commercial restrictions in ecommerce oliver prothmann chairman ´choice in ecommerce´ president of...

Commercial Restrictions in eCommerce

Oliver ProthmannChairman ´Choice in

eCommerce´

President of BVOH (German

Federal Association Online-

Trade)

ECOMMERCE LIKE WE KNOW IT IS UNDER ATTACK

A growing number of brand owners and manufacturers are restricting Internet trade, for example using contract terms to stop sellers from selling goods on online marketplaces.

Manufactures and brands act

against SMEs

against online trade

against cross-border

trade

against consumers

How do platform bans impact consumers?

“From the consumer’s perspective,

the distorted access to goods or services

means discrimination within the internal market.”

European Parliament Study „Discrimination of Consumers in the Digital Single Market“,

DG Internal Policies, November 2013, p. 62.

HOW DOES IT WORK?

• Less Intrabrand and

Interbrand

Competition

• Less Selection

• Less Convenience

• Less Channels

• Less Availability

• Less Information

• Higher Prices

Petitionfor Choice and Innovation

in Online-Trade

14.341 signed- SMEs- Cross Europe- Cross Verticals

57,6 % are affected (highest increase in 2013)

77,1% don´t understand justification of brands

23,5% lose more than a quarter of revenue

6,2% had fired staff

5,4% fear insolvency

STATUS QUObased on Survey by Choice in

eCommerce(n: 2.116; Nov 2013)

LIST OF MOST CALLED BRANDS

based on Survey by Choice in eCommerce (n: 2.116; Nov 2013)

Amount of Online-Sellers will decline (66,1%)

Manufacturers will obtain monopoly (62,1%)

Diversity of supply will decrease (60,9%)

Prices for consumer will increase (60,2%)

Innovation in Online-Trade will be reduced (52,5%)

IMPACTbased on Survey by Choice in eCommerce

(n: 2.116; Nov 2013)

• Brands to collaborate with

all stakeholders, especially

sellers and marketplace

providers

• National and European

policy-makers and

authorities to deal with

unnecessary restrictions

• Clearance about legal rules

and Guidelines how to

understand it

CLAIMbased on Petition by Choice in

eCommerce(n: 14.341; Nov 2013)