EUU, Alm.del - 2017-18 - Bilag 30: Notat om dansk høringssvar vedr. Kommissions høring om regler for detailhandel i et miljø med flere salgskanaler

Europaudvalget 2017-18
EUU Alm.del Bilag 30
Offentligt

8. October 2017

Danish response to the public consultation on retail regulations in a

multi-channel environment

The development of new technologies has increased the possibilities for

consumers of comparing prices and shopping cross-border whenever con-

venient. To be competitive, retailers need to be present on the internet and

to be agile in terms of opening hours, customised services and use of so-

cial media.

Furthermore, due to the increasing e-commerce and sensors used in con-

sumer products businesses gather a great amount of customer data. Such

data enhance knowledge of consumption patterns and future demand

which in turn may improve the decision-making and competitiveness of

businesses.

The Danish

government welcomes the Commission’s approach of setting

out best practices on retail regulation. Thus, we believe that rather than

proposing new EU legislation that might lead to unnecessary burdens for

businesses, existing regulation should be enforced to a greater extent.

Furthermore, we support that the Commission has launched a public hear-

ing to get a better understanding of the actual challenges that our retailers

face.

However, the Danish government wishes to draw the Commission’s at-

tention to a number of aspects that should be taken into account when

addressing developments in the retail sector at a European level.

The Danish government agrees with the Commission that we need to en-

sure future-proof framework conditions for our retailers across Europe in

order to maintain a competitive European retail sector in a global econo-

my. It is also important to ensure that societies, consumers and traditional

businesses make use of new digital technologies and services. In this

sense, online retailers should be able to benefit from the potential of data-

driven business models and access to customers through online platforms.

We should also ensure that the fundamental principles of the single mar-

ket are enforced to a greater extent and that retailers compete on a level

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playing field through modernising the VAT system for cross-border e-

commerce. Finally, the European framework for Market Surveillance

should reflect the fact that retailers take part in new and complex supply

chains due to increasing import of goods from third countries.

Reducing barriers for retail businesses in a multi-channel environment

Retail is an important sector not only due to the revenue it produces but

also the number of enterprises and persons employed in the sector. Cur-

rently, the sector is undergoing fundamental changes with the rapid de-

velopment of e-commerce. The bulk of the cross border online sale is

business to business (B2B) transactions, while less than 20 pct. is cross

border sale to foreign consumers. This suggests that selling online cross

border to foreign private consumers often requires more than a web shop.

In order to succeed across borders, businesses often need to establish a

physical presence, the necessary delivery logistics as well as marketing

activities. Furthermore, businesses need to comply with e.g. consumer

regulation and VAT requirements in other Member States as well as to

adapt to other payment methods.

In light of retailers’ compliance burden, more attention should be devoted

to reducing barriers and facilitating better conditions for retailers that try

to reach out to consumers in other Member States. As non-harmonised

consumer rights in the EU continues to be a barrier for businesses that try

to expand across border, retailers should have easy access to information

and counselling of applicable rules concerning not only VAT rules and

product safety-regulation, but also consumer rights in different Member

States. Better access to information and counselling in these areas is in

particular important for SMEs whose compliance burden is even heavier,

as they do not have the same capital, resources and strength as large-scale

companies to cope with the compliance burden. Furthermore, to get a

complete picture of retailers’ compliance burden, the

Danish government

suggests that the Commission conducts a study dedicated to the compli-

ance burden for the retail sector.

Legal clarity is important for businesses and consumers, and legal clarity

has been a recurrent concern in the discussions on the proposed geo-

blocking regulation. Therefore, we would like to ask the Commission to

reconsider issuing guidance on the geo-blocking regulation for business-

es, if the regulation is adopted. For example,

on the term ‘shop like a lo-

cal’ and how businesses

can avoid being subject to different national re-

quirements in markets they are not targeting their activities to, when fol-

lowing the new regulation. Both businesses and consumers need to know

their obligations and rights in these specific situations.

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Benefits of data and access to a platform economy

Data is the fuel of the future digital economy and is vital for innovation

and competitiveness also in the retail sector. The Danish government

places great emphasis on the need to ensure a future-proof regulation of

the data economy, which support digitisation and does not hinder the use

of new, innovative data driven business models. Free flows of data will

support cross border trade not just within the EU, but also in trade agree-

ments. It is important to explore further questions related to access to da-

ta, liability of data and portability of data. This will benefit our retailers

when doing business in Denmark as well as abroad. It is in this respect

essential that any new legislation is based on a thorough analysis in order

to avoid that legislation leads to unintended consequences for innovation,

investment and competition.

Online platforms bring a wide range of benefits to the digital economy.

They make the internet effective and relevant for individual users and

companies dependent on the type of platform.

The Danish government is aware of the current work to examine unfair

contractual clauses and trading practices in platform-to-business relation-

ships. The presentation of the Commission’s analysis is indeed

welcome

and can hopefully provide more evidence and better data about the issue

in order for relevant authorities to address it effectively and in a way that

does not impose unnecessary burdens on businesses. The Danish govern-

ment remains convinced of the need of an informed decision making pro-

cess and a timely assessment of whether existing regulation is sufficiently

able to address any potential issues related to online platforms. It will also

be relevant to examine how secondary platform services that make it pos-

sible to compare products across the market and assess businesses, affect

consumer behaviour. It is important to ensure that these service platforms

operate on a transparent basis and do not mislead consumers and sound

evidence is needed to assess whether existing regulation is sufficient to

tackle any identified challenges.

Better enforcement of the fundamental principles of the single market

The Danish government supports a better enforcement of the fundamental

principles of EU-law as provided in the Treaties i.e. that national regula-

tion has to be justified, non-discriminatory and proportionate. However,

these principles do not curtail the sovereign rights of Member States to

regulate activities in line with EU law for overriding reasons of public

interest such as environmental protection, town and country planning or

the protection of public health.

While national laws, including regulation on opening hours, sale of alco-

hol and tobacco and town and country planning, are often justified by

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legitimate reasons, businesses are still met with actual unjustified discrim-

inatory practices across the EU. The Danish government is aware of dis-

criminatory practices that restrict market access to products lawfully mar-

keted in another Member State, for example by requiring businesses to

sell a certain percentage of certain products via the ‘short supply chain’ as

well as using a national pre-notification procedure for foreign products.

In order to create a well-functioning single market, it is important to

strengthen the compliance and enforcement of the fundamental principles

of the single market for goods, including the principle of mutual recogni-

tion (Regulation 764/2008) and the use of the notification procedure es-

tablished by Directive (EU) 2015/1535.

To this end, the Danish Government believes that reinforcing and clarify-

ing the conditions under which it is possible to restrict or deny market

access as well as increasing the transparency of Member States’ technical

regulations, is of great importance.

Furthermore, the Danish Government believes a better application of the

Internal Market Problem Solving Network (SOLVIT) and the ‘fast track’

appeal mechanism, where one of the parties involved in SOLVIT can file

a complaint in business cases concerning mutual recognition of goods that

are not resolved by SOLVIT, are important elements to ensure a well-

functioning single market, including in the retail sector.

Modernising the VAT system for cross border e-commerce

A prerequisite for well-functioning markets is that businesses operate on

fair and equal terms. The ongoing work on ensuring a more sound VAT

system in the EU is an important step in obtaining this. In relation to this

matter, the Danish government is positive towards the proposal from the

Commission to modernise the VAT system for cross-border B2C e-

commerce.

Modernising the VAT rules will benefit retailers as it will be easier to

reach consumers in other Member States, especially for small businesses.

The overall purpose of the Commission's proposal is to minimise burdens

attached to cross-border e-commerce arising from different VAT regimes,

provide a level playing field for businesses across the EU, and to ensure

that the VAT revenues accrue to the member state of the consumer.

Future-proof framework for retailers in a global economy

It is important that the Regulation on Market Surveillance is up to date

and reflects the reality of a market that changes rapidly. We believe that

the growing importance of the internet, e-commerce and increasing im-

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port of goods from third countries are key challenges that call for new

measures.

European retailers take part in new and complex supply chains from man-

ufacturers to end users that must be taken into account. Enforcement initi-

atives targeting third country businesses should be given high priority.

In addition, focus needs to be put on strengthened cooperation with third

country authorities. At EU level, there are already a number of well-

functioning practices, coordination fora and systems. However, the use of

existing systems and the exchange of data should be optimised and the

commitment and obligations of Member States should be clearer. Lack of

knowledge is one of the core causes of non-compliance with the rules.

Strong priority should, therefore, also be given to providing more user-

friendly guidance and application oriented information to all businesses

including retailers.