On May 6, 2015, the European Commission launched a competition inquiry into the e-commerce sector. This inquiry is one of 16 initiatives that the Commission announced for the creation of a Digital Single Market for Europe. As the Internet is largely dominated by non-EU companies, we expect the inquiry to mainly focus on U.S. companies, which could lead to further friction between the U.S. and the EU.

WHY HAS THE COMMISSION LAUNCHED A SECTOR INQUIRY? -

The Commission believes that companies have created artificial barriers to trade that impede the development of a vibrant e-commerce industry in Europe. As a result, customers in certain EU Member States often pay more than customers in neighboring EU countries for identical products. The Commission believes that online shopping should enable customers to benefit from lower prices offered across Europe. However, in practice, this has not happened yet. The vast majority of online transactions in the EU are still made within one and the same EU Member State, and customers are reluctant to shop online across country borders.