Streaming Now: Compliance with the Saudi Digital Content Platform Regulations

CST has historically been active in the digital content regulatory space, but the basis for its activity in this regard has been unclear. The Telecommunications & Information Technology Law (issued in June 2022) replaced a previous telecoms law from 2001. The new law includes specific reference to CST’s responsibility for ‘digital content platforms’. Additionally, in October 2023, CST published the Digital Content Platform Regulations (DCP Regulations). Together, these instruments make clear that CST has some powers in regulating this space.

DCP Regulations

The DCP Regulations entered into force on 1 Jan 2024. Digital content platform operators (Operators) that are subject to its requirements must meet their regulatory obligations by 8 October 2024.

Both local and international Operators must comply with their respective regulatory obligations before providing services to users in the Kingdom

Depending on the type of digital content services being offered Operators must either, (i) obtain a license; (ii) a registration; or (iii) submit a notification to the CST. Below we summarise the relevant regulatory registration requirements for each type of digital content platform covered by the DCP Regulations:

• License: can only be obtained by Operators that have a local presence in the Kingdom. Licenses are required for Operators providing Satellite Pay TV Platforms and IPTV Platforms.
• Registration: can be obtained by both local and international Operators. Registrations are required for Video OTT Platforms, Audio-on-demand Platforms and, Internet Radio Platforms (exceptions apply based on number of users in the Kingdom).
• Notifications can be obtained by both local and international Operators. Notifications are required for Social Media Platforms, Video Sharing Platforms and E-Sports Participation Platforms (exceptions apply based on the number of users in the Kingdom).

Operators that are required to meet one of the regulatory registration requirements mentioned above must also appoint a Platform Liaison Officer (PLO). PLOs are responsible for communicating with CST and responding to CST requests. The DCP Regulations clarify that PLOs will not be held personally liable for any actions or violations by Operators.

In addition to the above, Operators of Online Gaming Platforms and Online Advertising Platforms are also required to comply with the DCP Regulations, however such Operators are not required to meet any of the regulatory registration requirements mentioned above nor are such Operators required to appoint a PLO. (Other regulatory obligations under the DCP Regulations will still apply.)

Operators can also request CST for exemptions from certain obligations under the DCP Regulations (although it is not clear which obligations may be exempted.) In such cases and subject to meeting the conditions provided, CST will recognize the platforms of exempted Operators as “Trusted Digital Content Platforms”. The benefits of obtaining “Trusted Digital Content Platform” status are not immediately apparent as Trusted Digital Content Platform Operators are still required to pay regulatory fees (if applicable) and appoint a Platform Liaison Officer.

Licensing Requirements

In order to obtain a licence (valid for ten years), Operators must:

• Have a Saudi Commercial Registration related to the service (i.e., be a local Saudi entity registered and authorized to undertake the relevant activity).
• Provide audited financial statements (certified by the Saudi Organisation for Chartered and Professional Accountants) (companies that have been established for less than three years are exempted from this requirement).
• Provide contact details of a Platform Liaison Officer
• Provide a description of the services and numbers of users/subscribers and technology used.
• Pay fees (SAR10,000 for application; and SAR50,000 annual fee).

Registration Requirements

In order to register (valid for five years), service provider must:

• Have either a Saudi Commercial Registration related to the service or a foreign commercial registration/certificate of incorporation (i.e. foreign entities may also ‘register’; it is not required to establish a Saudi entity to register).
• Provide audited financial statements (certified by the Saudi Organisation for Chartered and Professional Accountants for local Operators or as per the reporting requirements of the respective country of the foreign service provider) (companies that have been established for less than three years are exempted from this requirement).
• Provide contact details of a Platform Liaison Officer
• Provide a description of the services and numbers of users/subscribers and technology used.
• Pay fees (SAR5,000 for application; and SAR50,000 annual fee).

Notification Requirements

Service Providers are required to provide CST with the following information:

• Commercial Registration (i.e., a certificate of incorporation) related to the service (whether foreign or local – depending on where the services are provided from).
• Contact details of the Platform Liaison Officer
• Description of the service, including products, numbers of users/subscribers, nature of content (i.e., audio, visual, user generated etc.) and the technology used.

Non-Compliance

As per Article 8.3.4 CST has the power to issue warning notices to service providers for failure to comply with the DCP Regulations. Additionally, CST may cancel, amend or suspend the license, registration or notification if an Operator fails to comply with a warning notice.