E-commerce: European trade associations see distorted competition
European online retailers complain that EU regulations are not consistently applied to non-European companies.
(Image: E-Commerce Europe)
Trade associations from Germany and 15 other European countries see themselves disadvantaged compared to companies from non-European countries. Business practices of new market participants "raise many questions regarding compliance with EU legislation, particularly in the areas of consumer protection, product safety, counterfeiting, data protection, privacy, the environment and taxes", according to an open letter from the umbrella organization E-Commerce Europe (PDF). This could lead to unfair competition and dangerous products could enter the European market.
The communication does not specify which non-European companies the trade associations, such as the German E-Commerce Association (bevh), are referring to. Recently, the Chinese online marketplace Temu has caused a stir and attracted the attention of European consumer protection organizations. In February of this year, however, the German Retail Association (HDE) named Temu and its competitor Shein and demanded that rules and laws be enforced against them.
"Not on an equal footing"
Companies that are already based in the EU are subject to many regulations; the costs of complying with them are high as they are complex and often not fully harmonized at EU level, the European retail companies now write in their letter. As a result, companies based in the EU cannot compete on an equal footing with the new players from outside the EU.
"The problem lies in the inadequate enforcement of these EU rules against players based outside the EU," explains Rainer Will from the Austrian Retail Association. The national authorities are often underfunded, understaffed and uncoordinated. As a result, players based outside the EU who do not adhere to the rules have a competitive advantage.
As the new players from outside the EU are growing rapidly, action must be taken quickly. Decision-makers in the EU should provide all the necessary means to scrutinize the activities of players based outside the EU just as thoroughly as those of companies already based in the EU. Such actors should be sanctioned for violations in the same way as intra-European actors. In addition, those responsible in the EU member states should work more closely together, the online retailers demand.
(anw)
