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  • Writer's pictureLexpertise Law Firm

How should Digital Platform Service Providers prepare to comply with Digital Platform Laws?

Nandana Indananda

​The Royal Decree on Digital Platform requires digital platform service providers to comply with various legal responsibilities, depending on their nature and type of service. Service providers should verify if they fall under the definition of "digital platform" and prepare to comply with the law. Complying with the law is essential for entrepreneurs to avoid criminal or administrative liability.

The Royal Decree on Digital Platform sets out many responsibilities for service providers depending on their nature and type of service. Digital platform service providers should therefore prepare to comply with this law, such as:

1. Service providers should verify whether their service falls under the definition of "digital platform" according to the law. If their service is considered a digital platform service, they must prepare to comply with the law. If not, they should check whether any additional services they may provide in the future will make them fall under the definition of a digital platform service as defined by the law.

2. Service providers should consider what type of "digital platform" their service is, for example, whether it is a small digital platform, a digital platform that charges for its services, or a large digital platform, among others.

3. Service providers should be aware of their legal responsibilities, such as their responsibilities to the Electronic Transactions Development Agency (ETDA) and their responsibilities to their own users. These responsibilities may include notifying ETDA of brief list of information or of business operations before conducting them, and carrying out various operations during business operations, such as announcing terms and conditions for providing services to their users.

4. Service providers should prepare themselves to comply with the law, such as:

(1) Prepare necessary information for business registration or abbreviated registration, such as information about the service provider, digital platform service information, user information, and complaint information.

(2) Prepare personnel to appoint as coordinators with the ETDA.

(3) Review and amend the terms and conditions applied to users, whether they are sellers or consumers, to comply with the law, such as conditions for suspending or terminating the service to users, or conditions for charging fees.

(4) Prepare data on the main parameters of algorithms used by service providers for ranking or recommending product listings, assessing customer satisfaction, or displaying user feedback.

(5) Prepare agreements and conditions regarding access to and use of data received from digital platform services, both from service providers and service users.

(6) Prepare measures for handling various complaints, including channels for receiving complaints, complaint handling processes, methods for resolving disputes, and setting time frames for such actions.

(7) Prepare policies for rating products, services, or content to service users.

(8) Prepare measures for taking action against illegal products, services, or content.

5. Service providers should educate themselves on their legal responsibilities in announcing policies or guidelines to users and comply with them as required by law.

6. Service providers must notify both the ETDA and users in advance of any changes to the terms and conditions that the service provider makes with users.

7. Service providers must prepare information for annual reporting to the authorities, such as data on revenue from each type of service provided, total number of users, and various complaints, among others.

8. Service providers must have appropriate risk management measures in place, such as risk assessment, risk management, maintaining system security, crisis management, and appointing compliance officers, among others.

9. Service providers have a responsibility to notify the office or service users of the termination of business, and may need to develop plans and measures to take care of service users.

The various criteria that digital platform service providers have to carry out these operations are very important because some of the information that the law requires to be disclosed may be commercially sensitive information, whether it is confidential trade information or important information for conducting business. Disclosing information without caution may pose a risk of legal wrongdoing or have an impact on the business. However, if the service provider neglects to disclose or act in accordance with the law, it may also result in criminal or administrative liability. Therefore, preparation for complying with this law is essential for entrepreneurs, especially during the initial phase of the law, which is still unclear or uncertain in terms of practice.



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