Call +44(0)161 941 4000
Call +44(0)161 941 4000
The new Platform to Business Regulations (P2B Regulations) aims to regulate online platforms to increase fairness and transparency for businesses and will apply to all Member States of the EU from 12 July 2020. The P2B Regulations aim to regulate the relationship between online platforms and the businesses who use their services and prevent the former from imposing unfair terms and practices.
Some of the key provisions of the P2B Regulations include:
Platforms must have terms and conditions that are transparent, written in plain language, clearly accessible and provide sufficient information on when the platform can suspend, restrict or terminate a business user’s use of their service; when a business user can terminate; and confirm what additional distribution channels (if any) a business user’s goods and services will be marketed by the platform provider. Terms and conditions which fail to ensure compliance with the P2B Regulations will be deemed null and void.
The prominence given to a business user’s goods and services in a consumer search will directly impact the business’ subsequent sales. For this reason, the P2B Regulations require platform providers to set out the main parameters determining ranking and provide reasons for their importance.
The P2B Regulations introduce controls on a platform provider’s ability to terminate or suspend a business user, such as requiring the provider to give a statement of reasons for such decision and provide 30 days’ notice in the case of termination.
Platforms must provide an internal complaint handling process to provide business users with the means to lodge a complaint.
Where a platform provider restricts its business users from offering the same goods and services through other platforms or means, it must clearly set out those restrictions within its terms and conditions and explain the reasons for those restrictions.
The P2B Regulations will apply to online intermediation services and online search engines. This includes:
The P2B Regulations do not apply to businesses who deal directly with consumers, such as those that provide online payment services, or business-to-business networks that have no interface with consumers.
The P2B Regulations are EU Regulations and will apply in all Member States of the EU from 12 July 2020. The UK left the EU on 31st January 2020, however, remains subject to EU law whilst in the transition period (due to expire on 31st December 2020). Upon expiry of the transition period, online service providers based within the UK will remain subject to the P2B Regulations if their platform is used by businesses based within the EU.
Online platforms should ensure their compliance with the P2B Regulations, and take steps to:
Our team of specialist IT solicitors regularly draft e-commerce and tech-sector terms and conditions and will be able to advise you on how to ensure your terms and conditions are compliant with the P2B Regulations. If you have any questions or would like your terms and conditions drafting or reviewing, contact us by email email@example.com or calling 0161 941 4000.