Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on Cross-Border Business to Consumer e-Commerce in the EU
Date: 2009-10-22
Institutions: European Commission
Subjects: VAT, commercial law, consumer protection, domestic market, electronic commerce, goods and services, intellectual property, intra-EU trade, trade policy

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 22.10.2009 
COM(2009) 557 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

on Cross-Border Business to Consumer e-Commerce in the EU 

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

on Cross-Border Business to Consumer e-Commerce in the EU 

INTRODUCTION 

At  a  time  when  households  are  under  financial  strain,  European  consumers  are 
spending more time searching for and comparing offers online in the hope of finding 
the lowest prices. Cross-border online shopping has two key benefits for consumers: 
an  increased  range  of  products  to  choose  from  and  the  possibility  to  save  money. 
Consumers living in remote areas will also benefit from being able to access goods 
cheaply.  For  businesses  too,  it  opens  up  new  markets  and  customers  and  rewards 
innovative  and  competitive  companies.  The  potential  of  the  online  retail  internal 
market is considerable.  

However, as a result of remaining internal market barriers, European e-commerce is 
still  largely  fragmented  along  national  lines.  More  often  than  not,  consumers  are 
unable to place an order with an online trader in another EU country. Retailers all too 
often turn down orders from consumers who wish to shop cross-border. Businesses 
are sometimes held back from making cross-border sales or from expanding to a pan-
EU or multi-country basis. 

The  Commission  has  analysed  cross-border  e-commerce  in  the  EU  and  identified 
remaining obstacles1. As a next step, this Communication analyses the impact of the 
current  policy  framework  affecting  the  sale  of  goods  through  cross-border  e-
commerce (e-commerce in services is outside the scope of this exercise); it presents 
further  evidence  on  the  extent  of  the  missed  opportunities  and  proposes  points  for 
action.  Many  factors  have  an  impact  on  consumer  trust  in  the  online  environment, 
such  as  the  concern  over  the  protection  of  personal  data,  the  risk  of  counterfeit 
products, or the existence of new types of unfair commercial practices online. These 
issues  are  general  to  the  online  environment  and  are  not  seen  as  creating  specific 
barriers for consumers or traders to engage in cross border trade. They are therefore 
not dealt with in this Communication  

A FRAGMENTED ONLINE INTERNAL MARKET 

While e-commerce is taking off at national level, it is still relatively uncommon for 
consumers  to  use  the  internet  to  purchase  goods  (or  indeed  services)  from  another 
Member State. The gap between domestic and cross-border e-commerce is widening 
as a result of barriers to the internal market. From 2006 to 2008, the share of all EU 
consumers that bought at least one item over the internet in the past year increased 
from 27% to 33% while cross-border e-commerce remained stable (6% to 7%)2.  

Consumers  across  Europe  recognise  that  cross-border  shopping  offers  advantages 
even though they are not yet enjoying them. One third of EU citizens would consider 

‘Commission staff working document: report on cross-border e-commerce in the EU’ - SEC(2009) 283, 
5.3.2009, available at: http://ec.europa.eu/consumers/strategy/facts_en.htm#E-commerce. 
Special Eurobarometer 298: ‘Consumer protection in the internal market’ (2008). 

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buying a product or a service online from another Member State because it is cheaper 
or better3. A similar number are also willing to make a purchase in another language 
and  59%  of  retailers  are  prepared  to  carry  out  transactions  in  more  than  one 
language4. 

Cross-border trade gives businesses an incentive to expand their customer base and 
to  tap  into  new  markets,  yet  few  online  shops  are  prepared  to  serve  foreign 
customers.  Although  51%  of  EU-27  retailers  sell  online,  only  21%  conduct  cross-
border  sales.  Retailers  who  do  trade  cross-border  usually  only  sell  to  very  few 
Member States: only 4% of those retailers trade with 10 or more Member States and 
most of them trade with just one or two other Member States5. 

THE BENEFITS OF AN INTEGRATED ONLINE INTERNAL MARKET  

A greater likelihood of finding cheaper offers 

Cross-border shopping online increases the chance of saving money because of the 
greater  variety  of  offers  for  the  same  products.  For  the  consumer,  the  range  of 
potential savings opportunities will only come to light during the shopping process, 
by searching for products and by comparing offers. The result of an EU-wide test of 
online shops gives some idea of the potential savings that consumers could make on 
real, cross-border transactions.  

Testers located in 27 EU Member States were instructed to search for a list of 100 
popular  products  on  the  internet  and  to  record  the  total  price  that  they  would  have 
paid for the goods. When both domestic and cross-border offers were found, it was 
possible  to  compare  them,  all  delivery  charges  and  costs  included.  Figure  1  shows 
the considerable potential for such cross-border savings, even when it is assumed that 
a 10% saving would be needed to encourage consumers to shop across borders6.  

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Special  Eurobarometer  254,  ‘Internal  Market  —  Opinions  and  experiences  of  Citizens  in  EU-25’ 
(2006). 
Special Eurobarometer 298 (2008) ; Flash Eurobarometer 224: ‘Business attitudes towards cross-border 
sales and consumer protection’ (2008). 
Flash Eurobarometer 224 (2008). 
‘Mystery  shopping  evaluation  of  cross-border  e-commerce  in  the  EU’,  YouGovPsychonomics,  data 
collected on behalf of the European Commission, 2009.  

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Figure 1. Percentage of searches where the best cross-border offer was cheaper 
or at least 10% cheaper than the best domestic offer 

UK
DE
IE
NL
BG
PL
MT*
CY*
SK
AT
HU
FR
CZ
SE
LU
LT
FI
EE
GR
LV
RO
DK
ES
BE
SI
IT
PT

0

10

20

30

40

50

60

70

80

90

best cross-border total price at least 10% cheaper than best domestic total price

best cross-border total price cheaper than best domestic total price

* sample size below  n=5

Source: YouGovPsychonomics (2009) 

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In  13  EU  Member  States  out  of  the  27  (Portugal,  Italy,  Slovenia,  Spain,  Denmark, 
Romania, Latvia, Greece, Estonia, Finland, Hungary, Cyprus, Malta) for at least half 
of all the product searches, testers were able to find one cross-border offer that was at 
least 10% cheaper than the best domestic offer. This result confirms that cross-border 
shopping  increases  the  chances  of  finding  cheaper  offers  for  identical  products  (all 
costs included)7. 

Access to products unavailable domestically 

Many  products  cannot  be  found  online  in  several  countries.  Cross-border  shopping 
therefore has the inherent advantage of enabling consumers to find products that are 
not distributed locally online. The internal market therefore has enormous potential 
to develop a "long tail" of products that it would not be economic to distribute on a 
national basis, especially in smaller Member States.  

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YouGovPsychonomics (2009). For Cyprus and Malta results should be interpreted with caution as there 
were very few domestic offers to enable a comparison (see figure 1).  

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Figure  2.  Percentage  of  product  searches  where  only  cross-border  offers  were 
found 

UK
DE
SE
FR
NL
DK
AT
PL
IT
BG
CZ
ES
HU
SK
GR
RO
SI
FI
PT
EE
BE
IE
LV
LT
LU
MT
CY

0

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20

30

40

50

60

70

80

90

100

percentage (%)

Source: YouGovPsychonomics (2009) 

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The EU-wide test of online shops showed that it is particularly difficult to find online 
domestic offers for most products in some countries (see Figure 2). This is the case 
particularly in smaller markets, meaning that a cross-border offer is the only way for 
shoppers to buy these products, if the retailer is prepared to deliver to them. Testers 
in Cyprus, Malta, and Luxembourg, but also in Lithuania, Latvia, Ireland, Belgium, 
Estonia, Portugal and Finland could not find domestic online offers for at least half 
the products that they searched for8. 

EXTENT OF ONLINE INTERNAL MARKET FRAGMENTATION 

Unfortunately, contrary to what might be expected given the "borderless" nature of e-
commerce, consumers do not have equal access to cross-border offers: for consumers 
in  some  countries  it  is  highly  unlikely  that  they  will  find  foreign  shops  that  are 
prepared  to  accept  an  order.  While  offers  are  technically  accessible  to  consumers 
who  are  searching  for  them  online,  at  some  point  during  the  ordering  process, 
websites will terminate the transaction.  

The  EU-wide  test  of  online  shops  indicates  the  magnitude  of  the  problem.  In  total, 
10964 cross-border tests were carried out. On average, in only 39% of cases, was it 
theoretically  possible to  place  an  order  with  an  online  shop  that  was  not  located  in 
the  same  country  as  the  consumer.  61%  of  all  orders  would  have  failed  either 
because  traders  refuse  to  serve  the  consumer's  country  or  for  other  reasons  (for 

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YouGovPsychonomics (2009). 

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example because of technical problems or because a particular payment option was 
not available)9. 

Figure 3. Cross-border offers technically accessible to consumers for which the 
ordering process failed 

AT
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DK
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UK
IT
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FI
SK
FR
PT
NL
SI
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EU average
HU
GR
CZ
LT
CY
PL
IE
MT
BE
LV
BG
RO

0

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20

30

40

50

60

70

80

percentage (%)

Source: YouGovPsychonomics (2009) 

Many  online  shops  are  not  prepared  to  sell  to  consumers  from  every  EU  country. 
Shoppers from Belgium, Bulgaria, Latvia, Malta and Romania experience the highest 
failure  rates  (see  Figure  3).  Many  shops  distinguish  between  consumers  based  on 
where the live. For example, many testers were not able to register on the website in 
order  to  continue  the  transaction,  many  websites  refused  to  ship  to  the  shopper's 
country  and  many  payment  options  were  not  readily  available  for  cross-border 
transactions10. 

TACKLING THE REGULATORY BARRIERS TO CROSS-BORDER E-COMMERCE 

The  barriers  to  cross-border  e-commerce  have  been  the  subject  of  regulatory 
attention  at  EU  level  for  many  years.  More  needs  to  be  done  before  an  integrated 
retail internal market is achieved. The Commission's report of March 2009 sets out a 
comprehensive analysis of the barriers holding back consumers and businesses.11 

YouGovPsychonomics (2009). The possibility of placing an order up to the final confirmation page was 
tested. No actual purchases were made. 
YouGovPsychonomics (2009). 
‘Commission staff working document: report on cross-border e-commerce in the EU’ - SEC(2009) 283, 
5.3.2009. 

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For  retailers  in  Europe,  the  main  regulatory  barriers  to  cross-border  e-commerce 
originate in the fragmentation of consumer protection rules and other rules on VAT, 
recycling  fees  and  levies.  The  way  in  which  these  rules  are  implemented  differs 
markedly from one Member State to another, giving rise to a business environment 
that  is  complex,  costly  and  unpredictable  for  those  businesses  considering  selling 
cross-border. The adoption of proposals to tackle these obstacles is therefore central 
to  changing  the  behaviour  of  retailers  and,  as  a  result,  improving  opportunities  for 
consumers.  

Consumers  are  faced  with  a  number  of  problems  when  trying  to  shop  online  in 
another  country.  More  often  than  not,  foreign  online  traders  will  refuse  to  accept 
orders from consumers living in another country. Consumers are also uncertain about 
what  to  do  or  who  to  turn  to  should  they  experience  a  problem,  especially  when  it 
comes to resolving a complaint with a foreign trader. 

Given  the  complex  and  interdependent  nature  of  the  problems  identified,  a  multi-
stranded strategy is needed. The following section presents points for action by order 
of  priority,  based  on  an  analysis  of  the  main  challenges  remaining.  While  each  is 
important individually, progress on all is required before the potential of cross-border 
e-commerce can be unlocked. 

Address the fragmentation of consumer protection rules  

The effect of fragmented consumer protection rules on contracts, in conjunction with 
rules  on  the  conflict  of  laws,  is  to  generate  significant  extra  compliance  costs  for 
traders  wishing  to  sell  in  several  Member  States.  The  proposal  for  a  Consumer 
Rights  Directive  will  address  this  main  obstacle  to  the  creation  of  a  retail  internal 
market.  The  proposal  seeks  to  merge  four  existing  consumer  protection  directives 
into  a  single  instrument,  thereby  simplifying  and  updating  the  existing  rules, 
removing  internal  market  barriers12  and  avoiding  the  application  of  many  different 
sets of rules.  

The  proposal  will  therefore  create  a  single  fully  harmonised  set  of  rules  within  a 
targeted  area  ensuring  a  high  common  level  of  consumer  protection  across  the 
Community and allowing traders to sell to consumers in the 27 Member States in the 
same way as their home market, using for example the same standard contract terms 
and  information  materials.  The  proposal  will  therefore  significantly  reduce  traders' 
compliance costs while granting consumers a high level of protection. 

In  addition,  the  adoption  of  the  proposal  will  strengthen  consumer  protection  and 
enforcement in cross-border e-commerce contracts and make it easier for mediators 
to settle disputes out of court. The Commission invites the European Parliament and 
the Council to give due priority to this proposal. 

Ensure effective enforcement of Article 20 of the Services Directive 

Article 20(2)  of  the Services Directive seeks to tackle one of the main obstacles to 
cross-border trade in an innovative way by specifically requiring Member States to 
put  an  end  to  discrimination  by  traders  refusing  to  sell  to  or  treating  differently 
consumers, on grounds of their nationality or place of residence.13 

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Proposal for a Directive on Consumer Rights - COM(2008) 614. 
Directive 2006/123/EC of 12 December 2006 on services in the internal market. 

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While  prohibiting  discrimination,  it  allows  traders  to  apply  ‘differences  in  the 
conditions  of  access  when  those  differences  are  directly  justified  by  objective 
criteria’, which may in certain cases include regulatory barriers. The elimination of 
such  barriers  as  set  out  in  this  Communication  will  therefore  complement  Article 
20(2) by reducing possible grounds for traders to invoke these criteria.  

Given  the  importance  of  Article  20(2)  for  cross-border  e-commerce,  its  full 
implementation and effective enforcement is a high priority for the Commission. The 
Commission 
to  ensure 
implementation  by  the  end  of  2009  and  thereafter  intends  to  actively  monitor 
enforcement by national authorities and courts.  

therefore  providing  guidance 

to  Member  States 

is 

Increase the efficiency of cross-border enforcement 

Consumers will be more confident cross-border shoppers if they know that consumer 
protection  authorities  are  monitoring  traders'  business  practices.  Regular  concerted 
market surveillance actions ('sweeps') between consumer enforcement authorities, in 
the  framework  of  the  Consumer  Protection  Cooperation  Regulation,  have  enabled 
national authorities to investigate irregularities and ensure compliance with consumer 
protection laws14. 

The  recent  enforcement  sweep  conducted  in  May  2009  for  the  online  sale  of 
electronic  equipment  revealed  irregularities  on  55%  of  the  websites.  The  most 
common  problems  detected  concerned  misleading,  missing  or 
incomplete 
information  about  consumer  rights,  total  costs  and  contact  details  of  the  trader, 
indicating  the  need  for  better  enforcement  of  the  provisions  of  the  e-commerce 
Directive as well as consumer protection rules. In the ensuing enforcement phase, the 
Member States will tackle cross-border irregularities by requesting investigative and 
enforcement assistance from authorities in other Member States15. 

More effective enforcement of the existing rules by the Member States is needed to 
remove barriers, promote  information  transparency and  foster  consumer confidence 
in the trustworthiness of online offers and traders. The Commission has recently put 
forward a number of specific recommendations on how to achieve this16. 

Tackle unfair commercial practices 

The Unfair Commercial Practices Directive (2005/29/EC) lays down a single set of 
rules on legitimate and prohibited business-to-consumer commercial practices across 
the  EU17.  In  order  to  ensure  that  online  retailers  can  market  and  advertise  in  a 
simplified and predictable regulatory environment and consumers can trust the online 
offers  they  see,  it  is  now  important  that  national  enforcers  ensure  uniform 
implementation of the Directive.  

The  Commission  will  therefore  publish  guidelines  by  the  end  of  2009  covering, 
among  other  things,  the  new  concepts  introduced  by  the  Directive  in  order  to 
promote uniform interpretation and application. This will make it easier for serious 
traders to engage in cross-border practices, in particular online. More efficient cross-

Regulation  (EC)  No  2006/2004  of  27  October  2004  on  cooperation  between  national  authorities 
responsible for the enforcement of consumer protection laws.  
See: http://ec.europa.eu/consumers/enforcement/sweep/electronic_goods/index_en.htm  
Communication COM(2009) 330, 2.7.2009, on the enforcement of the consumer acquis.  
Directive 2005/29/EC of 11 May 2005 concerning unfair business-to-consumer commercial practices in 
the internal market. 

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border enforcement of legislation relating to unfair practices will be of great benefit 
both to consumer confidence and to bona fide traders by reducing unfair competition 
from rogue traders. 

Promote  alternative  dispute  resolution  schemes  and  the  cross-border  small 
claims procedure 

In  addition  to  ongoing  enforcement  actions,  mechanisms  have  been  put  in  place  at 
EU level  to facilitate  effective remedial action:  a  small claims procedure for  cross-
border disputes which entered into force in 2009, simplifies, speeds up and reduces 
the cost of litigation for claims not exceeding € 2 000; a directive on certain aspects 
of mediation in civil and commercial matters reinforces mediation18. 

The  Commission  also  facilitates  consumer  access  to  non-judicial  procedures  in 
online  cross-border  disputes  through  the  network  of  European  Consumer  Centres 
(ECC-Net) which connects consumers with 400 alternative dispute-resolution bodies 
in  the  EU19.  The  Commission  will  further  promote  these  mechanisms  through  the 
publication of a citizens' guide to the small claims procedure, the creation of an EU 
e-justice portal and further efforts to promote the ECC-Net. 

Simplify the VAT reporting obligations of distance sellers 

Currently, online traders must register for VAT in each and every country for which 
their  annual  sales  exceed  a  certain  threshold  with  the  added  complication  that 
thresholds and VAT rates vary from country to country.  

The  Commission  has  proposed  to  introduce  a  one-stop  scheme  for  non-established 
taxable persons to allow traders to fulfil certain VAT obligations, such as to register 
and  submit  VAT  declarations,  in  their  own  Member  State  and  to  simplify  the 
threshold  of 
distance  selling  arrangements  by  setting  a  single  EU-wide 
EUR 150 00020.  

In addition, distance sellers are currently required to always issue a full VAT invoice 
even when a domestic supplier selling the same goods to the same customer may not 
be  obliged  to  do  so.  The  Commission  has  proposed  to  introduce  a  "simplified 
invoice" for distance sellers under certain circumstances21. 

Both proposals would make it considerably easier for cross-border distance sellers to 
comply  with  their  VAT  obligations.  The  Commission  consequently  invites  the 
Council to give due priority to these proposals. 

Reduce online businesses' administrative burden concerning waste of electrical 
and electronic equipment 

Cross-border  sales  of  electronic  goods  (one  of  the  categories  of  goods  for  which 
there  is  the  most  demand  online)  are  subject  to  further  regulatory  barriers.  The 
current  lack  of  harmonisation  in  national  implementation  of  the  rules  on  waste  of 
electrical  and  electronic  equipment  (WEEE  Directive)  results  in  various  levels  of 

Regulation (EC) No 861/2007 establishing a European small claims procedure; Directive 2008/52/EC 
on certain aspects of mediation in civil and commercial matters. 
See http://ec.europa.eu/consumers/redress_cons/index_en.htm 
Proposal  for  a  Council  Directive  amending  Directive  77/388/EEC  with  a  view  to  simplifying  value 
added tax obligations - COM(2004) 728. 
Proposal amending Directive 2006/112/EC on the common system of the value added tax as regards the 
rules on invoicing - COM(2009) 21. 

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fees  and  thresholds  for  the  registration  and  reporting  of  electrical  and  electronic 
equipment by online retailers, which can be prohibitive for cross-border traders.  

In  its  recent  proposal,  the  Commission  has  taken  major  steps  to  harmonise 
implementation,  clarifying  certain  provisions  of  the  Directive,  including  its  scope. 
Article 16 proposes to harmonise registration and reporting by producers in the EU 
by  making  the  national  registers  for  producers  interoperable.  This  would  allow 
producers to register in one Member State reflecting their activities in the whole of 
the EU instead of registering in each Member State separately22. 

The Commission's proposal would significantly contribute to alleviating the practical 
issues  identified  under  the  current  scheme.  The  Commission  invites  the  European 
Parliament and the Council to give due priority to this proposal. 

Practical solutions to the management of copyright levies 

Stakeholders  at  national  and  European  level  have  been  negotiating  since  2006 
solutions  to  the  practical  issues  involved  in  the  cross-border  management  of 
copyright  levies  on  sales  of  blank  media  and  recording  devices.  At  present,  cross-
border traders may end up paying and reporting copyright levies in several countries 
for the same goods. 

A  majority  of  stakeholders  agree  that  the  current  system  of  reporting,  paying  and 
refunding  the  levies  is  an  impediment  to  cross-border  e-commerce.  As  yet  no 
agreement  has  been  reached  on  practical  solutions  that  would  make  the  existing 
national  levy  systems  more  workable.  Stakeholders  should  redouble  their  efforts  to 
seek solutions quickly in order to enable companies to streamline their cross-border 
logistics. 

In  the  context  of  vertical  restraints,  contribute  to  reducing  barriers  to  online 
sales 

Competition  rules  on  vertical  restraints  have  largely  contributed  to the  removal 
of undue restrictions on e-commerce in distribution  agreements  by  prohibiting  anti-
competitive  restrictions  to  cross-border  internet  marketing  and  sales.23  The  current 
Block  Exemption  Regulation  will  expire  on  31  May  2010.  The  Commission  is 
currently  examining  the  way  this  Regulation  has  been  applied  so  far  in  order  to 
clarify  and  simplify  these  rules.  The  Commission  is  also  reflecting  on  how  the 
ongoing  review  can  contribute  to  reducing  barriers  to  sales  over  the  internet  and 
create efficiencies that enhance consumer welfare24. 

For  exclusive  distribution,  the  ongoing  review  will  elaborate  further  on  the  criteria 
used for distinguishing between active and passive sales with the aim of identifying 
the  most  common  practices  to  be  considered  as  restrictions  on  passive  sales  which 
are  likely  to  infringe  the  competition  rules.  For  instance,  presumed  illegal  conduct 
could include practices such as requiring an exclusive distributor to put on its website 
some  automatic  rerouting  of  customers  to  the  manufacturer's  website  or  other 

Proposal  recast  Directive  2002/96/EC  on  waste  electrical  and  electronic  equipment  (WEEE)  - 
COM(2008) 810. 
Commission Regulation (EC) No 2790/1999 of 22 December 1999 on the application of Article 81(3) 
of  the  Treaty  to  categories  of  vertical  agreements  and  concerted  practices  (Block  Exemption 
Regulation); Commission Notice (2000/C 291/01) Guidelines on Vertical Restraints. 
See  'Online  Commerce  Roundtable:  Opportunities  and  Barriers  to  Online  Retailing'  accessible  at: 
http://ec.europa.eu/competition/consultations/2009_online_commerce/roundtable_report_en.pdf  

37. 

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42. 

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exclusive distributors' websites. Another example would be terminating a consumer's 
transaction process over the internet once their credit card data reveal an address not 
within the targeted exclusive territory. 

For selective distribution, the current review will explore whether or not the criteria 
used  to  select  dealers  (such  as  the  requirement  for  the  dealer  to  have  a  brick  and 
mortar  shop)  can  be  justified  on  grounds  of  consumer  welfare  and  unduly  limit 
online and cross-border transactions. The vertical review will also explore whether or 
not within selective distribution networks manufacturers dissuade appointed dealers 
from use of the internet.  

Online  distribution  will  be  one  of  the  main  areas  of  the  ongoing  review  of 
competition rules on vertical restraints. In this regard, the Commission will examine 
closely whether the existing rules need to be adapted to further enable cross-border e-
commerce. 

Improving payment systems and logistics and tackling technical barriers 

Payment  systems  have  also  been  the  focus  of  EU  action  aimed  at  increasing 
interoperability  and  creating  a  seamless  cross-border  market,  either  through 
legislation (Directive on payment services) or by supporting industry-led initiatives 
(the  Single  Euro  Payments  Area).25  However,  for  consumers  and  traders  (in 
particular SMEs), making and receiving payments cross-border online throughout the 
EU still remains a challenge and a major deterrent to cross-border trade.  

The reform of the postal sector was given renewed impetus with the adoption of the 
third Postal Directive in 2008 committing the Member States to full opening of their 
postal markets. With full market opening, an internal market will be established and 
postal  operators  should  be  able  to  set  up  subsidiaries  in  other  Member  States  and 
deliver  items  through  their  own  network,  or  should  have  more  choice  over  which 
postal operator to use in other Member States with respect to intra-community mail. 
Consumers  and  traders  will  benefit  from  the  resulting  improved  cross-border 
logistics.26 

47. 

The Commission will also continue to ensure that unjustified obstacles to the trade of 
goods in the internal market are eliminated and new ones are not created. 

COMPLEMENTARY  ACTIONS  TO  ELIMINATE  NON  REGULATORY  BARRIERS  TO 
CROSS-BORDER E-COMMERCE 

Work with industry to promote a pan European online retail market 

Consumers'  perceptions  of  online  opportunities  are  partially  the  result  of  business 
models  that  have  hitherto  regarded  the  online  internal  market  as  a  juxtaposition  of 
national markets.  

The  Commission  calls  on  major  search  engines  and  online  players  to  enhance 
consumers' awareness of cross-border opportunities. Online businesses should adopt 
domain names ending in .eu, the single top-level domain for Europe, in an effort to 
abolish national perceptions based on country domain names. Furthermore, because 
any  firm  registering  in  the  .eu  domain  has  to  comply  with  European  rules,  looking 

Directive 2007/64/EC on payment services in the internal market 
Directive  97/67/EC  (amended  by  Directive  2002/39/EC,  and  Directive  2008/6/EC)  the  "Postal 
Directive" 

48. 

49. 

25 
26 

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50. 

51. 

52. 

out  for  .eu  gives  some  form  of  basic  protection  to  consumers  and  European  firms 
with high standards could differentiate themselves by adopting .eu . Traders should 
create multi-country or pan-EU websites.  

While  finding  cross-border  offers  on  the  internet  is  possible,  it  requires  more  time 
and effort than finding domestic offers that are targeted at a national audience. Major 
search  engines  and  price  comparison  websites  should  more  systematically  offer 
search  rankings  or  price  comparisons  that  present  both  cross-border  and  domestic 
offers and be available in more than one language.27 Experience in the aviation sector 
has  shown  that  multilingual  transparent  websites  are  the  best  way  to  push  cross-
border  online  transactions.28  The  Commission  will  continue  to  discuss  with  market 
operators how they can facilitate cross-border e-commerce. 

Information for consumers and traders 

Informed  consumers  who  know  their  rights  and  are  able  to  recognise  and  report 
infringements  are  more  likely  to  reap  the  benefits  of  cross-border  online  shopping. 
To this end, the Commission will expand and update the "eYouGuide to your Rights 
Online"  published  in  May  200929  and  will  continue  to  support  the  network  of 
European  Consumer  Centers,  who  provides  information  and  advice  to  cross-border 
shoppers.  The  Enterprise  Europe  Network  will  be  used  to  inform  traders  of  their 
obligations and opportunities. 

Strengthen market monitoring 

As part of the Commission's intention to better monitor the retail side of the internal 
market, continued monitoring of cross-border e-commerce will also be necessary to 
ensure that policymakers, enforcers and citizens are aware of market developments. 
In addition to existing surveys from Eurostat, the Commission will continue to work 
with the European Central Bank and major credit card companies – in full respect of 
the  privacy  and  data  protection  legislation  –  to  develop  cross-border  sales  statistics 
based on credit card transactions. 

CONCLUSION 

53. 

This Communication sets out the foundation for a strategy for making cross-border 
e-commerce  work  better.  Achieving  this  goal  would  benefit  consumers,  businesses 
and  the  competitiveness  of  the  EU  economy.  Progress  on  all  these  points  will 
continue to be monitored closely through the Consumer Market Scoreboard.  

27 

28 

29 

As  recommended  by  the  Commission  Communication  COM(2008)566  "Multilingualism:  an  asset  for 
Europe and a shared commitment". 
Notably  since  the  adoption  of  Regulation  (EC)  No  1008/2008  of  the  European  Parliament  and  of  the 
Council  of  24  September  2008  establishing  common  rules  for  the  operation  of  air  services  in  the 
Community (Recast) 
See http://ec.europa.eu/information_society/eyouguide/navigation/index_en.htm  

EN 

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