In reference to the first part of the question, the Deputy is aware that the European Commission launched two antitrust cases against Amazon and its logistics and delivery services earlier this month under article 102 of the Treaty on the Functioning of the EU (TFEU) on “abuse of dominant position”. The Commission has informed Amazon of its preliminary view that it has breached EU antitrust rules by distorting competition in online retail markets.
It is important to state at this juncture that Amazon has not been found to hold a dominant position in the relevant retail market. The Commission in the first instance must prove dominance and only then can it investigate any alleged exclusionary behaviour and abuse of this dominance.
These cases form part of the Commission’s wide-ranging competition agenda which is intended to ensure that there is fair competition in all EU markets. This agenda also includes a forthcoming legislative proposal which aims to both ensure a fair-trading environment in the EU platform economy by tackling the market power of certain platforms and increasing the innovation potential and capacity of the EU online platform economy. This proposal, termed the Digital Markets Act (DMA), will seek to ensure that certain large platforms behave fairly and can be challenged by new entrants and existing competitors, so that consumers have the widest choice and the Single Market remains competitive and open to innovations. I understand that the Commission's proposals will cover online marketplaces and are due to be published next month.
In relation to a proposal to establish a new platform for retailers here, I think there is broad consensus concerning the benefits for retailers brought about by online platforms. These platforms can lower the costs of starting and especially scaling a business and can facilitate cross-border trading and access to new markets. The importance of these platforms has become even more apparent during the global Covid-19 pandemic.
I want to flag an important piece of legislation aimed at the users of online platforms including online intermediaries. The EU Platform to Business (P2B) Regulation came into effect on 12 July 2020 and aims to promote fairness and transparency for business users of online platforms. Under the Regulation, platforms are required to make their standard terms and conditions more transparent, and easily available to business users. The Regulation also provides effective and quick means to resolve disputes between businesses and online platform intermediaries via:
- platforms establishing internal complaints handling systems;
- commitments by platforms to engage mediation in good faith; and
- allowing businesses to be represented by associations or organizations in cases against platforms to stop or prohibit any non-compliance with the requirements of the Regulation.
The Competition and Consumer Protection Commission have been designated the national public body designated with enforcing the Regulation under S.I. No. 256/2020 - European Union (Promoting Fairness and Transparency for Business Users of Online Intermediation Services) Regulations 2020.
The Retail Forum was established in 2014 to provide a platform for engagement between retail representative bodies, retailers and the public sector on key concerns for the retail sector. The Forum, which is chaired by the Minister of State at the Department of Enterprise, Trade and Employment with responsibility for Business, Employment and Retail, enables key issues affecting the retail sector to be discussed, with a view to identifying practical actions which could be taken by Government, or by industry itself, to support sustainable jobs growth in the sector.
The work of the Forum has led to the introduction of the very successful Online Retail Scheme which supports retailers in growing their sales through online channels domestically and internationally. The Forum continues to focus on a range of policy issues including digital transformation. This important support combined with the continuing emphasis on digitalisation ensure Irish retailers are well placed to avail of the benefits online intermediaries and marketplaces present to them.
