Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC to investigate cross-border online trading in EU, (May 6, 2015)

By Greg Hammond, J.D.

The European Commission has launched an antitrust inquiry into the European Union e-commerce sector. The inquiry will focus on barriers implemented by companies to cross-border online trade in goods and services, including the clothing and shoes, digital content, and electronics industries.

In particular, the EC is interested in looking into private and contractual barriers that could restrict cross-border online trade within the EU. Thirty-two percent of retailers surveyed have cited contractual restrictions in distribution agreements as the reason for refusing to supply services cross-border, the EC noted. In addition, a significant number of companies that are already active in cross-border e-commerce or that are not yet active have reported that supplier restrictions affecting sales on online platforms either constituted or would constitute a problem for their business when selling online.

“European citizens face too many barriers to accessing goods and services online across borders,” stated Margrethe Vestager, Commissioner in charge of competition policy. “Some of these barriers are put in place by companies themselves. With this sector inquiry my aim is to determine how widespread these barriers are and what effects they have on competition and consumers. If they are anti-competitive we will not hesitate to take enforcement action under EU antitrust rules.”

Within the next few weeks, the EC will send requests for information from a large number of firms in all EU member states, including broadcasters, holders of content rights, manufacturers, merchants of goods sold online, and companies that run online platforms such as price-comparison and marketplace websites. The EC intends to release a preliminary report for consultation in mid-2016 and a final report in the first quarter of 2017.

Vestager announced the proposed competition inquiry into the e-commerce sector in March 2015, noting that, “It is high time to remove remaining barriers to e-commerce, which is a vital part of a true Digital Single market in Europe. The envisaged sector inquiry will help the Commission to understand and tackle barriers to e-commerce to the benefit of European citizens and business.”

News: Antitrust