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Amendments Regulating the Internet Platforms in China and Taiwan



E-commerce in China has been booming in recent years. To improve the legal regime over e-commerce, on October 31, 2017, the Draft E-commerce Act (second version) has been petitioned to the Standing Committee of the National People's Congress for their deliberation.

 

This version of the Draft E-commerce Act additionally stipulates that an e-commerce business shall not infringe a customer's right to information by misleading promotion, fictional transaction, and/or making up the users' ratings.  Further, an e-commerce business shall deliver the goods or services to the customer within the prescribed period and by the prescribed way in accordance with the business's promise or the covenant with the customer.  The e-commerce business shall bear the risk and liability during the transport of the goods unless both parties agree to choose the other courier or logistics service provider.  In addition, while the e-commerce platform "knowingly" learns that the shop on the platform infringes any intellectual property right, the platform shall delete or take any necessary action.  Such draft is aimed to enforce the intellectual property protection in China.

 

By contrast to the China Draft E-commerce Act, the Taiwan Executive Yuan (i.e., Taiwan Cabinet) strives to promote the Draft Digital Communication Act.  The Draft Digital Communication Act is based on the content of Internet governance, and tries to balance the stakeholders' benefits/rights on the Internet and to avoid the government's direct regulation and intervention in the Internet. The key points include that the online service provider ("OSP") shall disclose the business's relevant information. Further, regarding the liability and disclaimers, the Principal of Intermediary Liability is adopted in the Draft Digital Communication Act. Therefore, the OSP shall be only liable for the information provided by itself, but shall not be required to review or supervise the information transmitted or stored by the others. Further, the mechanism of "Notice and Take Down," which has been stipulated in the Taiwan Copyright Act, is also adopted in the Draft Digital Communication Act. That is to say, if the e-commerce platform takes it down after learning the possibility of any infringement, or re-launches the goods after investigating and verifying, the platform shall not be liable for the infringement.

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