On Wednesday 10 May, the European Commission published its final report on its sectoral investigation into e-commerce. The study in question looked at both consumer goods and digital content.
Consumer goods
On consumer goods, the Commission confirms that price transparency and competition from online prices have significantly changed companies’ strategies and the behaviour of customers. Most manufacturers have decided to sell their products directly to consumers, thereby entering into competition with distributors.
The institution also notes the increased use of selective distribution systems, whereby only vendors granted accreditation on the basis of certain criteria laid down by manufacturers may sell the goods in question. This allows producers to keep better tabs on their distribution networks. Lastly, the Commission notes an increase in the number of restrictions imposed by manufacturers on retailers. These may take the form of restrictions on tariffs, market places, cross-border sales or the use of price comparison systems.
Although some of these practices appear justified, others could constitute obstacles to competition.
Digital content
As regards digital content, the main issue is the availability of licences granted to distributors by copyright holders. The distribution of rights defines several indicators, such as the geographical, technological and temporal scope of the distribution of content.
It was on geographical scope that the Commission found the most problems. For instance, distributors are frequently required to distribute content only within a given territorial area, thereby limiting trade in the member states. Although the Commission finds that such a restriction may be justified in terms of public order or VAT, it can limit the consumer’s choices.
Lastly, market access can be made complicated due to the existence of exclusive rights agreements granted to a distributor for a certain period of time.
The Commission launched its sectoral investigation in May 2015 in the framework of its digital single market strategy and conclusions have previously been presented in the framework of a preliminary report published in September 2016 (see EUROPE 11625).
The report will allow the Commission to tackle emerging anti-competitive practices and to open further investigations. It is worth noting that in February of this year, the institution opened three separate investigations into tariff practices concerning holiday accommodation, the distribution of video games on PC and consumer electronic devices (see EUROPE 11717). (Original version in French by Lucas Tripoteau)