The move follows a decision by the European Parliament to convert a convention on the recognition and enforcement of court judgements into a Regulation while at the same time updating some of its provisions.
Leonello Gabrici, a Commission spokesman, said: “A lack of consumer confidence is the main thing holding up the development of e-commerce.” The Commission’s view is that removing the fear from consumers of needing to sue abroad in the event of a dispute should boost their confidence.
However, there has been a split between industry and consumer representatives. Industry groups argue that the new approach will discourage companies from trying to set up EU-wide e-commerce sites. Consumer groups argue without the new law there is a denial of justice as consumers cannot be expected to incur the cost of suing abroad.
EU businesses will have to choose which countries they are targeting and comply with the laws of these countries. If approached by a consumer in a country they do not target because of incompatible laws, they must refuse to enter into a contract with that consumer to avoid potential liability under the Regulation in the event of a dispute.