Intermediary
Also called: Network service provider, Safe harbour
A person who, on behalf of another, receives, stores or transmits an electronic record or provides a service for it, such as an internet provider, search engine or online marketplace. Section 2(1)(w) IT Act.
Explained
Section 2(1)(w) of the Information Technology Act, 2000 defines an intermediary, with respect to any particular electronic records, as any person who on behalf of another person receives, stores or transmits that record or provides any service with respect to that record. It expressly includes telecom service providers, network service providers, internet service providers, web-hosting service providers, search engines, online payment sites, online-auction sites, online-market places and cyber cafes. The test is functional: a person is an intermediary with respect to a particular record when it handles that record for someone else, not as its author.
Section 79 gives intermediaries a conditional safe harbour. Under Section 79(1) an intermediary is not liable for third party information, data or communication links made available or hosted by it, provided that its function is limited to providing access to a communication system, or it does not initiate the transmission, select the receiver or select or modify the information, and it observes due diligence and the guidelines prescribed by the Central Government. Under Section 79(3) the protection is lost if it conspires in or abets the unlawful act, or fails to expeditiously remove or disable access to unlawful material after receiving actual knowledge or notice from the appropriate Government.
In Shreya Singhal v. Union of India (2015) the Supreme Court read down Section 79(3)(b), holding that actual knowledge means knowledge through a court order or a notification by the Government or its agency, and that the unlawful acts must relate to the grounds in Article 19(2). The Court upheld the blocking power under Section 69A.
Intermediaries also bear statutory duties. Section 67C requires them to preserve and retain specified information. Failure to comply with a blocking direction under Section 69A, or to extend technical assistance to an authorised agency under Section 69, is punishable with imprisonment up to seven years and fine. The term is defined differently elsewhere, for example in Section 2(13) of the IGST Act, 2017 for brokers and agents arranging supplies. Examiners test the listed inclusions, the Section 79 conditions and the Shreya Singhal reading.
What the law says
[(w) “intermediary”, with respect to any particular electronic records, means any person who on behalf of another person receives, stores or transmits that record or provides any service with respect to that record and includes telecom service providers, network service providers, internet service providers, web-hosting service providers, search engines, online payment sites, online-auction sites, online-market places and cyber cafes;]
Section 2(1)(w) defines intermediary
(1) Notwithstanding anything contained in any law for the time being in force but subject to the provisions of sub-sections (2) and (3), an intermediary shall not be liable for any third party information, data, or communication link made available or hosted by him.
(2) The provisions of sub-section (1) shall apply if–
(a) the function of the intermediary is limited to providing access to a communication system over which information made available by third parties is transmitted or temporarily stored or hosted; or
Conditional exemption of intermediaries from liability
(1) Where the Central Government or any of its officers specially authorised by it in this behalf is satisfied that it is necessary or expedient so to do, in the interest of sovereignty and integrity of India, defence of India, security of the State, friendly relations with foreign States or public order or for preventing incitement to the commission of any cognizable offence relating to above, it may subject to the provisions of sub-section (2), for reasons to be recorded in writing, by order, direct any agency of the Government or intermediary to block for access by the public or cause to be blocked for access by the public any information generated, transmitted, received, stored or hosted in any computer resource.
(2) The procedure and safeguards subject to which such blocking for access by the public may be carried out, shall be such as may be prescribed.
(3) The intermediary who fails to comply with the direction issued under sub-section (1) shall be punished with an imprisonment for a term which may extend to seven years and also be liable to fine.
Blocking directions and penalty for non-compliance
(3) The subscriber or intermediary or any person in-charge of the computer resource shall, when called upon by any agency referred to in sub-section (1), extend all facilities and technical assistance to–
(a) provide access to or secure access to the computer resource generating, transmitting, receiving or storing such information; or
(b) intercept, monitor, or decrypt the information, as the case may be; or
Duty to assist interception, monitoring or decryption
(1) Intermediary shall preserve and retain such information as may be specified for such duration and in such manner and format as the Central Government may prescribe.
(2) any intermediary who intentionally or knowingly contravenes the provisions of sub-section (1) shall be [liable to penalty which may extend to twenty-five lakh rupees].]
Preservation and retention of information by intermediaries
(13) “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account;
Section 2(13) gives a different, tax law meaning
Example
For example, an online marketplace hosts a seller's listing that infringes a third party's rights. It is an intermediary for that listing and keeps its Section 79 protection if it observes due diligence and removes the listing promptly on receiving a court order.
For the exam
- Defined in Section 2(1)(w) IT Act; includes search engines, online marketplaces and cyber cafes.
- Section 79 safe harbour covers third party information only, subject to due diligence.
- Safe harbour is lost on conspiracy or on failure to remove content after actual knowledge or notice.
- Shreya Singhal: actual knowledge means a court order or Government notification.
- Refusing a Section 69 or 69A direction: imprisonment up to seven years and fine.
57 questions in the Law Maker question bank use this term. Practise Cyber Law questions
Judgments
Related terms
- Electronic recordData, a record or data generated, an image or sound stored, received or sent in electronic form, or micro film or computer generated micro fiche (Section 2(1)(t) of the IT Act).
- Computer resourceComputer, computer system, computer network, data, computer data base or software (Section 2(1)(k) of the Information Technology Act, 2000). It is the widest of the Act's technology terms.
- Electronic signatureAuthentication of an electronic record by a subscriber using an electronic technique specified in the Second Schedule to the IT Act, including a digital signature (Section 2(1)(ta)).
- Data FiduciaryUnder Section 2(i) of the DPDP Act, 2023, any person who alone or with others determines the purpose and means of processing personal data. It bears primary responsibility for compliance.
- Personal dataAny data about an individual who is identifiable by or in relation to such data. Section 2(t) of the Digital Personal Data Protection Act, 2023.
Further reading
Checked 6 November 2026. Statutory text is quoted from the Bare Acts library, taken from India Code. See the full glossary.