The Regulation on Electronic Commerce Intermediary Service Provider and Electronic Commerce Service Providers is Published
The Regulation on Electronic Intermediary Service Provider and Electronic Service Providers (Regulation) was published in the Official Gazette dated 29.12.2022 and numbered 32058. With the Regulation, the procedures and principles regarding the implementation of the Law numbered 7416 Regarding the Amendment to the Law on Regulation of Electronic Commerce (Law No. 7416) published in the Official Gazette dated 07.07.2022 and numbered 31889 are provided.
The Regulation elaborates the concepts introduced by the Law No. 7416, involving the requirement of obtaining an electronic commerce license the use and share of data by the electronic commerce intermediary service providers (ECIS), the scope of unfair commercial practices, restrictions on advertising and discount budgets. Significant restrictions have been imposed on undertakings regarding online advertising activities with the Regulation. In this regard the main provisions introduced by the regulation are briefly provided below:
The Regulation makes a threefold distinction between medium, large and very large-scale ECIS and electronic commerce service providers (ECSP) depending on the volume and number of the transactions and envisages different obligations to each particular group.
With the Regulation, ECIS’s are required to confirm the accuracy of the introductory information provided by ECSP’s within three months of each calendar year contained in their e-commerce marketplaces and are required to keep such information up-to-date. In this respect ECIS’s are also required to make an annual review of the content provided by the ECSP’s and make regulatory compliance reports in relation to conforming personal data and intellectual property rules.
As also provided under Law NO. 7416, ECIS’s are not responsible for any unlawful content and unlawfulness of the goods or services stemming from the content offered by ECSP’s. However, in the event that ECIS’s become aware of such unlawfulness, ECIS’s must remove the content within 48 hours and must notify the relevant public institutions and organizations.
The procedure for complaint, objection and removal of the content for the violation of the intellectual and industrial property rights of the right holder by ECSP in the e-commerce market places of ECIS, are provided in the Regulation.
Under the scope of unfair trade practices provided in the Law No. 7416, and pursuant to the Regulation, large and very large-scale ECIS’s, may not restrict ECSP’s to offer their products and services through other channels, at the same price or at different prices. In addition, Regulation introduces advertising and discount budget restrictions for large and very large-scale ECIS’s. Moreover, the required elements of the agreements to be concluded between ECIS’s and ECSP’s are listed with the Regulation,
Finally, ECIS’s and ECSP’s that meet the requirements prescribed under the Regulation are obliged to obtain and renew their e-commerce licenses. Licensing and renewal applications of the undertakings shall be made through the Electronic Commerce Information System (“ECIS”), and the procedure to be followed regarding the application stages are provided by the Regulation.
Majority of the provisions in the Regulation will enter into force in 1st of January 2023 whereas the remaining provisions will enter into force on various dates.
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