The study addresses the secondary liability of Internet in termediaries, namely, the issue of whether and to what extent, intermediaries — who bring together or facilitate transactions between third parties on the Internet — should be liable for, or in dependence of, illegal activities by their users. The report discusses the main issues related to the pplication of the Directive, and makes some suggestions for future improvements It argues that the exemption should be maintained, since it is needed to ensure the diverse rovision of intermediation services and the freedoms of the users of such services. Some updates to the current regulation may provide better guidance to Internet intermediaries, their users, and legal professionals.