Aylo Loses Appeal: Pornhub Must Disclose Advertiser Identities Under DSA

Aylo Freesites Ltd’s appeal against a mandate to publish its advertising library under the Digital Services Act (DSA) has been dismissed by the Court of Justice of the European Union. The ruling upholds the requirement for Aylo, as the parent company of Pornhub, to disclose user identities in an advertisement repository.

DSA Mandate and Aylo's Challenge

The European Commission designated Pornhub as a “very large online platform” (VLOP) under the Digital Services Act. This designation subjects Pornhub to specific regulations, including the public disclosure of a database containing all its advertisers. This database is required to include details about advertisements and their targeting methods.

Aylo Freesites Ltd, the parent company of Pornhub, filed an appeal with the Court of Justice of the European Union (CJEU) challenging this mandate. The lawsuit, identified as Case T-138/24 / C-511/24 P(R), specifically contested the disclosure of user identities in the advertisement repository. Aylo also appealed the European Commission’s designation of Pornhub as a VLOP.

The appeal requested relief from disclosing the legal names of those who advertise on Pornhub, including sex workers and performers. Aylo argued that making these names publicly available and searchable in the repository would compromise the safety of its community. Other adult platforms designated as VLOPs by the European Commission include XVideos, Stripchat, and XXNX.

Timeline of Legal Proceedings

The legal challenge by Aylo Freesites Ltd against the Digital Services Act’s content moderation regulation has progressed through several stages. The status was "under deliberation" on March 1, 2024, and "under investigation" on July 2, 2024.

On July 26, 2024, Aylo Freesites filed an appeal in the lawsuit challenging its designation as a very large platform and the disclosure of user identities in the advertisement repository under the Digital Services Act. This appeal was against the General Court’s interim decision.

On September 6, 2024, the Vice-President of the Court of Justice of the European Union dismissed Aylo Freesites Ltd’s appeal. This ruling upheld the General Court’s interim decision concerning the designation of Pornhub as a very large online platform and the requirement to disclose user identities in the advertisement repository under the EU DSA. The status of the policy is now "in force."

The General Court of the European Court of Justice had previously rejected Aylo's efforts to suspend the requirement to publish its advertising library, denying interim measures requested by the company.

Implications for Platform Intermediaries

The Digital Services Act, which governs content moderation, applies to platform intermediaries that host user-generated content. The implementation of the DSA extends across numerous European Union member states, including Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.

The ruling by the Court of Justice reinforces the obligations placed on VLOPs to ensure transparency regarding their advertising practices. This includes the requirement for platforms to maintain and publicly disclose detailed information about advertisers, their advertisements, and targeting methods.

The legal proceedings involved the judiciary branch and the court as the government body, operating at a supranational implementation level. The policy area is content moderation, and the policy instrument is content moderation regulation.

Key Facts

• Aylo Freesites Ltd challenged the EU's Digital Services Act (DSA) mandate.
• The challenge concerned the disclosure of legal names of advertisers, including performers, in a public database.
• Pornhub, operated by Aylo, was designated a "very large online platform" (VLOP) by the European Commission.
• Other adult platforms designated as VLOPs include XVideos, Stripchat, and XXNX.
• Aylo's appeal was dismissed by the Vice-President of the Court of Justice of the European Union on September 6, 2024.
• The General Court of the European Court of Justice had previously denied Aylo's request for interim measures to suspend the advertising library publication requirement.