Source: EURLEX
Language: en
Format: md

**Council of the**
**European Union**

**Interinstitutional File:**

**2020/0361(COD)**

**COVER NOTE**

**Brussels, 16 December 2020**
**(OR. en)**

**14124/20**

**COMPET 641**
**MI 576**
**JAI 1116**
**TELECOM 268**
**CT 119**
**PI 92**
**AUDIO 65**
**CONSOM 222**

From: Secretary-General of the European Commission, signed by Ms Martine
DEPREZ, Director

date of receipt: 16 December 2020

To: Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council
of the European Union

No. Cion doc.: COM(2020) 825 final

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

Delegations will find attached document COM(2020) 825 final.

Encl.: COM(2020) 825 final

14124/20 US, TM/sk
#### ECOMP.3A EN

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}

### **EN EN**

**EXPLANATORY MEMORANDUM**

**1.** **CONTEXT** **OF** **THE** **PROPOSAL**

**•** **Reasons for and objectives of the proposal**

                                         Since the adoption of Directive 2000/31/EC [1] (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.

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).](https://eur-lex.europa.eu/legal-content/EN/AUTO/?uri=OJ:L:2000:178:TOC)
2 [https://ec.europa.eu/info/sites/info/files/communication-shaping-europes-digital-future-feb2020_en_4.pdf](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))

### EN 1 EN

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
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 Conclusions [6] 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 2020 [7] .

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-andaction 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

6
Council Conclusions on Shaping Europe’s Digital Future, 8711/20 of 9 June 2020,

                                         [https://www.consilium.europa.eu/media/44389/st08711](https://www.consilium.europa.eu/media/44389/st08711-en20.pdf) en20.pdf
7 [https://www.consilium.europa.eu/media/45910/021020-euco-final-conclusions.pdf](https://www.consilium.europa.eu/media/45910/021020-euco-final-conclusions.pdf)

### EN 2 EN

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
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 owninvestigations 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 eCommerce 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

### EN 3 EN

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
by the Court of Justice of the European Union [8] . 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 videosharing 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 sectorspecific 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).

### EN 4 EN

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 Pledge [10], the Memorandum of Understanding against
counterfeit goods [11], the Code of Conduct against illegal hate speech [12], 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.

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-](https://ec.europa.eu/info/business-economy-euro/product-safety-and-requirements/product-safety/product-safety-pledge_en)

           safety [pledge_en](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](https://ec.europa.eu/growth/industry/policy/intellectual-property/enforcement/memorandum-understanding-sale-counterfeit-goods-internet_en) understanding

[sale-counterfeit-goods-internet_en](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-](https://ec.europa.eu/info/policies/justice-and-fundamental-rights/combatting-discrimination/racism-and-xenophobia/eu-code-conduct-countering-illegal-hate-speech-online_en)

[xenophobia/eu-code-conduct-countering-illegal-hate-speech-online_en](https://ec.europa.eu/info/policies/justice-and-fundamental-rights/combatting-discrimination/racism-and-xenophobia/eu-code-conduct-countering-illegal-hate-speech-online_en)

### EN 5 EN

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
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.

### EN 6 EN

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.

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** **OF** **EX-POST** **EVALUATIONS,** **STAKEHOLDER**
**CONSULTATIONS** **AND** **IMPACT** **ASSESSMENTS**

**•** **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.

### EN 7 EN

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
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 eCommerce 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 Parliament [13] as well as Council conclusions [14] 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.

13 European Parliament, _ibidem_
14 Shaping Europe’s digital future, available at: [https://data.consilium.europa.eu/doc/document/ST-8711-2020-](https://data.consilium.europa.eu/doc/document/ST-8711-2020-INIT/en/pdf)

[INIT/en/pdf.](https://data.consilium.europa.eu/doc/document/ST-8711-2020-INIT/en/pdf)

### EN 8 EN

**•** **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 2 [nd]
of June and 8 [th] 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%).

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

### EN 9 EN

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
Directive and the state of legal fragmentation [15], studies on algorithmic transparency and
accountability [16], 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 States [17] .

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 providers [19] The
Commission also gathered expertise and views through 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.

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 C434/15 _Asociación Profesional Élite Taxi_, ECLI:EU:C:2017:981 or Case C-390/18 _Airbnb Ireland UC_,
ECLI:EU:C:2019:1112.
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.

### EN 10 EN

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 Parliament [20] .

**•** **Impact assessment**

The Regulatory Scrutiny Board issued a positive opinion with reservations on the impact
assessment, including suggestions for improvement [21] . 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
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.

20 Digital Services Act: Improving the functioning of the Single Market, available at:
[https://www.europarl.europa.eu/doceo/document/TA-9-2020-0272_EN.html.](https://www.europarl.europa.eu/doceo/document/TA-9-2020-0272_EN.html) [Digital Services Act: adapting](https://www.europarl.europa.eu/doceo/document/TA-9-2020-0273_EN.html)
commercial and civil law rules [for](https://www.europarl.europa.eu/doceo/document/TA-9-2020-0273_EN.html) commercial entities operating online, available at:
[https://www.europarl.europa.eu/doceo/document/TA-9-2020-0273_EN.html.](https://www.europarl.europa.eu/doceo/document/TA-9-2020-0273_EN.html) Digital [Services](https://www.europarl.europa.eu/doceo/document/TA-9-2020-0274_EN.html) Act and
[fundamental rights issues posed, available at:](https://www.europarl.europa.eu/doceo/document/TA-9-2020-0274_EN.html) [https://www.europarl.europa.eu/doceo/document/TA-9-2020-](https://www.europarl.europa.eu/doceo/document/TA-9-2020-0274_EN.html)
[0274_EN.html.](https://www.europarl.europa.eu/doceo/document/TA-9-2020-0274_EN.html)
21 Links to the summary sheet and the positive opinion of the RSB will be included after their publication.

### EN 11 EN

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.

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.

### EN 12 EN

**•** **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.

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.

### EN 13 EN

**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).

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).

### EN 14 EN

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
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.

### EN 15 EN

**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
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 system 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).

**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

### EN 16 EN

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).

### EN 17 EN

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 Committee [22],

Having regard to the opinion of the Committee of the Regions [23],

Having regard to the opinion of the European Data Protection Supervisor [24],

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 Council [25], 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.

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).

### EN 18 EN

(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
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.

(3) 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.

(4) 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.

(5) 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 Council [26],
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.

(6) In practice, certain providers of intermediary services intermediate in relation to
services that may or may not be provided by electronic means, such as remote
information technology services, transport, accommodation or delivery services. This
Regulation should apply only to intermediary services and not affect requirements set
out in Union or national law relating to products or services intermediated through
intermediary services, including in situations where the intermediary service

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).

### EN 19 EN

constitutes an integral part of another service which is not an intermediary service as
specified in the case law of the Court of Justice of the European Union.

(7) In order to ensure the effectiveness of the rules laid down in this Regulation and a
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.

(8) Such a substantial connection to the Union should be considered to exist where the
service provider has an establishment in the Union or, in its absence, on the basis of
the existence 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 Council [27] . 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.

(9) 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 Council [29] 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

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

### EN 20 EN

Council [30] 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 Council [32] and
Regulation […/…] on temporary derogation from certain provisions of Directive
2002/58/EC [33] as well as Union law on consumer protection, in particular Directive
2005/29/EC of the European Parliament and of the Council [34], Directive 2011/83/EU of
the European Parliament and of the Council [35] and Directive 93/13/EEC of the
European Parliament and of the Council [36], as amended by Directive (EU) 2019/2161
of the European Parliament and of the Council [37], 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.

(11) 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.

(12) In order to achieve the objective of ensuring a safe, predictable and trusted online
environment, for the purpose of this Regulation the concept of “illegal content” should
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

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

### EN 21 EN

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
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

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

### EN 22 EN

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
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) 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

### EN 23 EN

reasonably identify, assess and where appropriate act against the allegedly illegal

content.

(23) 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
presentation could lead to such a belief on the side of an average and reasonably wellinformed 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

### EN 24 EN

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’,
‘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

### EN 25 EN

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
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) 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

### EN 26 EN

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 in the Charter, to ensure meaningful
accountability of those providers and to empower recipients and other affected parties,
whilst facilitating the necessary oversight by competent authorities.

(35) 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.

(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

### EN 27 EN

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
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

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).

### EN 28 EN

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 Council [42] ensures that
Union consumers and businesses in the Union have access to quality-certified
alternative dispute resolution entities. In this regard, it should be clarified that the rules
of this Regulation on out-of-court dispute settlement are without prejudice to that
Directive, including the right 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 semipublic 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 intellectual property rights,

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).

### EN 29 EN

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]

(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
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 Council [44] . 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

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
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).

### EN 30 EN

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 System [45], 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,
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
Council [46], Article 7 of Directive 2005/29/EC of the European Parliament and of the

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

### EN 31 EN

Council [47] and Article 3 of Directive 98/6/EC of the European Parliament and of the
Council [48] .

(51) 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 include certain obligations relating to the publication and
communication of information on the average monthly active recipients of the service
in the Union.

(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
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.

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

### EN 32 EN

(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
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

### EN 33 EN

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 selfregulatory 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
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

### EN 34 EN

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

(64) 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

### EN 35 EN

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.

(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
includes coordinated operations aimed at amplifying information, including
disinformation, such as the use of bots or fake accounts for the creation of fake or

### EN 36 EN

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.

(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.

(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

### EN 37 EN

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.

(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
Regulation, provided that any such appointed authority complies with the
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
guaranteeing that such dismissals do not jeopardise the independence and impartiality
of such members.

(76) 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

### EN 38 EN

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.

(77) Member States should provide the Digital Services Coordinator, and any other
competent authority designated under this Regulation, with sufficient powers and
means to ensure effective 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
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

### EN 39 EN

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.

(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

### EN 40 EN

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) 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 timelines for activities or proposing ad-hoc task-forces with
participation of the authorities involved.

(87) 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.

(88) In order to ensure a consistent application of this Regulation, it is necessary to set up
an independent advisory group at Union level, which should support the Commission
and help coordinate the actions of Digital Services Coordinators. That European Board
for Digital Services 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.

### EN 41 EN

(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.

### EN 42 EN

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

(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
Commission initiated the proceedings, the Digital Services Coordinators of
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) 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.

(99) 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

### EN 43 EN

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
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 noncompliance 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 Council [49] .

(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

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).

### EN 44 EN

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

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

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

2. The aims of this Regulation are to:

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

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

### EN 45 EN

3. 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.

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

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;

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

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

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

(d) ‘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;

### EN 46 EN

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.

(e) ‘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;

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

(g) ‘illegal content’ means any information, ~~, w~~ hich, 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;

(h) ‘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.

(i) ‘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;

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

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

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

### EN 47 EN

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

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

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

(p) ‘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.

##### **–** **Chapter II  Liability of providers of intermediary services**

_Article 3_

_‘Mere conduit’_

1. Where an information society service is provided that consists of the transmission in
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.

2. 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.

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

### EN 48 EN

_Article 4_
_‘Caching’_

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

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

(e) the provider acts expeditiously to remove or to disable access to the
information it has stored 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.

_Article 5_

_Hosting_

1. 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.

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

3. Paragraph 1 shall not apply with respect to liability under consumer protection law of
online platforms allowing consumers to conclude distance contracts with traders,

### EN 49 EN

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.

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

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;

### EN 50 EN

–
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.

3. 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.

4. 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_

1. 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.

2. 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;

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

(c) 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;

### EN 51 EN

3. 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.

4. 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**

###### **S ECTION 1** **P ROVISIONS APPLICABLE TO ALL PROVIDERS OF INTERMEDIARY SERVICES**

_Article 10_
_Points of contact_

1. 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.

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

3. 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_

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

2. Providers of intermediary services shall mandate their legal representatives to be
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

### EN 52 EN

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

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

4. 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.

5. 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_

1. Providers of intermediary services shall include information on any restrictions that
they impose in relation to the use of their service in respect of information provided
by 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.

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

_Article 13_
_Transparency reporting obligations for providers of intermediary services_

1. 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) 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;

(b) 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;

### EN 53 EN

(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
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.

###### **S ECTION 2** **A DDITIONAL PROVISIONS APPLICABLE TO PROVIDERS OF HOSTING SERVICES,**

**INCLUDING ONLINE PLATFORMS**

_Article 14_

_Notice and action mechanisms_

1. 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.

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

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

(b) 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;

(c) 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;

(d) 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.

### EN 54 EN

3. 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.

4. 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.

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

6. 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_

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

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

(a) whether the decision entails either the removal of, or the disabling of access to,
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;

### EN 55 EN

(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.

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

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

###### **S ECTION 3** **A DDITIONAL 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.

_Article 17_
_Internal complaint-handling system_

1. 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.

2. 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.

3. Online platforms shall handle complaints submitted through their internal complainthandling 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

### EN 56 EN

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.

4. 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.

5. 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_

1. 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
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) it is impartial and independent of online platforms and recipients of the service
provided by the online platforms;

(b) 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;

(c) the dispute settlement is easily accessible through electronic communication
technology;

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

(e) the dispute settlement takes place in accordance with clear and fair rules 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.

### EN 57 EN

3. 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.

4. 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.

5. 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
paragraph. The Commission shall publish a list of those bodies, including those
specifications, on a dedicated website, and keep it updated.

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

_Article 19_
_Trusted flaggers_

1. 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.

2. The status of trusted flaggers under this Regulation shall be awarded, upon
application by any entities, by the Digital Services Coordinator of the Member State
in which 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.

### EN 58 EN

3. 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.

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

5. 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.

6. The Digital Services Coordinator that awarded the status of trusted flagger to an
entity shall revoke that status if it determines, following an investigation either on its
own initiative or on the basis information received by third parties, including the
information provided by 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.

_Article 20_
_Measures and protection against misuse_

1. 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.

2. 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.

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

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

### EN 59 EN

(c) the gravity of the misuses and its consequences;

(d) the intention of the recipient, individual, entity or complainant.

4. 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_

1. Where an online platform becomes aware of any information giving rise to a
suspicion that a serious criminal offence involving a threat to the life or safety of
persons has taken place, 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.

2. Where the online platform cannot identify with reasonable certainty the Member
State concerned, it shall inform the law enforcement authorities of the Member State
in which it 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.

_Article 22_
_Traceability of traders_

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

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

(b) a copy of the identification document of the trader or any other electronic
identification as defined by Article 3 of Regulation (EU) No 910/2014 of the
European Parliament and of the Council [50] ;

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

(d) the name, address, telephone number and electronic mail address of the
economic operator, within the meaning of Article 3(13) and Article 4 of

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

### EN 60 EN

Regulation (EU) 2019/1020 of the European Parliament and the Council [51] 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.

2. The online platform shall, upon receiving that information, make reasonable efforts
to assess whether the information referred to in points (a), (d) and (e) of paragraph 1
is reliable 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.

3. 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.

4. 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.

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

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

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

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 61 EN

_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) 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;

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

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

2. 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).

3. 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.

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

_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) that the information displayed is an advertisement;

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

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

### EN 62 EN

###### **S ECTION 4** **A DDITIONAL OBLIGATIONS FOR VERY LARGE ONLINE PLATFORMS TO MANAGE**

**SYSTEMIC RISKS**

_Article 25_
_Very large online platforms_

1. 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.

2. 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.

3. 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.

4. 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_

1. 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

### EN 63 EN

made of their services in the Union. This risk assessment shall be specific to their
services and shall include the following systemic risks:

(a) the dissemination of illegal content through their services;

(b) any negative effects for the exercise of the fundamental rights to respect for
private 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;

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

2. When conducting risk assessments, 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_

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

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

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

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

(e) 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

### EN 64 EN

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

_Article 28_
_Independent audit_

1. 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) the obligations set out in Chapter III;

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

2. Audits performed pursuant to paragraph 1 shall be performed 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;

### EN 65 EN

(f) where the audit opinion is not positive, operational recommendations on
specific measures to achieve compliance.

4. 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.

_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
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.

2. 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_

1. 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;

### EN 66 EN

(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. 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.

2. 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).

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

4. 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
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.

5. 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.

6. 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.

### EN 67 EN

7. 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_

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

2. 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;

(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.

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

5. 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.

6. 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.

### EN 68 EN

_Article 33_
_Transparency reporting obligations for very large online platforms_

1. 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.

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

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

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

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

3. 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.

###### **S ECTION 5**

**OTHER PROVISIONS CONCERNING DUE DILIGENCE OBLIGATIONS**

_Article 34_

_Standards_

1. The Commission shall support and promote the development and implementation of
voluntary industry standards set by relevant European and international
standardisation bodies at least for the following:

(a) electronic submission of notices under Article 14;

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

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

(d) auditing of very large online platforms pursuant to Article 28;

### EN 69 EN

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

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

2. 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_

1. 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.

2. 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.

3. 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.

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

5. 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.

_Article 36_
_Codes of conduct for online advertising_

1. The Commission shall encourage and facilitate the drawing up of codes of conduct at
Union level between, online platforms and other relevant service providers, such as
providers of online advertising intermediary services or organisations representing

### EN 70 EN

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.

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

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

_Article 37_
_Crisis protocols_

1. 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.

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

(b) 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.

3. 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.

### EN 71 EN

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

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

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

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

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

(e) safeguards to address any negative effects on the exercise of the fundamental
rights enshrined in the Charter, in particular the freedom of expression and
information 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**

###### **S ECTION 1** **C OMPETENT AUTHORITIES AND N ATIONAL D IGITAL S ERVICES C OORDINATORS**

_Article 38_
_Competent authorities and Digital Services Coordinators_

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

2. Member States shall designate one of the competent authorities as their Digital
Services Coordinator. The Digital Services Coordinator shall be responsible for all
matters relating to 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.

### EN 72 EN

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.

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.

3. 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.

4. 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_

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

2. 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.

3. 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_

1. 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.

### EN 73 EN

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

3. Where a provider of intermediary services fails to appoint a legal representative 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.

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

_Article 41_
_Powers of Digital Services Coordinators_

1. 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) 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;

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

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

### EN 74 EN

(c) 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;

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

3. 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

### EN 75 EN

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

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

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

5. The measures taken by the Digital Services Coordinators in the exercise of their
powers listed in paragraphs 1, 2 and 3 shall be effective, dissuasive and
proportionate, having regard, 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.

6. 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_

1. 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.

### EN 76 EN

2. 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.

3. 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.

4. 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
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:

(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.

3. Where a Member State has designated several competent authorities pursuant to
Article 38, it shall ensure that the Digital Services Coordinator draws up a single
report covering 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.

### EN 77 EN

_Article 45_
_Cross-border cooperation among Digital Services Coordinators_

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

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

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

3. The Digital Services Coordinator of establishment shall take into utmost account the
request or recommendation pursuant to paragraph 1. Where it considers that it has
insufficient information to act upon the request or recommendation and has reasons
to consider that the Digital Services Coordinator that sent the request, or the Board,
could provide additional information, it may request such information. The time
period laid down in paragraph 4 shall be suspended until that additional information
is provided.

4. 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.

5. 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.

### EN 78 EN

6. 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.

7. 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_

1. 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 requirements applicable to 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.

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

###### **S ECTION 2** **E UROPEAN B OARD FOR D IGITAL S ERVICES**

_Article 47_
_European Board for Digital Services_

1. 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.

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

### EN 79 EN

(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_

1. The Board shall be composed of the Digital Services Coordinators, who shall be
represented by high-level officials. Where provided for by national law, other
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.

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

The Board shall adopt its acts by simple majority.

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

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

5. The Board may invite experts and observers to attend its meetings, and may
cooperate 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.

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

_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) support the coordination of joint investigations;

### EN 80 EN

(b) 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;

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

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

(e) support and promote the development and implementation of European
standards, guidelines, reports, templates and code of conducts as provided for
in 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.

###### **S ECTION 3** **S UPERVISION, INVESTIGATION, ENFORCEMENT AND MONITORING IN RESPECT**

**OF VERY LARGE ONLINE PLATFORMS**

_Article 50_
_Enhanced supervision for very large online platforms_

1. 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.

2. 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 81 EN

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

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).

4. The Digital Services Coordinator of establishment shall communicate to the
Commission, the Board and the very large online platform concerned its views as to
whether the 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;

### EN 82 EN

(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;

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

2. Where the Commission decides to initiate proceedings pursuant to paragraph 1, it
shall notify all Digital Services Coordinators, 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.

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

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

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

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

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

_Article 52_
_Requests for information_

1. 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.

2. 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

### EN 83 EN

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.

3. 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
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.

4. 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.

5. 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.

_Article 54_
_Power to conduct on-site inspections_

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

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

3. 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).

### EN 84 EN

4. 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_

1. In the context of proceedings which may lead to the adoption of a decision of noncompliance 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,
order interim measures against the very large online platform concerned on the basis
of a prima facie finding of an infringement.

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

_Article 56_

_Commitments_

1. 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).

3. 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.

### EN 85 EN

_Article 57_

_Monitoring actions_

1. For the purposes of carrying out the tasks assigned to it under this Section _,_ the
Commission may take the necessary actions to monitor the effective implementation
and compliance 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.

2. 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.

_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,

2. 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.

3. 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.

4. 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.

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

_Article 59_

_Fines_

1. 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

### EN 86 EN

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.

2. 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) 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;

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

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

3. 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).

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

_Article 60_
_Periodic penalty payments_

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

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

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

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

### EN 87 EN

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

2. 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_

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

2. 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.

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

4. 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.

5. 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_

1. 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.

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

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

### EN 88 EN

(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.

4. Each interruption shall start time running afresh.

5. The limitation period for the enforcement of penalties shall be suspended for so long

as:

(a) time to pay is allowed;

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

_Article 63_
_Right to be heard and access to the file_

1. 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).

2. 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.

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

4. The rights of defence of the parties concerned shall be fully respected in the
proceedings. They shall be entitled to have access to the Commission's file under the
terms of a 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
States’ authorities. In particular, the right of access shall not extend 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.

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

### EN 89 EN

6. Without prejudice to the exchange and to the use of information referred to in
Articles 51(3) and 52(5), the Commission, the Board, Member States’ authorities and
their respective officials, servants and other persons working under their
supervision,; and any other natural or legal person involved, including auditors and
experts appointed pursuant to Article 57(2) 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_

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

2. 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_

1. 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.

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

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

_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:

### EN 90 EN

(c) the proceedings pursuant to Articles 54 and 57;

(a) the hearings provided for in Article 63;

(b) the negotiated disclosure of information provided for in Article 63.

2. Those implementing acts shall be adopted in accordance with the advisory procedure
referred to in Article 70. Before the adoption of any measures pursuant to paragraph
1, 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.

###### **S ECTION 4** **C OMMON PROVISIONS ON ENFORCEMENT**

_Article 67_
_Information sharing system_

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

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

3. The Commission shall adopt implementing acts laying down the practical and
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.

_Article 68_

_Representation_

Without prejudice to Directive 2020/XX/EU of the European Parliament and of the Council [52],
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) it operates on a not-for-profit basis;

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

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

52 [Reference]

### EN 91 EN

###### **S ECTION 5** **D ELEGATED ACTS**

_Article 69_
_Exercise of the delegation_

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

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

3. The delegation of power referred to in Articles 23, 25 and 31 may be revoked at any
time by the European Parliament or by the Council. A decision of revocation shall
put an end to 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.

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

5. 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_

1. The Commission shall be assisted by the Digital Services Committee. That
[Committee shall be a Committee within the meaning of Regulation (EU) No](http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32011R0182)
[182/2011.](http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32011R0182)

2. [Where reference is made to this Article, Article 4 of Regulation (EU) No 182/2011](http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32011R0182)
shall apply.

### EN 92 EN

##### **Chapter V** **Final provisions**

_Article 71_
_Deletion of certain provisions of Directive 2000/31/EC_

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

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

_Article 72_
_Amendments to Directive 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. 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.

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

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

4. By three years from the date of application of this Regulation at the latest, the
Commission, after consulting the Board, shall carry out an assessment of the
functioning of the Board 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.

### EN 93 EN

_Article 74_
_Entry into force and application_

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

2. It shall apply from [date - three 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_ _For the Council_
_The President_ _The President_

### EN 94 EN

**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

### EN 95 EN

**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

**1.2.** **Policy area(s) concerned in the ABM/ABB structure** **[53]**

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 action** **[54]**

 **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.

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

### EN 96 EN

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
infrastructure, should be provided by the Commission with the possible
contribution/involvement of personnel from national DSCs as well.

_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_
_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.

### EN 97 EN

_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 ECommerce 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.

### EN 98 EN

**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) planned** **[55 ]**

 **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](http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html)

### EN 99 EN

### EN 100 EN

**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.

### EN 101 EN

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._

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

### EN 102 EN

**3.** **ESTIMATED** **FINANCIAL** **IMPACT** **OF** **THE** **PROPOSAL/INITIATIVE**

**3.1.** **Heading of the multiannual financial framework and new expenditure budget**

|Col1|line(s) proposed|Col3|Col4|Col5|Col6|Col7|
|---|---|---|---|---|---|---|
|Heading<br>of<br>multiann<br>ual<br>financial<br>framewo<br>rk|Budget line|Type of <br>expendit<br>ure|Contribution|Contribution|Contribution|Contribution|
|Heading<br>of<br>multiann<br>ual<br>financial<br>framewo<br>rk|Number <br>Heading 1|Diff./No<br>n-diff.56|from<br>EFTA<br>countrie<br>s57 <br>|from<br>candidat<br>e <br>countries<br>58 <br>|from<br>third<br>count<br>ries|within<br>the<br>meaning<br>of<br>Article [21(2)(b)]<br>of the Financial<br>Regulation|
|1|**02 04 05 01**<br>**Digital Europe Programme (DEP) -**<br>Deployment, best use of digital<br>capacities and Interoperability <br> <br>**03 02 01 01**<br>**Single Market Programme (SMP) -**<br>Operation and development of the<br>internal market of goods and services|Diff.|YES|NO|NO|NO|
|1|<br>**03 01 01 01**<br>**Support expenditure for the "Single**<br>**Market Programme (incl. SMEs)"**|Non-diff|YES|NO|NO|NO|

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

### EN 103 EN

**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 of multiannual financial<br>framework|Col2|Col3|1|Col5|Heading 1|Col7|Col8|Col9|Col10|Col11|Col12|Col13|Col14|Col15|Col16|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Operational appropriations<br>|Operational appropriations<br>|Operational appropriations<br>|Operational appropriations<br>|2021|2021|2022|2023|2024|2025|2026|2027|_Post_<br>_202759 _|TOTAL<br>2023-<br>2027|GRAND<br>TOTAL|GRAND<br>TOTAL|
|02 04 05 01<br>Digital Europe Programme (DEP) -<br>Deployment, best use of digital<br>capacities and Interoperability|Commitments|(1)|(1)||||4,526|6,076|9,802|9,802|9,802|_9,802_|40,008|49,810|49,810|
|02 04 05 01<br>Digital Europe Programme (DEP) -<br>Deployment, best use of digital<br>capacities and Interoperability|Payments|(2)|(2)||||2,525|4,526|5,075|8,800|9,000|_19,584_|30,226|49,810|49,810|
|03 02 01 01<br>Single Market Programme (SMP) -<br>Operation and development of the<br>internal market of goods and services|Commitments|(3)|(3)|||||2,600|5,400|5,400|5,400|_5,400_|18,800|24,200|24,200|
|03 02 01 01<br>Single Market Programme (SMP) -<br>Operation and development of the<br>internal market of goods and services|Payments|(4)|(4)|||||2,600|5,400|5,400|5,400|_5,400_|18,800|24,200|24,200|
|03 01 01 01<br>Support expenditure for the  Single<br>Market Programme|Commitments<br>= Payments|(5)|(5)||||0,025|0,230|0,220|0,220|0,220||0,915|0,915|0,915|

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

### EN 104 EN

|TOTAL appropriations for the<br>envelope of the programme|Commitments|(1)+(3)+(5)|Col4|Col5|4,551|8,906|15,422|15,422|15,422|15,202|59,723|74,925|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|TOTAL<br>appropriations<br>for<br>the<br>envelope of the programme|Payments|(2)+(4)+(5)|||2,550|7,356|10,695|14,420|14,920|_24,984_|49,941|74,925|

EUR million (to three decimal places)

|Col1|Col2|2021|2022|2023|2024|2025|2026|2027|Post<br>202760|TOTAL<br>(2023-2027)|
|---|---|---|---|---|---|---|---|---|---|---|
|Human resources|Human resources|||0,750|3,750|6,295|6,295|6,295|_6,295_|**23,385**|
|Other administrative expenditure|Other administrative expenditure|||0,140|0,250|0,275|0,300|0,325|_0,325_|**1,290**|
|**TOTAL appropriations under HEADING**<br>**7 of the multiannual financial framework**|(Total commitments =<br>Total payments)|||**0,890**|**4,000**|**6,570**|**6,595**|**6,620**|**_6,620_**|**24,675**|

EUR million (to three decimal places)

|Col1|Col2|2021|2022|2023|2024|2025|2026|2027|Post<br>2027|TOTAL<br>(2023-2027)|
|---|---|---|---|---|---|---|---|---|---|---|
|**TOTAL appropriations** <br>**across HEADINGS** <br>of the multiannual financial framework|Commitments|||5,441|12,906|21,992|22,017|22,042|**_21,822_**|**84,398**|
|**TOTAL appropriations** <br>**across HEADINGS** <br>of the multiannual financial framework|Payments|||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 105 EN

### EN 106 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)

|HEADING 7<br>of the multiannual<br>financial framework|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9|
|---|---|---|---|---|---|---|---|---|
|Human resources|||0.75|3.75|6.295|6.295|6.295|**23.385**|
|Other administrative<br>expenditure|||0,140|0,250|0,275|0,300|0,325|**1,290 **|
|**Subtotal HEADING 7** <br>**of the multiannual**<br>**financial framework**|||**0,890**|**4,000**|**6,570**|**6,595**|**6,620 **|**24,675 **|

|Outside HEADING 761<br>of the multiannual<br>financial framework|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9|
|---|---|---|---|---|---|---|---|---|
|Human resources|||||||||
|Other expenditure <br>of an administrative<br>nature|||0,025|0,230|0,220|0,220|0,220|**0,915 **|
|**Subtotal** <br>**outside HEADING 7** <br>**of the multiannual**<br>**financial framework**|||0,025|0,230|0,220|0,220|0,220|**0,915 **|

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 [62] .

61 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.
62 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

### EN 107 EN

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 108 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|Col2|2021|2022|2023|2024|2025|2026|2027|
|---|---|---|---|---|---|---|---|---|
|** Establishment plan posts (officials and temporary staff)**|** Establishment plan posts (officials and temporary staff)**|** Establishment plan posts (officials and temporary staff)**|** Establishment plan posts (officials and temporary staff)**|** Establishment plan posts (officials and temporary staff)**|** Establishment plan posts (officials and temporary staff)**|** Establishment plan posts (officials and temporary staff)**|** Establishment plan posts (officials and temporary staff)**|** Establishment plan posts (officials and temporary staff)**|
|Headquarters and Commission’s<br>Representation Offices|Headquarters and Commission’s<br>Representation Offices|||6|19|32|32|32|
|Delegations|Delegations||||||||
|Research|Research||||||||
|** External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED** 63 <br>Heading 7|** External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED** 63 <br>Heading 7|** External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED** 63 <br>Heading 7|** External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED** 63 <br>Heading 7|** External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED** 63 <br>Heading 7|** External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED** 63 <br>Heading 7|** External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED** 63 <br>Heading 7|** External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED** 63 <br>Heading 7|** External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED** 63 <br>Heading 7|
|Financed from<br>HEADING 7 of<br>the multiannual<br>financial<br>framework|- at Headquarters||||11|18|18|18|
|Financed from<br>HEADING 7 of<br>the multiannual<br>financial<br>framework|- in Delegations||||||||
|Financed from the<br>envelope of the<br>programme **64 **|- at Headquarters||||||||
|Financed from the<br>envelope of the<br>programme **64 **|- in Delegations||||||||
|Research|Research||||||||
|Other (specify)|Other (specify)||||||||
|**TOTAL**|**TOTAL**|||**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:

63 AC= Contract Staff; AL = Local Staff; END = Seconded National Expert; INT = agency staff;
JPD= Junior Professionals in Delegations.
64 Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).

### EN 109 EN

### EN 110 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)

|Col1|2021|2022|2023|2024|2025|2026|2027|Total|
|---|---|---|---|---|---|---|---|---|
|Specify the co-financing<br>body|||||||||
|TOTAL appropriations<br>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)

|Budget revenue line:|Impact of the proposal/initiative65|Col3|Col4|Col5|Col6|Col7|Col8|
|---|---|---|---|---|---|---|---|
|Budget revenue line:|**2021**|**2022**|**2023**|**2024**|**2025**|**2026**|**2027**|
|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) NUMBER and COST of HUMAN RESOURCES CONSIDERED NECESSARY

65 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

(2) COST of OTHER ADMINISTRATIVE EXPENDITURE

(3) METHODS of CALCULATION USED for ESTIMATING COSTS

(a) Human resources

(b) Other administrative expenditure

### EN 3 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:

EUR million (to three decimal places)

|HEADING 7<br>of the multiannual<br>financial framework|Col2|2021|Col4|2022|Col6|2023|Col8|2024|Col10|2025|Col12|2026|Col14|2027|Col16|TOTAL|Col18|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|||FT<br>E|Appropriation<br>s|FT<br>E|Appropriation<br>s|FT<br>E|Appropriation<br>s|FT<br>E|Appropriation<br>s|FT<br>E|Appropriation<br>s|FT<br>E|Appropriation<br>s|FTE|Appropriation<br>s|FT<br>E|Appropriation<br>s|
| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**| **Establishment plan posts (officials and temporary staff)**|
|Headquarters<br>and<br>Commission’s<br>Representatio<br>n Offices|AD|||||5|0,60|16|2,4|27|4,05|27|4,05|27<br>|4,05|||
|Headquarters<br>and<br>Commission’s<br>Representatio<br>n Offices|AST|||||1|0,15|3|0,45|5|0,75|5|0,75|5|0,75|||
|in<br>Union<br>Delegations|AD|||||||||||||||||
|in<br>Union<br>Delegations|AST|||||||||||||||||
| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**| **External staff66**|

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 4 E

|Global<br>envelope|AC|Col3|Col4|Col5|Col6|Col7|Col8|7|0,56|7|0,56|7|0,56|7|0,56|Col17|Col18|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Global<br>envelope|EN<br>D|||||||4|0,34|11|0,935|11|0,935|11|0,935|||
|Global<br>envelope|INT|||||||||||||||||
|Other budget<br>lines (_specify_)||||||||||||||||||
|**Subtotal– **<br>**HEADING 7**<br>of the<br>multiannual<br>financial<br>framework||||||6|0,75|30|3,75|50|6,295|50|6,295|50|6,295|||

### EN 5 E

### EN 6 E

(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:

_EUR million (to three decimal places)_

|HEADING 7<br>of the multiannual financial framework|2021|2022|2023|2024|2025|2026|2027|Total|
|---|---|---|---|---|---|---|---|---|
|**At headquarters:**|||||||||
|Mission and representation expenses||||0.05|0.075|0.1|0.125|**0.35**|
|Conference and meeting costs|||0.1|0.14|0.14|0.14|0.14|** 0.66**|
|Operational costs related to outputs (see methods of<br>calculation)|||0.04|0,06|0,06|0,06|0,06|**0,28**|
|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**<br>of the multiannual financial framework|||0.140|0,250|0,275|0,300|0,325|**1,290**|

### EN 7 E

### EN 8 E

_EUR million (to three decimal places)_

|Outside HEADING 7<br>of the multiannual financial framework|2021|2022|2023|2024|2025|2026|2027|Total|
|---|---|---|---|---|---|---|---|---|
|Expenditure on technical and administrative assistance<br>(not<br>including <br>external<br>staff)<br>from<br>operational<br>appropriations (former 'BA' lines)|||||||||
|- 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**<br>of the multiannual financial framework|||||||||

### EN 9 E

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 10 E

(3) Methods of calculation used to estimate costs

(a) 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)_

**Outside HEADING 7** of the multiannual financial framework

 Only posts financed from the research budget

 External staff

(b) Other administrative expenditure

### EN 11 EN

_Give details of the method of calculation used for each budget line_

_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

### EN 12 EN

### EN 13 EN

### EN 14 EN

Appendix: detailed overview of operational and HR expenses

|Col1|Col2|Col3|Col4|2023|Col6|Col7|2024|Col9|Col10|2025|Col12|Col13|2026|Col15|Col16|2027|Total|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|||||||||||||||||||
|||quantit<br>y|cost<br>per<br>unit|total|quantit<br>y|cost<br>per<br>unit|total|quantit<br>y|cost<br>per<br>unit|total|quantit<br>y|cost<br>per<br>unit|total|quantit<br>y|cost<br>per<br>unit|total||
|Mission<br>and<br>representation<br>expenses|Mission<br>and<br>representation<br>expenses<br>(for<br>inspections)|||0|10|0,005|0,05|15|0,005|0,075|20|0,005|0,1|25|0,005|0,125||
||**SUBTOTAL**|||**0 **|||**0,05**|||**0,075**|||**0,1**|||**0,125**|**0,35**|
|Conference and<br>meeting costs|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**|
|Operational<br>costs related to<br>outputs|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<br>and<br>consultations|Risk<br>assessment<br>framework studies|1|1|1|2|1|2|3|1|3|3|1|3|3|1|3||
||Technical studies and<br>algorithmic<br>auditing<br>frameworks|3|0,3|0,9|6|0,3|1,8|12|0,3|3,6|12|0,3|3,6|12|0,3|3,6||

### EN 15 EN

|Col1|Feasibility studies for<br>technical standards|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|Col18|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||Data access requests<br>and data processing for<br>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<br>study<br>on<br>prominent risks|1|0,4|0,4|2|0,4|0,8|4|0,4|1,6|4|0,4|1,6|4|0,4|1,6||
||Technical<br>inspections<br>and<br>audits(high<br>complexity)||0,5|0|1|0,5|0,5|3|0,5|1,5|3|0,5|1,5|3|0,5|1,5||
||Technical<br>inspections<br>and<br>audits(medium<br>complexity)||0,3|0|7|0,3|2,1|13|0,3|3,9|13|0,3|3,9|13|0,3|3,9||
||Consultations<br>on<br>guidance|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<br>assessment frameworks||0,005|0|2|0,005|0,01|2|0,005|0,01|1|0,005|0,005|1|0,005|0,005||
||Consultaions<br>on<br>implementing<br>and<br>delegatning acts|3|0,005|0,015|2|0,005|0,01||0,005|0||0,005|0||0,005|0||
||Communication<br>and<br>stakeholder<br>engagement support||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<br>and<br>management<br>systems|Development of digital<br>clearinghouse<br>platforms|1|2|2||1|1||1|1||0,5|0,5||0,5|0,5||

### EN 16 EN

|Col1|Maintenance|Col3|0,001|0,001|Col6|0,001|0,001|Col9|0,002|0,002|Col12|0,002|0,002|Col15|0,002|0,002|Col18|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||**SUBTOTAL**|||**2,001**|||**1,001**|||**1,002**|||**0,502**|||**0,502**|**5,008**|
|SUBTOTAL<br>expenditures||||**4,691**|||**9,156**|||**15,69**<br>**7 **|||**15,72**<br>**2 **|||**15,74**<br>**7 **|**61,013**|
|HR budget||||0,750|||3,750|||6,295|||6,295|||6,295|**23,385**|
|**GRAND**<br>**TOTAL**||||**5,441**|||**12,90**<br>**6 **|||**21,99**<br>**2 **|||**22,01**<br>**7 **|||**22,04**<br>**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 17 EN