Last month the EU Commission published its final report in the e-commerce sector inquiry launched in May 2015 as part of a wider Digital Market Strategy which aims to achieve better access for consumers and businesses to online goods and services across the EU. The aim of the sector inquiry was to examine prevailing market trends in the e-commerce sector and identify potential barriers to competition in e-commerce markets.In relation to consumer goods, the report identifies a number of trends in retail business practices as a result of rapid growth in online sales (increased use of selective distribution and of contractual restrictions in order to increase control over product distribution) which raise potential competition concerns.
In relation to digital content (audio-visual and music products), certain licensing practices may make it more difficult for new online business models and services to emerge, but the Commission accepts that any assessment of these practices under the competition rules needs to take into account the characteristics of the content industry.
As a result of some of the findings from the inquiry, the Commission opened three investigations earlier this year into areas such as: (i) the online sale of consumer electronics; and (ii) video games.
Businesses should carefully consider the report's findings in order to ensure their online retail practices do not give cause for concern.
Click here to read the firm's full article on the EU Commission's final report.
Click here to read the final report.
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