As announced in March 2015, the European Commission has launched
an inquiry to identify potential non-compliant conduct carried out
by companies in the e-commerce sector under European Antitrust Law.
The Commission will issue a report summarizing its preliminary
findings in mid-2016, and the final report is due in the course of
2017.
Within the framework of the digital single market, the Commission
has identified certain regulatory pitfalls, which are considerably
slowing down the volume of cross-border e-commerce transactions
within the European Union. Despite an increase in the number of
e-commerce transactions in 2014, only 15% have involved
cross-border circulation of goods amongst the European Union Member
States. The Commission considers such an amount to be too low for
an integrated single market.
Reasons for this have been identified in language gaps,
consumers' habits and differences in regulations, but also in
barriers erected by manufacturing companies vis-à-vis
distributors through contractual provisions aimed at limiting the
free circulation of goods within the European Union.
During the next few months, manufacturers, distributors and
retailers may receive requests for information, documents and
declarations on their commercial relationships within the
distribution channel. The inquiry will focus on footwear, clothing,
accessories and digital content. The Commission may issue monetary
fines if companies do not reply to the inquiry.
In instances where the Commission identifies competition concerns,
it can issue further fines to the companies, calculated on the
basis of their revenues. To limit risks, a thorough revision of
your current agreements is advisable.
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.
