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Spotlight on ...

IT’S TIME TO

PROTECT

MERCHANTS

Text: Alan Rhode, Co-Founder Taxmen

More and more, businesses are relying on online intermediation services to find new
customers and grow their revenues. This is, particularly, the case for small and medium-
sized enterprises (SMEs) who often generate the majority of their sales owing to large
marketplaces. Because of such a dependency, the risk is substantial for online sellers to
hold poor bargaining power against online intermediation services and to see their rights
compressed or violated.

n the Old Continent, the European Commis- This Regulation will bear a direct effect on all EU member
sion has often raised concerns about the po- states from 12 July 2020.
Itential abuse of dominant positions by online
intermediation services. Yet, the current EU anti- The Regulation will mostly concern online intermedia-
trust framework does not properly address the ever- tion services and online search engine services offered to
changing dynamics of the digital economy. business users and corporate website users that have their
place of establishment or residence in the Union and that
Thus, with the aim of better protecting the rights of online offer goods or services to consumers located in the EU, ir-
merchants, last year, the EU approved Regulation (EU) respective of the place of establishment or residence of the
2019/1150, which promotes fairness and transparency for providers of those services.
business users of online intermediation services.

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