EU Issues E-Commerce Action Plan

by Ulrika Lomas, LawAndTax-News.com, Brussels

18 January 2012

As part of the European Union’s Digital Agenda and the Single Market Act, and in response to the request from the European Council to submit a roadmap for the completion of the Digital Single Market, the European Commission (EC) has adopted a Communication presenting targeted initiatives aimed at doubling the share of e-commerce in retail sales by 2015.

The EC has found that the EU Single Market for e-commerce is still not functioning as it should as there are significant differences in the rules, standards and practices applied to e-commerce within individual member states. As a result, companies find it difficult to provide online services or to sell goods across EU borders, and citizens miss out on the opportunity to purchase goods and services from websites based in other EU countries.

Consumers often lack confidence in online trade or services and are concerned about whether their rights will be respected, especially when a problem arises. They are also often frustrated that certain services are not offered in their country or that they cannot buy in other member states because, for instance, there are no deliveries to their country or foreign payment cards are not accepted.

The Communication therefore includes sixteen targeted initiatives aimed at doubling the share of e-commerce in retail sales (currently 3.4%) and that of the internet sector in European gross domestic product (currently less than 3%) by 2015. By that year, online trade and services could account for more than 20% of growth and net job creation in some EU member states.

Michel Barnier, Commissioner for the Internal Market, Neelie Kroes, EC Vice-President responsible for the Digital Agenda, and John Dalli, Commissioner for Consumer Policy, have expressed their objective in these terms: “In the difficult circumstances facing Europe we must seize every source of activity and new jobs as a matter of urgency. The action plan we are presenting today will create new opportunities for citizens and businesses and will bring Europe much-needed growth and employment. It aims to remove the obstacles which until now have frustrated the development of Europe's internet economy."

Under the Single Market Act and the Digital Agenda, the Communication puts forward an action plan “which will facilitate cross-border access to online products and content; ultimately solve the problems of payment, delivery and consumer protection and information; and assist dispute resolution and the removal of illegal content, thus helping to develop an internet that is more secure and more respectful of fundamental rights and freedoms”.

The aim is to create an environment more likely to foster a dynamic Digital Single Market by tackling the problems in its path, while promoting investment in wireless connectivity and new-generation fixed infrastructure and supporting the development of cloud computing.

In order to achieve its objectives, the EC proposes actions which will lead to substantial and measureable improvements in a number of areas, including a better access to different kinds of online services for consumers across the EU by extending the Internal Market Information System and the Consumer Protection Cooperation network (CPC), in order to ensure the correct application of the existing Electronic Commerce Directive and of the Directives protecting consumers online; and by quickly implementing the European strategy for intellectual property rights.

In particular, the EC will present a legislative initiative on private copying in 2013 and a review of the Directive on copyright in the information society this year; report on the outcome of the consultation on the online distribution of audiovisual works in mid-2012; and ensure that the new rules on selective distribution are rigorously applied.

The EC will also take a number of initiatives to further develop the market for payments by card, internet or mobile phones, by mid-2012, and will try to identify possible solutions to delivery problems encountered by businesses and consumers. The Commission will present the conclusions of that exercise and the next steps by the end of 2012.

In addition, the Communication looks at more transparency on companies and prices on the internet and better consumer protection; better protection against abuses on the internet, especially by way of an overall strategy for internet security in Europe in 2012 that will increase protection against cyber attacks; and a better offer of high-speed internet and better communication infrastructure for more citizens.

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