TRAVEL WEEKLY BUSINESS
European Commission unveils strategy for a digital single market. IAN TAYLOR reports
DIGITAL: EC PRIORITISES SINGLE MARKET FOR THE SALE OF GOODS AND SERVICES
Ian Taylor
The European Commission plans a rapid push towards a digital single market in Europe as it lowers barriers to cross-border selling. The EC announced a series of moves for completion “by the end of 2016” as it made a single market in the sale of digital goods and services “a top priority” and launched an e-commerce antitrust competition inquiry. The commission said: “The aim is to
tear down regulatory walls and move from 28 national markets to a single one.” The move to a single digital market is
acknowledged in the new Package Travel Directive (PTD), which will shift the regulation of financial protection for holidays from the country of sale to the member state where a travel organiser is established. The council and parliament of Europe have agreed the final text of the directive and it should be published this week. The proposals will bring cross-border business opportunities but bring new entrants to the UK market and pose difficulties to regulators. Günther Oettinger, European commissioner for the digital economy, pledged the proposals would “balance the interests of consumers and industry”. EC president Jean-Claude Juncker said:
“I want to see every consumer getting the best deals and every business accessing the widest market, wherever they are in Europe.” EC plans include harmonising consumer
protection and contract rules across Europe and ending the online practice of ‘geo-blocking’ (see panel).
ANTITRUST: INQUIRY PROBES FIRMS’ ONLINE BARRIERS
An EC antitrust competition inquiry into the e-commerce sector is now under way, having been announced in March. The inquiry will focus on “barriers erected
by companies to cross-border online trade in goods and services where e-commerce is most widespread”. This seems likely
Jean-Claude Juncker
“I want every business to access the widest market”
The commission identified car rental companies as a target, noting that, at present, “car rental customers in one member state may end up paying more for an identical car rental in the same destination” as customers in another state. The EC pledged to reduce the VAT burden on businesses from different tax regimes. It noted that small businesses trading in another EU country faced VAT compliance costs of at least €5,000 a year. It is unclear how this might affect VAT
arrangements in the UK, where aspects of the Tour Operators’ Margin Scheme do not comply with current EU rules on VAT. The EC also promised to investigate online platforms and the transparency of search results and pricing.
to include travel. The EC identifies the barriers as including “contractual restrictions in distribution agreements” that prevent retailers selling goods or services to customers in other EU countries. The commission said it
would investigate “restrictive business practices and abuse of dominant market positions”. Competition commissioner
Margrethe Vestager said: “European
l Enforce consumer rules “more rapidly and consistently” across Europe.
l End ‘geo-blocking’ – “a discriminatory practice, when online sellers deny consumers access to a website based on their location or reroute them to a local store with different prices”. The EC says geo-blocking is “typical for the internet economy” and argues: “In the majority of cases, it is not justified.”
l Reduce the administrative burden of different VAT regimes across Europe.
l Examine the market role of online platforms (search engines, social media, app stores), including “non-transparency of search results and pricing policies, relationships between platforms and suppliers, and promotion of their own services to the disadvantage of competitors”.
l Reinforce trust and security in digital services “concerning the handling of personal data”. It notes 72% of EU internet users “worry they are asked for too much personal data”.
l Complete an anti-trust competition inquiry into the e-commerce sector.
Günther Oettinger
EC’S DIGITAL PLANS l Ease cross-border e-commerce and harmonise rules on consumer protection and contracts.
citizens face too many barriers to accessing goods and services online across borders. Some of these are put in place by companies themselves.
“My aim is to determine
how widespread these barriers are and what effects they have on competition and consumers. “We will not hesitate to take
enforcement action under EU antitrust rules.” 28 May 2015 —
travelweekly.co.uk • 69
“Citizens
face too many barriers to
accessing goods online across borders”
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72