Digital Services

Digital services are services performed electronically: cloud storage, software as a service (SaaS), online platform memberships, video and music streaming, online courses, gaming platforms and similar. Digital services offered to consumers are subject to distance contract rules; those offered to business customers are subject to general contract law.

Right of Withdrawal

For service contracts, the withdrawal period starts on the day the contract is concluded. Under the Distance Contracts Regulation, services performed immediately online and services whose performance began with the consumer’s consent before the withdrawal period expired are exceptions to the right of withdrawal. To rely on the exception, it must be recorded that the consumer expressly consented to the start of performance and was informed they would lose the right of withdrawal.

Subscription Model

Digital services are often offered by subscription. Consumer subscriptions are subject to the rules on automatic renewal, easy termination and limits on price changes; see Subscription Contracts.

Business Customers (B2B SaaS)

Consumer law does not apply to digital services for business customers; the balance of the contract depends on negotiation. Such contracts should clearly cover:

• Service levels (SLA), availability and remedies for outages,
• Data security, personal data processing and a data processing agreement,
• Where data is hosted and cross-border transfer,
• Liability limits and intellectual property rights,
• Price changes and return of data on termination.

Defective Digital Services

Digital services that fail to deliver promised functions or are frequently interrupted are subject, for consumers, to the rules on defective services. For sales of intangible goods, see Digital Content.