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Electronic data interchange meaning

What does Electronic data interchange mean?
Electronic data interchange (EDI) is the computer-to-computer exchange of standardised business documents—such as purchase orders, invoices and payment messages—between trading partners over secure networks. It is widely used in supply chain, finance and public procurement, and is usually governed by an EDI or trading‑partner agreement that sets message standards (for example UN/EDIFACT, XML/PEPPOL), transport protocols (for example AS2), security, allocation of risk, contract formation, evidence and audit, time of sending/receipt, error handling, service levels and governing law. EDI service providers operate value‑added networks or cloud platforms that route, translate and perform the necessary centralised processing. In England & Wales, Scotland, Northern Ireland and Ireland, EDI is a descriptive industry term, not generally defined in legislation or case law. Electronic records and signatures are recognised under the UK Electronic Communications Act 2000 and UK eIDAS, and in Ireland under the eIDAS Regulation and the Electronic Commerce Act 2000. EDI normally offers stronger security than email (encryption, authentication and non‑repudiation). Legal issues include data protection (UK GDPR/EU GDPR), confidentiality, competition law in shared hubs, and VAT/electronic invoicing requirements on authenticity, integrity, legibility, retention and audit trails. Public sector frameworks frequently use PEPPOL-based EDI; usage is broadly consistent across the UK and Ireland.
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View the related Checklists about Electronic data interchange

CHECKLISTS
EU website and online platform compliance: legal checklist covering e-commerce, consumer rights, GDPR and cookies, accessibility, cybersecurity (NIS2), payments (PSD2), DSA/DMA, AI Act, IP and geo‑blocking

This Practice Note sets out detailed, relevant guidance on the principal legal and regulatory compliance obligations that a website operator should take into account within the EU, covering the following areas: the type and functionality of the website information disclosure requirements consumer protection data protection and privacy cookies accessibility cyber security platform-to-business online payments advertising, promotions and direct marketing AI competition law taxation liability for third party content intellectual property and observance of copyright geographic and territorial considerations Topics such as electronic data interchange (EDI), blockchain, smart contracts, or sector-specific laws and regulations—including those relating to financial services, intermediation services, or online auctions—fall outside the scope of this Practice Note. This Practice Note addresses only legislation that has been adopted to date by the EU. For further details on ongoing initiatives that may materially affect websites operating in the EU, also see Practice Note: Key EU digital...

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View the related Practice Notes about Electronic data interchange

PRACTICE NOTES
Irish and EU Legal Requirements for Operating Websites: E‑commerce, Consumer Rights, Data Protection, Cookies, Accessibility, Cyber Security, Payments, Advertising, Platform‑to‑Business, IP, Intermediary Liability and Geo‑blocking

This Practice Note sets out the principal Irish legal and regulatory points a website operator should consider when running a site, such as: The type and functionality of the website Information disclosure requirements Consumer protection Privacy and data protection Cookies Accessibility Cybersecurity Platform-to-business Online payments Advertising, promotions and direct marketing Competition law Taxation Liability for third party content Intellectual property and respecting copyright Geographic and territorial considerations Consideration of electronic data interchange (EDI) arrangements, blockchain, smart contracts or sector-specific laws or regulations, including those applicable to financial services, intermediation services or online auctions, is outside the scope of this Practice Note. The type and functionality of the website Applicable compliance duties and rules differ according to a site’s nature, functionality or purpose. Pinpointing these characteristics is the crucial first step for an operator to establish its Irish legal and compliance obligations. For example, is the website ‘information only’;...

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PRACTICE NOTES
UK website compliance: legal requirements on disclosures, e-commerce, consumer contracts, data protection and cookies, accessibility, cyber security, online safety, advertising, payments, platform liability, IP and cross-border rules

Consideration of electronic data interchange (EDI) frameworks, blockchain, smart contracts, or sector‑specific legislation or regulation, including regimes for financial services, intermediation services, or online auctions, falls outside the scope of this Practice Note. For a primer on EDI and smart contracts, see Practice Notes: Business to business e‑commerce—introduction and Smart legal contracts. For blockchain guidance, refer to Blockchain—overview and Practice Note: Blockchain—key legal and regulatory issues. The type and functionality of the website A website’s compliance obligations and the rules that apply will vary according to the kind of site in question and its intended functionality or aim and audience. As an initial step, the site operator should determine, early on, the nature of the proposed site and the planned extent of its functionality. For example, consider the following questions: will the site be an ‘information only’ destination? will it operate as a platform where third parties upload material or content or execute transactions? will it deliver a service? will it...

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PRACTICE NOTES
Online platforms: definitions, types and UK/EU regulatory overview (OSA 2023, EU DSA/DMA, P2B, e-commerce, copyright, accessibility, terrorist content, political advertising, media freedom and AI)

This Practice Note reviews the principal definitions and terminology used for platform solutions and sets out explanations of the common platform categories and the language linked to them. It also clarifies how each of the main UK and EU legislative instruments defines the entities falling within their scope. A detailed analysis of electronic data interchange systems, or other platforms designed to enable computer-to-computer transfers of commercial or trading data and documents, lies outside the remit of this Practice Note. Online platforms In recent years, online platforms have expanded rapidly in economic weight and societal influence, with public and political scrutiny of their duties and liabilities reaching new heights. They have entered retail markets and communications infrastructures, reshaping how goods and services are bought and sold, while also enabling richer, content-led forms of social interaction and networking. Online platforms now sit at the heart of the move from offline to online, permitting the global distribution of all kinds of content, lawful and illegal, at scale and speed. The conventional...

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