MALTA DIGITAL INNOVATION AUTHORITY ACT

CHAPTER 591

MALTA DIGITAL INNOVATION AUTHORITY ACT

AN ACT to provide for the establishment of an Authority to be

known as the Malta Digital Innovation Authority, to support the

development and implementation of the guiding principles described in

this Act and to promote consistent principles for the development of

visions, skills and other qualities relating to innovative technology,

and to exercise regulatory functions regarding innovative technology

and related services and to provide for matters ancillary thereto or

connected therewith.

15th July, 2018

ACT XXXI of 2018., as amended by Act XIX of 2024.

The short title of this Act is the Malta Digital Innovation

Authority Act.

(article 2)

Innovative Technology

(a)

artificial intelligence;

(b)

"distributed ledger technology" and "decentralised ledger

technology (DLT)";

(c)

internet of things.

(1)

In this Act, unless the context otherwise requires

"the Act" means the Malta Digital Innovation Authority

Act and includes any regulations and rules made thereunder and

any binding guidelines issued thereunder, unless the context

otherwise requires;

MALTA DIGITAL INNOVATION AUTHORITY

"Authority" means the Malta Digital Innovation

Authority established by article 5 and any references in the Act

or any other law to the Authority shall, unless the context

otherwise requires, be construed as including a reference to any

person authorised by the Authority to act for or on its behalf;

"Board" means the Board of Governors of the Authority

composed of the Chairperson and members appointed in

accordance with article 5;

"Chairperson" means the Chairperson of the Authority

and includes, in the circumstances mentioned in article 5(3), the

Deputy Chairperson or any other person appointed to act as

Chairperson;

"decision" includes any directive, determination,

direction, condition, measure, requirement or specification,

howsoever described, made by the Authority;

"innovative technology" includes any form of digital

technology, including but not limited to, any type of digital

technology listed in the First Schedule, related products,

solutions or services, as well as processes and practices aimed

or designed at protecting digital technology and its users;

"Minister" means the Minister responsible for the

Authority;

"powers of the Authority" means the powers of the

Authority resulting from the Act, any laws that the Authority is

appointed or entitled to administer or enforce, any

Governmental or ministerial appointment, or by delegation,

appointment or engagement by other public entities, regulatory

bodies and, or competent authorities;";

"recognition" means any form of recognition including a

licence, registration, permission, authorisation, approval,

acknowledgment, certification, attestation, or mark of credit,

granted or issued by the Authority in accordance with the

powers of the Authority;

"small and medium-sized enterprises" shall have the

meaning assigned to it under the Commission Recommendation

of 6 May 2003 concerning the definition of micro, small and

medium-sized enterprises (notified under document number

C(2003) 1422) or any law enacted in relation thereto;

"Tribunal" means the Administrative Review Tribunal

established by article 5 of the Administrative Justice Act;

"user" includes any person who uses or otherwise

participates in or engages with innovative technology.

(2)

Where reference is made to the powers of the Authority to

protect the public interest and users, it shall be construed as a reference

to members of the public and users in any country and not exclusively

to users in Malta.

(3)

The provisions of the Act shall be without prejudice to

provisions regarding activities concerning public security, defence,

national security and the activities of the State in areas of criminal law.

(4)

Unless the context otherwise requires, the provisions of the

Act and any regulations made thereunder shall apply in the absence of

substantive rules on recognition of innovative technology as may be

contained in any laws or in European Union and, or international

legislation applicable to Malta.

(5)

In the case that the provisions of the Act conflict with the

provisions of any other legislation, the provisions of the Act shall

prevail.

PART II

Guiding Principles

[Article 5(4)(d)]

Regulatory laws

Repealed by Act XIX.2024.54.

The Government shall, through the establishment of the

Authority in Malta, seek the progress of the innovative technology

sect or in M alta an d th e fo steri ng of i nno vat ive t echno log y

development in or from Malta through the recognition and regulation

of relevant innovative technology and related services, the issuing and

promotion of initiatives and incentives aimed at the innovative

technology sector and the adoption of standards that add trust in

innovative technology. This shall be done

(a)

in full respect of the importance of not hindering

innovation and the efforts and potential of small and medium-

sized enterprises and the start-up sector in this area of activity;

(b)

while considering that the approach to

recognition and regulation may be moderated by the pace of

changes and developments taking place in this sector;

(c)

in a manner ensuring that there are standards in

place for the protection of users, the integrity of the market, and

the public interest in general;

(d)

in a manner that incentivises innovation and

innovative technology development in or from Malta;

(e)

in a manner that is consistent with European and

international laws applicable to Malta; and

(f)

in line with the values outlined in the strategy of

the Authority or similar document, as may be updated from

time to time.

(1)

The Government shall determine Malta’s

policies and objectives with regard to innovative technology to

support the development of Malta as a centre of excellence for

innovative technology and shall appropriate such funds and provide

such resources to the Authority as it considers necessary to achieve

such aims.

(2) The Authority shall seek to achieve the following main

objectives and policies and shall have the power

(a)

to promote governmental policies that favour the

deployment, within the public administration, of

innovative technology by the Government where

necessary or appropriate;

(b)

to foster, promote and facilitate the advancement

and utilisation of innovative technology through,

amongst others, programmes and schemes, such as,

but not limited to, a controlled regulatory

environment for the testing of innovative

technology, aimed at incentivising innovative

technology development in and from Malta and the

creation of trust in innovative technology;

(c)

to assist developers of innovative technology, in

particular, but not exclusively, start-ups and small

and medium-sized enterprises in meeting their

regulatory and other obligations, and to minimise

risks to, and posed by, innovative technology, by

issuing recognitions and through other programmes

and incentives designed for this purpose;

(d)

to promote, through grants, programmes, research,

education, use and, or the making available of

facilities, hardware or personnel, the use and

development of innovative technology and the

application of ethical standards in the development

and use of such innovative technology

Provided that the giving of such grants shall not

prejudice and, or preclude the Authority’s oversight

and regulatory functions and powers;

(e)

to promote, and strive to safeguard, maintain and

protect the reputation of Malta in relation to

innovative technology and the development and use

of innovative technology;

(f)

to protect the interest of users of innovative

MALTA DIGITAL INNOVATION AUTHORITY

technology and the public in general and in so

doing take any necessary action, including without

limitation to disclosure of information and

documents which the Authority in its discretion

deems that merits disclosure and, or when required

by law, to be disclosed to the general public and, or

referred to any other competent authority and the

pursuance of any further act or collaboration from

or with other public entities, regulatory bodies and,

or competent authorities and, or regulatory bodies;

(g)

to provide a sound financial basis to the Authority,

through, amongst others, the levying of fees by the

Authority, including the imposition of interest in

the case of late payment at the rate to be determined

by the Authority, for the Authority to be able to

achieve its purposes;

(h)

to promote harmonised practices and, where

applicable, to facilitate the adoption of standards in

innovative technology in Malta in conformity with

international norms, standards, rules and, or laws

and particularly with those of the European Union;

(i)

to assist the competent data protection authorities

as required by law;

(j)

to promote and encourage ethical and legitimate

criteria in the design and use of innovative

technology, and to enforce, as deemed necessary,

the quality of services and security of the

innovative technology for which a recognition has

been granted by the Authority;

(k)

through collaboration with other regulatory bodies

and competent authorities with responsibility for

the prevention of money laundering and the

financing of terrorism and crime in general, to

support the prevention of money laundering,

terrorist financing and the commission of any other

crime in, or by means of the use of innovative

technology;

(l)

to promote trust, transparency, reliability,

robustness, safety and auditability in the design and

use of innovative technology;

(m)

to promote legal certainty in the application of

laws, in a national and cross-border context, and

the development of appropriate legal principles for

the effective application of law to innovative

technology; and

(n)

to promote security by design and security by

default criteria with reference to innovative

technology.

(3) The Authority shall encourage the development of

innovative technology in as wide a manner and for as many uses as

possible so as to achieve its benefits in as many economic and social

sectors as possible, including, but not limited to, in financial services,

health and education, voluntary organisations, public administration,

logistics, transport, sports and entertainment.

(4) The Authority shall also encourage the development of

regulatory processes in relation to innovative technology to support

all national competent authorities regulating different sectors to

better administer the laws entrusted to their administration for the

public benefit.

(5) The Authority shall be the national focal point for the

recognition of innovative technology and shall, when it deems

necessary, collaborate with other public entities, regulatory bodies

and, or competent authorities in promoting measures to be adopted in

meeting and reducing the risks identified with its intended use.

(6)

For the purpose of this article

(a)

"security by design" means measures adopted at the

earliest stages of the design and development of

innovative technology, and also throughout its

lifetime, to protect its security to the highest

possible degree; and

(b)

"security by default" means the default

configuration of innovative technology to the most

secure settings possible.

PART III

Establishment, Functions and Conduct of Affairs of the Authority

(1)

There shall be a body, which shall be referred to

as the Malta Digital Innovation Authority, the activities and business

of which shall be carried out by a Board composed of a Chairperson

and not less than four (4) and not more than eight (8) other members

who, in the opinion of the Minister, shall be persons with the relative

qualifications and experience inter alia in matters relating to

innovative technology, financial services, audit and accounting, law,

regulation and other subjects which may be relevant to the

supervisory and regulatory competence of the Authority.

(2)

The members of the Board shall be appointed by the

Minister for a term of one year or for such longer period as may be

specified in the instrument of appointment subject to a maximum of

three years and the members so appointed may be re-appointed on the

expiration of their term of office.

(3) The Minister may designate one of the members of the

Board other than the Chairperson as Deputy Chairperson and the

member so designated shall have all the powers and perform all the

functions of the Chairperson during the Chairperson’s absence or

inability to act as Chairperson or during any vacancy in the office of

Chairperson.

(4) A person shall not be qualified to hold office as a

member of the Board if he -

(a)

is a Minister, Parliamentary Secretary or a

member of the House of Representatives; or

(b)

is a judge or magistrate of the courts of justice;

or

(c)

has a financial or other interest in any enterprise

or activity which is likely to affect, in a general manner, the

discharge of his functions as a member of the Board as a result

of a conflict of interest

Provided that should any nominee to such a

position declare a conflict of interest or potential conflict of

interest based on a specific context only and provides full

information, this may be reviewed by the Minister and the

Board, and if the conflict of interest is not considered one

which would disqualify the nominee, this disqualification shall

not apply but it shall be the subject of a written guidance on

the part of the Minister, and, or the Board which shall apply to

the member for as long as such specific context subsists, and

this without prejudice to sub-article (9); or

(d)

has been convicted of a criminal offence

affecting public trust, or of theft or fraud, or of knowingly

receiving property obtained by theft or fraud or of bribery or of

money laundering, or of a criminal offence under any law, or is

being investigated for such criminal offence.

(5) Subject to the provisions of this article, the office of a

member of the Board shall become vacant -

(a)

at the expiration of his term of office; or

(b)

if any circumstances arise that, if he were not a

member of the Board, would cause him to be disqualified for

appointment as such.

(6) A member of the Board may only be removed from

office by the Minister for any one or more of the following reasons

(a)

if the member due to infirmity of mind or of

body or for any other cause is effectively unable to continue to

discharge his duties as a member;

(b)

if the behaviour or performance of the member

brings into question his suitability or ability to continue as a

member, in particular for behaviour that affects or may affect

his reputation, independence or autonomy, or the reputation,

independence or autonomy of the Authority;

(c)

if any member fails to perform his duties for a

continuous period exceeding five (5) months without any valid

justification.

(7) If the Minister removes a member of the Board from

office, such removal shall be made public by no later than the

effective date of removal from office. At the same time, the Minister

shall provide the member concerned with a statement of reasons for

his removal, and the member shall have the right to request that the

statement of reasons for his removal be made public, in which case

the Minister shall publish such statement.

(8) If a member resigns or if the office of a member of the

Board is otherwise vacant or if a member is for any reason unable to

perform the functions of his office, the Minister may appoint a person

who is qualified to be appointed to be a member to be a temporary

member of the Board; and any person so appointed shall cease to be

such a member when a person has been appointed to fill the vacancy

or, as the case may be, when the member who was unable to perform

the functions of his office resumes those functions.

(9)

Any member of the Board who has any direct or indirect

interest in any decision or contract made or proposed to be made by

the Board, not being an interest which disqualifies such member

from remaining a member, shall disclose the nature of his interest at

the first meeting of the Board after the relevant facts have come to

his knowledge; such disclosure shall then be recorded in the minutes

of the Board, and the member having an interest as aforesaid shall

withdraw from any meetings at which such decision or contract is

discussed. Any such disclosure shall be communicated to the

Minister without delay. Where the interest of the member is such as

to disqualify him from remaining a member, he shall report the fact

immediately to the Minister and tender his resignation.

(10) Repealed by Act XIX.2024.9.

(1)

It shall be the purpose of the Authority to

address the development in or from Malta of innovative technology

in order to achieve the policies and objectives outlined in article 4.

(2) It shall be the duty of the Authority to exercise such

supervisory and regulatory functions in the field of innovative

technology in accordance with the powers of the Authority.

(3) The Authority shall, without prejudice to any of the

powers of the Authority or functions, and in adherence with article 3,

have the powers to

(a)

publish and administer such programmes, schemes

and initiatives that, in its view, are necessary to

promote the interests of the innovative technology

sector and its users, including, but not limited to,

schemes of recognition whereby, amongst others,

the innovative technology, and the risks posed by

its application are assessed and tested and provided

with a certificate or mark of assurance or approval,

in any manner that they are referred to

Provided that the Authority shall publish the terms

of such programmes, schemes and initiatives in a

clear and transparent manner;

(b)

unless otherwise determined by or under any

applicable laws and, or regulations, determine

those professional services related to innovative

technology that require recognition by the

Authority and publish and administer such

programmes, schemes and initiatives that, in the

view of the Authority, are necessary to foster trust

in innovative technology, including services for the

auditing and testing of innovative technology, or

aspects thereof, and the risks posed by their use or

application;

(c)

publish and administer such programmes, schemes

and initiatives, including those ensuring that a

controlled regulatory environment for the testing of

innovative technology is available, for the fostering

of the development of innovative technology in or

from Malta;

(d)

obtain from the Government, other local authorities

or agencies and, or apply to the European Union or

other international bodies for the grant of funds to

be utilised as grants to be allocated to innovative

technology by way of incentives and awards and

administer such grants and incentives to applicants

MALTA DIGITAL INNOVATION AUTHORITY

in accordance with fair, transparent and non-

discriminatory conditions to be published by the

Authority and which are accessible through the

website of the Authority, from time to time;

(e)

perform the functions of the National Cybersecurity

Certification Authority in accordance with

Regulation (EU) 2019/881 of the European

Parliament and of the Council of 17 April 2019 on

ENISA (the European Union Agency for

Cybersecurity)

and

on

information

and

communications

technology

cybersecurity

certification and repealing Regulation (EU) No.

526/2013 (Cybersecurity Act), and advise the

Minister on the adoption and publication of laws

necessary to implement European and international

laws relating to cyber security certification;

(f)

be consulted on any planned implementation of

laws and policies relating to the national imposition

of obligations on innovative technology in any area

or sector as well as in relation to the

implementation of European Union and, or

international legislation relating to innovative

technology;

(g)

subject to any limitations that may be imposed on

the powers of the Authority, establish and levy fees

in relation to innovative technology, including on

any recognition and any persons, such as providers

of services relating to innovative technology

participating in the initiatives and, or schemes

published or administered by the Authority,

whether acting alone as well as jointly with other

public entities, regulatory bodies and, or competent

authorities, subject to the publication of such fees

in advance and in a transparent fashion and

accessible through the website of the Authority, and

the Authority shall also have the power to establish

and levy fees for services rendered to other public

entities, regulatory bodies and, or competent

authorities;

(h)

regulate, issue recognitions and conditions,

including in principle temporary or partial

recognitions, as may be further elaborated by the

Authority pursuant to its guidelines and test,

monitor and supervise innovative technology, in or

from Malta, in accordance with the Act and any

subsidiary legislation made thereunder;

MALTA DIGITAL INNOVATION AUTHORITY

(i)

keep under review all practices, operations and

activities relating to any matter regulated by or

under the Act or any other law which the Authority

is entitled to administer or enforce or any European

Union and, or international legislation applicable to

Malta;

(j)

promote high standards of conduct and governance

throughout the innovative technology industry,

corresponding with the levels of risk posed by the

use of innovative technology;

(k)

enforce compliance with obligations and, or terms

arising from and, or in terms of the law;

(l)

own, manage, supervise and control and as required

use, hold, develop and provide, maintain a sub-

licence and, or make available any wallet or similar

solution or software, any wallet solution, account

or other facility, in particular in relation to any form

of digital identity, accreditation, data and digital

assets;

(m)

engage with facilities, entities and persons,

including service providers and carry out

transactions as it may consider necessary for the

fulfilment of its functions, and enter into any

contract for the supply of goods or materials or the

execution of work or the rendering of services to, or

for the benefit and, or functioning of the Authority,

including but not limited to, in pursuance to

paragraph (l) and, or the innovative technology

sector;

(n)

monitor the effects of laws on the use and operation

of innovative technology and undertake or

commission such study, research or investigation

which it may deem necessary in this regard;

(o)

issue binding documentation such as guidelines and

provide information and guidance on any matter,

including definitions regulated by, or under the Act,

or any other law which the Authority is entitled to

administer or enforce, or any European Union and,

or international legislation applicable to Malta;

(p)

determine, by virtue of guidelines or other binding

documentation, which products, solutions or

services may be classified as "innovative

technology" as defined in the Act and the purposes,

qualities, features, attributes, behaviours or aspects

MALTA DIGITAL INNOVATION AUTHORITY

thereof that shall be recognised by the Authority;

(q)

support and liaise with non-profit organisations and

educational institutions in Malta which are

established for the promotion of the use and

development of innovative technology;

(r)

keep under review developments on relevant

subjects relating to innovative technology in order

to ensure that activity in Malta is generally

consistent

with

internationally

recognised

standards and norms of good practice;

(s)

enter into agreements with other public bodies and

authorities to better coordinate the effective and

efficient exercise of the respective functions of

such public bodies and authorities where they have

common functions, interests or aims, including the

delegation to the Authority by the said public

bodies and authorities of certain powers

appertaining to them and the delegation by the

Authority to such other public bodies and

authorities of certain powers of the Authority;

(t)

collect relevant statistical and other information as

may be required by the Authority in relation to

innovative technology;

(u)

perform such other functions, including functions

aimed at promoting innovative technology, as may

from time to time be assigned to it by the Minister,

or by governmental or ministerial appointment or

by engagement by other public entities, regulatory

bodies and, or competent authorities;

(v)

impose administrative penalties and, or measures

and, or fines in accordance with the powers of the

Authority in relation to a breach of the Act, any

regulations made thereunder, any law which the

Authority is entitled to administer or enforce, or

any recognition issued by the Authority or any

European Union and, or international legislation

applicable to Malta;

(w)

advise the Minister on the formulation of policy in

relation to matters regulated by, or under the Act,

and in particular in relation to any international

obligations;

(x)

otherwise advise the Minister on any matter

connected with its functions under the Act or any

MALTA DIGITAL INNOVATION AUTHORITY

other law;

(y)

formulate and implement the policies and strategies

with short-term and long-term objectives in relation

to the matters connected with its functions under

the Act or any other law;

(z)

encourage users of innovative technology to

establish places of business in Malta;

(aa)

advise the Minister on the planning and

development of the innovative technology industry

as well as on the infrastructure supporting the

innovative technology industry;

(bb)

promote and advance Malta as a destination for

high value commercial users of innovative

technology to establish places of business in Malta;

(cc)

prescribe any forms relating to any of the

applications and processes involved in the

recognition of innovative technology;

(dd)

establish or participate in the establishment and

operation of entities whose function shall be

necessary, ancillary or conducive to the attainment

of the functions and, or objectives of the Authority

under the Act or any regulations made thereunder

or any law which the Authority has the power to

administer or enforce or any European Union and,

or international legislation applicable to Malta;

(ee)

perform the functions of a competent authority in

accordance with Regulation (EU) 2022/868 of the

European Parliament and of the Council of 30 May

2022 on European data governance and amending

Regulation (EU) 2018/1724 (Data Governance Act)

for data altruism services and data intermediation

services;

(ff)

carry out functions in line with cooperation

mechanisms with other national competent

authorities; and

(gg)

appoint a qualified person or otherwise require that

the person concerned appoints a qualified person in

the case that he considers this to be appropriate or

expedient to perform those tasks in terms of those

terms and conditions that the Authority may order.

The fees and expenses incurred by the qualified

person in this respect or which are incidental to

such an appointment shall be paid by the person in

respect of whom the qualified person was

appointed, unless determined otherwise by the

Authority. The Authority may issue guidelines that

establish the procedures or requisites related with

this appointment and these guidelines may also

establish the powers, duties and obligations of the

qualified person.

(4)

(a)

Without prejudice or limitation to any of the

powers of the Authority, the Authority shall have the power, strictly

for the purposes of carrying out its functions, to request any person or

any person who may have in her possession relevant documentation

to provide it with any information, documents and reports, including

financial information, that the Authority considers necessary

Provided that the information requested by the

Authority shall be proportionate to the performance

of its functions and obligations under the Act or

any regulations made thereunder or any law which

the Authority has the power to administer or

enforce or any European Union and, or

international legislation applicable to Malta, and in

requiring any information as aforesaid, the

Authority shall specify the reason for such request.

(b)

Where the Authority requires information relating

to the intellectual property, trade secrets or

commercially sensitive information related to any

innovative technology, it shall only demand that

information which is strictly necessary for its

purposes and shall keep such information

confidential.

(c)

A person who is notified with a request for

information shall comply promptly with the request

and within the timeframes and according to any

level of detail, as may be required by the Authority.

(d)

Any person who has any information requested by

the Authority in terms of the Act and its officers or

employees shall, on a written request from the

Authority, provide expeditiously to the Authority

any information required by the Authority in terms

of the Act, may not raise in this regard, an

exception or defence including any obligation with

regard to the prohibition or the confidentiality that

arise from contractual law or in any other manner

refuses to conform with such a request from the

Authority. No action for a breach of contractual law

or disciplinary action may be taken in a direct or

indirect manner by a person in regard to officers

and employees due to the fact that they provided

the Authority with any required information by the

Authority as provided in sub-article (4) and any

such contractual or disciplinary measure shall be

deemed as null and void

Provided that any such person shall, in complying with

the provisions of this sub-article, specify clearly to the Authority if

any information provided by him is to be considered as confidential

for commercial reasons. Also said person shall specify clearly his

reasons to the Authority. The Authority shall decide whether the

information shall be treated as such

Provided further that the provisions of this sub-article

relating to confidentiality shall apply to any information provided to

the Authority for whatever reason whether under the Act or any other

law which the Authority is entitled to administer or enforce.

(5)

(a)

The Authority may opt to publish information and,

or guidelines relating to its rulings and determinations which are

accessible through the website of the Authority when said rulings and

determinations affect applications, the interpretation of the

provisions of the Act, or any law which it has the power to administer

or enforce or any European Union and, or international legislation

applicable to Malta, in order to ensure that applicants and the public

in general are aware of the position taken by the Authority on matters

of general interest relating to innovative technology.

(b)

The publication of such information and, or

guidelines shall not in any way limit the freedom of

the Authority to vary its policies or approach on

any issue based on further review and experience or

development of innovative technology or law

generally. When such variations take place the

Authority shall notify in later publications the

connection and review to previous publications.

(c)

The Authority shall have the power to determine

when any of its publications, or part thereof, shall

become binding.

(6)

The Authority shall also have such other functions,

responsibilities and powers as are set out by or under the Act or as

may be assigned to it by or under any other law including all such

powers as are necessary for, or incidental to the performance of its

functions and powers.

(7)

The Authority shall in the carrying out of its functions

seek to ensure that the measures taken are proportionate having

regard also to the objectives of the Authority.

MALTA DIGITAL INNOVATION AUTHORITY

(8)

Repealed by Act XIX.2024.10.

(9)

Repealed by Act XIX.2024.10.

(1)

Without prejudice to any other law, for the purpose of

carrying out market surveillance, investigation and enforcement in

accordance with Regulation (EU) 2019/1020 of the European

Parliament and of the Council of 20 June 2019 on market surveillance

and compliance of products and amending Directive 2004/42/EC and

Regulations (EC) No. 765/2008 and (EU) No. 305/2011 and other

European Union legislation, the Authority shall have the powers listed

in such Regulation and other European Union legislation, with regard

to functions where the Authority has been designated as market

surveillance authority, including the power to

(a)

require economic operators to provide relevant

documents, technical specifications, data or information on

compliance and technical aspects of the product, including

access to embedded software in so far as such access is

necessary for the purpose of assessing the product’s compliance

with applicable European Union harmonisation legislation, in

any form or format and irrespective of the medium of storage or

the place where such documents, technical specifications, data

or information are stored, and to take or obtain copies thereof;

(b)

require economic operators to provide relevant

information on the supply chain, on the details of the

distribution network, on quantities of products on the market

and on other product models that have the same technical

characteristics as the product in question, where relevant for

compliance with the applicable requirements under European

Union harmonisation legislation;

(c)

require economic operators to provide relevant

information required for the purpose of ascertaining the

ownership of websites, where the information in question is

related to the subject matter of the investigation;

(d)

carry out unannounced on-site inspections and

physical verifications;

(e)

enter any premises, land or means of transport

that the economic operator in question used for purposes related

to the economic operator’s trade, business, craft or profession,

in order to identify non-compliance and to obtain evidence;

(f)

start investigations on its own initiative in order

to identify non-compliance and ensure that the situation is

rectified;

(g)

require economic operators to take appropriate

action to stop circumstances of non-compliance or to eliminate

the risk;

(h)

take appropriate measures where an economic

operator fails to take appropriate corrective action or where the

non-compliance or the risk persists, including by prohibiting or

restricting the making available of a product on the market or

by ordering that the product is withdrawn or recalled;

(i)

impose administrative penalties in accordance

with Article 41 of Regulation (EU) 2019/1020 of the European

Parliament and of the Council of 20 June 2019 on market

surveillance and compliance of products and amending

Directive 2004/42/EC and Regulations (EC) No. 765/2008 and

(EU) No. 305/2011 and according to European Union

legislation;

(j)

acquire product samples, including under a cover

identity, to inspect those samples and reverse engineer them in

order to identify non-compliance and to obtain evidence;

(k)

where no other effective means are available to

eliminate a serious risk

(i)

to require the removal of content referring

to the related products from an online interface or

require the explicit display of a warning to end users

when they access an online interface; or

(ii)

where a request according to sub-

paragraph (i) has not been complied with, to require

information society service providers to restrict access to

the online interface, including by requesting a relevant

third party to implement such measures; and

(l)

use any information, document, finding,

statement, or any intelligence as evidence for the purpose of its

investigations, irrespective of the format in which and medium

on which they are stored.

(2) For the purposes of this article, "economic operator"

shall have the same meaning assigned to it in Regulation (EU) 2019/

1020 of the European Parliament and of the Council of 20 June 2019

on market surveillance and compliance of products and amending

Directive 2004/42/EC and Regulations (EC) No. 765/2008 and (EU)

No. 305/2011.

(1)

The affairs and business of the Authority shall be the

responsibility of the Board, which responsibility shall be exercised

through the Chairperson.

(2)

The first Chief Executive Officer shall be appointed by the

Minister.

(3)

The

day-to-day

administration,

recruitment,

and

organisation of the Authority, and the administrative control of its

officers and employees shall be under the control of the Chief

Executive Officer of the Authority who shall also have such other

powers, as may from time to time, be delegated to him by the Board.

(4)

The Chief Executive Officer shall be tasked with the

implementation of the objectives of the Authority in the exercise of its

functions at law, as set out by the Board, and without prejudice to the

generality of the foregoing he shall

(a)

have control of the general administration,

supervision and operations of the Authority and any ancillary

activity related to it;

(b)

develop the necessary strategies for the

implementation of the objectives of the Authority and

implement such strategies as directed by the Board;

(c)

advise the Board on any matter it may refer to

him or any matter he considers necessary or expedient;

(d)

perform such other duties as the Board may

assign to him from time to time; and

(e)

at the end of each financial year, present to the

Board estimates of the income and expenditure of the Authority

for the following financial year for the Board’s approval.

(5)

The Chief Executive Officer shall attend all the meetings of

the Board but shall not vote at such meetings.

(6)

The Authority may exercise any one or more of its functions

either directly or through any of its officers or employees or through

an agency authorised for that purpose, or through a contractor or other

person with whom an agreement for the performance of any one or

more of such functions has been entered into

Provided that nothing in this sub-article shall authorise the

Authority to contract or delegate any of

(a)

its regulatory functions; or

(b)

its recognition functions, unless such functions

are expressly delegated to another public entity, regulatory

body and, or competent authority established by law.

(7)

The Board may establish committees of the Board,

composed of members of the Board and other persons who may be

invited to participate in the committee, to address particular issues as

may be assigned to it by the Board.

(8) The Board may also establish a National Technology

Ethics Committee for the purpose of ensuring that proper standards of

ethics are upheld in the use of innovative technologies which are

recognised by the Authority and to assist upon their request other

authorities established in Malta where innovative technology is being

used in their areas of competence. The said National Technology

Ethics Committee shall have such functions and shall be composed of

such members as may be determined by the Board.

(1)

Except as expressly provided for in other provisions

of the Act, the Authority shall act independently, impartially and

without bias in the exercise of its regulatory, supervisory, market

surveillance and enforcement functions at law, including in the

development of guidelines and binding documentation, its internal

procedures and the organisation of its staff. In doing so the Authority

shall not seek or take instructions from any other person in relation to

the exercise of the tasks assigned to it by law, and this without

prejudice to any supervision, however so described, that may be

undertaken in accordance with the Constitution.

(2)

The Minister, in relation to matters that affect the public

interest, may give to the Authority, from time to time, policy directions

in writing of a general character, not inconsistent with the provisions

of the Act and, on the policies to be followed in the carrying out of the

functions vested in the Authority by or under the Act.

(3) The provisions of article 77 of the Public Finance

Management Act shall not apply to the Authority.

(1)

The Authority shall be a body corporate having a

distinct legal personality and shall be capable, subject to the

provisions of this Act, of entering into contracts, of acquiring,

holding and disposing of any kind of property for the purposes of its

functions, of suing and being sued, and of doing all such things and

entering into all such transactions as are incidental or conducive to

the exercise or performance of its functions under this Act, including

the lending or borrowing of money.

(2) The legal and judicial representation of the Authority

shall vest in any one of the Chairperson, the Chief Executive Officer,

or such other member or members of the Board or officer of the

Authority as the Board may appoint

Provided that the Board may appoint one or more

members of the Board, or one or more officers of the Authority to

appear in the name or on behalf of the Authority in any judicial

proceedings and in any act, contract, instrument or other document

whatsoever.

(3) Any document purporting to be an instrument made or

issued by the Authority and signed by the Chairperson or the Chief

Executive Officer or such other member of the Board, or officer of

the Authority as may, in accordance with sub-article (2), be vested by

the Board with the legal and judicial representation of the Authority,

shall be received in evidence and shall, until the contrary is proved,

be deemed to be an instrument made or issued by the Authority.

(1)

The meetings of the Board shall be called by the

Chairperson as often as may be necessary but at least once a month

either on his own initiative or at the request of any two of the other

members of the Board.

(2) Half the number of members constituting the Board at

any given time shall form a quorum. A decision shall be adopted by a

simple majority of the votes of the members present and who may

vote. The Chairperson, or in the absence of the Chairperson, the

Deputy Chairperson or any other person appointed to act as

Chairperson, shall have an initial vote and, in the event of an equality

of votes, a casting vote.

(3) Subject to the provisions of this Act the Board may

regulate its own procedure.

(4) Subject to the foregoing provisions of this article, no act

or proceeding of the Authority shall be invalidated merely by reason

of the existence of any vacancy among the members of the Board.

(5) All acts done by any person acting in good faith as a

member of the Board shall be valid as if he were a member

notwithstanding that some defect in his appointment or qualification

be afterwards discovered. No act or proceeding of the Authority shall

be questioned on the ground of the contravention, by a member, of

the provisions of article 5(9).

PART IV

Officers and Employees of the Authority

Without prejudice to the other provisions of this Act, the

Authority shall appoint and employ, at such remuneration and upon

such terms and conditions as it may establish with the concurrence of

the Minister, such officers and employees of the Authority as may

from time to time be necessary for the due and efficient discharge of

the functions of the Authority.

All officers and employees of the Authority shall be

deemed to be public employees within the meaning of the Public

Administration Act and shall be considered to be public officers as

defined in article 124 of the Constitution for the purposes of the

Criminal Code or any other law.

PART V

Financial Provisions

(1)

Without prejudice to the following provisions of

this article, the Authority shall so conduct its affairs so that the

expenditure required for the proper performance of its functions

shall, as far as practicable, be met out of its revenue.

(2) In furtherance of the provisions of sub-article (1), the

Authority shall levy all fees, rates and other payments prescribed

under the Act or any other law administered by the Authority, or set

by the Authority in accordance with the powers of the Authority or

any European Union and, or international legislation applicable to

Malta.

(3) The Authority shall be paid by Government out of the

Consolidated Fund such sums as Parliament may from time to time

authorise to be appropriated to meet the costs of specified works to be

continued or otherwise carried out by the Authority

Provided that any subvention received from Government

shall be exempted from any liability for the payment of income tax

and duty on documents under any law for the time being in force.

(4) Any excess of revenue over expenditure shall, subject to

such directives as the Minister, after consultation with the Minister

responsible for finance may from time to time give, be applied by the

Authority to the formation of reserve funds to be used for the

purposes of the Authority; and without prejudice to the generality of

the powers given to the Minister by this sub-article, any direction

given by the Minister as aforesaid may order the transfer to the

Government, or the application in such manner as may be specified in

the direction, of any part of the fees, rates and other payments levied

in accordance with sub-article (2) or any such excess as aforesaid.

(5) Any funds of the Authority not immediately required to

meet expenditure may be invested in such manner as may from time

to time be approved by the Minister.

The Authority shall be exempt from any liability for the

payment of income tax, duty on documents and transfers, and

customs and excise duty, under any law.

(1)

For the purpose of carrying out any of its

functions under this Act or any other law which the Authority is

entitled to administer or enforce, the Authority may, with the

approval in writing of the Minister given after consultation with the

Minister responsible for finance, borrow or raise money in such

manner, from such person, body or authority, and under such terms

and conditions as the Minister, after consultation as aforesaid, may in

writing approve.

(2) The Authority may also, from time to time, borrow, by

way of overdraft or otherwise, such sums as it may require for

carrying out its functions under this Act or any other law which the

Authority is entitled to administer or enforce

Provided that for any amount in excess of one hundred

and forty-four thousand euro (€144,000), there shall be required the

approval of the Minister in writing.

The Minister responsible for finance may, after

consultation with the Minister, make advances to the Authority of

such sums as he may agree to be required by the Authority for

carrying out any of its functions under this Act or any other law

which the Authority is entitled to administer or enforce, and may

make such advances on such terms and conditions as he may, after

consultation as aforesaid, deem appropriate. Any such advance may

be made by the Minister responsible for finance out of the

Consolidated Fund, and without further appropriation other than this

Act, by warrant under his hand authorising the Accountant General to

make such advance.

(1)

The Minister, after consultation with the

Minister responsible for finance, may, for any requirements of the

Authority of a capital nature, contract or raise loans, or incur

liabilities, for such periods and on such terms and conditions as he

may deem appropriate; and any sums due in respect of or in

connection with any such loan or liability shall be a charge on the

Consolidated Fund.

(2) Notice of any loans, liabilities or advances made or

incurred under the foregoing provisions of this article shall be given

to the House of Representatives as soon as practicable.

(1)

The Authority shall cause to be prepared in

every financial year, and shall not later than three months after the

end of each such year, adopt estimates of the income and expenditure

of the Authority for the next following financial year

Provided that the estimates for the first financial year of

the Authority shall be prepared and adopted within such time as the

Minister may by notice in writing to the Authority specify.

(2) In the preparation of such estimates the Authority shall

take account of any funds and other monies that may be due to be

paid to it out of the Consolidated Fund during the relevant financial

year, whether by virtue of this Act or an appropriation Act or of any

other law; and the Authority shall prepare the said estimates so as to

ensure that the total revenues of the Authority are at least sufficient to

meet all sums properly chargeable to its revenue account including,

but without prejudice to the generality of that expression,

depreciation.

(3) The estimates shall be made out in such form and shall

contain such information and such comparison with previous years as

the Minister responsible for finance may direct.

(4) A copy of the estimates shall, upon their adoption by the

Authority, be sent forthwith by the Authority to the Minister.

(5) The Minister shall, at the earliest opportunity and not

later than three months after he has received a copy of the estimates

from the Authority, approve the same with or without amendment.

(1)

No expenditure shall be made or incurred by the

Authority unless it has been approved by the Minister as provided in

article 17.

(2)

Notwithstanding the provisions of sub-article (1) -

(a)

until the expiration of six months from the

beginning of a financial year, or until the approval of the

estimates for that year by the Minister, whichever is the earlier

date, the Authority may make or incur expenditure for carrying

out its functions under this Act or any other law which the

Authority is entitled to administer or enforce not exceeding in

the aggregate one-half of the amount approved by the Minister

for the preceding financial year;

(b)

expenditure approved in respect of a head or

sub- head of the estimates may, with the approval of the

Minister, given after consultation with the Minister

responsible for finance, be made or incurred in respect of

another head or sub- head of the estimates;

(c)

in respect of the first financial year, the

Authority may make or incur expenditure not exceeding in the

aggregate such amounts as the Minister responsible for finance

may, after consultation with the Minister, allow;

(d)

if in respect of any financial year it is found that

the amount approved by the Minister is not sufficient or a need

has arisen for expenditure for a purpose not provided for in the

estimates, the Authority may adopt supplementary estimates

for approval by the Minister and in any such case the

provisions of this Act applicable to the estimates shall as near

as practicable apply to the supplementary estimates.

The Minister shall, at the earliest opportunity and not

later than three months after he has received a copy of the estimates

and supplementary estimates of the Authority, or if at any time during

that period the House of Representatives is not in session, within

three months from the beginning of the next following session, cause

such estimates to be laid on the Table of the House of

Representatives.

(1)

The Authority shall cause to be kept proper

accounts and other records in respect of its operations, and shall

cause to be prepared a statement of accounts in respect of each

financial year.

(2) The accounts of the Authority shall be audited by an

auditor or auditors to be appointed by the Authority

Provided that the Minister may, prior to approving the

accounts, require the books and accounts of the Authority to be

audited or examined by the Auditor General who shall for the

purpose have the power to carry out such physical checking and other

certifications as he may deem necessary.

(3) The Authority shall, not later than three months after the

end of each financial year, cause a copy of the statement of accounts

duly audited to be transmitted to the Minister together with a copy of

any report made by the auditors on that statement or on the accounts

of the Authority.

(4) The Minister shall, at the earliest opportunity and not

later than three months after he has received a copy of every such

statement and report, or if at any time during that period the House of

Representatives is not in session, within three months from the

beginning of the next following session, cause every such statement

and report to be laid on the Table of the House of Representatives.

(1)

All monies accruing to the Authority shall be

paid into a bank or banks appointed as bankers of the Authority by

resolution of the Board. Such monies shall, as far as practicable, be

paid into any such banks from day to day, except such sum as the

Authority may authorise to be retained to meet petty disbursements

and immediate cash payments.

(2) All payments out of the funds of the Authority, other

than petty disbursements not exceeding a sum fixed by the Authority,

shall be made by such officer or officers of the Authority as the

Authority shall appoint or designate for that purpose.

(3) Cheques against and withdrawals from any bank account

of the Authority shall be signed by such officer of the Authority as

may be appointed or designated by the Authority for that purpose and

shall be countersigned by the Chairperson or Chief Executive Officer,

or such other member of the Board or officer of the Authority as may

be authorised by the Authority for that purpose.

(4)

The Authority shall also make provision with respect to

(a)

the manner in which and the officer or officers

by whom payments are to be authorised or approved;

(b)

the title of any account held with the bank or

banks into which the monies of the Authority are to be paid,

and the transfer of funds from one account to the other;

(c)

the method to be adopted in making payments

out of funds of the Authority,

and generally with respect to any matter which is relevant to the

proper keeping and control of the accounts and books, and the control

of the finance, of the Authority.

Repealed by Act XIX.2024.20.

The Authority shall, not later than three months after the

end of each financial year, make and transmit to the Minister and to

the Minister responsible for finance a report dealing generally with

the activities of the Authority during that financial year and

containing such information relating to the proceedings and policy of

the Authority as either of the said Ministers may from time to time

require. The Minister shall, at the earliest opportunity and not later

than three months after he has received a copy of every such report,

or if at any time during that period the House of Representatives is

not in session, within three months from the beginning of the next

following session, cause a copy of every such report to be laid on the

Table of the House of Representatives.

Repealed by Act XIX.2024.21.

The Authority and any Board member, officer or

employee of the Authority, and any other person appointed to

perform a function under this Act or any other law which the

Authority is entitled to administer or enforce, or under any rules or

regulations made thereunder, shall not be liable in damages for

anything done or omitted to be done in the discharge or purported

discharge of any functions in accordance with the powers of the

Authority unless the act or omission is proven to have been done or

omitted to be done in bad faith.

PART VI

Principles relating to Recognition

(1)

The Authority shall establish and prescribe rules, in

the form of binding documentation such as guidelines, in relation to

the forms of recognition it shall grant or issue and in relation to

recognition programmes, initiatives and schemes it shall administer in

accordance with the powers of the Authority, laying down the terms

and requirements that applicants shall satisfy.

(2)

The Authority may also determine when innovative

technology which may be the subject of requirements under any law

which the Authority is entitled to administer or enforce, or under terms

and conditions of recognition, programmes, initiatives and schemes

issued and, or administered by the Authority, is exempt from such

requirements.

(3)

Where the Authority deems necessary, the Authority shall

keep a register containing a list of recognition holders and recognitions

issued by the Authority. This register, which may be publicly available

at the discretion of the Authority, including on the Authority’s website,

shall in particular indicate

(a)

the form of recognition and the programme,

initiative and, or scheme under which it is granted;

(b)

each innovative technology product, solution or

service which is recognized;

(c)

all such details as the Authority shall consider

necessary to identify the relevant recognition holder; and

(d)

the information on all matters which is required to

be entered into the register for public information in accordance

with the provisions of the Act, any other applicable law, or

which the Authority deems to be in the public interest and such

information shall be updated on a regular basis.

(1)

The Authority shall have the power to grant or refuse

to grant an innovative technology recognition in accordance with the

Act or under any law which the Authority is entitled to administer or

enforce or any European and, or international legislation applicable to

Malta, in accordance with the requirements and conditions relating to

the particular programme, initiative or scheme for the recognition of

the particular innovative technology that shall be accessible through

the website of the Authority, subject to its reasoned decision being

communicated to the applicant and subject to the applicant’s right of

appeal, as provided for hereunder.

(2)

(a) The Authority, when granting a recognition, may subject

it to such conditions as it may deem appropriate, and having granted

such recognition it may, from time to time, vary or revoke any

condition so imposed or impose new conditions.

(b)

For the better carrying out of the provisions of the

Act, the Authority may, from time to time, issue

and publish recognition conditions, rules and

guidelines which shall be binding on recognition

holders as may be specified therein.

(c)

In the interest of transparency and market

awareness, such recognition, conditions, rules and

guidelines may lay down, amongst others,

additional requirements and conditions in relation

to the activities of applicants and recognition

holders and any other matters as the Authority may

consider appropriate.

(3) When considering whether to grant or refuse to grant

recognition, the Authority shall, amongst others, but without

prejudice to the generality of the powers of the Authority, have regard

(a)

the protection of the general public and

organisations;

(b)

the protection of the reputation of Malta taking

into account Malta’s international commitments;

(c)

the promotion of innovation, competition and

choice; and

(d)

the reputation and suitability of the applicant and

all other connected parties.

(4)

Repealed by Act XIX.2024.25.

(5)

Repealed by Act XIX.2024.25.

(1)

Without prejudice to the generality of the powers

of the Authority, the Authority may issue guidelines or otherwise

specify those instances in which it may refuse to grant a recognition,

which instances may include the following

(a)

if the application is not submitted in accordance

with the established form or in accordance with applicable

procedure; or

(b)

if the applicable fees have not been paid; or

(c)

if the Authority, in its discretion, is not satisfied

that the applicant, any relevant persons, including persons with

delegated authority of representation, possess the required

qualities and, or competencies and, or qualifications, including

those relating to security features and automated technology

systems used and those related to fit and proper requirements,

imposed by the Authority; or

(d)

Repealed by Act XIX.2024.26.

MALTA DIGITAL INNOVATION AUTHORITY

(e)

if it transpires that any information or

submission made to the Authority is false, misleading,

inaccurate or incomplete in a material respect; or

(f)

if the Authority, in its discretion is not satisfied

in accordance with the circumstances of the case that

(i)

the applicant is capable of sustainably

financing the innovative technology;

(ii)

the applicant has the necessary competence,

technical know-how and resources to

develop the innovative technology or

provide the service;

(iii)

the applicant has a business model to

develop and, or maintain the innovative

technology or provide the service in a viable

manner which is compliant with the

applicable regulatory instruments in force;

and

(iv)

the applicant shall comply with all

requirements and obligations applicable

should a recognition be issued by the

Authority, including but not limited to

financial safeguards; or

(g)

if the Authority believes that the applicant’s

proposal is not compliant with the regulatory

instruments in force;

(h)

if the Authority believes that granting a recognition

to the applicant may pose a risk to the reputation of

Malta or is otherwise not in the public interest or

contrary to regulatory objectives established by the

Act;

(i)

if the Authority believes that the innovative

technology may be used in a manner that is

contrary to public morality, or third party personal

rights or is considered a potential security threat, or

may pose a risk to the reputation of Malta, or is

considered to be not in the public interest; or

(j)

if the Authority, in its reasonable discretion, is not

satisfied that the applicant has complied with and,

or has satisfied the required conformity assessment

procedure, where applicable and, or other

procedures of the Authority.

(2)

Repealed by Act XIX.2024.26.

(3)

Repealed by Act XIX.2024.26.

The Authority shall, within a time period to be established

through guidelines, which period may vary depending on the type of

recognition, notify an applicant in writing of its decision to refuse an

application for recognition.

(1)

The Authority may at any time revoke, cancel or

suspend a recognition if, following the issuing of a recognition

(a)

one of the grounds for which the Authority may

have rejected the recognition holder’s application arises;

(b)

where the recognition is issued based on incorrect

or false information provided to the Authority;

(c)

where at the discretion of the Authority, this is in

the interest of the users of the innovative technology concerned,

public safety or morality, or the reputation of Malta;

(d)

where this is necessary as a result of a change in

the legal framework which necessitates such a revocation,

cancellation or suspension of recognition; or

(e)

where this is necessary on the basis of European

Union and international laws applicable to Malta

Provided that without prejudice to any other

breaches under any other law that this may give rise to, the

providing of false information to the Authority shall constitute an

offence in accordance with the Act and shall be punishable in

accordance with the provisions of the Act.

(2)

The Authority shall have the power to publicise the

revocation, cancellation or suspension of its recognitions and the

reasons thereof, should it consider that this is necessary.

(3)

No action shall lie against the Authority in terms of the

Media and Defamation Act, or any other law relating to defamation or

slander, for the issuing of bona fide public statements in terms of this

article.

(4)

The Authority may further specify those circumstances

which may lead to a suspension, cancellation or revocation of a

recognition.

(5)

In addition to the above mentioned measures relating to the

suspension, cancellation or revocation of a recognition, the Authority

shall have the power to impose administrative penalties for breaches of

the conditions or obligations imposed on applicants, recognition

holders or third parties by the Authority in accordance with the powers

of the Authority or the Act or any other law which the Authority is

empowered to administer or enforce.

(6) Such administrative penalties as may be imposed by the

Authority under the previous sub-article shall be in accordance with

article 42 and may be imposed by the Authority in addition or in

substitution of any other measures imposed by the Authority.

(1)

The Authority shall inform the recognition holder

and establish the procedure to be adopted, prior to taking any of the

measures in accordance with article 30, which procedure may vary

depending on the type of recognition it is granting.

(2)

Notwithstanding the provisions of sub-article (1), where the

Authority has prima facie evidence that the infringement

(a)

represents an immediate and serious threat to the

users of the innovative technology, the public interest or to the

application of mandatory rules of law;

(b)

creates or may create serious economic or

operational problems for third parties, in particular other

providers or users of innovative technology; and, or

(c)

would result in harm to Malta and, or the

European Union and, or the welfare of users and, or

competition, including within the innovative technology sector,

the Authority may take urgent measures including ordering the

immediate cessation of the act or omission giving cause to the

infringement and the imposition of administrative penalties and the

suspension, revocation or cancellation of the recognition.

(1)

The Authority shall give its reasons for any decision

taken in accordance with the Act.

(2)

Subject to the rights of the appellant in an appeal filed before

the Tribunal in accordance with the Act, the notification of a decision

taken by the Authority in accordance with the Act shall, if no such

appeal has been filed in terms of the law, and upon the service of a

judicial act on the person indicated in the notice, constitute an executive

title for all effects and purposes of Title VII of Part I of Book Second of

the Code of Organization and Civil Procedure.

(3)

Notwithstanding the provisions of any other law, no

precautionary warrant or order shall be issued by any court restraining

the Authority from taking any measure under the Act, or under any

regulations issued hereunder or any other law.

(4)

Unless otherwise provided for by law decisions taken by the

Authority shall only be suspended or reversed by the competent Court

or Tribunal, as prescribed in terms of this Act.

Repealed by Act XIX.2024.31.

PART VII

Regulatory Powers

Repealed by Act XIX.2024.32.

Repealed by Act XIX.2024.32.

Repealed by Act XIX.2024.32.

Repealed by Act XIX.2024.32.

Repealed by Act XIX.2024.32.

PART VIII

Enforcement and Sanctions

Repealed by Act XIX.2024.33.

(1)

For the purposes of the exercise by the Authority

of any of its functions under this Act or under any other law which

the Authority is entitled to administer or enforce, the Authority may,

as may be applicable in the context and subject to the limitations in

the applicable laws on professional secrecy

(a)

enter, at any reasonable time, any premises or

any other place or any vehicle or vessel where any activity

regulated by or under this Act or any other law which the

Authority is entitled to administer or enforce, takes place, or in

the opinion of the Authority takes place, and search and

inspect the premises, place, vehicle or vessel and any books,

documents or records found therein;

MALTA DIGITAL INNOVATION AUTHORITY

(b)

require any person to produce for inspection and

take extracts or copies from any books, documents or records

relating to any activities regulated by or under this Act or any

other law which the Authority is entitled to administer or

enforce, which are under the control of that person and, in the

case of information in a non-legible form to reproduce it in a

legible form, and to give to the Authority such information as

the Authority may reasonably require in relation to any entries

in such books, documents or records;

(c)

remove and retain such books, documents or

records for such period as may be reasonable for further

examination;

(d)

require any person to maintain such books,

documents or records for such period as may be reasonable as

the Authority directs;

(e)

require any person to give to the Authority any

information that may be required with regard to any matter

regulated by or under this Act or any other law the Authority is

entitled to administer or enforce;

(f)

make such inspections, including site

inspections, to enable the Authority to carry out its functions at

law and in doing so the Authority may also undertake tests and

measurements of any machinery, apparatus, appliances and

other equipment at any place as the Authority may consider

necessary

Provided that where the person concerned fails to abide

with any requirements made by the Authority under this sub-article,

the Authority may then take any such measures as it may consider

appropriate in the circumstances including the switching off or

modification of the use of any such apparatus; and

(g)

investigate any suspected breach of any obligations

arising under the Act or any other law which the

Authority is entitled to administer or enforce or any

European and, or international legislation which is

applicable in Malta

Provided that the Authority may initiate investigations on

its own initiative.

(2) Any officer of the Authority or any other person duly

authorised by the Authority to act on its behalf, when exercising a

power conferred by this Act or by any other law which the Authority

is entitled to administer or enforce, shall, if requested by any person

thereby affected, produce to that person for inspection a certificate

issued by the Authority stating that he is duly authorised to act for

and on behalf of the Authority.

(3) In the course of the exercise of any of the powers

conferred by this Act or by any other law which the Authority is

entitled to administer or enforce the Authority may request the

assistance of the Police.

(4) Any persons who are or have been in charge of the

innovative technology falling under the supervisory or regulatory

functions of the Authority, including their representatives and

employees, shall assist and shall collaborate with the Authority in

order to enable it to discharge its functions, and shall collate and

transmit without any undue delay such information and

documentation as the Authority may reasonably request from time to

time.

(5)

Any person who -

(a)

obstructs, impedes or assaults an officer of the

Authority or any other person duly authorised by the Authority

to act on its behalf in the exercise of any of the powers

conferred by this Act or by any other law which the Authority

is entitled to administer or enforce;

(b)

fails or refuses to comply with a requirement

under this article;

(c)

alters, suppresses or destroys any books,

documents or records which the person concerned has been

required to produce, or may reasonably expect to be required

to produce;

(d)

falsely represents himself to be an officer of the

Authority or a person authorised by the Authority to act on its

behalf; or

(e)

furnishes any information to the Authority which

it may require in the exercise of its functions under the Act or

any law it is entitled to administer or enforce, which he knows,

or has reasonable cause to believe to be false or misleading,

shall be guilty of an offence against this Act, and shall on conviction

be liable to a fine (multa) not exceeding twelve thousand euro

(€12,000) or to imprisonment for a period not exceeding three

months, or to both such fine and imprisonment.

(6)

Repealed by Act XIX.2024.34.

(1)

Except where otherwise provided by law, a

person shall not knowingly disclose confidential information

obtained by him while performing the duties of a member of the

Board, or of an officer or employee of the Authority or of an adviser

or consultant to the Authority, unless he is duly authorised by the

Authority to do so

Provided that any such person shall remain bound by the

requirements of this article even after his appointment or

employment, howsoever described, with the Authority has come to

an end.

(2) In this article "confidential information" means any

information, howsoever described, which is considered by the

Authority to be confidential, or has been notified of such status by the

person providing it, and in relation to which the Authority has

notified the persons concerned of their duty of non-disclosure.

(3) A person who contravenes the provisions of this article

shall be guilty of an offence against this Act and shall on conviction

be liable to a fine (multa) not exceeding ten thousand euro (€10,000).

(4) Nothing in this article shall prevent the disclosure of any

information to the Authority or, by or on behalf of the Authority to

the Minister, or within the context of legal proceedings in court or

arbitration proceedings, or as may be required at law.

(1)

An administrative penalty imposed shall not,

unless provided otherwise by or under this Act or any law which the

Authority is entitled to enforce, exceed three hundred and fifty

thousand euro (€350,000) for each infringement or failure to comply

and, or twelve thousand euro (€12,000) for each day of infringement

or non-compliance as the case may be

Provided that if the act or omission which constitutes an

infringement is considered by the Authority as having significant

effects on the market to the detriment of users, the stated amount that

may be imposed as an administrative penalty may be increased to an

amount that is not more than five per cent (5%) of the turnover of the

undertaking in the calendar year immediately preceding the year

when the infringement was committed

Provided further that any daily administrative penalty

imposed may be back- dated to the date of the commission or

commencement of the infringement.

(2) In determining the amount of an administrative penalty,

regard shall be had in particular to the nature and the gravity of the

infringement, its duration and its impact on the market and on users.

(3)

Repealed by Act XIX.2024.36.

Where an infringement of any provision of the Act or

any other law which the Authority is entitled to administer or enforce

is committed by a body corporate and is proved to have been

committed with the consent or involvement of or to be attributable to

the gross negligence on the part of a person being an administrator of

the body corporate or a person who was purporting to act in any such

capacity, that person, as well as the body corporate, shall be liable to

be proceeded against and punished as if he was responsible for the

said infringement.

The prosecution of a criminal offence or the initiation of

proceedings to impose an administrative penalty under the Act or

under any other law which the Authority is entitled to administer or

enforce shall be prescribed by the lapse of two years from the date on

which the offence or infringement is alleged to have been committed.

PART IX

Administrative Review Tribunal

(1)

The Administrative Review Tribunal shall be

competent to hear and determine appeals from decisions of the

Authority as provided in this Act or in any law which the Authority is

entitled to administer or enforce or in any European Union and, or

international legislation applicable to Malta.

(2) The provisions of the Administrative Justice Act, in so

far as they apply to the Administrative Review Tribunal, shall apply

to any proceedings before the said Tribunal and the words "public

administration" in the said enactment shall be construed as a

reference to the Authority.

(1)

Unless otherwise provided by law, an appeal

shall lie to the Tribunal from a decision of the Authority made under

this Act, any other decisions that the Authority may take under any

other law which the Authority is entitled to administer or enforce, and

any decision taken by or on behalf of Government or by any public

authority in relation to or having a substantial bearing on innovative

technology.

(2) The right of appeal to the Tribunal shall be competent to

any person aggrieved by the decision

Provided that in any case, a person making an appeal to

the Tribunal shall also explain his juridical interest in impugning the

decision appealed from.

(3) An appeal from a decision of the Authority shall be

made by application and shall be filed with the Secretary of the

Tribunal within twenty (20) days from the date on which the said

decision has been notified.

(4)

Repealed by Act XIX.2024.40.

(1)

Without prejudice to the provisions of this Part,

the procedure to be followed in relation to appeals against

administrative penalties imposed by the Authority shall be regulated

by the provisions of this article.

(2) A person who is notified with a notice in writing given

under article 35 may, within twenty (20) days from the date of such

notification, lodge an appeal before the Tribunal objecting to the

administrative penalty so fixed.

(3) The Tribunal shall not annul an administrative penalty as

aforesaid unless it results to it that such penalty could not at law be

imposed in the circumstances of the case, or could not at law be fixed

in the amount established by the Authority due account being given

to the principle of proportionality.

(4) The Tribunal shall, without delay, set down the appeal

for hearing at an early date, which date shall in no case be later than

forty (40) days from the date of the service of the appeal on the

Authority.

(5) The appeal, and the notification of the date fixed for

hearing, shall be notified to the Authority without delay, and the

Authority shall file its reply thereto within twenty (20) days from the

date of the notification of the appeal.

(6) The decision of the Tribunal upon an appeal referred to

in sub-article (2), confirming the imposition of a fine established by

the Authority or reducing any such fine, shall upon becoming res

judicata be deemed to be a decision of the Tribunal.

(7)

Repealed by Act XIX.2024.41.

In determining an appeal the Tribunal shall take into

account the merits of the appeal, and may, in whole or in part,

confirm or annul the decision appealed from, giving in writing the

reasons for its decision and shall cause such decision to be made

public and communicated to the parties to the appeal.

(1)

The Tribunal shall endeavour to determine an

appeal within one hundred and twenty (120) days from the lapse of

the period by when the Authority may file its reply to the aforesaid

appeal and in any case to deliver its final decision not later than sixty

(60) days from when the parties declare that they have concluded

with their evidence and made their final submissions.

(2) The Tribunal may, in order to assist it in the exercise of

its functions, appoint independent and impartial experts to advise it

on any issue that may be relevant to any appeal lodged before it. In

such cases the Tribunal shall be entitled to make both provisional and

final orders in respect of the payment of the costs and fees of such

experts by any of the parties to the appeal.

(3) The Minister may, subject to the provisions of this Act,

by regulations prescribe the procedure to be followed before the

Tribunal, and subject thereto and to any other provisions of this Act,

the Tribunal may regulate its own procedure.

(4) The Minister may by regulation amend any of the

periods stated in sub-article (1).

Any party, who feels aggrieved by a decision of the

Tribunal, may on a point of law and, or of fact appeal to the Court of

Appeal in accordance with article 22 of the Administrative Justice Act.

(1)

The decision of the Authority, pending an appeal

whether before the Tribunal or the Court of Appeal, shall stand and

shall be adhered to by all the parties to whom the decision applies.

(2) The Tribunal or the Court of Appeal, as the case may be,

where it considers it to be appropriate, may, on the application of a

party to the appeal, suspend in whole or in part the decision which is

the subject of the appeal pending the final determination of the

appeal. The Tribunal or the Court of Appeal in deciding whether or

not to suspend the decision shall state its reasons and shall take into

account all the relevant circumstances, including -

(a)

the urgency of the matter;

(b)

the effect on the party making the request if the

application for suspension is not upheld; and

(c)

the effect on competition and, or on users of

innovative technology if the application is upheld

Provided that a party, in making an application under

this article, shall state the factual and legal grounds establishing a

prima facie case for the suspension of the decision. The Tribunal or

the Court of Appeal, as the case may be, shall on receipt of any such

application order the notification thereof to the other party or parties

to the appeal affording them reasonable opportunity to make their

response thereto

Provided further that the Tribunal, in determining any

such application, may include such conditions as it considers

necessary in the circumstances.

In cases where the Tribunal or the Court of Appeal, as

the case may be, after having upheld an application to suspend an

administrative penalty imposed by the Authority pending

proceedings, decides that the administrative penalty is due, such

administrative penalty shall be due together with any interests

accrued thereon as from the date specified by the Authority for

payment, including the period during which the payment of the said

administrative penalty was suspended.

Where a notice, howsoever described, is required to be

given by the Authority to any person whether under this Act or under

any other law administered by the Authority, the notice shall be

addressed to that person and shall be given to the person in any of the

following ways

(a)

by delivering it to the person;

(b)

by leaving it at the address at which the person

ordinarily resides or carries on business;

(c)

by sending it by registered post to the person at

the address at which the person ordinarily resides or carries on

business;

(d)

if an address for the service of notices has been

provided by the person, by leaving it at such address, or

sending it by registered post addressed to the person to that

address;

(e)

in any case that the Authority deems it necessary

to send the notice by means of electronic mail, to the electronic

mail address provided by the addressee to the Authority,

provided that the notice shall not be deemed as delivered if the

Authority receives an automated electronic mail delivery failure

message, indicating that the electronic mail was not delivered

Provided that the provisions of this paragraph

shall not apply to the service of documents filed before the

Tribunal or any Court.

(1)

When the Authority wants to sue for the

recovery of a debt due to the Authority under the Act or any other law

which it is entitled to administer or enforce or under European Union

and, or international legislation applicable to Malta, the Chairperson

or the Chief Executive Officer or an officer of the Authority duly

authorised by the Authority to act on its behalf may make a

declaration on oath before the registrar of the Courts, a Judge or a

Magistrate wherein he specifies the nature of the debt and the details

of the debtor and confirms that the debt is due.

(2) The declaration referred to in sub-article (1) shall be

served upon the debtor by means of a judicial act and it shall have the

same effect as a final judgement of the competent court unless the

debtor shall, within a period of twenty (20) days from service upon

him of the said declaration, oppose the claim by filing an application

demanding that the court declare the claim unfounded.

(3) The application filed in terms of sub-article (2) shall be

served upon the Authority, which shall be entitled to file a reply

within a period of twenty (20) days. The court shall appoint the

application for hearing on a date after the lapse of that period.

(4) Any debts due to the Authority in accordance with this

article shall be prescribed by the lapse of the period of five (5) years

from the date on which the debt was due.

(1)

No person shall make or cause to be made any

advertisement or other representation, in any visual or aural form,

whether the advertisement is made in Malta or otherwise, either

specifically or by implication, to the effect that

(a)

any innovative technology has the recognition of

the Authority, if this is not the case;

(b)

any activity carried out by any person or provided

by or on an innovative technology has the recognition or is

conducted with the co-operation or assistance of the Authority,

if this is not the case; or

(c)

any activity is being carried out in, or from Malta

in accordance with the regulatory framework applicable to

innovative technology when the relevant product, solution or

service is not recognised by the Authority;

or similar statements based on the circumstances from time to time,

and in case of breach such person shall be guilty of an offence under

this article.

(2) In relation to persons recognised by the Authority, the

provisions of sub-article (1) shall not apply when an advertisement or

other representation is issued with the prior written consent or

instructions of the Authority, or is permitted in general guidelines

issued by the Authority on the subject matter, and shall constitute an

offence only if a misrepresentation is made regarding the Authority,

or any recognition granted by it, to an innovative technology.

(3) It shall be incumbent on the issuer of an advertisement

to expressly state in such advertisement that the product, solution or

service does not enjoy recognition by the Authority and shall not give

the contrary impression under any circumstances if

(a)

an innovative technology is being administered and

operated in or from Malta, or is being provided in

or from Malta;

(b)

reference is made to such fact in an advertisement;

and

(c)

the product, solution or service is not recognised by

the Authority in any form, as the case may be.

(4) Should the Authority become aware of a breach of sub-

article (3), the Authority shall have the power to issue a notice under

this article to the issuer of the advertisement or the persons involved

in relation to the relevant innovative technology, demanding

compliance with the said sub-article and the relevant person shall be

obliged to correct the same within the time stipulated by the

Authority failing which he shall be guilty of an offence under this

article.

(5) Where the name, trade name, trademark or the

designation of any innovative technology appears in relation to a

representation referred to in sub-article (1) or (2), that person shall be

deemed for the purposes of this article to have caused the

representation to be made unless such person proves that the

representation was made without his knowledge or connivance.

(6) A person convicted under this article shall be liable to a

fine (multa) of

(a)

not less than five thousand euro (€5,000) and

not more than ten thousand euro (€10,000) if the person enjoys

recognition by the Authority; and

(b)

not less than fifty thousand euro (€50,000) and

not more than one hundred thousand euro (€100,000) if the

person does not enjoy recognition by the Authority.

Repealed by Act XIX.2024.50.

PART X

Co-ordination with other Competent Authorities; Simplification

Repealed by Act XIX.2024.51.

Repealed by Act XIX.2024.51.

Repealed by Act XIX.2024.51.

PART XI

Miscellaneous Provisions

(1)

The Minister may, without prejudice to the

powers of the Authority, and acting on the advice of the Authority

make regulations to give fuller effect to the provisions of the Act, or

to prescribe anything that is to be or which may be prescribed in

terms of the Act, any law which the Authority is entitled to

administer or enforce or any European Union and, or international

legislation which is applicable to Malta or any other regulatory

instrument and to provide for any matter consequential, incidental to

or connected therewith.

(2) Without prejudice to the generality of the foregoing, the

Minister may, by such regulations

(a)

(i)

define and empower the Authority to

define products, solutions and services that may be

regulated under the Act;

(ii)

regulate recognition processes in

accordance with the Act or any other law which the

Authority is entitled to administer or enforce or any

European Union and, or international legislation

applicable to Malta; and the overall requirements

and conditions for such recognitions, their grant,

amendment, renewal, suspension, revocation and

termination and other similar actions and to further

empower the Authority to lay down any such

requirements and conditions;

(b)

empower the Authority to regulate and issue

recognition to persons engaged in activities falling within the

competence of the Authority, the Act or any other law which

the Authority has the power to administer or enforce or any

European Union and, or international legislation, and all

matters relating thereto, including the qualifications and

elements to provide innovative technology as well as the

exemption of certain persons or categories of persons from any

or all of the requirements for recognition;

(c)

establish methods of review relating to the

processes and procedures adopted by the Authority in carrying

out its functions;

(d)

provide for any administrative penalties that may

be imposed by the Authority for any breach of the provisions

of the Act or any other law which the Authority is entitled to

administer or enforce or any European Union and, or

international legislation applicable to Malta;

(e)

implement any international convention or any

EU Regulation or Directive, to the extent necessary, to which

Malta has adhered to in the context of the innovative

technology sector;

(f)

lay down rules establishing any fees and tariffs

which may be levied by the Authority;

(g)

lay down rules, provide for and clarify the

MALTA DIGITAL INNOVATION AUTHORITY

powers of the Authority for the better carrying out of any of

the provisions of this Act;

(h)

amend, repeal, add to and, or vary any of the

Schedules to the Act and any regulations made thereunder;

(i)

establish rules and empower the Authority to

prescribe rules and to achieve the purposes of the Act, and the

effective administration of the Act and, or any other law which

the Authority is empowered to administer or enforce or any

European Union and, or international legislation having effect

in Malta;

(j)

establish rules and empower the Authority to

prescribe rules for the mutual recognition of recognitions

issued by other national, foreign or international authorities or

bodies;

(k)

issue further guidance and empower the

Authority to issue further guidance regarding the form,

accessibility and minimum contents of information that shall

be made available to users of innovative technology;

(l)

define and empower the Authority to define

different levels of recognition that may be obtained in relation

to innovative technology;

(m)

further regulate recognitions of innovative

technology

(n)

further regulate the recognition of innovative

technology service providers, including the level of

independence and other qualities, if any, that are required for

the carrying out of their functions and the definition of such

terms;

(o)

define the criteria for determining whether the

systems and security access protocols of applicants or

recognition holders, as applicable, meet or are maintained to

the appropriate international standards that may be established

from time to time;

(p)

prescribe rules for the notification of any

activities in or from Malta, or relating to innovative

technology which are accessible through the website of the

Authority, including when the innovative technology already

has the recognition in another country;

(q)

establish the circumstances and empower the

Authority to establish the circumstances in which any person

involved in connection with a recognition holder, including

any service provider is obliged to communicate information to

the Authority, prescribe regulations governing the disclosure

of information by service providers and establish supervisory

and disciplinary procedures for service providers in respect of

their duties;

(r)

extend any provisions of the Act, including but

not limited to, the right to an effective judicial remedy to any

form of innovative technology;

(s)

by regulations made under the Act amend any

Schedule made under the Act;

(t)

clarify by means of guidelines any definition in

sub-article (1) of article 2;

(u)

empower and designate the Authority as a

competent authority and, or supervisory authority and, or

market surveillance authority in relation to innovative

technology, data or any other area, as may be prescribed by the

Minister;

(v)

grant to the Authority the power to issue

recognitions, create processes and structures, facilitate and

generate data sharing by natural or legal persons and the public

sector; and

(w)

prescribe fees in consultation with the Minister

responsible for finance.

The Minister may direct or authorise the Authority to establish

all necessary details to meet any of the above requirements and

conditions by way of guidelines and other binding regulatory

instruments to be issued by the Authority under article 6 which shall

be ancillary to or independent of any regulations made under the above

powers.

(3) Regulations made under this article may be made

subject to such exemptions or conditions as may be specified therein,

may make different provision for different cases, circumstances or

purposes and may give to the Authority such powers of adaptation of

the regulations as may also be so specified.

(4) Where regulations have been made in terms of this

article, the Authority may issue guidelines for the better carrying out

and to better implement the provisions of such regulations.

(5) Without prejudice to the generality of the foregoing, the

Minister may, acting on the advice of the Authority, and in

conjunction with the Minister for Finance, make regulations

providing for the taxation of the activities of and transactions

involving innovative technology and any other matter related thereto.

(6)

The Minister shall, with the support of the Authority,

promote initiatives, including the establishment of structures

dedicated to the purpose, for the review of all the laws of Malta in

order to ensure that such laws are rendered compatible and consistent

with innovative technology in order to achieve the best outcomes and

ecosystem for the use of such innovative technology.

(7) Regulations made under this Act, and any amendment or

revocation of such regulations, may be published in the English

language only.

In this Act and in any regulations made thereunder, if

there is any conflict between the English and Maltese texts, the

English text shall prevail.