In December, the European Commission approved a draft directive concerning the provision of digital content (streaming music, films, cloud storage, etc.) and a draft directive regarding the online sale of goods (operation of e-shops). The directives should simplify and promote access to digital content and online sales throughout the EU.

According to the Commission, only 12% of traders allow customers from other Member States to make purchases online, yet 37% of traders operate national e-shops. Therefore, only one in three e-shops in the EU allows cross-border purchases. Similar statistics also apply to consumers, with only 15% of consumers buying from foreign e-shops, yet 44% purchasing from national e-shops.

For 39% of e-shop operators, the reason they do not allow cross-border purchases is the difference in contract law between Member States and the costs associated with adapting their e-shop to the legislation of individual states.

Removing these barriers to online cross-border trade is the main purpose of the directives. The directives aim to unify diverse legislation and thereby reduce the costs of adapting businesses to individual legislation and eliminate consumer distrust in buying from another country. This should increase the number of e-shop operators that allow cross-border purchases and the number of consumers buying from abroad.

The directive on the provision of digital content should primarily unify the following rights and obligations:

• The supplier will be responsible for defects in digital content, which will not be time-limited, as digital content is not subject to wear over time.

• In the event of defective digital content, the burden of proof will be reversed. The consumer will not have to prove the defect in digital content existed at the time of delivery, but the supplier will have to prove it did not. This is due to the technical nature of digital content, making it generally very difficult for the consumer to establish the cause of the defect in digital content.

• Consumers will be entitled to terminate long-term contracts and contracts to which the supplier makes significant changes, especially as a result of changes in general business terms and conditions.

• If the consumer acquires digital content or a service in exchange for their personal data, the supplier must desist from using this information on the termination of the contract.

The directive on the online sale of goods will primarily unify the following:

• There will be a unification of the period for which the consumer does not have to prove a defect in goods existed at the time of delivery. At present, this is determined by each Member State individually, under the directive, however, this will universally be two years.

• The right to withdrawal from a contract will be universally established, even in the case of minor defects that the seller is unable to repair or replace with new goods.

• In the case of goods purchased online, consumers will have the ability to exercise their rights for two years, as in the case of new goods, not just for one year, as is currently the case in some Member States.

The unification of rules for the provision of digital content and the online sale of goods will simplify online business across the EU. Entrepreneurs will be able expand their business to other Member States more easily, without having to worry about special legislation in individual states.

According to Commission statistics, the costs of adapting a business to the legal system of one Member State are EUR 9,000. When expanding a business to all 27 EU Member States, it will therefore be possible to save up to EUR 243,000 thanks to unified legislation.

Consumers on the other hand, will have the assurance that when purchasing digital content or goods from abroad, they will have the same rights as when buying locally.

However, the directives will first have to be approved by the European Parliament and the Council, and then incorporated into the legal systems of individual Member States. If approved, the directives can therefore be expected to be reflected in national laws in about two to three years.

For more information, please contact our office’s partner, Mgr. Jiří Kučera, e-mail: jkucera@kuceralegal.cz ; tel.: +420604242241.