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EU Commission to Inquire into Anti-Competitive Practices in e-Commerce

EU Commission to launch sector inquiry into eCommerce industry.

EU Commission to Inquire into Possible Anti-Competitive Practices in e-Commerce Sector

On Wednesday, May 6th, the European Commission launched an antitrust competition inquiry into the e-commerce sector across the EU's 28 member states. The sector inquiry will investigate whether the European e-commerce market is underperforming, and how breaches of competition rules might be a contributory factor. This move should be viewed in the context of the Commission's ongoing work around its Digital Single Market (DSM) strategy, which aims to tackle regulatory barriers that currently impede cross-border e-commerce and create a frictionless environment in which citizens and businesses can perform online transactions under conditions of free competition.

While there could be a variety of factors contributing to the slow growth in cross-border e-commerce, such as diverse consumer preferences and language barriers, the Commission has suggested that there are indications of private barriers to competition. Therefore, the sector inquiry will operate in parallel to the DSM strategy, examining the ways in which companies operating in the e-commerce sector may be using contractual restrictions in their distribution agreements, for example, to curtail trade across national borders.

The work of the inquiry will focus primarily on information gathering exercises, undertaken with a view to gaining a better understanding of the prevalence and consequences of barriers erected by companies, and analysis of these findings in light of antitrust rules. The findings will enable the Commission and national competition authorities to focus their efforts on enforcement actions in the e-commerce sector in the event that breaches are discovered.

At a practical level, the Commission will be requesting information from a variety of stakeholders, which may see it use its right to require individual companies and trade associations to provide information or statements on their positions. A preliminary report is expected for consultation in 2016, while the final version will be published in 2017.

As any findings of anticompetitive practices could have implications for UK-based online service providers, techUK members with an interest in the eCommerce sector who could be affected by these developments are encouraged to raise any concerns with Oisin Merrins or Sue Daley.

 

Channel website: http://www.techuk.org/

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