COMMISSION STAFF WORKING DOCUMENT PUBLIC CONSULTATION ON "RETAIL REGULATIONS IN A MULTI-CHANNEL ENVIRONMENT" SYNOPSIS REPORT Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on a European retail sector fit for the 21st century
Date: 2018-04-19
Institutions: Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, European Commission
Subjects: administrative formalities, competitiveness, electronic commerce, establishment, retail selling, retail trade, single market, small and medium-sized enterprises, supply, trade regulations

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 19.4.2018 SWD(2018) 237 final  COMMISSION STAFF WORKING DOCUMENT PUBLIC CONSULTATION ON "RETAIL REGULATIONS IN A MULTI-CHANNEL ENVIRONMENT" SYNOPSIS REPORT Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS  on a European retail sector fit for the 21st century {COM(2018) 219 final} - {SWD(2018) 236 final}  
 
 
Table of Contents 
1 

Introduction ..................................................................................................................................... 3 

2  Results of the Consultation ............................................................................................................. 3 

3 

Status of respondents ...................................................................................................................... 3 

4  Analysis of responses ...................................................................................................................... 5 

4.1 

4.2 

4.3 

The changing retail landscape: adapting to a multi-channel environment .............................. 5 

Facilitating retail establishment in the EU .............................................................................. 6 

Requirements for the day-to-day operation of retail shops ..................................................... 8 

4.3.1 

Shop opening hours ......................................................................................................... 8 

4.3.2 

Sales promotions and discounts ...................................................................................... 9 

4.3.3 

Specific distribution channels ......................................................................................... 9 

4.3.4 

Sourcing ........................................................................................................................ 10 

4.3.5 

Territorial supply constraints (TSCs) ............................................................................ 10 

4.3.6 

Retail-specific taxes ...................................................................................................... 11 

4.3.7 

Compliance burden ....................................................................................................... 12 

5  Results of other consultation activities ......................................................................................... 13 

5.1  Workshops and studies .......................................................................................................... 13 

5.2 

Consultation of Member States ............................................................................................. 14 

6  Conclusions ................................................................................................................................... 14 

1 

 
 
 
 
 
 
 
1 

Introduction  

This report documents consultation activities carried out in preparation of the retail action announced 
in the Single Market Strategy1. 

The Commission organised four workshops and commissioned two studies on retail establishment and 
operational restrictions2. In parallel,  Member States  were closely associated to the preparation  work 
through the Expert Group on the Services Directive3.  

On  17 July 2017, the Commission launched  a consultation on 'Retail regulations in a multi-channel 
environment' to gather further input from stakeholders on best practices in the retail sector, as planned 
in the Single Market Strategy. This consultation aimed to collect further information in particular on: 
(i) the implications of the growth of e-commerce and of changing consumer habits for the retail sector 
and its regulatory framework; and (ii) opportunities  and obstacles to the integration of the EU retail 
market.  

2  Results of the Consultation 

The  consultation  was  publicly  available  through  the  EUSurvey  tool,  and  was  open  for  12  weeks4. 
Stakeholders were informed about the consultation and were encouraged to respond. The consultation 
was  composed  of  four  sections  on:  i.  the  changing  retail  landscape:  adapting  to  a  multi-channel 
environment; ii. facilitating retail establishment in the EU; iii. requirements for the daily operations of 
retail shops; iv. the issue of compliance or administrative burden on businesses. 
The consultation was published in all official EU languages and the respondents could reply in their 
own language.  

It should be noted that many respondents indicated that their contribution can be published provided 
that their organisation remain anonymous. On this basis, these organisations are referred as 'other' in 
footnotes.  

3 

Status of respondents  

The  consultation  was  concluded  on  8  October  2017  and  received  99  responses  in  total.  The 
respondents have activities or are established in 20 Member States. Retail companies accounted for 32 
respondents. 19 of them were large retailers (more than 250 employees); 1 medium-sized retailer (up 
to  250  employees),  5  small  retailers  (up  to  50  employees),  7  micro-seized  retailers  (up  to  10 
employees) and 3 retailers classify themselves as self-employed. 14 have an establishment in Member 
States  other  than  the  place  where  their  main  headquarters  are  located,  and  12  sell  products  cross-

1  Communication  from  the  Commission  –  Upgrading  the  Single  Market:  more  opportunities  for  people  and  business  – 
COM(2015) 550 final of 28.10.2015 
2 Legal study on retail establishment through the 28 Member States,  http://ec.europa.eu/DocsRoom/documents/16127 
The study on operational restrictions is being finalised 
3 Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal 
market, OJ L 376/36 (hereinafter "Services Directive"). 
4 https://ec.europa.eu/info/consultations/public-consultation-retail-regulations-multi-channel-environment_en. 

2 

 
 
 
 
 
 
 
                                                            
border. Ten are active in selling both food and non-food, 2 in food only, 9 in non-food products, and 
14 classified themselves as specialised retailers (e.g. in furniture, pharmaceuticals, etc.). 

The figures below illustrate the diversity of the respondents to this consultation.  

Responses according to sector - Figure 1                                             

Place of establishment -Figure 2  

3 

 
 
 
 
 
Certain questions were addressed at and limited to particular types of respondents. 

Responses  to  the  consultation  were  voluntary  and  represent  only  the  views  of  the  respondents. 
Consequently, they cannot be interpreted as statistically representative of the EU as a whole.  

4  Analysis of responses 

4.1  The changing retail landscape: adapting to a multi-channel environment 

All respondents were asked about the impacts of e-commerce. Retailers, retailers' associations, other 
business  organisations,  trade  unions  and  consumers  confirmed  that  the  sector  is  undergoing  a 
substantive change due to e-commerce and consumers' evolving expectations. Respondents welcome 
positively this change.  

They  stress  that  e-commerce  is  dramatically  changing  consumer's  shopping  habits.  The  most 
important  change  is  that  consumers  can  shop  at  any  time  and  from  anywhere.5  E-commerce  brings 
greater  transparency  on  prices,  products  and  promotions.6  Quick  deliveries  directly  at  home  are 
convenient7.  E-commerce  also  increases  cross-border  trade  with  consumers  ordering  from  websites 

5  As highlighted inter alia by UNI Europa and LBC NVK. 
6  Supported by Prof. Doris Hildebrand and the European Healthcare Distribution Association.  
7  Opinion of individual consumers and retailers. 

4 

 
 
 
 
 
 
                                                            
located  in  other  Member  States.  They  also  stress  that  the  frontiers  between  pure  e-commerce  and 
brick-and-mortar stores are blurring, creating a 'multi-channel' environment.8  

Some replies indicate that offline retailers, particularly small retailers are facing difficulties to adapt to 
the  digital  age  developments.  Trade  unions  and  chambers  of  labour  express  concerns  about  the 
consequences of the growth of e-commerce for workers.9  

Retailers and retailers' associations were asked about the need to review the regulatory frameworks 
due  to  the  growth  of  e-commerce.  Their  replies  indicate  that  brick-and-mortar  retail  is  currently 
subject to more restrictions than e-commerce.10 Large retail associations emphasize that since many 
retailers sell both on-line and off-line, it is important to ensure a level playing field for e-commerce 
and  brick-and-mortar  retail.11  Furthermore,  they  underline  that  regulatory  frameworks  should  be 
future-proof and flexible to allow retailers to swiftly adapt to a changing reality.  

In their replies, retailers and retailers' associations refer to a broad range of areas.  

Some are out of the scope of the open public consultation: taxes, in particular differences in taxation 
in  the  Member  States  and  in  VAT  regimes  as  well  as  to  the  issue  of  tax  avoidance,  geoblocking, 
consumer rules, platforms rules, competition  law, product  safety, liability of products,  labelling  and 
packaging  regulations,  data  issues/privacy  and  labour  law,  access  to  data,  unfair  competition.12 
Problems  of  competition  and  of  consumer  protection  when  it  comes  to  products  purchased  in  third 
countries were also raised.13 

As regards issues covered by the open public consultation, retailers and retailers' associations mention 
shop opening hours and urban planning. 14 They suggested that rules on shop opening hours should be 
modernised  for  brick  and  mortar  retailers  to  keep  up  with  competition  of  on-line  retailers.  They 
consider that the urban planning rules should take into consideration the e-commerce dimension and 
the changing consumer shopping preferences.. 

Replies also stress that e-commerce creates opportunities. Large retailers indicate that e-commerce 
increases sales volumes, helps them enter new markets and be exposed to more/new customers, makes 
it easier to grow cross-border, and boosts competition and innovation. Retailer's associations highlight 
that SMEs are able to grow their business more easily. In that respect, the positive role of platforms is 
emphasised.   

Six public authorities replied to the question on whether the growing of e-commerce played a role in 
recent reviews of relevant regulatory frameworks. They replied positively but actually referring to the 

8  Besides retailers, this appears to be a strong opinion among trade unions; supported by UNI Europa. 
9 Concerns raised by LBC NVK and UNI Europa. 
10, EuroCommerce, Walgreens Boots Alliance and International Council of Shopping Centres and others.  
11 Direct Selling Europe, Walgreens Boots Alliance, EuroCommerce and Independent Retail Europe and others. 
12 Specifically, Ahold Delhaize, Direct Selling Europe, Dansk Erhverv and others.  
13 Detailhandel- NL 
14 Direct Selling Europe, SPAR Austria, Swedish Trade Federation, Walgreens Boots Alliance, EuroCommerce, Independent 
Retail Europe, IKEA Group. 

5 

 
 
 
 
 
 
 
 
 
                                                            
Commission initiatives and not to national legislations. Two respondents refer to national legislative 
changes (but no further details are provided). 

4.2  Facilitating retail establishment in the EU 

This section deals with conditions for retail establishment as well as retail establishment procedures. 
The related questions were asked to retailers, retailers associations and public authorities.  

The regulatory conditions for establishment often relate to the size of a retail outlet in combination 
with requirements about the envisaged location in relation to the city centre or products being sold.  

When asked about the conditions for retail establishment which create the most important barriers to 
market  entry,  over  half  of  the  retailers,  retailer  associations  mention  at  least  one  of  the  following 
concerns:  

(i) protectionism and discrimination against innovative business models not commonly found in  the 
country;  
(ii) imposed location for new retail outlets;   
(iii) difficulties to distinguish between protection of city centres and protection of incumbent retailers; 
(iv) product-related conditions; 
(v) lack of legal certainty. 

Majority of respondents representing the retail sector called the Commission and Member States to 
improve conditions for retail establishment.15   

They ask the Commission to:  

ensure full enforcement of the Services Directive through infringement procedures;  

 
  provide guidance on the compatibility of measures used to regulate retail establishment with 

the Services Directive;  
ensure a swift adoption of the Commission's proposal on services notifications16. 

 

They ask the Member States for: 

a better/closer association or involvement of retailers in the development of local plans;   

 
  one set of rules applying throughout a Member State;  
  guidance to be provided to local authorities; 
  greater attention for the effects of online retail on brick-and-mortar shops; 
  more flexibility in rental regulations to allow temporary establishment (e.g. pop up stores). 

15  Inter alia, Direct Selling Europe, SPAR Europe, Ahold Delhaize, International Council of Shopping Centres, Independent 
Retail Europe, IKEA Group and others.  
16  Proposal  for  a  directive  laying  down  a  notification  procedure  for  authorisation  schemes  and  requirements  related  to 
services -  COM (2016) 821 final – 2016/0398 COD. 

6 

 
 
 
 
 
 
 
 
 
 
 
 
                                                            
Retail  establishment  procedures  encompass  e.g.  obtaining  the  necessary  permits,  contacting 
relevant public entities, the length of procedures and the transparency of information and decisions.  

Retailers and retailers' associations were asked about simplification of establishment procedures. Half 
of them indicate that retail establishment procedures are too long, too complex and that there is too 
much  uncertainty.17  One  respondent  also  underlined  that  competitors  often  use  appeals  to  unduly 
delay establishment.18  

Regarding  retail  establishment  procedures,  most  retailers  and  retailer  associations  call  on  Member 
States to:  

introduce short deadlines and sanctions if the deadlines are not met; 
introduce tacit approval when permits/opinions are required from different entities; 
limit the number of impact assessments required, reduce the number of permits required; 

  provide more clarity and predictability;  
 
 
 
  provide justifications when the application is rejected; 
 
  put in place shorter procedures for limited changes or extensions; 
  develop a test for appeals from competitors (to avoid abusive appeals); 
 

introduce phased application procedures to avoid unnecessary costs and work.     

simplify the procedure for SMEs; 

All stakeholders were asked in which aspects online procedures could help to increase transparency 
in  establishment  procedures.  The  vast  majority  are  largely  in  favour  of  using  them  better  and  more 
often,  as  they  improve  accessibility  and  transparency:  easier  access  to  the  relevant  documents,  to 
information (such as decisions whether positive or negative), to the status of individual applications, 
or  online  publishing  of  decisions.19  Retailer  associations  indicate  that  online  submission  of 
applications would be particularly important for SMEs. Two retailers' associations insist on the need 
to  allow  for  direct  contact  with  the  authority  in  charge,  in  addition  to  the  online  procedures20.  One 
retailer  and  one  trade  federation  call  for  the  European  Single  Digital  Gateway  to  list  national  and 
regional establishment procedures.  

Public  authorities  were  asked  the  question  on  availability  of  information  online.  Eight  responded 
explaining that they make a lot of relevant information available, in particular rules on the planning 
and construction processes. 

4.3  Requirements for the day-to-day operation of retail shops 

4.3.1  Shop opening hours 

Many  Member  States  apply  rules  regulating  shop  opening  hours  on  weekdays,  Saturdays,  Sundays 
and public holidays. 

17 Supported by International Council of Shopping Centres and others. 
18 International Council of Shopping Centres. 
19 Independent Retail Europe; Trade Unions such as UNI Europe; also retailers and consumers formulated the same opinion. 
20 International Council of Shopping Centres and others. 

7 

 
 
 
 
 
 
 
 
                                                            
All stakeholders were asked what measures on shop opening hours, if any, could be helpful to support 
retailers  and  employees,  to  keep  up  with  e-commerce.  The  specific  situation  of  small  retailers  was 
referred to. Responses from retailers differ between large and medium retailers on the one hand, and 
small retailers on the other. 

Large and medium retailers favour additional flexibility in shop opening hours, or comment positively 
on  Member  States  which  have  taken  flexible  approaches  in  regulating  shop  opening  hours.21  They 
emphasize that a flexible approach help create a level playing field with online retailers and platforms, 
and help increase the management of customer flows and stock. 

By  contrast,  small  retailers  and  trade  unions  are  critical  of  more  flexible  shop  opening  hours.  They 
state  that  small  retailers  do  not  necessarily  have  the  capacity  to  have  staff  available  throughout  the 
opening hours allowed by current regulations.22 They consider that ahead of reforming shop opening 
hours, authorities should carry out an impact assessment to evaluate the costs and benefits for workers 
and the society as a whole. A respondent warned of the negative consequences of the liberalisation of 
shop opening hours on the diversity of retail.23  

Consumers show mixed feelings. Some state that taking the small retailers' interests into consideration 
would  not  benefit  consumers,  while  other  consumers  believe  that  respecting  and  safeguarding  the 
interests of small retailers is quite important. 

4.3.2  Sales promotions and discounts 

The  focus  is  on  national  regulations  limiting  retailers'  freedom  to  decide  on  and  to  advertise  or 
announce  end-of-season  sales,  discounts,  end-of-business  sales  and  sales  below  cost  (excluding 
competition rules). 

Authorities  were  asked  whether  they  consider  or  had  considered  the  impact  of  e-commerce  when 
regulating sales promotions and discounts. Four out of eight of them replied positively while the rest 
did not provide a relevant response.24  

A  question  whether  sales  promotions  and  discounts  influence  shopping  decisions  was  asked  to  all 
respondents.  Consumers,  retailers,  associations  and  other  business  organisations  confirmed  that  e-
commerce  allows  consumers  to  easily  find  more  information,  a  wider  choice,  the  best  offers  and 
lowest  prices  for  a  multitude  of  products  by  relying  on  convenient  search  tools.  As  a  result,  price 
transparency  and  competition  between  and  within  both  online  and  offline  retail  has  tremendously 
increased.  Furthermore,  business  organisations  and  retail  associations  note  that  consumers  are  more 
and more inclined to look for the most favourable offer beyond their own national markets.  

21 For instance IKEA Group, Walgreens Boots Alliance and others. 
22 Indicatively UNI Europa and LBC NVK. 
23 See Confcommercio.  
24  BM  für  Wissenschaft,  Forschung  und  Wirtschaft;  akkordierte  Position  Österreichs  (Austria);  Utrikesdepartementet 
(Sweden); and 2 other public authorities. 

8 

 
 
 
 
 
 
 
 
 
                                                            
Several responses25 by large retailers and retailers' associations explicitly state therefore that national 
rules  on  sales  promotions  and  discounts  have  become  less  relevant  for  consumers.26  They  say  that 
national  restrictions  on  sales  promotions  and  discounts  seem  to  mainly  distort  the  balance  between 
offline and online retail.  

For these respondents, national regulatory frameworks must be designed in a way to allow retailers to 
determine their own pricing policy for their target markets and consumers. They are of the view that a 
modern  retail  environment  needs  more  flexible  and  dynamic  rules  to  support  retailers,  especially 
when they are active cross-border or are considering this step27.  

4.3.3  Specific distribution channels 

Most  Member  States  control  the  sales  of  specific  products,  namely  alcohol,  tobacco  and  non-
prescription  medicines.  This  can  be  done  through  reserving  sales  to  approved  outlets,  through  an 
authorisation or licensing system or through other means. 

The  responses  of  retailers  (including  pharmacies),  retail  associations,  chambers  of  commerce  and 
individual consumers28 focus on restrictions on distribution channels for non-prescription medicines. 
Retailers and retail and business associations have different views than pharmacists. 

Pharmacists  and  pharmacists'  associations  from  various  Member  States  state  that  for  public  health 
reasons29, non-prescription medicines should only be sold in pharmacies. The Portuguese association 
of  pharmacies  indicate  that  the  reform  in  Portugal  did  not  produce  the  expected  positive  economic 
effects.  30  In  addition,  pharmacists  and  pharmacists'  associations  warn  about  the  online  sale  of  non-
prescription  medicines  pointing  to  issue  of  transportation  and  the  higher  risk  of  counterfeit/non-
compliant products. 

On  the  other  side,  large  retailers  and  retailers'  associations31  indicate  that  selling  non-prescription 
medicines  outside  pharmacies  would  not  create  any  public  health  risks  and,  would  have  positive 
impact on prices and accessibility. They indicate that specific rules could apply such as  selling in a 
dedicated area and/or under the supervision of a qualified person. Retail SMEs and their association32 
seem however to be reluctant about selling non-prescription medicines outside pharmacies for public 
health and safety reasons.  

Six consumers and consumer associations replied providing mixed views on this topic. 

25 International Council of Shopping Centres, Detailhandel, and others. 
26 EuroCommerce, Swedish Trade Federation, Detailhandel Nederland and Ahold Delhaize. 
27 Handelsveraband Deutschland (HDE) and others. 
28 4 citizens, as well as 2 associations. 
29  Need  for  the  consumers  to  get  proper  advice,  requirements  relating  to  transport  and  storage,  higher  risks  of 
counterfeit/non-compliant products.  
30  The  Portuguese  association  of  pharmacies  points  to  inequalities  of  access  and  prices,  increase  of  average  price, 
concentration of the market. 
31 For example, Ahold Delhaize, Detailhandel, Finnish Commerce Federation and others. 
32 Independent Retail Europe. 

9 

 
 
 
 
 
 
 
 
 
                                                            
4.3.4  Sourcing  

Restrictions on sourcing refer to regulations which limit, directly or indirectly, retailers' possibilities 
for buy products from anywhere in the EU.   

The  relevant  question  was  addressed  only  to  retailers  and  retail  associations.  Half  of  the  15 
respondents who replied claim that they had encountered regulations concerning sourcing of products.  

They mention  various national  regulations  - either adopted or under discussion - which deliberately 
restrict sourcing. This includes the obligation to source a share of certain products from the national 
market, or to notify authorities when sourcing products from other Member States, including products 
already  sold  in  that  Member  State.  Mandatory  support  or  promotion  of  national  supply  chains  and 
domestic products are also mentioned.33  

4.3.5  Territorial supply constraints (TSCs) 

Territorial supply constraints are barriers set by private parties that can limit retailers' possibilities to 
buy products from whom and from where they wish and e.g. by referring them to a specific national 
subsidiary.  

The  relevant  question  was  addressed  only  to  retailers  and  retail  associations.  Half  of  the  15 
respondents claim that they had encountered or are aware such obstacles. The majority of those who 
had  encountered  TSCs  state  that  such  practices  have  negative  consequences  on  their  business.  The 
issue appears to arise across a wide variety of products, predominantly branded products,  regarding 
groceries, fast moving consumer goods or medicines.  

Retailers and retail associations complain that TSCs deprive them from taking full advantages of the 
opportunities of the Single Market and undermine their ability to compete, because they cannot source 
the same products under similar conditions as their competitors established in other Member States..34 
This is fortified by impeding the positive effects that economies of scale for sourcing might offer and 
by reducing the attractiveness of cross-border activities. Two retail associations state that attempts to 
purchase products cross-border, e.g. via parallel imports, have given rise to commercial retaliation by 
individual manufacturers.35 The issue of dual quality food has also been raised by some respondents.36  

One  main  consequence  generally  mentioned  is  that  consumer  prices  are  higher  and  in  some  cases 
significantly  higher,  due  to  higher  purchasing  prices  depending  on  the  respective  market. 
Furthermore, respondents indicate that an artificial division of where to source products from, in the 
Single Market, leads to a reduction of the overall range of products offered on a given market.  

Chambers of labour have also confirmed the existence of TSCs and of their consequences on prices 
(large price differences for identical products in different Member States).  

33 Supported by retail associations (inter alia EuroCommerce, HDE). 
34 Particularly, SPAR Austria and Ahold Delhaize. 
35 Illustrated by EuroCommerce. 
36 SPAR, Ahold Delhaize and others. 

10 

 
 
 
 
 
 
 
 
 
 
                                                            
Some  respondents,  representing  the  retail  sector  or  retail  associations,  indicated  that  exclusive 
distribution  systems  in  line  with  competition  law  can  contribute  to  the  proper  functioning  of 
distribution  networks.  They  emphasised  that  the  contractual  freedom  of  manufacturers  and 
wholesalers should be respected. 

4.3.6  Retail-specific taxes 

This section relate to retail-specific taxes - exclusively levied on retailers. VAT and taxes on products, 
such  as  alcohol,  tobacco,  energy  and  sugary  products  are  excluded  from  the  scope  of  the  public 
consultation. 

Retail  associations  and  retailers  were  asked  whether  retail-specific  taxes  apply  in  Member  States 
where they are present and, if yes, whether different taxation schemes are applied to offline and online 
retail.  

Retailers and retail associations37 mention retail specific taxes based on selling space, pointing to the 
fact that online retail is excluded. Most retailers and retail associations that replied mention that even 
if non-retail specific, property taxes linked to real estate and surface areas or based on the number of 
sales  points,  as  well  as  product-specific  taxes  and  advertising  taxes  fall  more  heavily  on  offline 
retailers. 

To a similar question addressed at Member States, 4 of them replied indicating that no retail specific 
taxes apply on their territory. 

Retailers and retail associations were also asked what impact retail-specific taxes have on their cross-
border activities. 16 of them indicated that taxes impact their decisions on market entry, investment, 
costs, profitability, as well as on the competition in the Single Market.  

All  stakeholders  were  asked  what  could  be  done  to  ensure  that  national  regulatory  frameworks 
provide  for  equal  treatment  between  online  and  offline  retail.  Four  respondents  active  in  the  retail 
sector and 4 business associations indicate that the current VAT regime should be modernised in the 
e-commerce sector in particular to avoid fraud.  

Regarding  possible  improvements,  most  of  retailers  and  retail  associations  (27),  as  well  as  9  other 
business organisations indicate that:  

 

there is a need for consistency in tax regimes for online and offline retail. Given that the retail 
sector  considers  that  its  future  will  combine  online  and  offline  sales,  any  tax  that 
disproportionately affects either of the channels should be reviewed, if not abolished; 
retailers should be taxed in the country where the service or product is purchased; 

 
  online  retailers  also  need  to  be  taxed  for  their  impact  on,  inter  alia,  local  services  or 

infrastructure.  

37 FCD, EuroCommerce, Independent Retail Europe, IKEA Group, and others. 

11 

 
 
 
 
 
 
 
 
 
 
 
                                                            
4.3.7  Compliance burden  

The  open  public  consultation  asked  all  stakeholders  about  possible  specific  features  of  retail 
regulatory frameworks that mostly affect the compliance burden of retailers.  

From  31  retailers  that  responded,  17  did  not  have  an  opinion.  From  20  retail  associations  that 
responded,  5  did  not  provide  their  opinion.  Among  those  who  expressed  their  views,  most  large 
retailers  and  retail  associations  mentioned  that  relevant  EU  legislation  and  differences  in  its 
implementation at national level, as well as specific local measures, affect the compliance burden of 
retailers38.  

The  main  sources of compliance burden mentioned by retailers include different tax  legislations (in 
particular VAT) across the EU, unfair trading practices laws in certain countries that oblige retailers 
to adapt their sourcing models and the way they handle their supply chain, disproportionate sanctions 
applied for minor violations (e.g. expiry of 'best-before dates') and the diverging implementations of 
the  WEEE  Directive39,  which  create  complex  administrative  and  legal  barriers  for  retailers. 
Disadvantages  for  offline  retailers  are  also  stressed  by  several  respondents  (retail  associations),  as 
well as the need not to discourage online retailers by putting too large a burden on them. 

10  business  associations  replied,  mentioning  the  following  rules  as  generating  compliance  burden: 
opening hours rules, labour law, labelling rules, differentiated tax regimes, advertising law, frequent 
controls and market surveillance tasks. Two trade unions see no compliance burden. 

Other regulations mentioned by the majority of retailers and retail associations as having an effect on 
the  compliance  burden  are  data  protection  regulations,  environmental  taxes,  consumer  rights 
regulations,  packaging  taxes/fees,  restrictions  on  sales  periods.  One  large  retailer  mentioned  the 
burden  of  audit  caused  by  legislation  on  the  duty  of  care  of  parent  companies.  Long  and  costly 
procedures are also mentioned several times. Three retailers and two retail associations stress that the 
burden is particularly problematic if it affects more heavily SMEs.  

Public authorities were asked about difficulties in the enforcement of existing regulations on offline 
and  online  retail.  In  terms  of  enforcement,  three  public  authorities  emphasized  that  the  main 
difficulties were due to online retailers being registered in third countries.40  

5  Results of other consultation activities 

5.1  Workshops and studies 

The Commission has engaged in discussions with the stakeholders directly concerned by this action, 
including retailers, retail associations, representatives of civil society and Member States. 

38 Indicatively, IKEA Group. 
39 Directive 2012/19/EU of 14.07.2012 on waste electrical and electronic equipment (WEEE)  
40 BM für Wissenschaft, Forschung und Wirtschaft; akkordierte Position Österreichs (Austria) and another public authority; 
corresponding to 25% of the responses. 

12 

 
 
 
 
 
 
 
 
 
 
                                                            
Stakeholders  have  been  consulted  on  a  number  of  occasions,  both  in  ad  hoc  meetings  and  in  the 
context of dedicated workshops.  

The  Commission  hosted  two  workshops  on  retail  establishment  on  8  July  2014  (only  with 
stakeholders) and 3 December 2014 (gathering stakeholders and Member States).  

The  July  workshop    gave  stakeholders  the  opportunity  to  mention  the  issues  on  which  they  would 
welcome best practices: simplification of procedures including by reducing delays and costs, adopting 
all-in-one  permits41,  reducing  abusive  appeals  against  establishment  decisions.  Participants  also 
highlighted  the  impact  of  e-commerce  on  brick  and  mortar  retail,  and  the  issue  of  vacant  shops, 
indicating that public authorities need to take this into account.  

The workshop of December focused on discussing the results of a study on retail establishment in the 
28  Member  States42  commissioned  by  the  Commission.  Participants  welcomed  in  particular  the 
section on the economic impact of establishment restrictions.  

The Commission also organised two workshops with a particular emphasis on operational restrictions 
on 8 July 2016 (stakeholders only) and 3 May 2017 (gathering stakeholders and Member States).  

In  July,  the  participants  highlighted  that  retail  regulations  should  be  non-protectionist,  not 
discriminate between specific groups (i.e. by size or home country), reasonable to achieve legitimate 
goasl, not applied in a disproportionate way and should not prevent retailers from offering consumers 
the  products  and  services  they  expect.  The  growing  importance  of  e-commerce  and  the  way  this 
changes consumers shopping habits (which ultimately also impacts the way brick-and-mortar retailers 
do business) was stressed by participants. 

In  May  2017  the  discussions  focussed  on  two  points:  (i)  the  preliminary  results  of  a  study  on 
operational restrictions43, and (ii) how to assess the economic effects of retail restrictions. Regarding 
the  second  issue,  the  participants  stressed  the  importance  of  taking  into  account  the  costs  of 
compliance.  It  was  also  mentioned  that  particular  attention  should  be  paid  to  the  situation of  SMEs 
which face more difficulties in adapting to the digital age and greater compliance costs.  

5.2  Consultation of Member States 

Member  States  were  consulted  through  meetings  of  the  Services  Directive  Expert  Group.  Regular 
exchanges of views take place within this Group. 

More  specifically,  on  retail  establishment,  a  peer  review  on  national  regulations  was  carried  out  in 
2014  based  on  detailed  questionnaires.  Then  in  2017,  Member  States  were  asked  to  verify  and 
possibly update the information compiled. In June 2016, Member States were also asked to reply to a 
detailed questionnaire on operational restrictions.  

41 One permit encompassing all the different permits needed today.  
42 Legal study on retail establishment through the 28 Member States, http://ec.europa.eu/DocsRoom/documents/16127. 
43 Finalised and to be published at the same time as the Communication.  

13 

 
 
 
 
 
 
 
 
 
 
 
                                                            
6  Conclusions 

This consultation highlights the fact that national retail regulatory frameworks are not fit for a 'multi-
channel'  environment  where  retailers  need  to  be  able  to  develop a  coherent  strategy  for on-line  and 
off-line  sales.  It  also  confirms  the  need  for  all  restrictions  to  be  justified  and  proportionate  to  the 
public policy objectives pursued.  

The  Commission  will  use  the  results  of  the  consultations  to  identify  best  practices  for  regulatory 
frameworks that are fit for both online and offline retail and supportive of a more competitive retail 
sector as announced in the Single Market Strategy.  

14