Annexes to COM(2009)557 - Cross-Border Business to Consumer e-Commerce in the EU - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2009)557 - Cross-Border Business to Consumer e-Commerce in the EU. |
|---|---|
| document | COM(2009)557  |
| date | October 22, 2009 |
In the context of vertical restraints, contribute to reducing barriers to online sales
41. Competition rules on vertical restraints have largely contributed to the removal of undue restrictions on e-commerce in distribution agreements by prohibiting anti-competitive restrictions to cross-border internet marketing and sales. [23] The current Block Exemption Regulation will expire on 31 May 2010. The Commission is currently examining the way this Regulation has been applied so far in order to clarify and simplify these rules. The Commission is also reflecting on how the ongoing review can contribute to reducing barriers to sales over the internet and create efficiencies that enhance consumer welfare [24].
42. For exclusive distribution, the ongoing review will elaborate further on the criteria used for distinguishing between active and passive sales with the aim of identifying the most common practices to be considered as restrictions on passive sales which are likely to infringe the competition rules. For instance, presumed illegal conduct could include practices such as requiring an exclusive distributor to put on its website some automatic rerouting of customers to the manufacturer's website or other exclusive distributors' websites. Another example would be terminating a consumer's transaction process over the internet once their credit card data reveal an address not within the targeted exclusive territory.
43. For selective distribution, the current review will explore whether or not the criteria used to select dealers (such as the requirement for the dealer to have a brick and mortar shop) can be justified on grounds of consumer welfare and unduly limit online and cross-border transactions. The vertical review will also explore whether or not within selective distribution networks manufacturers dissuade appointed dealers from use of the internet.
44. Online distribution will be one of the main areas of the ongoing review of competition rules on vertical restraints. In this regard, the Commission will examine closely whether the existing rules need to be adapted to further enable cross-border e-commerce.
Improving payment systems and logistics and tackling technical barriers
45. Payment systems have also been the focus of EU action aimed at increasing interoperability and creating a seamless cross-border market, either through legislation (Directive on payment services) or by supporting industry-led initiatives (the Single Euro Payments Area). [25] However, for consumers and traders (in particular SMEs), making and receiving payments cross-border online throughout the EU still remains a challenge and a major deterrent to cross-border trade.
46. The reform of the postal sector was given renewed impetus with the adoption of the third Postal Directive in 2008 committing the Member States to full opening of their postal markets. With full market opening, an internal market will be established and postal operators should be able to set up subsidiaries in other Member States and deliver items through their own network, or should have more choice over which postal operator to use in other Member States with respect to intra-community mail. Consumers and traders will benefit from the resulting improved cross-border logistics. [26]
47. The Commission will also continue to ensure that unjustified obstacles to the trade of goods in the internal market are eliminated and new ones are not created.
Complementary actions to eliminate non regulatory barriers to cross-border e-commerce
Work with industry to promote a pan European online retail market
48. Consumers' perceptions of online opportunities are partially the result of business models that have hitherto regarded the online internal market as a juxtaposition of national markets.
49. The Commission calls on major search engines and online players to enhance consumers' awareness of cross-border opportunities. Online businesses should adopt domain names ending in .eu, the single top-level domain for Europe, in an effort to abolish national perceptions based on country domain names. Furthermore, because any firm registering in the .eu domain has to comply with European rules, looking out for .eu gives some form of basic protection to consumers and European firms with high standards could differentiate themselves by adopting .eu . Traders should create multi-country or pan-EU websites.
50. While finding cross-border offers on the internet is possible, it requires more time and effort than finding domestic offers that are targeted at a national audience. Major search engines and price comparison websites should more systematically offer search rankings or price comparisons that present both cross-border and domestic offers and be available in more than one language. [27] Experience in the aviation sector has shown that multilingual transparent websites are the best way to push cross-border online transactions. [28] The Commission will continue to discuss with market operators how they can facilitate cross-border e-commerce.
Information for consumers and traders
51. Informed consumers who know their rights and are able to recognise and report infringements are more likely to reap the benefits of cross-border online shopping. To this end, the Commission will expand and update the "eYouGuide to your Rights Online" published in May 2009 [29] and will continue to support the network of European Consumer Centers, who provides information and advice to cross-border shoppers. The Enterprise Europe Network will be used to inform traders of their obligations and opportunities.
Strengthen market monitoring
52. As part of the Commission's intention to better monitor the retail side of the internal market, continued monitoring of cross-border e-commerce will also be necessary to ensure that policymakers, enforcers and citizens are aware of market developments. In addition to existing surveys from Eurostat, the Commission will continue to work with the European Central Bank and major credit card companies – in full respect of the privacy and data protection legislation – to develop cross-border sales statistics based on credit card transactions.
Conclusion
53. This Communication sets out the foundation for a strategy for making cross-border e-commerce work better. Achieving this goal would benefit consumers, businesses and the competitiveness of the EU economy. Progress on all these points will continue to be monitored closely through the Consumer Market Scoreboard.
[1] ‘Commission staff working document: report on cross-border e-commerce in the EU’ - SEC(2009) 283, 5.3.2009, available at: http://ec.europa.eu/consumers/strategy/facts_en.htm#E-commerce.
[2] Special Eurobarometer 298: ‘Consumer protection in the internal market’ (2008).
[3] Special Eurobarometer 254, ‘Internal Market — Opinions and experiences of Citizens in EU-25’ (2006).
[4] Special Eurobarometer 298 (2008) ; Flash Eurobarometer 224: ‘Business attitudes towards cross-border sales and consumer protection’ (2008).
[5] Flash Eurobarometer 224 (2008).
[6] ‘Mystery shopping evaluation of cross-border e-commerce in the EU’, YouGovPsychonomics, data collected on behalf of the European Commission, 2009.
[7] YouGovPsychonomics (2009). For Cyprus and Malta results should be interpreted with caution as there were very few domestic offers to enable a comparison (see figure 1).
[8] YouGovPsychonomics (2009).
[9] YouGovPsychonomics (2009). The possibility of placing an order up to the final confirmation page was tested. No actual purchases were made.
[10] YouGovPsychonomics (2009).
[11] ‘Commission staff working document: report on cross-border e-commerce in the EU’ - SEC(2009) 283, 5.3.2009.
[12] Proposal for a Directive on Consumer Rights - COM(2008) 614.
[13] Directive 2006/123/EC of 12 December 2006 on services in the internal market.
[14] Regulation (EC) No 2006/2004 of 27 October 2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws.
[15] See: http://ec.europa.eu/consumers/enforcement/sweep/electronic_goods/index_en.htm
[16] Communication COM(2009) 330, 2.7.2009, on the enforcement of the consumer acquis.
[17] Directive 2005/29/EC of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market.
[18] Regulation (EC) No 861/2007 establishing a European small claims procedure; Directive 2008/52/EC on certain aspects of mediation in civil and commercial matters.
[19] See http://ec.europa.eu/consumers/redress_cons/index_en.htm
[20] Proposal for a Council Directive amending Directive 77/388/EEC with a view to simplifying value added tax obligations - COM(2004) 728.
[21] Proposal amending Directive 2006/112/EC on the common system of the value added tax as regards the rules on invoicing - COM(2009) 21.
[22] Proposal recast Directive 2002/96/EC on waste electrical and electronic equipment (WEEE) - COM(2008) 810.
[23] Commission Regulation (EC) No 2790/1999 of 22 December 1999 on the application of Article 81(3) of the Treaty to categories of vertical agreements and concerted practices (Block Exemption Regulation); Commission Notice (2000/C 291/01) Guidelines on Vertical Restraints.
[24] See 'Online Commerce Roundtable: Opportunities and Barriers to Online Retailing' accessible at: http://ec.europa.eu/competition/consultations/2009_online_commerce/roundtable_report_en.pdf
[25] Directive 2007/64/EC on payment services in the internal market
[26] Directive 97/67/EC (amended by Directive 2002/39/EC, and Directive 2008/6/EC) the "Postal Directive"
[27] As recommended by the Commission Communication COM(2008)566 "Multilingualism: an asset for Europe and a shared commitment".
[28] Notably since the adoption of Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 establishing common rules for the operation of air services in the Community (Recast)
[29] See http://ec.europa.eu/information_society/eyouguide/navigation/index_en.htm
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