A recent communication to government ministers and the European Parliament on e-commerce and online services marks the blueprint of the European Commission for the EU’s digital single market.
The Commission reckons that the EU Single Market is still not functioning well- Josette Grech
The communication sets out the Commission’s vision for the potential represented by electronic commerce in today’s digital era. Various activities fall under the heading of electronic commerce, ranging from purchase and sale of flight tickets to garden furniture, newspaper subscriptions, smart phone applications or music. All are at stake if the digital market framework is not sound.
The Commission reckons that the EU Single Market is still not functioning well, and mainly blames this on the 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 borders, with the consequence that citizens miss out on the opportunity of an efficient online market.
In its communication, the Commission identifies the obstacles to the development of the internet economy: a legal cross-border supply shortage, inadequate information and protection for consumers, inefficient deliveries and payments, and unnecessary hardship in the settlement of disputes.
In a bid to increase trust in a digital single market and encourage economic growth within the e-commerce sector, the communication puts forward an action plan. It highlights the need to enhance training for online traders in their obligations and opportunities offered by the digital single market; boost the capacity of the Consumer Protection Corporation network to ensure that the relevant legislation is implemented in a digital environment at European level, assist dispute resolution and remove illegal content, thus helping to develop an Internet that is more secure and more respectful of fundamental rights and freedoms.
In addition, the European Commission stresses the need to review the existing copyright legislative framework, particularly in the light of Premier League ruling. In that ruling, the Court of Justice of the European Union (CJEU) ruled that there must be a free market in the provision of programme services. Consequently, according to the CJEU, national laws that prohibit the import, sale or use of foreign decoder cards are contrary to the freedom to provide services.
The European Commission intends to propose collective copyright legislation to enable European collective management of copyright, thereby facilitating licensing issues covering a number of member states. Later this year, the Commission will submit such proposals with a view to enabling multi-territory and pan-European licensing. Selling rights on a pan-European rather than a country-by-country basis may however result in reduction in the value of copyright.
This part of the communication regarding pan-European broadcasting rights follows on another communication on sport. Recognising that exploitation of intellectual property rights in the area of sport, such as licensing of re-transmission of sport events or merchandising represents important sources of income for professional sports, that communication also advances the notion of collective selling of media rights. This naturally will affect the way football coverage is licensed across the EU.
It remains to be seen how the Commission will design these new legislative frameworks, which will hopefully address the many concerns that have arisen particularly following the Premier League ruling.
jgrech@demarcoassociates.com
Dr Grech is an associate with Guido de Marco & Associates and heads its European law division.