In Italy, providers of online intermediation services and search engines like Airbnb, Expedia, Google, Amazon, and Vacation Rentals must adhere to specific obligations set forth in national laws enacted in 2020 and 2021. These laws aim to enforce fairness and transparency for business users of online intermediation services. Obligations include registration with AGCOM, submitting periodic financial reports, providing detailed information, and paying administrative fees. These companies, except Expedia based in the US, argue before an Italian court that these obligations increase administrative burdens contrary to EU law. They assert their right under EU law to operate primarily under the legal framework of their home Member State (Ireland or Luxembourg). The Italian court has referred the matter to the Court of Justice.

The Court of Justice ruled that under the Directive on electronic commerce, the home Member State regulates information society services. Member States of destination must generally recognize and not impose additional obligations on service providers established elsewhere in the EU, unless justified by exceptional circumstances. The Court found that Italy’s obligations were general and not necessary to protect public interests specified in the directive. Therefore, Italy cannot enforce these additional requirements on providers from other Member States to ensure compliance with its national regulations.

The press release is available here.