Regulation (EU) 2019/1150: Transparency and fairness obligations for search engines and online intermediation services

Since 12 July, Regulation (EU) 2019/1150 has been directly applicable in all EU member states and entered into force in July 2019

This regulation aims at a more transparent and fairer digital trading environment between online intermediation providers and search engines and the professional users of such services.

The one-year transitional period between the entry into force of Regulation (EU) 2019/1150 of 20 June 2019 on promoting fairness and transparency for professional users of online intermediation services and its date of direct application in all member states ended on 12 July, so all companies providing services as search engines or providers of online intermediation services must have already adapted to the requirements imposed by this regulation.

These requirements and requirements imposed by the Regulation are aimed at achieving a more balanced and predictable environment for users of corporate websites and professional users of online intermediation services and online search engines vis-à-vis the providers of such services, to whom the Regulation will apply in the event that they offer their products or services to professional users or consumers located in the European Union, regardless of where the provider of the services is resident.

The most important new features of this new regulation consist of the obligation for providers of intermediation services and online search engines to include certain relevant aspects in their general terms and conditions of contract with their professional clients in order to achieve greater transparency and balance between the parties. As well as the provision to include alternative dispute resolution measures between the parties.

With regard to the general terms and conditions, it is required that these are drafted in a clear and comprehensible manner, that they are available at all stages of the contractual relationship, that the causes that may lead to a unilateral suspension, termination or restriction of the services provided by the provider are explicitly foreseen, that the criteria used when using ranking systems are reported (without jeopardising professional secrecy), that the type of goods and ancillary services offered are detailed, as well as making clear the impact of the use of the services on the ownership of intellectual and industrial property rights.

In the event of a modification of the general terms and conditions by the intermediary service provider or online search engine, users must be notified at least 15 days in advance, and the latter have the right to unilaterally terminate the contract within 15 days of receiving the notification.

As regards alternative dispute resolution measures, providers are required to include in their general terms and conditions two mediators with whom they are willing to work to reach an out-of-court settlement with their users, as well as to set up a free internal system for handling complaints by users.

Finally, Article 14 entitles associations or organisations representing the collective interests of professional users and users of corporate websites to bring appropriate legal action before the relevant courts in each Member State in the event of infringement of the Regulation by providers of search engines and online intermediary services.

AddVANTE is available to advise on any matter related to the application of Regulation (EU) 2019/1159 and e-commerce.