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The e-commerce Sector Inquiry Key Findings of the Preliminary Report

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Page 1: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

The e-commerce Sector Inquiry

Key Findings of the Preliminary Report

Page 2: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Total and Online Sales

2 A. 2: Estimated evolution of the total and online retail sales in goods, 2000-2014 (in billion EUR, from Duch-Brown and Martens, JRC, 2015)

Page 3: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Context: Digital Single Market Strategy

● Political priority of the Commission, adopted on 6 May 2015

● Aim: Better access for consumers and businesses to online goods and services across Europe - Remove unjustified barriers

● Actions:

● Legislative actions regulatory barriers

● Complemented by Sector Inquiry company erected barriers

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Page 4: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Timeline

● Launched May 2015

● Questionnaires sent until Q2 2016

● About 1 800 respondents

● More than 8 000 distribution agreements

● SWD on geo-blocking published March 2016

● Preliminary Report published September 2016

● Final Report due Q1 2017

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Page 5: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Respondents-Consumer Goods

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Respondents

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Belgium 13 Lithuania 2Bulgaria 5 Luxembourg 1Czech Republic 8 Hungary 4Denmark 7 Malta 1Germany 35 Netherlands 9Estonia 3 Austria 20Ireland 2 Poland 9Greece 5 Portugal 7Spain 17 Romania 6France 27 Slovenia 2Croatia 2 Slovakia 5Italy 12 Finland 5Cyprus 1 Sweden 14Latvia 2 United Kingdom 24

Content Providers - Total 248

Right Holders - Total 53

VPN and IP Routing 9

Large Groups and Hosting Operators 30

Total 340

Content Providers Content Providers

Page 7: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Consumer Goods

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Page 8: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Price Transparency

8 B. 19: Frequency of modifying online prices based on the responses of retailers

Page 9: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Price Monitoring

9 B. 76: Most commonly reported methods of monitoring retail prices by manufacturers

67%

38%

31%

12%9%

0%

10%

20%

30%

40%

50%

60%

70%

Manual tracking Software whichtracks prices

Purchase pricinginformation from

a third party

Requestinformation from

retailers

Another method

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Manufacturers – Drivers

10 B. 13: Rating the parameters of competition by manufacturers

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Pure Online Players – Drivers

11 B. 15: Rating the parameters of competition by pure online players

Page 12: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Manufacturers' Strategies

12 B. 20: Measures taken by manufacturers in the last 10 years to react to the growth of e-commerce

Page 13: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Selective Distribution

13 B. 32: Number of respondent manufacturers that sell via selective distribution and introduced new selection criteria in the last 10 years

0 10 20 30

Toys and childcare

Sports and Outdoor

Household appliances

House and garden

Consumer electronics

Cosmetic and Healthcare

Other

Clothing and shoes

New criteria No new criteria

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Contractual Restrictions

14 B. 36: Proportion of retailers having contractual restrictions, per type of restriction

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Price Recommendations

15 B. 75: Proportion of retailers that reported pricing recommendations per product category

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Cross-Border Sales Restrictions

16 B. 53: Retailers that have contractual restrictions to sell cross-border in at least one product category, by Member State

Page 17: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Marketplace Sales Restrictions

17 B. 65: Proportion of retailers that have agreements containing different types of marketplace restrictions

Page 18: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Marketplace Sales Restrictions

18 B. 64: Proportion of retailers in each Member State that have agreements containing marketplace restrictions

Page 19: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Relevance of Marketplaces

19 B. 55: Proportion of retailers using different sales channels for selling online

Page 20: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Relevance of Marketplaces

20 B. 59: Proportion of retailers in each turnover category that sell on marketplaces

Page 21: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Digital Content

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Page 22: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Exclusive Transmission Rights

22 C. 24: Proportion of agreements including exclusive transmission technology rights – All agreements submitted by right holders

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other

Online

Mobile

Cable

Satellite

Digital Terrestrial

Analogue Terrestrial

Exclusive Non-exclusive Mixed

Page 23: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Bundling Online Rights

23 C. 27: Proportion of agreements that contain online rights together with other technologies – All agreements submitted by content providers

21%

79%

Online Only Online + other

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Territorial Scope

24 C. 29: Proportion of agreements including rights licensed for a certain territorial scope – All agreements submitted by content providers

57%

25%

3%

15%

0%

10%

20%

30%

40%

50%

60%

1 MS 2-4 MS 5-27 MS 28 MS

Page 25: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Exclusive Territorial Rights

25 C. 35: Proportion of agreements including exclusive rights licensed for a certain territorial scope – All agreements submitted by right holders

0% 20% 40% 60% 80% 100%

28 MS

5-27 MS

2-4 MS

1 MS

Exclusive Non-Exclusive Mixed

Page 26: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Reasons for Content Unavailability

26 C. 37: Reasons provided by digital content providers for catalogue differences between Member States - EU 28

63%

48%43%

37%

22% 20%

0%

10%

20%

30%

40%

50%

60%

70%

Content is not available to purchase in certain territories

Cost of purchasing content for certain territories

Other

Insufficient consumer demand in certain territories

Appropriate language versions are not available for certain territories

Cost of preparing appropriate language versions for certain territories

Page 27: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Contractual Geo-Blocking

27 C. 42: Proportion of agreements requiring providers to geo-block by category – Average for all respondents – EU 28

74%

66%

63%

57%

55%

51%

24%

0% 20% 40% 60% 80%

Fiction TV

Films

Sports

Music

Children TV

Non-Fiction TV

News

Page 28: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Duration of Contractual Relationships

28 C. 65: Average length of the contractual relationship - All agreements submitted by right holders - Per genre

8 years

17 years

12 years

Music Sports Fiction and Children TV

Page 29: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Payments

29 C. 72: Proportion of agreements including each specific payment mechanism – All agreements submitted by right holders

72%

24%

17%

16%

12%

11%

6%

0% 20% 40% 60% 80%

Fixed price component

Revenue sharing agreement

Variable price component

Minimum guarantee

Advance payment

Other

Performance-based remunerationmechanism

Page 30: The e-commerce Sector Inquiry - European Commissionec.europa.eu/competition/antitrust/summary_presentation... · 2019-08-13 · The e-commerce Sector Inquiry Key Findings of the Preliminary

Key Findings – Consumer Goods

● More price transparency and price competition

● More selective distribution and vertical integration of manufacturers

● Vertical Restraints

● Pricing restrictions

● Territorial restrictions

● Online sales restrictions

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Key Findings – Digital Content

● Availability of licences for online distribution is key for competition

● Impact of current licensing practices on competition ?

● Potential issues to be assessed case by case

● Scope of agreements (Bundling)

● Duration of agreements

● Geo-blocking

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Public Consultation

Comments by 18 November 2016

All comments should be sent to the following e-mail address:

[email protected]

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