Online sales are not only attracting the attention of consumers and tech businesses, but also increased review by antitrust regulators. The European Commission yesterday published a detailed 290 page preliminary report on its e-commerce sector inquiry.
While commenting on the release of the report, EU Competition Commissioner Margrethe Vestager stated that the report should be “a trigger for companies to review their current distribution contracts and bring them in line with EU competition rules if they are not”. She states that the information from the sector inquiry will help the European Commission spot cases where there may be a competition law infringement, and, if necessary, take action in those cases. The European Commission is therefore preparing not only for new regulatory proposals, but for infringement actions against individual companies, in particular as regards geo-blocking. Geo-blocking refers to practices used by online sellers that result in the denial of access to websites based in other EU Member States.
Businesses should be aware that this is not only relevant for EU-based entities, but for all companies selling online or distributing content in the EU, including many US-based companies.