eBay appealed EU to abandon the proposal e-shop must have physical shop first

Added: (Wed Feb 24 2010)

Pressbox (Press Release) - eBay appealed EU regulator withdraw the proposal that require retailer must have a physical shop, thought the proposal will cause adverse effect to the small enterprises, and will make products keep high price and block the development of e-commerce.

According to the proposal drafted by EC, before online sellers online selling products, they must have a physical shop. The proposal will displace current guide policy, these policies which will be due in May permit enterprises safe from EU serious competitive prescriptive restriction.

eBay vice CEO Tod Cohen pointed out, the precondition that require physical shop will affect the development of young growing European e-business in the next ten years. He expressed, the whole direction to the online business is dead sure, but requirement of having physical shop is not conform to the entire spirit. Cohen said, the rule is beneficial to the large retailer but disadvantageous to the small enterprises. He expressed, if want to take in charge of price discrimination, they can adopt other methods. Currently, he is lobbying EC withdraw the proposal.

Famous brands manufactures of high-end products and luxuries considered, the rule is very necessary, which can avoid online retailers (http://www.epathchina.com) ¡°pick up¡±, and obtain the advantages from the big brands¡¯ sales promotion. Because ¡°free rider¡± needn¡¯t to pay for physical shop and relevant

Amazon.com view to the proposal is the same with Cohen, the company¡¯s European vice CEO Greg Greeley expressed at the beginning of this month, and requiring online retailers to have physical shop will reduce the competition, and restrict the choice of consumers.

As a small online electronic wholesaler (http://www.epathchina.com), epathchina.com also agrees with eBay and Amazon. As for small online retailers, it is difficulty for them to open a physical shop first. Capital shortage is just an important problem. It is really a risk for small enterprise. It will block the development of small enterprises, and is also bad for competition.