ESBA Press Release: ESBA Expresses Concerns on Geoblocking
De: European Small Business Alliance <
secretariat@esba-europe.org>
A:
editors@eurofora.net 26/05/2016 08:14
ESBA Press Release:
ESBA Expresses Concerns on Geoblocking
ESBA PRESS RELEASE
Embargo: for immediate release Brussels, 25 May 2016
On 25 May 2016, the European Commission presented the e-commerce package, containing a Regulation on addressing geo-blocking and other forms of discrimination based on place of residence or establishment, or nationality within the Single Market.
The aim of this proposal, which further implements the Digital Single Market Strategy, is to prevent discrimination based on customers' nationality or place of residence in cross-border commercial transactions between traders and customers relating to the sales of good and the provision of services within the Union.
ESBA has been advocating against the against European Commission creating an obligation for small businesses to sell across all Member States, as this creates considerable administrative related to VAT registration, accounting,
language barriers (*) and administrative and legal procedures. Although the new proposal does not include an obligation to deliver to all Member States - a consumer could be asked to pick up their own goods or arrange for their own delivery service - the obligation to sell still means that a small business trading online will be forced to register for VAT in all countries it sells to, with all sorts of administrative implications. Small sellers are also concerned about what happens in case of a dispute. Which legal regime will apply and in which language will proceedings take place?
Enhancing cross border trade is crucial if a true Single Market is to be achieved but the right conditions must be set, rather than plunging small businesses in the deep end and waiting to see what happens. ESBA encourages the European Parliament to take into account the disproportionately heavy burdens small and starting sellers will face in dealing with the new obligations.
European Small Business Alliance (ESBA)
Founded in 1998 by eight independent national small business associations, The European Small Business Alliance (ESBA) is a non-party political group, which cares for small business entrepreneurs and the self-employed and represents them through targeted EU advocacy and profiling activities. ESBA also works towards the development of strong independent advocacy and benefits groups in European countries. ESBA's new website, which provides an innovative approach to communication amongst business organizations, reflects these three main fields of activity.
Today, ESBA is one of the largest organisations based on voluntary membership in Europe. Through its direct membership, associate membership and cooperation agreements, the Alliance now represents over one million small businesses and covers 36 European countries. Increased support and recognition, internally and externally, however will only be achieved through tangible results. Through implementation of its 'Vision 2020' and the corresponding business plan, this is what ESBA is constantly striving to achieve on behalf of its members and SMEs in Europe.
EU Small Business Profile:
99.8 per cent of all EU companies are SMEs
92.2 per cent are micro businesses
6.5 per cent are small businesses
1.1 per cent are medium-sized businesses
0.2 per cent are large businesses
SMEs provide 67.4 per cent of all private sector jobs
Source: Annual Report on small and medium-sized enterprises in the EU 2011/2012. Report by Ecorys Macro & Sector Policies at the request of the European Commission, 2012
Challenges for Small Businesses in Europe:
1. Administrative and regulatory burdens
2. Access to finance
3. Taxation
4. Lack of skills
5. Access to public procurement contracts
6. Unfair/too strong competition
7. Labour law
8. Access to Single Market
9. Access to EU programmes
10. Late payments
11. Access to international markets
12. Access to information and advice
13. Instability of world economy/ energy costs
14. SME definition
ESBA is a non-party political European group, which cares for small business entrepreneurs and the self-employed and represents them through targeted EU advocacy activities. ESBA also works towards the development of strong independent advocacy and benefits groups in European countries. ESBA is one of the largest organisations based on voluntary membership in Europe. Through its direct membership, associate membership and cooperation agreements, ESBA today represents almost one million small businesses and covers 36 European countries.
