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In Focus Translated from German with AI assistance

Online Trading: Ensuring Equal Conditions for All Market Participants

Goods shipped from non-EU countries to the EU are often non-compliant with regulations, and taxes are frequently evaded. From the perspective of businesses, the enforcement of existing laws would already constitute a major step forward. Potential approaches to create greater fairness are explored here.

Nearly six billion small shipments with a value below €150 entered the European internal market last year from non-EU countries. Samples revealed that many of these goods failed to meet product safety, labelling, and consumer information requirements. Similarly, VAT and environmental levies were often not properly paid. Meanwhile, out of one million shipments processed by customs, only 65 were physically inspected for compliance with product regulations.

No Fair Competition Without Rule Enforcement

For retailers and manufacturers in Germany and other EU states, this poses a significant problem. They are required to meet extensive regulations and bear the associated costs. If the same requirements are not effectively enforced on suppliers from non-EU countries, unfair competitive conditions arise. Some reforms to European customs and control structures have already been initiated but will often only take effect in the medium term. In the short term, it is crucial to apply existing laws more consistently. Introducing additional requirements for law-abiding companies in the internal market would, by contrast, create new bureaucracy without solving the enforcement issues of current laws.

Establishing Priorities and Clear Coordination

From the perspective of business, market surveillance and customs should target their limited resources on the areas posing the greatest risks to product safety, consumer protection, and fair competition. This requires federal states to create specialised units, coordinate their activities more consistently, and consolidate responsibilities, for example based on platforms, companies, or product groups. Customs also needs adequate technical and human resources to better analyse available data and conduct targeted inspections when irregularities are identified. Furthermore, an efficient digital infrastructure can help detect irregularities in goods flows early and focus inspections based on risk.

Consistent Use of Digital Tools

Modern market surveillance must keep pace with the scale of online commerce. Automated tools such as web crawlers can analyse large amounts of listings for missing labels, safety information, or details on responsible economic operators. Since private legal enforcement against suppliers from non-EU countries is practically impossible, a user-friendly digital reporting office should collect, prioritise, and forward reports from businesses to the relevant authorities for prompt review.

Focus on Fulfilment Centres

Another potential approach involves fulfilment centres within the EU. These are increasingly utilised by suppliers from non-EU countries. Like in traditional retail, authorities can selectively retrieve and inspect products there. Test purchases can also help uncover violations and remove unsafe products from circulation. This instrument should be strengthened. Additionally, easily verifiable registration, labelling, and environmental obligations must be more rigorously monitored. At the European level, existing tools such as the Safety Gate and the Digital Services Act should be used effectively and proportionately.

Effective Enforcement Needed

The rules apply to all suppliers – irrespective of whether they are based within or outside the EU. Authorities should therefore identify violations more swiftly and enforce compliance more rigorously. This requires sufficient staff, modern technology, and clearly defined responsibilities for customs and market surveillance. This will protect consumers more effectively and ensure fair competitive conditions, without burdening companies in Europe with new obligations.

Key areas:
  • Commerce
  • Customs
This English version is provided for convenience only.
It has been translated with the assistance of AI.
No guarantee is made as to the accuracy or completeness of the translation.