Law of 5 March 2021: implementing measures in the context of the EU “Platform to Business” Regulation 2019/1150
Posted – 17.03.2021
On 5 March 2021, Luxembourg adopted a Law relating to certain implementation methods in relation to the EU “Platform to Business” Regulation of 20 June 20191 (the “P2B Regulation”, applicable since 12 July 2020).
The P2B Regulation aims to ensure the fair and transparent treatment of business users2 and corporate website users3 by online intermediation service providers and online search engines such as, inter alia, online marketplaces, social media platforms or price comparison websites.
The P2B Regulation applies to online intermediation service providers and online search engines irrespective of their place of establishment or residence and irrespective of the law otherwise applicable if they offer services to business users and corporate website users in the EU which themselves offer goods or services to consumers located in the EU through these online intermediation services and online search engines. If you would like more information on the rules applicable to the providers mentioned above, please read our article “New rules on online platform transparency” here.
What are the key takeaways of the Law of 5 March 2021?
For the purposes of ensuring adequate and effective enforcement of the P2B Regulation, the Luxembourg Minister of the Economy must designate certain organisations and associations (upon their request) having a legitimate interest in representing business users or corporate website users to initiate proceedings before the Luxembourg national courts to cease or prohibit any act violating the Regulation. These designated organisations and associations will be mentioned on a list published in the Official Journal of the European Union.
Such organisations and associations will be granted the right to initiate proceedings before the Luxembourg courts if they meet certain requirements as outlined in the P2B Regulation. In particular, they must have a non-profit making character and their decision-making must not be unduly influenced by any third-party providers of financing (such as providers of online intermediation services or of online search engines). Designation by the Minister of the Economy is valid for a five-year period and may be renewed.
The Law of 5 March 2021 also provides that any failure to comply with the injunctions or prohibitions issued by a Luxembourg court decision will be punished by a fine of up to 1 million euros.
For more information on this Law of 5 March 2021, please contact our dedicated ICT, IP, media and data protection team.