Given the borderless nature of the internet and the resulting difficulties in identifying which Member State's law applies to the various elements of a digital service, it is necessary to clarify which Member State has jurisdiction over providers of intermediary services. It is, moreover, important to ensure coherence with the enforcement mechanisms under Regulation (EU) 2016/679. In this context, the concept of 'establishment' as used in this Regulation, as interpreted by the Court of Justice of the European Union, requires the effective and real exercise of activity through stable arrangements. In order to ensure legal certainty and for the purpose of the effective supervision of providers of intermediary services, a provider should be deemed to be established in the Union where it has a stable establishment allowing it to exercise activity in the Union with a view to the provision of its services. In addition, the legal form in which an entity carrying out the activity is set up, whether through a branch, agency, subsidiary or otherwise, is not the determining factor in that regard. Whether such a stable establishment exists should be determined on a case-by-case analysis, involving the availability of specific human and technological resources with the aim of providing the intermediary service at issue.
Recital 27