JŠK Legal Flash
New regulation of online intermediation services platforms
The relationship between online selling businesses and online intermediation services platforms is about to be transformed in Europe. Due to concerns about the growing power of online intermediaries like Google, the App Store, Booking.com, eBay, Facebook and Instagram, the EU has recently implemented legislation to tackle this issue. Regulation 2019/1150 will come into force in July 2020 to support competition and make the online marketplace more transparent.
Online platforms will now be required to provide clear and unambiguous terms and conditions in which the following are disclosed: 1) the ranking determining the order in which search results are displayed; 2) disclosure of any preferential conditions in case an online platform is vertically integrated and offers its own goods, competing with other business users; 3) disclosure of their data policy towards users, including determination of its impact on them. Online platforms will also have to set up an internal system for handling complaints of the business users.
Directive of the European Parliament and of the Council on restructuring and insolvency introduces preventive restructuring
Enterprises (debtors) will have the option to use preventive restructuring to forego bankruptcy and secure their viability while still maintaining total or at least partial control over their assets and day-to-day business operations. For the sake of negotiations regarding the restructuring plan, debtors are able to suspend enforcement of claims (with a few exceptions) by their creditors. The directive also introduces the obligation of Member States to provide a discharge of debt option for entrepreneurs with a debt discharge period not exceeding three years. Except for a few provisions, the directive must be transposed by 17 June 2021.
(Directive 2019/1023 of the European Parliament and of the Council of 20 June 2019)
Ministry of Industry and Trade presented a draft law on screening of foreign investments
The Ministry is proposing the creation of a screening mechanism for non-EU investments to protect security and public order. If the investment is found to be risky, the government will be able to make such an investment conditional or to prohibit or cancel it. Investments may be cancelled within 5 years of their completion, but investments completed before this Act becomes effective should remain unaffected. Prior authorisation is not required, except for investments in the most sensitive sectors, such as the arms industry or critical infrastructure. Voluntary consultation with the Ministry may prevent possible future cancelation. For the media sector, the consultation may even be mandatory. The law is expected to take effect in mid-2020.