Sound doesn't travel at the speed of light, but the growls are starting to be heard, especially when the lights seem to have gone out in Brussels.
The European Union is proposing a plan that would require online distributors to have brick-and-mortar stores to continue their online activity. And vice-versa, the sine qua non condition to practice e-commerce would be possessing a store on the High Street.
Don't pinch yourself! You're not dreaming. These new rules would replace the current regulations in force until the end of May 2010 that, in certain cases, exempt online distributors from rigid competition rules imposed by the European Community.
It's fair to say, and eBay's VP Tod Cohen says it pretty well, that "A 'brick-and-mortar' provision would hold back e-commerce growth in Europe over the next decade just when it is at a 'teenage stage'". This echoes Amazon Europe's retail VP Greg Greeley's thoughts. Several weeks ago, he expressed his opinion in the Wall Street Journal, stating that a brick-and-mortar requirement would cut down on competition and consumer choices.
Two comments:
- While I don't always share eBay's viewpoints concerning e-commerce views and strategy, in this case I back their position.
- Who would profit from this plan, which is otherwise in favor of e-commerce? The big distributors by preventing the little guys from entering in the game? Under the pretext that not having the burden of a physical store encourages pure-players?
At this rate, and in this alarming direction, why not ban international sales to foreign countries where there's not a physical branch of the brick-and-mortar store? It's absurd! And in the middle of an economic crisis when e-commerce allows more and more people to create their professional activity? Brick-and-Mortar, a bunch of bricks and cement? That sounds about right...putting everyone right up against a brick wall!
*Pure-player? If you have an online shop and don't have an actual, physical store, if you're activity is solely on the net, then you are, perhaps without knowing it, a pure-player.
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