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Internal Market, Industry, Entrepreneurship and SMEs
Press release26 April 2018Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs2 min read

Online platforms: Commission sets new standards on transparency and fairness

The new rules will improve the functioning of the Digital Single Market and follow President Juncker's State of the Union announcements of 13 September 2017 to 'safeguard a fair, predictable, sustainable and trusted business environment in the online economy'. The aim of the new rules is to create a fair, transparent and predictable business environment for smaller businesses and traders when using online platforms. Businesses such as hotels, traders selling online, app developers, and other similar companies that rely on search engines for attracting internet traffic to their websites are amongst those who will benefit from the new rules.

Elżbieta Bieńkowska, Commissioner for Internal Market, Industry, Entrepreneurship and SMEs, said: "We want to prevent the fragmentation of the Single Market through a patchwork of national rules. Today, the Commission is coming forward with an approach that will give EU businesses – particularly smaller ones – the transparency and redress mechanisms that will help them embrace the digital economy. It also gives platforms legal certainty."

Legislative steps to ensure transparency and fairness when dealing with platforms

The new rules will tackle these concerns by:

  • Increasing transparency: Providers of online intermediation services must ensure that their terms and conditions for professional users are easily understandable and easily available. This includes setting out in advance the possible reasons why a professional user may be delisted or suspended from a platform. Providers also have to respect a reasonable minimum notice period for implementing changes to the terms and conditions. If a provider of online intermediation services suspends or terminates all or part of what a business user offers, this provider will need to state the reasons for this. In addition, the providers of these services must formulate and publish general policies on (i) what data generated through their services can be accessed, by whom and under what conditions; (ii) how they treat their own goods or services compared to those offered by their professional users; and (iii) how they use contract clauses to demand the most favourable range or price of products and services offered by their professional users (so-called most-favoured-nation (MFN) clauses). Finally, both online intermediation services as well as online search engines must set out the general criteria that determine how goods and services are ranked in search results.

  • Resolving disputes more effectively: Providers of online intermediation services are required to set up an internal complaint-handling system. To facilitate out-of-court dispute resolution, all providers of online intermediation services will have to list in their terms and conditions the independent and qualified mediators they are willing to work with in good faith to resolve disputes. The industry will also be encouraged to voluntarily set up specific independent mediators capable of dealing with disputes arising in the context of online intermediation services. Finally, associations representing businesses will be granted the right to bring court proceedings on behalf of businesses to enforce the new transparency and dispute settlement rules.

  • Setting up an EU Observatory to monitor the impact of the new rules: The Observatory would monitor current as well as emerging issues and opportunities in the digital economy, with a view to enabling the Commission to follow up on today's legislative proposal if appropriate. Particular attention will be paid to developments in policy and regulatory approaches all over Europe.

    Depending on the progress achieved and based on the insights gained through the EU Observatory, the Commission will assess the need for further measures within 3 years.

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