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Online platforms: Commission sets new standards on transparency and fairness

26.04.2018
Teaser

EU News 86/2018

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Today, the European Commission is proposing new rules for the online platforms providing small businesses with a safety net in the digital economy.

The new rules will improve the functioning of the Digital Single Market and follow President Juncker's State of the Union announcements of 13 September 2017 to "safeguard a fair, predictable, sustainable and trusted business environment in the online economy". The aim of the new rules is to create a fair, transparent and predictable business environment for smaller businesses and traders when using online platforms. Businesses such as hotels, traders selling online, app developers, and other similar companies that rely on search engines for attracting internet traffic to their websites are amongst those who will benefit from the new rules.

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Almost half (42%) of the small and medium companies who responded to a recent Eurobarometer survey said they use online marketplaces to sell their products and services. According to another study, nearly 50% of European businesses operating on platforms experience problems. The study also shows that 38% of problems regarding contractual relations remain unsolved, and 26% are solved but with difficulties. It is estimated that €1.27-2.35 billion is lost directly in sales as a result.

Legislative steps to ensure transparency and fairness when dealing with platforms

The new rules will tackle these concerns by:

  • Increasing transparency
  • Resolving disputes more effectively
  • Setting up an EU Observatory to monitor the impact of the new rules
Category
Press releases
Location

Brussels

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