The inquiry into the retail sector is part of a broader strategy by the European Commission to overhaul the 28-nation blocs digital market, reuters reports. Commission data showed that even though one in two EU consumers shopped online last year, just 15% bought a product online in another EU country because of restrictions such as language, different laws and anti-competitive practices.
European Competition Commissioner Margrethe Vestager, who had announced her intention in March to open the inquiry, warned of further action. Vestager will present a preliminary report in mid-2016, with a final report due in the first quarter of 2017. Previous inquiries into the banking, pharmaceutical and energy industries resulted in antitrust cases against several companies.
In addition to electronics and digital content, the investigation will also look into clothing and shoe retailers. While US online retailers such as Amazon and e-Bay dominate the ecommerce industry, traditional companies are boosting their presence. The sector inquiry will target everyone in the ecommerce area and not just platforms like Amazon, booking.com and eBay, said Salome Cisnal De Ugarte, a partner at law firm Crowell & Moring.
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