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Ecommerce in Europe: Regulatory changes for markets and data management in 2022

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Currently, the financial market is in a recovery process after the situation presented by the Covid-19 pandemic in recent years. However, this situation has also caused havoc in the sector, thus ushering in a rather hectic year 2022.

As such, we are facing rising inflation that has made financial markets even more volatile. Something that especially affects the business landscape of the EU where a new series of regulations have been implemented to address the situation. Taking this into account, Go Global Ecommerce, a provider of cross-border eCommerce solutions for direct-to-consumer (D2C) companies that want to internationalize their online sales, has produced a report on the new regulatory changes and data management to those facing the market in this 2022.

Download the full report!

The European Parliament promotes new laws to regulate the handling of information by large technology companies

For some time now, there has been talk of the Digital Markets Law (DMA) and the Digital Services Law (DSA), although now these have already become a reality. These new laws promote greater regulation, especially for large technology companies, given their importance in the digital market.

On a general level, large companies and gatekeepers (large platforms that maintain control of information), have clear competitive advantages over other figures in the market, creating a situation of dependency of the latter on the large figures. In this way, the new DMA proposes to make a fairer market by equalizing the conditions for all companies in the digital field. This change will mean greater obligations for larger companies and in turn greater transparency on their part.

Likewise, the DSA follows this same logic, but with a proposal for cumulative obligations, which become heavier and more binding as a result of the size of the company. Likewise, the focus of this regulation will go more towards recommendation algorithms and the collection of user data.

What consequences will these changes bring to companies?

First of all, these same laws could strongly affect the process of generating leads, especially from foreign service providers. Due to the problems that arise in the fulfillment and regulation of the regulations established within the European framework.

In this way, companies must now more than ever maintain exhaustive monitoring of the data management that occurs in their business process. Both in the direct processing of user data, as well as in the generation of potential customers, or any strategy and/or campaign whose management is regulated by personal data protection laws. Otherwise, they could face heavy penalties from the Privacy Guarantor.

Omnibus Directive: What is your proposal for this 2022?

The Omnibus Directive arises from the need for the EU to modernize its consumer legislation in the face of an increasingly digitized and globalized market. This encompasses a series of laws regarding: unfair business practices and the protection of consumer rights.

In this way, these new directives, integrated for 2019, imply greater transparency within digital transactions. That said, there is talk of a greater specification in terms of product searches, specifying the filters, algorithms and objective criteria used to generate results. Especially if they study the behavior of consumers to generate these responses.

This management also extends to free services, where the consumer does not pay with money but with the transfer of personal data. A practice that is widely used, but of which many users are not aware, which is why the directive requires its specification. It also demands the explanation of offers made to consumers, because the merchant applies automated profiling.

As we mentioned, it also focuses on unfair commercial practices, such as not specifying that the prices of the products are calculated based on the user’s preferences. Situations in which consumers will now be able to request compensation as a consequence. Likewise, businesses with recurring cross-border trade violations could face fines from national authorities across the EU of up to 4% of their business volume. The entry into force of all these regulations will take place during the first half of 2022, making it a period of strong adaptation for merchants.

New regulations for the care of the environment in France and Germany. The commercialization of wine and Brexit.

In recent years, the EU has been creating a deeper awareness of the environmental impact of trade, with legislation for packaging waste implemented by the Extended Producer Responsibility Directive (RAP).

In this way, the aim is to try to limit the environmental impact of the purchases made, under an Extended Producer Responsibility (EPR) agreement. Building on this, 2022 brings changes to sales in France and Germany. Marketplaces in France and Germany will have, as of July 2022, to have the EPR registration data of their customers. Likewise, if they are in charge of shipping and distributing the goods, they must also have their own registry.

On the other hand, by this year, it has been estimated that the consequences of Brexit on trade will begin to decrease, with the wine sector being one of the sectors that will present the most changes, being one of the best-selling products in Great Britain.

Finally, as we have seen, the European market is facing a year of great changes and regulations, which promise a new ecosystem of greater benefit for consumers and businesses. If you want to know more about the laws that will impact eCommerce in 2022, download the full report here.

Download the full report!

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