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Exemption from Liability of Intermediaries in Certain Cases
Section 79 of the Information Technology Act, 2000 provides legal protection to intermediaries against liability for third-party content hosted or transmitted through their platforms.
An intermediary includes social media platforms, internet service providers, web-hosting companies, search engines, and similar online service providers. Examples include X (Twitter), Facebook, and YouTube.
Sub-section (1)
An intermediary shall not be liable for any third-party information, data, or communication link made available or hosted by it, subject to the conditions specified in the Act.
Sub-section (2)
This protection applies only if:
The intermediary's role is limited to providing access to a communication system through which information is transmitted, temporarily stored, or hosted;
The intermediary does not initiate the transmission;
The intermediary does not select the receiver of the transmission;
The intermediary does not select or modify the information contained in the transmission; and
The intermediary observes due diligence and complies with the requirements prescribed under the Act and the applicable rules.
Sub-section (3)
The protection under Section 79 shall not apply if:
1. The intermediary has conspired, abetted, aided, or induced the commission of an unlawful act; or
2. Upon receiving actual knowledge, or upon being notified by the appropriate Government or its agency that any information, data, or communication link hosted on its computer resource is being used to commit an unlawful act, the intermediary fails to expeditiously remove or disable access to such material while preserving evidence.
Explanation
The term “Third Party Information” refers to any information dealt with by an intermediary in its capacity as an intermediary.
Practical Significance
Section 79 provides a “safe Harbour” to intermediaries. As a result, social media platforms and other intermediaries are generally not automatically liable for content posted by their users. However, if they participate in unlawful activities or fail to act after receiving a valid legal notice or government direction, they may lose the protection granted under Section 79.
The scope of this provision was further clarified by the Supreme Court of India in Shreya Singhal v. Union of India. The Court held that “Actual knowledge” for the purposes of Section 79 generally arises through a court order or a notification issued by a competent government authority, requiring the intermediary to take appropriate action.