Commercial Restrictions in eCommerce Oliver Prothmann Chairman ´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

Petition for Choice and Innovation in Online-Trade 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 QUO based 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%) IMPACT based 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 CLAIM based on Petition by Choice in eCommerce (n: ; Nov 2013)