An EU regulation on promoting fairness and transparency for business users of online intermediation services has to be adopted into Cyprus law within six months.
Providers of online intermediation services such as Amazon and eBay and online search engines like Google search will be required to implement a set of measures to ensure transparency and fairness in the contractual relations they have with online businesses.
This includes online retailers, hotels and restaurants businesses as well as app stores which use such online platforms to sell and provide their services to customers in the EU.
Under this regulation, the Ministry of Energy, Commerce and Industry can impose an administrative fine of up to 5% of the offender’s turnover or a fine of up to €250,000 depending on the nature, seriousness and duration of the infringement.
The Ministry has already drafted a harmonisation bill which is set to be debated before parliament on Friday. The debate should end by January 20, 2020, according to Phileleftheros.
The regulation, which, inter alia, harmonises transparency rules applicable to contractual terms and conditions, ranking of goods and services and access to data, is considered to be the first regulatory attempt in the world to establish a fair, trusted and innovation-driven ecosystem in the online platform economy.
Businesses like hotels, online marketers, designers of apps and other related companies that rely on search engines to attract traffic to their websites are among those who will benefit the most from the new regulation.