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New EU rules for a fairer online economy apply from Jul 12

11 Jul '20
3 min read

The European Commission recently published a set of resources to help traders, online platforms and search engines get the most out of the new Platform to Business rules, which apply from July 12. In addition, three progress reports prepared by the expert group for the Observatory on the Online Platform Economy have been published for feedback.

The reports will inform the broader work of the Commission on online platforms, and in particular, on the upcoming Digital Services Act package, according to an official press release.

The Platform to Business Regulation entered into force in July last year. It sets the basic horizontal foundation for a fair, transparent and predictable business environment for smaller businesses and traders relying on search engines and online platforms like online marketplaces, app stores, certain price comparison tools or business pages on social media for their activities.

“The more than 10,000 online platforms in the EU are only one part of a broader digital services ecosystem that drives innovation. Despite their role as an essential resource during the on-going health crisis, major issues of fairness and safety have to be addressed. The new rules will ban certain unfair practices such as unexplained account suspension, unclear terms and conditions; ensure greater transparency about ranking, level the playing field among online platforms and search engine and provide new possibilities for resolving disputes and complaints,” Commission executive vice president Margrethe Vestager said.

The European Union (EU) has adopted the first set of rules regulating the platform economy. Beginning July 12, businesses and traders selling online via marketplaces will know which criteria will determine their position in search results, hotels using booking platforms will have greater clarity and protection from unfair terms and conditions, app developers will have a chance to challenge decisions by app stores that wish to remove their content.

The Commission will also publish official guidelines on ranking in the coming weeks. These guidelines will help online platforms and search engines improve predictability and transparency to help businesses consider how best to increase and manage their online visibility.

The three progress reports point to imbalances in market power in the relationship between online platforms and their business users in terms of both access to and the use of data, as well as to discrimination as a potential source of issues in the online platform economy.

Stakeholders, including online platforms, the businesses relying on these online platforms, experts as well as enforcers are invited to provide feedback by September 8.

The progress reports will feed into the Commission's current work priorities in the digital area as announced in the Commission's Communication on Shaping Europe's Digital Future as well as in its data strategy and provide input for the Digital Services Act package.

Two more reports will be produced on online advertising and platforms with significant market power that will, alongside the present reports, feed into a final contribution by the expert group of the Observatory later this year.

Fibre2Fashion News Desk (DS)

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