EU Advocacy » ESBA's Key Results » Key Results 06/07 » Rome I
Rome I and e-Commerce
In 2007, ESBA engaged in an advocacy campaign on the Commission’s proposal for a Regulation on the law applicable to contractual obligations in civil and commercial matters (COM(2005) 650 final). Activities, listed below, were targeted at the Media and EU Policy Makers and include press releases, letter writing and face-to-face meetings. ESBA also explored alliances with other stakeholders and is a member of the ERA's E-business Group.
Rome I sought to determine if the laws of the country in which the supplier or the consumer is based, apply to contractual agreements. Whilst the previous rule (The Rome Convention) stated that the law in the consumer’s country of residence only applies under certain conditions, Rome I implied that this jurisdiction would be imposed in ALL contracts relating to e-commerce.
ESBA was concerned that the potential costs of compliance with the strict consumer country principle would act as a deterrent to SMEs to engage in cross-border e-commerce. SMEs would not be able to afford the fees necessary to understand consumer laws in every member state. The UK FSB, an ESBA Member, estimated these to be €15,000 per SME, per member state.
Beyond the vast financial burdens, ESBA also considered that 'Rome I' would limit European growth and jobs, the key targets of the Lisbon Strategy. According to the February Eurobarometer Survey, only 29% of retailers in the EU currently sell cross-border, using distance-selling methods. This statistic could only get worse if Article 5 of the proposed regulation is applied.
Both individuals and small businesses would have been disadvantaged as the proposal would force many SMEs to take price and product information offline. Article 5 of Rome I would hinder completion of the Single Market, to which e-commerce has made an important contribution, and the lack of a full Impact Assessment at EU level contradicted the Better Regulation Agenda.
On 08/12/07, the JHA Council welcomed a first reading agreement reached in the Parliament on Rome I. The text contained a series of amendments. It provides for businesses and consumers to choose the law applicable to the contract, so long as it does not deprive the consumer of the protection afforded to him by the law of the country where he has his habitual residence, when a business directs its activities to that country.
ESBA is relieved that, in light of significant opposition, the original Rome I proposal has been amended. Nevertheless, the Alliance remains concerned that no Impact Assessment was undertaken and reminds the European Institutions of their commitment to Better Regulation and to ‘think small first’. Rigorous application of these principles to all legislation will be to the advantage of both consumers and entrepreneurs across the Single Market.
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ESBA issues a Press Release on SME's concerns about Rome I | |
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ESBA underlines these fears in a new Bulletin Headline Story | |
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ESBA’s Letter on Rome I & the EU's Trade Vision is in the FT | |
| ESBA submits a letter to JURI MEPs prior to a Rome I Debate | |
| ESBA co-signs DIHK’s Rome I briefing and FAQs to JURI MEPs | |
| The UK FSB distributes a costings and case studies report | |
| The UK FSB gains much UK and EU Media Coverage (for eg) | |
| ESBA submits a letter to 4 Commissioners & the SME Envoy | |
| ESBA reports on a JURI debate in an Bulletin Headline Story | |
| ESBA co-signs the CBI’s Rome I Brief to JURI Committee MEPs | |
| The UK FSB co-hosts an EP Breakfast Debate on Rome I | |
| ESBA reports on the Debate in a new ESBA Bulletin Brief | |
| SENSE from Sweden launches a domestic lobby campaign | |
| ESBA sends a letter to the EP President & leading colleagues | |
| ESBA’s Letter asking MEPs for an IA is in the European Voice | |
| 04/07/07 | ESBA sends a letter to all MEPs asking for an IA on Rome I |
| 19/11/07 |
ESBA issues a new Press Release calling for an IA on Rome I |
| 19/11/07 | ESBA's Press Release is featured in full in EUbusiness.com |
| 20/11/07 | Euractiv.com leads with ESBA's concerns about Rome I |
| 26/11/07 |
ESBA underlines these fears in a new Bulletin Headline Story |
| 17/12/07 |
ESBA responds to the final text in a Bulletin Headline Story |
Page last updated: 20/02/2008 11:25:28 AM