Tastatur mit E-Commerce-Symbolen

For a fair E-Commerce

The German retail sector – both stationary and online – relies on good and fair competition conditions. The increasing presence of e-commerce direct sales models from non-EU countries poses a growing challenge. Which ten measures would contribute to more fairness in e-commerce has been summarised by the German Chamber of Commerce and Industry (DIHK) in a position paper.

Equal market conditions and environmental standards for everyone, no dumping prices, clearly defined responsibilities and more: The DIHK explains how local retailers can be better protected against unfair practices by international competitors.

Current Situation

Non-European platforms are currently pushing hard into the European market. Low prices appear attractive to customers. At the same time, allegations of unfair business practices arise. Some competitors fail to comply with product safety regulations or other protection standards or circumvent EU customs regulations. Estimates indicate that over one billion small goods shipments arrive annually in the EU. Around 400,000 parcels from China alone reach Germany every day.

Among some providers, there are extensive under-declarations which, among other things, results in evasion of import and sales tax. Estimates suggest billions in revenue are lost to the exchequer. Furthermore, European product, social, environmental, and branding standards are bypassed. These illegal practices endanger local business models. There are also direct risks to the end consumer. A lack of resources and capabilities at European and national control institutions facilitate these practices.

Activities of Politics and Administration

In view of these developments, the European Union has reacted: Within the EU, the Digital Services Act (DSA) has included specific rules for very large online platforms (Very Large Online Platforms, VLOP) since 2024. These are platforms with more than 45 million monthly users in the EU. In spring 2024, the EU Commission also classified two Asian platforms (Temu and SHEIN) as VLOPs based on these criteria.

Accordingly, these online marketplaces had to implement stricter measures, especially in the fight against illegal products and content, by the end of September and August 2024, respectively. This mainly includes the delisting of counterfeit goods, unsafe or illegal products, and items that infringe intellectual property rights. Additionally, Temu was specifically requested by the EU Commission to outline how the company minimises risks in consumer protection, public health, and the welfare of users.

Implementation of Measures

The EU Commission required the implementation of these measures by October 21, 2024 – results so far remain open. Should the relevant platforms fail to meet the requirements, the EU Commission has extensive investigative and sanctioning powers to align them with EU directives. Initial requests for information have been made to VLOPs and cover, among other things, their control mechanisms and technical measures for risk mitigation. However, the DSA only covers a partial aspect of the overall issue.

Given the enormous impact of platforms on the German economy, further measures are necessary. The German Chamber of Commerce and Industry (DIHK) has developed a 10-point catalogue of measures for this purpose:

DIHK Proposals

Key areas:
  • Handel
  • Zoll

Contact

Regele, Ulrike_quad

Dr. Ulrike Regele

Director Commerce

Blum, Petra_test

Petra Blum

Spokesperson