#E2025J0012EFTA Court Judgment: Iceland Found in Breach for Failing to Implement EU Directive 2019/770 on Digital Content and Services Contracts

On 9 December 2025, the EFTA Court issued a judgment in Case E-12/25, finding that Iceland had failed to fulfil its obligations under the EEA Agreement by not implementing Directive (EU) 2019/770 on contracts for the supply of digital content and digital services. The case was brought by the EFTA Surveillance Authority (ESA), which monitors compliance of EEA/EFTA states with EU law incorporated into the EEA Agreement. Directive 2019/770, which EU Member States were required to transpose by 1 July 2021, establishes harmonised rules governing consumer contracts for digital content (e.g., software, e-books, games, streaming) and digital services (e.g., cloud storage, social media). It provides consumers with clear rights to conformity, remedies for non-conformity, and rules on modification and termination of such contracts. Iceland, as an EEA/EFTA member, was bound to incorporate this directive into national law within the EEA-agreed transposition deadline. The ESA initiated infringement proceedings after Iceland failed to notify the required implementing measures. The Court ruled in favour of the ESA, declaring Iceland in breach of its EEA obligations. This judgment compels Iceland to promptly adopt the necessary national legislation to implement Directive 2019/770, ensuring Icelandic consumers benefit from the same digital consumer protections available across the EU and EEA.

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