VIENNA, Austria — In a preliminary ruling that could have an enormous effect on online commerce in Europe, an Austrian court has ruled that YouTube is not a neutral host provider and must prevent third parties from uploading copyright infringing content.

The Commercial Court of Vienna, in a decision seeking monetary damages that can be appealed, held that YouTube “leaves the role of a neutral mediator” through interconnecting, sorting, linking, providing content tables with predefined categories, tracking the search behavior of users and making custom surfing suggestions.

If the ruling is upheld, it could have a major impact on not just YouTube but all other parties that host third-party content in Europe.

Online companies, including those in the adult entertainment industry that offer user-generated content in Europe, would have to comply and monitor sites or potentially face punitive damages if the decision stands.

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