EU plans to double internet sales by 2015

Brussels yesterday tabled an ambitious plan aimed at doubling internet sales in the next four years, directly boosting e-commerce and the current slowdown in the European economy.

The plan includes various concrete measures including increasing access to the internet across the 27 member states, strengthening consumer protection laws for those using the internet to make cross-border purchases and reforming the postal services to ensure a better service in parcel delivery.

Currently, the internet only accounts for less than three per cent of the EU economy (gross domestic product) and only 3.4 per cent of all products and services are sold over the Internet.

The EU Single Market for e-commerce is still not functioning as it should as there are significant differences in the rules, standards and practices applied to e-commerce within individual member states. As a result, companies find it difficult to provide online services or to sell goods across EU borders, and citizens miss out on the opportunity to purchase goods and services from websites based in other EU countries.

Although the situation in Malta is different, as many Maltese seem to be taking advantages of the larger virtual market so much so that 22 per cent of internet users last year made at least one cross-border purchase over the net, the new proposals will surely boost sales to new heights.

According to Brussels, the potential of the internet vis-à-vis economic growth is still undervalued.

A study into e-commerce in goods shows that consumers in the EU can save about €11.7 billion a year (0.12 per cent of EU GDP) thanks to lower prices and wider choice. If e-commerce were to grow to 15 per cent of the total retail sector and single market barriers were eliminated, total consumer gains would reach around €204 billion, equivalent to 1.7 per cent of EU GDP.

The Commission’s action plan is based on the belief that the EU can double the contribution e-commerce and the internet make to the European economy by various actions to be taken at EU and member state level.

The initiatives include better access to different kinds of online services for consumers across the EU, easier ways to buy and pay for products online, more efficient and affordable delivery of products across Europe, more transparency on companies and prices on the internet and better consumer protection.

At the same time the Commission yesterday also launched a discussion on overhauling the legal regime regulating card, mobile and internet payments.

Internal Market and Services Commissioner Michel Barnier said that Europe has an opportunity to be at the cutting edge of what “making a payment” could mean in the future but this will not be achieved with the current level of market fragmentation.

“Secure, efficient, competitive and innovative electronic payments are crucial for consumers, retailers and companies to fully enjoy the benefits of the Single Market as well as to drive the growth of e-commerce. The consultation we are launching today is fully in line with the Commission’s mandate focusing on growth and job creation and building on the achievements already made in the field of retail payments,” Mr Barnier said.