the use of human resources.  

–    The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full time equivalent units 

Years 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

 Establishment plan posts (officials and temporary staff) 

Headquarters and Commission’s 
Representation Offices 

Delegations 

Research 

6 

19 

32 

32 

32 

 External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED 63 
Heading 7 

Financed from 
HEADING 7 of 
the multiannual 
financial 
framework  

- at Headquarters 

- in Delegations  

Financed from the 
envelope of the 
programme 64 

- at Headquarters 

- in Delegations  

Research 

Other (specify) 

TOTAL 

11 

18 

18 

18 

6 

30 

50 

50 

50 

The human resources required will be met by staff from the DG who are already assigned to management of the 
action  and/or  have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which 
may  be  granted  to  the  managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of  budgetary 
constraints. 

Description of tasks to be carried out: 

Officials and temporary staff 

Supervision of the correct implementation of the obligations set by the Regulation for 
private companies and Member States 

Preparation and drafting of implementing and delegated acts, in compliance with this 
Regulation 

Conducting investigations, audits and other analysis, including data analytics 

Managing public and targeted consultations 

Procuring  and  managing  external  studies  studies  related  to  analysis  of  algorithmic, 
artificial intelligence and data management systems 

Administrative  support  to  the  Board  and  organisation  of  meetings,  preparation  of 
opinions and other support to the Board 

External staff 

Conducting investigations, audits and other analysis 

Managing public and targeted consultations 

Administrative  support  to  the  Board  and  organisation  of  meetings,  preparation  of 

63 

64 

AC=  Contract  Staff;  AL  =  Local  Staff;  END  =  Seconded  National  Expert;  INT  =  agency  staff; 
JPD= Junior Professionals in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

EN 

98 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
opinions and other support to the Board 

EN 

99 

  EN 

 
3.2.3.  Third-party contributions  

–    does not provide for co-financing by third parties 

–    provides for the co-financing by third parties estimated below: 

Appropriations in EUR million (to three decimal places) 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Total 

Specify  the  co-financing 
body  

TOTAL appropriations 
co-financed  

EN 

1 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.3. 

Estimated impact on revenue  

–    The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

–    on own resources  

–    on miscellaneous revenue  

please indicate, if the revenue is assigned to expenditure lines  

EUR million (to three decimal places) 

Impact of the proposal/initiative65 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Budget revenue line: 

Article …………. 

ANNEX 
to the LEGISLATIVE FINANCIAL STATEMENT 

Name of the proposal/initiative: 

Regulation  of  the  European  Parliament  and  of  the  Council  on  A  Single  Market  For  Digital 
Services 

(1) 

(2) 

(3) 

(a) 

(b) 

65 

NUMBER and COST of HUMAN RESOURCES CONSIDERED NECESSARY 

COST of OTHER ADMINISTRATIVE EXPENDITURE 

METHODS of CALCULATION USED for ESTIMATING COSTS 

Human resources 

Other administrative expenditure 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. 
gross amounts after deduction of 20 % for collection costs. 

EN 

2 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
(1) 

Cost of human resources considered necessary 

 The proposal/initiative does not require the use of human resources 
 The proposal/initiative requires the use of human resources, as explained below: 

HEADING 7 

of the multiannual 
financial framework 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

TOTAL 

FT
E 

Appropriation
s 

FT
E 

Appropriation
s 

FT
E 

Appropriation
s 

FT
E 

Appropriation
s 

FT
E 

Appropriation
s 

FT
E 

Appropriation
s 

FTE 

Appropriation
s 

FT
E 

Appropriation
s 

 Establishment plan posts (officials and temporary staff) 

EUR million (to three decimal places) 

Headquarters 
and 
Commission’s 
Representatio
n Offices 

Union 

in 
Delegations 

AD 

AST 

AD 

AST 

 External staff 66 

Global 

AC 

5 

0,60  

16 

2,4 

27 

4,05 

27 

4,05 

27 

4,05 

 1 

 0,15 

3 

 0,45 

5 

 0,75 

5 

0,75 

 5 

0,75 

7 

0,56 

 7 

 0,56 

 7 

 0,56 

 7 

 0,56 

66 

AC = Contract Staff; AL = Local Staff; END = Seconded National Expert; INT= agency staff; JPD= Junior Professionals in Delegations. 

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if 
necessary with any additional allocation, which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints. 

EN 

3 

EN 

 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
                                                 
 
envelope 

EN
D 

INT 

Other  budget 
lines (specify) 

Subtotal – 
HEADING 7 

of the 
multiannual 
financial 
framework 

4 

 0,34 

11 

 0,935 

 11 

0,935 

 11 

 0,935 

6  

0,75  

30 

3,75 

50 

6,295 

50 

6,295 

50 

6,295 

EN 

4 

EN 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
(2) 

Cost of other administrative expenditure 

 The proposal/initiative does not require the use of administrative appropriations 
 The proposal/initiative requires the use of administrative appropriations, as explained below: 

HEADING 7 

of the multiannual financial framework 

At headquarters: 

Mission and representation expenses 

Conference and meeting costs 

Operational  costs  related  to  outputs  (see  methods  of 
calculation) 

Other budget lines (specify where necessary) 

In Union delegations 

Missions, conferences and representation expenses 

Further training of staff 

Acquisition, renting and related expenditure 

Equipment, furniture, supplies and services 

Subtotal HEADING 7 

of the multiannual financial framework 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Total 

EUR million (to three decimal places) 

0.05  

0.14  

0,06 

0.075 

0.14 

0,06 

0.1 

0.14 

0,06 

0.125  

 0.14 

0,06 

0.35  

 0.66 

0,28 

0.1  

0.04 

0.140 

0,250 

0,275 

0,300 

0,325 

1,290 

EN 

5 

EN 

 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
EN 

6 

EN 

 
 
 
 
 
2021 

2022 

2023 

2024 

2025 

2026 

2027 

Total 

EUR million (to three decimal places) 

Outside HEADING 7  

of the multiannual financial framework 

Expenditure  on  technical  and  administrative  assistance 
from  operational 
including  external 
(not 
appropriations (former 'BA' lines) 

staff) 

- at Headquarters 

- in Union delegations 

Other management expenditure for research 

Other budget lines (specify where necessary) 

Communication/consultation activities 

0,025 

0,230 

0,220 

0,220 

0,220 

0,915 

Sub-total – Outside HEADING 7 

of the multiannual financial framework 

TOTAL 
HEADING 7 and Outside HEADING 7 
of the multiannual financial framework 

0,165 

0,480 

0,495 

0,520 

0,545 

2,205 

The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management 
of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation 
procedure and in the light of budgetary constraints. 

EN 

7 

EN 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
(3) 

(a) 

Methods of calculation used to estimate costs 

 Human resources 

This part sets out the method of calculation used to estimate the human resources considered necessary 
(workload assumptions, including specific jobs (Sysper 2 work profiles), staff categories and the corresponding 
average costs) 

HEADING 7 of the multiannual financial framework 

NB: The average costs for each category of staff at Headquarters are available on BudgWeb: 
https://myintracomm.ec.europa.eu/budgweb/EN/pre/legalbasis/Pages/pre-040-020_preparation.aspx 

 Officials and temporary staff 
Assuming adoption and application during 2023 the Commission will have to gradually redeploy internally the resources 
needed to ensure the fulfilment of its new tasks by the date of application of the Regulation, including the adoption of the 
implementing and delegated acts mandated by the Regulation.The Commission will have also to set a task force entrusted 
with the supervision on the application of the Regulation for very large platforms and the support to the Board’s activities.  
The organigram will need to provide for 15 FTE (13 AD + 2 AST) to carry on the additional COM functions related to the DSA 
(dispute settlement, direct supervision, implementing acts). 
In addition, a total work force of 35 FTE (14 AD/TA, 3 AST, 7 CA and 11 END) will need to be internally redeployed in the 
Commission to provide the support to the Board, taking into account that it would require an active monitoring of approx 
20/25 Very Large Platform (including screeing of all the regulatory documents) and involvement in the consistency/bilateral 
mechanism (as a reference in IMI approx 10 notifications per year pursuant to Article 3 ECD were filed, and it is not excluded 
a similar, if not higher, amount of notifications could involve the new obligations of the DSA as regards all ISS operating in 
EU). 

As the initiative is of horizontal nature and cross-cuts various competence domains of the Commission, such as those related 
to internal market, digital services, consumer protection, protection of fundamental freedoms on-line, the plan is to pull 
together resources from all Commission DGs, subject to agreement of HR and concerned DGs, to be discussed. 

 External staff 

Outside HEADING 7 of the multiannual financial framework 

 Only posts financed from the research budget  

 External staff 

(b) 

Other administrative expenditure 

Give details of the method of calculation used for each budget line  

EN 

8 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and in particular the underlying assumptions (e.g. number of meetings per year, average costs, etc.) 

HEADING 7 of the multiannual financial framework 

Missions and representation expenses 

 

For on-site investigations of very large online platforms: no such inspections estimated for the first year (2023), but 
estimate for such missions to be increasingly necessary after the entry into force: estimated  15 in 2025, 20 in 2026 
and 25 in 2027, as the enforcement activities intensify. Average cost per investigation estimated at 0.005 mil. EUR, 
assuming involvement of up to 2 staff on site and a duration of an investigation of 5 days 

Conference and meeting costs 

  Monthly Board meetings supported by the Commission, with an estimate of 0.01mil EUR per meeting. Only 8 

meetings estilated to take place in 2023 

  Other expert meetings: conservative estimates that up to 4 expert meeting per annum would be organised for 

gathering inputs and advise on technical, legal and societal concerns  from leading experts 

Operational costs related to outputs 

  Preparation and delivery of opinion of the Board: estimated that one such opinion per meeting of the Board would 
be necessary and feasible. Estimated that one out of two opinions would entail a 0.1mil EUR ad hoc technical 
study support. 

Outside HEADING 7 of the multiannual financial framework (support and operational expenditure) 

Support expenditure 

 

The Commission and the Board will need to consult widely on most of the core deliverables issued. An average 
cost per consultation is estimated at 0.005mil EUR, accounting for targeted consultations and physical meetings, 
and expecting that most consultations will be conducted online. Consultations focus on: risk assessment 
frameworks (2 in 2024 and 2025 respectively, and one in 2026), draft guidelines (2 per annum in 2023 to 2025, 
expected to increase to 3 per annum thereafter), consultations preceding the adoption of implementing and 
delegated acts (3 in 2023 and 2 in 2024). 

  A continuous communication support budget, supporting the stakeholder engagement around all the consultation 

steps, is foreseen with a 0.2 mil EUR per annum estimate, starting in 2024. 

Operational expenditure 
Studies and consultations 
The Commission, in its support activities to the Board and for its own direct enforcement tasks, will need to be able to carry 
on in-depth analysis of algorithmic, data management and artificial intelligence systems underpinning the services of very 
large platforms (approx 20/25 across EU). This will require recourse to very specialised expertise through ad hoc studies 
and/or consultant supporting the analysis, and in particular: 

  Data access requests for risk assessment: expenditure related to data processing and external technical support, 
with an average estimate of 0.025mil EUR per request. Volumes of requests expected to increase and stabilise at 
around 2 requests per year for each very large service provider supervised (for an expected number of 20 service 
providers) – i.e. 40 such requests per annum starting in 2026, with 5 in 2023 and 20 in 2025 

  Expenditure for studies and data analyst experts will be necessary for establishing the methodological framework 

and knowledge base necessary to identify risks and build-up the capabilities of public enforcer to protect European 
citizens and businesses from failures to comply with the Regulation, as well as standards and methodologies to 
remedy them.  It is considered that studies will need to regularly ensure robust methodologies and frameworks for 
auditing of a range of evolving algorithmic systems, risk assessment, as well as analysis of the most prominent 
risks, as resulting from overview of the sector (not strictly related to individual platforms/enforcement actions, but 
also involving systems with the capacity to shape specific markets and/or information dissemination across users in 
the Union). It is estimated a regime to perform up to 22 risk assessment, technical and feasibility studies with 
complexity ranging from low (50k) to framework (1mil€). Commitments for these studies are supposed to be paid 
off upon completion of the studies, hence on average the financial year following signature of the contract 

  With regard to individual Technical inspections and regulatory audits over very large providers’ systems algorithmic 

and artificial intelligence systems: expected to be high complexity (inspection of around 8 algorithmic systems) or 

EN 

9 

  EN 

 
 
 
 
 
 
medium complexity (inspection of around 5 algorithmic systems). Cost estimates amount to 0.5 mil EUR for a high 
complexity and 0.3mil EUR for a low complexity audit, with an average cost of 0.075 mil EUR for the inspection of 
one technical system (as estimated for external technical audits in SMART 2018/0037)  and additional resources 
necessary for the overall analysis. Costs cover the use of data scientists external contractors and procurement of 
external support. It is expected that no such inspection will be conducted in 2023, but that the capacity and need 
will escalate to 16 (3 high complexity and 13 medium complexity) inspections in 2025. Inspections are supposed to 
be completed within a shorter period of time than studies and paid on average the same year of commitments.  

Information and management systems (IT)  

  A core component supporting the application of the Regulation is a digital platform facilitating exchanges of 
information between Member States, the Board and the Commission, as well as ensuring functionalities and 
interoperability with other functions provided for in the Regulation. Development costs are estimates at 4.5 mil EUR 
over 4 years (2 mil in 2023 for its set-up, 1 mil in 2024 and 2025 for its full development and interoperability and 
0.03 onwards to keep it up-to-date and interoperable. Maintenance and user assistance costs are also estimates at 
0.001mil EUR in the first two years, and a more stable budget of 0.002mil EUR per annum thereafter. Payments for 
further updates and developments are estimated on the financial year following the implementation/delivery of the 
platform. 

In view of the above, the operational expenditure outside Heading 7 would be relevant for the following programmes of the 
Commission 

- Digital Europe Programme: with regards to activities related to general studies and data analysis aiming at increasing 
capability of public enforcers in analysing, identifying and addressing risks related to systemic failures of Very Large 
Platforms within a common framework across the Union, as well as to perform data access requests and management and 
build and set up the necessary IT information sharing platform that will allow the exchange of information among competent 
authorities and the Commission and interoperability of databases and functionalities foreseen in the Regulation, with the 
following envisaged expenditure (mil€) 

2023 

4,526 

2024 

6,076 

2025 

9,802 

2026 

9,802 

2027

9,802 

- Single Market Programme: with regard to the specific enforcement activities to be carried out with regard to Very Large 
Platforms, such as individual technical inspections and auditing, as well as related public consultation] 

2023 

0,025 

2024 

2,830 

2025 

5,620 

2026 

5,620 

2027 

               5,620  

Appendix: detailed overview of operational and administraive expenses 

EN 

10 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Appendix: detailed overview of operational and HR expenses 

2023 

2024 

2025 

2026 

2027 

Total 

and 

Mission 
representation 
expenses 

and 

(for 

Mission 
representation 
expenses 
inspections) 

SUBTOTAL 

quantit
y 

cost 
per 
unit 

total 

quantit
y 

cost 
per 
unit 

total 

quantit
y 

cost 
per 
unit 

total 

quantit
y 

cost 
per 
unit 

total 

quantit
y 

total 

cost 
per 
unit 

0 

10 

0,005 

0,05 

15 

0,005 

0,075 

20 

0,005 

0,1 

25 

0,005 

0,125 

0 

0,05 

0,075 

0,1 

0,125 

0,35 

Conference  and 
meeting costs 

Operational 
costs  related  to 
outputs 

Board meetings 

8 

0,01 

0,08 

12 

0,01 

0,12 

12 

0,01 

0,12 

12 

0,01 

0,12 

12 

0,01 

0,12 

Other expert meetings 

4 

0,005 

0,02 

4 

0,005 

0,02 

4 

0,005 

0,02 

4 

0,005 

0,02 

4 

0,005 

0,02 

SUBTOTAL 

0,1 

0,14 

0,14 

0,14 

0,14 

0,66 

Opinions 

8 

0,005 

0,04 

12 

0,005 

0,06 

12 

0,005 

0,06 

12 

0,005 

0,06 

12 

0,005 

0,06 

SUBTOTAL 

0,04 

0,06 

0,06 

0,06 

0,06 

0,28 

Studies 
consultations 

and 

Risk 
framework studies 

assessment 

Technical  studies  and 
algorithmic 
auditing 
frameworks 

1 

3 

1 

1 

0,3 

0,9 

2 

6 

1 

2 

3 

1 

3 

3 

1 

3 

3 

1 

3 

0,3 

1,8 

12 

0,3 

3,6 

12 

0,3 

3,6 

12 

0,3 

3,6 

Feasibility  studies  for  2 

0,05 

0,1 

2 

0,05 

0,1 

2 

0,05 

0,1 

2 

0,05 

0,1 

2 

0,05 

0,1 

EN 

11 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
technical standards 

Data  access  requests 
and data processing for 
risk assessments 

5 

0,025 

0,125 

15 

0,025 

0,375 

20 

0,025 

0,5 

40 

0,025 

1 

40 

0,025 

1 

Yearly 
study 
prominent risks 

on 

1 

0,4 

0,4 

2 

1 

0,4 

0,8 

0,5 

0,5 

4 

3 

0,4 

1,6 

0,5 

1,5 

4 

3 

0,4 

1,6 

0,5 

1,5 

4 

3 

0,4 

1,6 

0,5 

1,5 

0,5 

0 

0,3 

0 

7 

0,3 

2,1 

13 

0,3 

3,9 

13 

0,3 

3,9 

13 

0,3 

3,9 

Technical 
and 
complexity) 

inspections 
audits(high 

Technical 
and 
complexity) 

inspections 
audits(medium 

Consultations 
guidance 

on 

2 

0,005 

0,01 

2 

0,005 

0,01 

2 

0,005 

0,01 

3 

0,005 

0,015 

3 

0,005 

0,015 

Consultations  on  risk 
assessment frameworks 

Consultaions 
implementing 
delegatning acts 

3 

on 
and 

Communication 
stakeholder 
engagement support 

and 

0,005 

0 

2 

0,005 

0,01 

2 

0,005 

0,01 

1 

0,005 

0,005 

1 

0,005 

0,005 

0,005 

0,015 

2 

0,005 

0,01 

0,005 

0 

0,005 

0 

0,005 

0 

0,2 

0 

1 

0,2 

0,2 

1 

0,2 

0,2 

1 

0,2 

0,2 

1 

0,2 

0,2 

SUBTOTAL 

2,55 

7,905 

14,42 

14,92 

14,92 

54,715 

Information 
and 
management 
systems 

Development  of  digital 
clearinghouse 
platforms 

1 

2 

2 

1 

1 

1 

1 

0,5 

0,5 

0,5 

0,5 

EN 

12 

EN 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Maintenance 

SUBTOTAL 

SUBTOTAL 
expenditures 

HR budget 

GRAND 
TOTAL 

0,001 

0,001 

0,001 

0,001 

0,002 

0,002 

0,002 

0,002 

0,002 

0,002 

2,001 

4,691 

0,750 

5,441 

1,001 

9,156 

3,750 

12,90
6 

1,002 

15,69
7 

6,295 

21,99
2 

0,502 

15,72
2 

6,295 

22,01
7 

0,502 

5,008 

15,74
7 

61,013 

6,295 

23,385 

22,04
2 

84,398 

The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action 
and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of 
budgetary constraints. 

EN 

13 

EN