EU adopts new rules for online sales
Companies gain more control over online distribution
The European Commission has adopted new competition rules on the distribution of goods and services via the internet. These will affect the sale of luxury and mass market products online.
The main principle behind the changes is that companies will be free to adopt the type of distribution they prefer provided their agreements "do not include restrictions on price fixing and that neither the producer or distributor has market share of over 30%".
The luxury product groups who have experienced problems with electronic commerce in recent years have had their right to choose who distributes their products – whether via traditional points of sale or online – confirmed by the Commission. Producers can choose their distributors on the basis of quality standards for the presentation of products. They can also decide to restrict distribution to those distributors who have one or several physical points of sale at their disposal so consumers can visit these points of sale to examine products, try them out or otherwise test them. This provision has been sharply criticised by the internet commercial operators against the background of the expansion of Internet commerce in recent years. Protests have been directed to the EU competition authorities by Amazon Europe, e-BayFrance and other operators.
The move has been welcomed by a number of national competition authorities who see the moves as of benefit to consumers.
Elisabeth Ponsolle des Portes, a member of the influential French Colbert economic committee, said that the Commission appeared to have decided on a balanced text responding to three concerns – the interest of consumers, the development of e-commerce for branded luxury items and the growth of jobs in the sector in Europe, currently at around 800,000.