e-commerce and the digital sector

Sector Inquiry

The European Commission’s Digital Single Market Strategy, comprising 16 separate initiatives, is scheduled largely to complete within 2016. Key among these is DG Competition’s sector inquiry into e-commerce launched on 06 May 2015. The European Commission has issued information requests to some 2000 businesses of all sizes across EU Member States, seeking information on private (in particular contractual) barriers to trade across national borders put in place by companies supplying goods and services online. It is focusing on goods and services where e-commerce is most widely used, such as electronics, clothing and shoes, as well as digital content. The resulting data is being assessed in the light of EU competition rules, with a preliminary report due to be published for consultation in May 2016. The final report is not due until early 2017, but is expected to provide specific guidance to online businesses across Europe on what can and cannot be done from an EU competition law perspective. Most sector inquiries have also generated specific enforcement action where the European Commission has identified illegal practices.

Enforcement

The ongoing probe into Google’s Android mobile operating system, a legacy from the previous Commission, is regarded as a high priority by Margrethe Vestager, Commissioner for Competition, but she will not be drawn on when that investigation might be concluded. The European Commission’s investigation into Google’s comparison shopping service is further down the line. The European Commission is currently assessing Google’s response to its statement of objections and has invited responses from third parties, all of which will take time to consider. Further investigations could also be on the cards in 2016, into Google Maps and Google Travel, for instance, and the European Commission is looking carefully at the “advertising universe” of Google to see if practices there are hindering market entry.

The UK also continues its strong focus on the digital sector in general and on 30 November 2015 the CMA announced its intention to undertake an analysis of price comparison websites during 2016.