Geo-blocking, selective distribution and other issues related to e-commerce have already been tackled by organizations like the German Cartel Office and the European Federation of the Sporting Goods Industry (Fesi), which has a working group together with the World Federation of the Sporting Goods Industry (WFSGI) on such topics.
These issues have acquired a broader international dimension, in line with the expansion of companies like Amazon and Alibaba, through an initiative taken at the World Economic Forum in Davos last Friday. The European Union, which represents 28 countries, was joined by 47 other members of the World Trade Organization (WTO) in taking the momentous decision to start negotiations to put in place global rules on electronic commerce. The negotiations are planned to start in March and are open to other WTO members.
In an immediate reaction to the initiative, Fesi said that it will closely monitor developments at the WTO level to ensure that the benefits that it has already gained for the industry at the European level to make the most of digital opportunities are reflected internationally, in order to provide a better legal framework for companies operating online.
Cecilia Malmström, European Commissioner for Trade, said that “we owe it to our citizens and companies to provide a predictable, effective and safe online environment for trade.” She said she was looking forward to working with all interested WTO members “flexibly and pragmatically, to create a truly comprehensive and ambitious set of rules.”
As the Commission noted in a press release, in the absence of multi-lateral regulations, businesses and consumers are currently forced to rely on “a patchwork of rules agreed by some countries in their bilateral or regional trade agreements.”
The desired multilateral legal framework endorsed by the WTO would be particularly useful for smaller companies. For example, the new rules would:
- improve consumers’ trust in the online environment and combat spams
- tackle barriers that prevent cross-border sales
- guarantee the validity of e-contracts and e-signatures
- permanently ban customs duties on electronic transmissions
- address forced data localization requirements and forced disclosure of source codes
