What changed for consumers and businesses after the entry into force of the Act on the Provision of Digital Content and Digital Services and on the Sale of Goods, as well as the European Regulation (EU) 2019/1150 (P2B Regulation) on promoting fairness and transparency for business users of online intermediation services?
The topic directly affects digital goods and services, the relationship between business users and e-commerce platforms, as well as the connection between sellers and end consumers. Expert commentary on these issues is provided by Prof. Dr. Tania Iossifova on the show "The Law and Themis".
The New Legal Framework: Protection in the Digital Age
Digitalization has entered all spheres of public life—more and more applications and new digital services are being offered. For many traders, the use of online platforms is of vital importance, because this is the only way they can reach consumers on a global scale. That is exactly why updating the legal framework was absolutely imperative.
"On the one hand, we have mandatory regulation at the EU level. For the first time, the legal status and requirements for online platforms and search engines were regulated as economically stronger entities that can exert pressure on traders and unilaterally impose rules. On the other hand, the Bulgarian Act on the Provision of Digital Content and Digital Services and on the Sale of Goods (in force since January 1, 2022) is also in effect, which regulates consumer protection in their relationship with the seller," explains Prof. Yosifova.
Who is Affected by the Online Platforms Regulation (P2B)?
The European Regulation has direct applicability for Bulgaria as an EU Member State. It applies to online platforms (regardless of whether they are established in the EU or not) subject to the presence of two cumulative conditions:
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The business users must be established in the EU.
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They must offer goods or services via a web-based platform to consumers who are also established in the EU.
The Role of Online Search Engines
The legal regulation of online search engines is particularly important. For the traders who use them, ranking in a higher position in search results is critical for their business. "Therefore, search engines are now obliged to clearly indicate what the main parameters are that determine this ranking, as well as their relative importance," emphasizes Prof. Yosifova.
Requirements for Platforms: Transparency and Predictability
The main keyword in the new relations between platforms and businesses is "transparency". The goal is the creation of a predictable and stable economic environment for transactions on a European and global scale.
Strict requirements have been introduced regarding the General Terms and Conditions of online platforms:
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Clear language: The general terms and conditions must be drafted in plain, intelligible, and easily available language for business users.
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Grounds for termination: They must imperatively contain a precise description of the grounds on which the platform can restrict, suspend, or terminate the access of a given trader.
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Data management: It must be clearly stated what happens with access to personal and other data after the termination of the contract.
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Complaint-handling system: The regulation requires platforms to establish an internal system for handling complaints.
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Mediation: Platforms must identify at least two mediators for out-of-court dispute resolution (Important: this requirement does not apply to small enterprises).