Regulation on promoting fairness and transparency published
On 20 June 2019, the European Parliament and Council signed the Regulation on promoting fairness and transparency for business users of online intermediation services (P2B Regulation). This was followed by its publication in the Official Journal of the European Union on 11 July. The regulation entered into force on 31 July 2019, and will apply from 12 July 2020.
The P2B Regulation is the first regulatory attempt in the EU aimed at ensuring a fair, sustainable and trusted online business environment within the internal market. It introduces a set of transparency rules to be followed by online platforms in their relations with business users, to address unfair and potentially harmful contractual clauses and trading practices, and lack of effective redress. The key points covered by the regulation include requirements relating to terms and conditions; the ranking mechanisms used by platforms; differentiated treatment; access to and use of data; and dispute resolution (the requirement for platforms to provide an accessible internal complaint-handling system and identify mediators to facilitate conflict resolution).
The P2B Regulation will apply to online search engines and online intermediation services such as e-commerce marketplaces (including collaborative marketplaces), online software application services (e.g. application stores), and online social media services, regardless of whether they are established in a Member State or outside the EU. With support from the Observatory on the Online Platform Economy, The Commission will continuously monitor the application of this regulation as well as periodically evaluating its effects on the online platform economy. Such monitoring and evaluation efforts will inform decisions as to whether further measures need to be taken, including those of a legislative nature.
Image by Jannoon028