The Commission had previously introduced a Green Paper on Rome II following the passing of the Brussels Regulation which comes into force on 1st March 2002.
The Brussels Regulation provides that consumers (as opposed to businesses) can sue suppliers in their home country, instead of suing where the supplier is based. The Rome II proposal applied this country of destination principle to non-contractual transactions. So, if a UK-based web site could be accessed in Germany, the UK e-tailer would be subject to the non-contractual liability laws of Germany. At present, such disputes are resolved in the country where the seller is established.
The decision to shelve Rome II is perhaps the result of strong industry opposition to the measure, although it is still possible that the Commission will re-introduce a Rome II Green Paper at a future date. Businesses had complained that Rome II would place an unnecessary burden on e-commerce.