The Electronic Commerce Act of  2001,  is based on the E-Commerce Directive of the EU. It regulates in some detail the validity of  electronic contracts and transactions.  It also provides for rules on the transmission of  electronic  communications, provision of  signature certification, as to the time and place when the electronic  communication is deemed to have been dispatched and received.  This law is administered by the Malta Communications Authority and has constituted important developments governing sales over the Internet in Malta.

The Electronic Commerce Act regulates also the liability of  intermediary  service providers - mere conduiting, caching and hosting would fall under different rules than thos applying to the actual service provider or content provider.