Marketplace Liability In Egypt: Evolving Roles In The Digital Economy

The rise of e-commerce in Egypt, especially since COVID-19, has transformed the traditional concept of a marketplace into digital platforms. Digital platforms now play a central role in connecting suppliers and consumers, yet their legal characterisation remains a grey area in Egypt. This raises fundamental questions about whether online marketplaces should be treated as sellers, intermediaries, or mere advertising venues, and what degree of liability they bear under Egyptian law..

Egyptian law does not explicitly define an online marketplace in the e-commerce context. Neither the Consumer Protection Law No. 181 of 2018 (the "CPL") nor its Executive Regulation No. 822 of 2019 recognises the concept of an intermediary in e-commerce transactions.
Instead, the CPL relies on two broad categories:

• The supplier, defined as any person engaged in commercial or professional activity who provides a service or product to a consumer, including through electronic or technological means.
• The advertiser, defined as any person who promotes a product or service through any medium, including digital media.

Although both terms in the CPL are broad enough to encompass the intermediary scope of online platforms, they do not clarify whether such platforms bear the same responsibilities as suppliers or simply act as facilitators.

Product Liability and the Marketplace's Legal Position

Under the Commercial Code no. 17 of 1999, both producers and distributors may be held liable for harm caused by defective products if the claimant proves that the harm resulted from a defect. A product is deemed defective if adequate precautions were not taken in its design, manufacture, packaging, or labeling to prevent or warn against potential harm.

Liability under both the CPL and the Commercial Code primarily attaches to suppliers, manufacturers, and distributors; those directly involved in the transaction chain. Online marketplaces, by contrast, are typically viewed as service providers facilitating transactions rather than as parties to the sale itself. As a result, they are-theoritically- not expressly subject to the same liability provisions.

However, CPL may, in practice, extend liability to the online marketplace. This may arise if a platform fails to provide sufficient information related to sellers that are in breach of the law, or does not adequately verify the legitimacy of vendors operating through its site. . Such exposure would be based on online marketplace's fault in verifying the identity of sellers on the marketplace and the identity and characteristics of the product, or for failing to act with reasonable care—particularly if it ignores evident violations, misleading advertising, or consumer complaints.

Egypt's existing laws provide a general framework for consumer protection, they were developed primarily for traditional commercial settings. The emergence of digital platforms has introduced new operational models that do not always fit neatly within existing definitions of suppliers, advertisers, or distributors.

Regulatory authorities such as the CPA, the Competition Authority, and the National Telecommunications Regulatory Authority (NTRA) may increasingly interpret their mandates in ways that encompass online activities. The direction such interpretations will take, and whether they will ultimately lead to specific e-commerce regulation, remains to be seen.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.