WRITTEN QUESTION E-1993/99

by Paul Rübig (PPE-DE) to the Commission

(9 November 1999)

Subject: Development of the European wholesale industry in the light of the Internet and the Euro

The Internet and the Euro facilitate the tightening of the distribution chain. Manufacturers have easier direct access to the retail industry, particularly the major chains, and the consumers themselves.The wholesale industry, after losing on the internal market the customs processing function and, through the Euro, the cash management function is now being deprived by the Internet even of its advance in information expertise over the retail industry. There is therefore a danger that in the next few years the wholesale industry will come under still more pressure between the major manufacturers and the retail industry dominant on the market on account of ever greater concentration.

Does the Commission have plans for measures to prevent a further concentration in the industry, what measures are planned in the light of the threat from Internet and the Euro to eliminate small and medium-sized wholesale industry, and how does it view the chances of a sustainable future for such wholesale traders?

Answer given by Mr Liikanen on behalf of the Commission

(20 December 1999)

The Commission is aware of the changes affecting the wholesale industry and outlined the situation in the White Paper on commerce(1). In the action plan annexed to the White Paper the Commission provided for studies in this field which will be carried out in collaboration with experts in the Member States(2).

The Internet facilitates commercial transactions at many levels and for many economic operators, in particular small and medium-sized entreprises (SMEs). This goes for both the small retailer and the wholesaler, who can enter the market and have direct access to producers, suppliers and buyers all over the world, and to the consumer, more easily and more cheaply via electronic networks (Internet, Extranet, Intranet). It is for this reason that the Commission encourages SMEs to participate in the information society and electronic commerce through its policies and activities in this field with respect to both legislation (e.g. the proposal for a directive on certain legal aspects of electronic commerce) and research, training and the dissemination of knowledge and better practice. With access to an international electronic market and the use of new technologies which combine information, commerce and distribution any trader can increase his outlets all over the world, extend his range of offers or target specialised markets.

The introduction of the euro simplifies financial management at all points of the distribution chain. The exchange risk and uncertainty linked with monetary fluctuations are eliminated, so businesses make substantial savings.

The Commission is keeping a very close eye on the development of commerce in Europe. The application of Community rules governing merger control is a way of limiting the excessive concentration to which the Honourable Member refers. Moreover, competition policy has a positive approach with respect to SMEs and the Commission's notice on agreements of minor importance(3) and the draft exemption regulation relating to vertical agreements(4) take account of their specific nature and requirements.

The Committee on Commerce and Distribution set up by the Commission, which consists of 65 entrepreneurs from all branches and sectors of trade including representatives from the wholesale industry advises the Commission on matters relating to commerce. The Committee has discussed electronic commerce, competition and the consequences of the introduction of the euro several times during the last few months and provided the Commission with important information.

The Commission has launched various initiatives to support SMEs in particular, such as SLIM (simpler legislation for the internal market)(5) and BEST (Business Environment Simplification Task Force) which aim to create an optimal administrative environment for their activities. This should help businesses, especially SMEs, to operate more efficiently with fewer costs.

(1) COM(1999) 6 final.

(2) See the conclusions of the Council meeting (industry) of 29.4.1999.

(3) OJ C 372, 9.12.1997.

(4) Draft under discussion. OJ C 270, 24.9.1999.

(5) COM(97) 618 final, 21.11.1997.