Intermediary Service

An intermediary service is a digital service that acts as an intermediary by transmitting, caching or hosting information from users. The concept is central to the Digital Services Act (DSA) because it determines which obligations a service has.

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What is an intermediary service?

Virtually everything you use the internet for involves one or more intermediary services. When you send a message, upload an image or search for information, your data pass through services that act as intermediaries between you and the recipient.

DSA defines intermediary services as the broadest category of digital services regulated under the regulation. The categorisation is important because it determines which rules apply to a given service.

The concept covers three subcategories: mere conduit, caching and hosting. Each category has its own conditions for liability exemption, and hosting services have additional obligations that increase depending on whether the service also qualifies as an online platform.

The three types of intermediary services

**Mere conduit.** Services that solely transmit information from one point to another. Your internet provider is a typical example.

**Caching.** Services that temporarily store information to make transmission more efficient. A CDN (Content Delivery Network) is an example.

**Hosting.** Services that store information on behalf of a user. This is the broadest and most relevant category. Cloud services, web hosts, social media, marketplaces and file-sharing services are all hosting services. Online platforms are a subcategory. Very large online platforms with over 45 million users in the EU sit at the top of the hierarchy.

Liability exemption and conditions

The DSA carries forward the liability exemption system introduced by the e-Commerce Directive in 2000. The basic principle is that an intermediary service is not liable for the content users share, provided certain conditions are met.

For hosting services, they must act expeditiously to remove or block access to illegal content when they obtain actual knowledge of it. The DSA prohibits general monitoring obligations.

The exemption lapses if the service has actual knowledge of illegal activity and fails to act. This creates an incentive for services to have effective content moderation processes and to cooperate with trusted flaggers.

Fundamental DSA obligations

All intermediary services, regardless of type, must fulfil a number of fundamental obligations under the DSA:

Contact point: Designation of a contact point for authorities and one for users.
Legal representative: Services without an establishment in the EU must designate a legal representative in an EU country.
Terms of service: Terms must contain information on content moderation policies and algorithmic decision-making.
Transparency reports: Annual reports on content moderation, including numbers of orders received, notifications and measures taken.

The Digital Services Coordinator in the country where the service is established supervises compliance.

Frequently Asked Questions about Intermediary Service

What is an intermediary service under the DSA?

An intermediary service is a digital service that acts as an intermediary between sender and recipient of information. The DSA divides intermediary services into three types: mere conduit, caching and hosting.

What types of intermediary services exist?

The DSA defines three types: mere conduit (pure transmission of data, e.g. internet providers), caching (temporary storage for faster delivery, e.g. CDN services) and hosting (storage of information on behalf of users, e.g. cloud services and social media).

Are all intermediary services subject to the same DSA requirements?

No. The DSA uses a graduated responsibility system. All intermediary services have fundamental obligations, but hosting services, online platforms and very large platforms have increasing requirements in line with their role and size.

Can an intermediary service be held liable for users' content?

The DSA carries forward the conditional liability exemption system from the e-Commerce Directive. An intermediary service is, as a starting point, not liable for users' content, provided it has no knowledge of illegal content or acts expeditiously when it gains knowledge.