Questions and Answers - EU negotiators agree to set up new European rules to improve fairness of online platforms' trading practices

Questions and Answers - EU negotiators agree to set up new European rules to improve fairness of online platforms' trading practices Strasbourg, 14 February 2019Firstly, online platform intermediaries are required to make their standard terms and conditions more transparent, easily available and announce changes well in advance. This will mean that businesses are better informed as the terms and conditions must state the reasons of suspending or terminating a business' account and include a description of:what supplementary goods and services online platform intermediaries propose to consumers alongside a business user's offer and which supplementary goods and services a business user can offer,through what additional distribution channels an online platform intermediary will offer a business user's goods or services,the type of data that will be shared with business users by the online intermediation service (i.e. data which businesses or consumers provide when using the online intermediation services), andwhy business users may be restricted by the online intermediation platform from offering goods and services on different conditions through other intermediation platforms (so called ‘most favoured nation' clauses).Fifthly, the Regulation also provides effective and quick means to resolve disputes between businesses and online platform intermediaries. In particular:All, except for the smallest platforms, must set up an internal complaint handling system. The platforms shall be required to report to the general public on its functioning (e.g. number of complaints, their subject matter, time taken to process complaints and the decision taken)Platforms will have to provide businesses with more options to resolve a potential problem by naming specialised mediators they agree to engage with in their terms and conditions. This will help resolve more issues out of court, saving businesses time and money. Why does the EU need to set rules increasing fairness and transparency for online platforms?

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http://europa.eu/rapid/press-release_MEMO-19-1169_en.htm

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Thursday, February 14, 2019

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Business models, Economy, Information economy, Platform economy, Intermediary, Value-added tax, Articles, Online marketplace

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Questions and Answers - EU negotiators agree to set up new European rules to improve fairness of online platforms' trading practices

Firstly, online platform intermediaries are required to make their standard terms and conditions more transparent, easily available and announce changes well in advance. This will mean that businesses are better informed as the terms and conditions must state the reasons of suspending or terminating a business' account and include a description of:
- what supplementary goods and services online platform intermediaries propose to consumers alongside a business user's offer and which supplementary goods and services a business user can offer,
- through what additional distribution channels an online platform intermediary will offer a business user's goods or services,
- the type of data that will be shared with business users by the online intermediation service (i.e. data which businesses or consumers provide when using the online intermediation services), and
- why business users may be restricted by the online intermediation platform from offering goods and services on different conditions through other intermediation platforms (so called ‘most favoured nation' clauses).
Fifthly, the Regulation also provides effective and quick means to resolve disputes between businesses and online platform intermediaries. In particular:
- All, except for the smallest platforms, must set up an internal complaint handling system. The platforms shall be required to report to the general public on its functioning (e.g. number of complaints, their subject matter, time taken to process complaints and the decision taken)
- Platforms will have to provide businesses with more options to resolve a potential problem by naming specialised mediators they agree to engage with in their terms and conditions. This will help resolve more issues out of court, saving businesses time and money.
Why does the EU need to set rules increasing fairness and transparency for online platforms?
It is essential that businesses have a more predictable relationship with online platforms and access to effective and straight-forward means to address potential problems.
Finally, the EU Observatory on the Online Platform Economy will evaluate whether more specific, sectoral rules will be needed.