The European Commission may open antitrust investigations into price restrictions and online sales bans in the e-commerce industry, it warned Thursday.
It is concerned that consumers across the European Union may be paying more than they should for a range of physical and digital goods sold online because of restrictive practices by manufacturers and distributors.
The European Union’s goal of creating a single market for goods and services has historically been hampered by the geographical and linguistic barriers to selling across the 28-country bloc — but e-commerce can help businesses break down both of these.
However, the online market is creating barriers of its own to competition, the Commission found, potentially threatening its latest initiative, the Digital Single Market, a way of removing national barriers to online sales.
In a year-long study, it found evidence that one in five retailers is prevented by suppliers from selling goods online, while two in five face some form of price recommendation or restriction from manufacturers. One retailer in 10 was contractually restricted by its suppliers from submitting information to price comparators, used by many consumers to find the best deal.
Industry lobby group CCIA echoed the Commission’s warning. “Restrictions preventing sellers from using marketplaces as a sales channel harms competition, consumer choice and European small and mid-sized businesses,” European director Jakob Kucharczyk said via email. “The Digital Single Market is bound to remain theory if it cannot become a reality for millions of European businesses because of unjustified online sales restrictions.”
Full Content: PC World
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Major App Developers Shun Apple’s New Payment Options, Citing Unfavorable Fees
May 12, 2024 by
CPI
Ex-Contractor Pleads Guilty to Rigging Bids in Wildfire Fuel Services for US Forest Service
May 12, 2024 by
CPI
UK Newspapers Warn Apple Against “Web Eraser” Feature’s Threat to Journalism
May 12, 2024 by
CPI
Microsoft Ordered to Pay $242 Million in Patent Infringement Case
May 12, 2024 by
CPI
UK Antitrust Authority Launches Formal Probe into Olink’s Sale to Thermo Fisher
May 12, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI