EU court rules against Italy's online service provider regulations

Alphabet’s Google, Amazon, and Airbnb won the support of Europe’s top court on Thursday in their battle against an Italian law directing them to provide details on themselves.

The European Court of Justice (CJEU) has ruled against Italy’s 2020 and 2021 provisions mandating online service providers operating within its borders to register, submit various types of information, and pay a financial contribution under threat of fines.

The court’s decision upholds the principle that online service providers are subject only to the regulations of the EU country where they are established, not those of the countries where they offer services.

Background of the Dispute

Italy’s Requirements

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Italian authorities had introduced measures requiring online service providers operating in Italy to:

Submit detailed information

Pay a financial contribution Failure to comply would result in fines.

Challenge by Companies

Several companies, including Google, Airbnb, Amazon, and Expedia, contested these requirements. They argued that the mandates contradicted EU legislation, which stipulates that online service providers are regulated solely by the laws of the country in which they are established.

Court of Justice of the European Union’s Ruling

Key Judgments

The Luxembourg-based CJEU sided with the companies, emphasizing that:

A member state cannot impose additional obligations on an online service provider that is established in another member state.

Italy’s requirements, although intended for service provision within the country, were not permissible as they were not imposed by the providers’ country of establishment.

Implications for Member States

The ruling reiterates that EU member states must respect the regulatory framework established by the country where an online service provider is based.

This ensures uniformity and prevents individual member states from imposing additional, potentially conflicting, requirements on cross-border online services.

Companies Involved

Headquarters and Legal Stance

Google and Airbnb: Both have their European headquarters in Ireland.

Amazon: Based in Luxembourg.