A. Background
Many products sold via sales platforms or online platforms originate from third countries and often do not meet the strict EU requirements. Random checks by market surveillance and customs authorities have repeatedly revealed violations in areas such as product safety, consumer protection, environmental and health requirements, customs regulations and intellectual property. These shortcomings lead to unfair competitive conditions for European companies, which have to comply with the relevant regulations. This is precisely where the action plan comes in and is intended to help enforce the existing regulations more consistently. In addition, the platforms are to be held more accountable.
B. Selected measures
Increased market surveillance and customs controls
The German government is proposing concentrated action by market surveillance authorities in cooperation with customs authorities to carry out coordinated systematic checks and test purchases of certain consumer goods from EU third countries. Automated systems such as “web crawlers”, which are currently being developed by the EU Commission, are also to be used to a greater extent in future. In addition, a central data hub is to be created to make non-compliant products visible throughout the EU.
Extension of the powers of market surveillance authorities vis-à-vis online platforms
The German government is advocating an amendment to the EU Market Surveillance Regulation (Regulation (EU) 2019/1020). According to this, market surveillance authorities should also be able to take appropriate measures directly against online platforms if no responsible economic operator can be identified or accessed. It also calls for free sampling to be possible in online retail in the same way as in bricks-and-mortar retail.
Online platforms as “deemed importers”
As part of the current negotiations on the reform of the EU customs union, the German government is calling for online platforms to be classified as “deemed importers”. As a result, the following would apply to the platforms:
- They would be responsible for complying with tax and customs regulations.
- They would have to ensure that the imported goods comply with EU legislation.
- They would be responsible for calculating and paying import VAT and other duties.
Stricter enforcement of the Digital Services Act (DSA)
The Digital Services Act (DSA) is to be enforced more consistently by the EU Commission, particularly against very large online platforms (VLOPs), as soon as they sell products that do not comply with EU law or the law of the EU member states.
The German government calls for
- full utilization of the EU Commission’s sanctions framework, including fines
- systematic test purchases by the EU Commission to identify infringements at an early stage
- Traders who have offered an illegal product within the meaning of the DSA should be recorded in the EU transparency database so that they can be easily identified by the competent judicial and administrative authorities.
Conclusion
The action plan shows that the German government wants to regulate online retail more closely and tackle existing problems in a targeted manner. It expressly wants to update and further develop the plan on an ongoing basis. It remains to be seen to what extent this political will will be pursued in the next German government and whether the EU Commission will comprehensively implement the required measures. Retailers and platform operators should nevertheless deal with the proposed measures at an early stage, as adjustments to the legal framework in e-commerce are more likely in the future. A proactive approach to the developments can help to minimize legal risks and secure competitive advantages.
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