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NEW REGULATIONS REGARDING ELECTRONIC COMMERCE INTERMEDIARY SERVICE PROVIDERS

The Regulation on Electronic Commerce IntermediaryService Providers and Electronic Commerce Service Providers (“Regulation”) was published in the Official Gazette dated 29 December 2022 and numbered 32058 in which new concepts and regulations introduced by the Law on the Regulation of Electronic Commerce (“Law”) on 07 July 2022 are specified in detail.

With the Regulation, the procedures and principles regarding the activities and inspections of electronic commerce intermediary service providers (“ECISP”) and electronic commerce service providers (“ECSP”) are determined. In the Regulation, obligations are gradually determined according to the net transaction volumes and also includes provisions applied to (i) all, (ii) medium sized, (iii) large, and (iv) very large ECISP and ECSPs as defined in the Regulation. The Regulation revokes the existing Regulation on Service Providers and Intermediary Service Providers in Electronic Commerce. Regulations will enter into force on 01.01.2023 unless otherwise stated below. The new regulations regarding ECISP are as follows:

1.   Obligations applicable to all ECISP

·      Removal of illegal content: Electronic commerce intermediary service providers are not liable for unlawful content provided by the electronic commerce service providers regarding the content and goods or services subject to the content. The Regulation determines the period for electronic commerce intermediary service providers to remove the unlawful content within 48 hours from when they become aware that such content is illegal and notify the relevant public institutions and organizations with its justification.

·     Unfair commercial practices: The practices of ECSPs, for which ECISP provides intermediary services, are unfair such as the ones that significantly disrupt its commercial activities, reduce its ability to make a reasonable decision, or force it to take a certain decision, causing it to become a party to a commercial relationship that it would not normally be a party to.

·      Obligations regarding placing an order: ECISP and ECSPs operating in its own electronic commerce environment are obliged to ensure that second-hand products are sold under a different category/section from unused products.

·      Obligation to submit and verify information: ECSP and ECISP are obliged to keep the information specified in the Regulation under the heading of "Contact", in a way that can be accessed directly in their electronic commerce environment.

·      IP infringements: The details of the new regime related to the protection of intellectual and industrial property rights in e-commerce are introduced by the Regulation. Accordingly, the right holder claiming that their intellectual or industrial rights have been infringed is entitled to file a complaint before the electronic commerce intermediary service providers with supporting information and documents. This complaint can be sent via an internal communication system, notary channels, or registered email.

·      Not offering their own brands for sale: ECISPs are prohibited (i) for selling goods bearing the trademark of itself or the persons with whom it has economic integrity or (ii) for which it has the right to use the trademark, in electronic commerce marketplaces where it offers intermediary services, or mediating the sale of these goods.

·      Intermediary agreements: The minimum elements of the intermediary agreement to be established in order to determine the conditions of the commercial relationship between ECISP and ECSP are regulated in Article 15 of the Regulation. Within the scope of the Article, in the intermediary agreements; (i) the intermediary service offered to ECSP, (ii) situations that require restriction, suspension or termination of the intermediary service, (iii) the fees requested from the sellers and in which cases these fees will differ, (iv) information such as the parameters used in the listing of goods or services or their recommendation to the buyer and (v) the duration of the payments to the sellers will be included. Additional issues regulated in terms of intermediation agreements to be made by medium sized, large and very large sized ECISP are also regulated in the rest of the same article.

·      Establishment of internal communication system: The electronic commerce intermediary service provider must establish an internal communication system to receive applications made by electronic commerce service providers. The applications made through this system by the electronic commerce service providers must be finalized within 15 days. This regulation will enter into force on 01.07.2023.

2.   Additional obligations applied to ECISPs with a net transaction volume of over TRY 10 billion in a calendar year (medium sized ECISPs)

·      Electronic Commerce License: With the regulation, it has been determined that license applications will be made through ETBIS every year in March. This regulation will enter into force on 01.01.2024.

·      Notification in the change of shares: It has been stated that the obligation to notify share changes introduced by the law will be carried out through ETBIS.

·      Independent audit: It makes the authorized independent audit firm perform an audit for the previous calendar year and sends the audit report to the Ministry of Commerce in April of each calendar year.

·    Data usage and sharing: ECISPsmust comply with the procedures and principles determined by the Regulation when using the data they obtain. ECISPswithin this scope; (i) should use the data obtained from the ECISPsor the buyer only for the purpose of providing and developing the intermediary service, (ii) cannot use the data obtained from the electronic commerce service provider and the buyers when they act as electronic commerce service provider or when they compete with the electronic commerce intermediary service providers through the electronic commerce service providers that it has in economic integrity, (iii) should provide technical support for ECSP to carry the data determined by the Regulation free of charge and effectively, and to provide access to these data within the term of the intermediary agreement. This regulation will enter into force on 01.01.2024.

3.   Additional obligations applied to ECISPs with a net transaction volume of TRY 30 billion and a number of transactions over 100,000, excluding cancellations and refunds, in a calendar year (large ECISPs)

·   Advertisement and discount expenditure: The amounts that can be allocated to expenditures and discounts within the scope of "Advertising Budget" and "Discount Budget" are regulated within the Regulation, by specifying the practices that will accept advertisements and discounts in the implementation of the Regulation. In general, Advertising Budget and Discount Budget should be determined in proportion to some economic indicators such as net transaction volume.

4.   Additional obligations applicable to ECISPs with a net transaction volume of TRY 60 billion and a number of transactions at 100,000, excluding cancellations and refunds, in a calendar year (very large ECISPs)

  • The Regulation does not envisage additional requirements for very large electronic commerce intermediary service providers that differ from the Law.

CONCLUSION

The Regulation aims the establishment of an effective and fair competition environment and the development of electronic commerce. In parallel with the changes in the law, some new obligations have been envisaged by detailing the obligations for ECISP and ECSP. It is important that ECSP and ECISP carry out the necessary harmonization process by examining the Law and the Regulation in detail.