Sporting goods industry officials have welcomed new plans by the European Commission to adopt a “Digital Single Market Strategy” for all the 28 member countries of the European Union by the end of 2016. The issue will be discussed at a board meeting on June 24 of the Fesi, the Federation of the European sporting goods industry, and at the June 25-26 meeting of the European Council.
The general plan is to abolish national regulatory walls on e-commerce, to create a level playing field for innovative digital networks in the EU, and to provide better access to digital goods and services for consumers and businesses. Jean-Claude Juncker, president of the Commission, said he wanted consumers to get “the best deals” and businesses to access the widest market.
Among the 16 planned initiatives on the table, the Commission wants to harmonize rules on contracts and consumer protection, while reducing the burden that businesses face from the different VAT regimes in the various countries. It wants to make the delivery of parcels more efficient and affordable, and put an end to unjustified geo-blocking.
To identify potential competition concerns in the e-commerce market, the Commission has launched an anti-trust investigation into the e-commerce sector of the EU. It will also carry out a comprehensive analysis of search engines, social media and other online platforms.
The Commission points out that only 15 percent of the customers in the EU shop from websites based in other EU countries, and that only 7 percent of the small and medium-sized enterprises sell across their national borders. According to the Commission, a fully functional digital single market would contribute €415 billion a year to the economy and create hundreds of thousands of new jobs.
Asked by us to comment, Asics Europe praised the Commission's plans, feeling that they represent a unique opportunity to correct and prevent diverging national interpretations of the EU Vertical Guidelines and other European legislation across the European Economic Area (EEA), which also includes Norway, Liechtenstein and Iceland. The company also expressed hope that the Commission's efforts will finally ensure a coherent application of European law by all national competition authorities, including the German Cartel Office (FCO).
Many sporting goods vendors have been waiting for a final verdict by the FCO on its anti-trust investigation into Asics' selective distribution system, feeling that it could set a precedent for their operations throughout Europe. Asics had introduced its distribution policy in 2011, stating that it was designed to ensure that consumers are offered the appropriate products, information and service through approved and official retailers, in order to make the best product choices to suit their individual needs.
The FCO voiced concerns about to certain parts of Asics' policies. Last January, Asics announced a significant update to its distribution policy, in line with the evolution of the offline and online retail landscape, with no restrictions on the products that should be sold through one channel or the other. The FCO decided against an initially planned market test of the new system.
Whatever Brussels decides in the end will also affect national distributors of sporting goods brands, many of which are suffering from the price promotions of aggressive e-tailers in other countries. It will also affect more traditional brick-and-mortar retailers that have been investing in quality services for their customers.
