New regulations may hinder European markets
New regulations may affect merchants plans to expand into international markets, at least for retailers eyeballing European markets.
Internet Retailer reported that the European Commission is slated to propose new regulations designed to curb the market power of Web-based companies in the technology industry this week. The European Commission primarily has market leaders such as Google and Amazon in mind, and has been looking into these regulations for approximately four years. The ramifications of this report could trickle down and affect other businesses in a similar space, including merchants.
While regulators are well aware of the benefits online entities can bring to economies in Europe, there are major concerns about competitive fairness and transparency about the use and storage of critical data. The end goal of the investigation is the creation of a level playing field for all the brands involved in digital businesses.
“Some platforms can control access to online markets and can exercise significant influence over how various players in the market are remunerated,” according to the document. “This has led to a number of concerns over the growing market power of some platforms.”
Retailers looking to capitalize on new order fulfillment and warehouse management technologies to serve international markets need to keep one eye on these international regulations. This will help them make wise investment decisions on what target markets to consider for expansion.