European Commission to Launch a Market Sector Inquiry Into E-Commerce

The European Commissioner, Margrethe Vestager, has announced that it intends to launch a sector inquiry on e-commerce in May this year. The "Digital Single Market" is one of the top priorities of the Juncker's Commission and, hence, competition enforcement in the Single Digital Market is also a priority for Commissioner Vestager. As previously done for the energy, food and pharmaceutical sectors, a market inquiry is a fact-finding exercise to help the Commission identify potential areas of concern in terms of competition law enforcement. In this case, the European Commission intends to focus on potential restrictions or distortions in online commerce.

We understand that the market inquiry will focus on distribution agreements, with particular regard to pricing, but geo-blocking and any other clauses restricting online cross-border trade of consumer products will also be targeted. Any company operating in the online sphere, in any sector whatsoever, is likely to receive a questionnaire from the Commission. This includes manufacturers, merchants of goods sold on line, companies that run online platforms, as well as holders of content rights and broadcasters. Based on the results of the inquiry, the Commission will determine whether further action is required and if so, which measures to take. Therefore, we recommend that companies respond to the Commission's questionnaire within the given timeframe.

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Other Articles in this Month's Edition:

• Bipartisan Bill Would Expand FDA's Reach Over "Personal Care Products" and Cosmetics
• CPSC Seeks Civil Penalties Against National Retail Chain
• EU Companies Beware! Communicating Erroneous Information Must Now Be Classified as 'Misleading Commercial Practice'
• EU Publishes 2014 RAPEX Report
• Risk Management: Thoughts on the NY AG's Investigation of Herbal Supplements
• Advertisers in the Ring – A Roundup of This Month's Competitor Advertising Challenges: Clearly Identify the Basis of Claims and Comparisons
• California Business Won't Accept Prop 65 Reforms Without a Fight

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