Cross-Border Commerce EU Digest #5
Cover: AI-generated image with Pixray

Cross-Border Commerce EU Digest #5


???? EU POLICIES

DSA & DMA: a revolution in the European digital ecosystem

DSA & DMA

Important update from the?European Parliament

On Tue 5 July, MPs approved the new Digital ServicesAct DSA & the new Digital Markets Act DMA.

It's a revolution that will affect the internet giants (primarily based in the USA), promising new rights for European digital users.

?? The?Digital Services Act (DSA)?sets clear obligations for digital service providers, such as social media or marketplaces, to tackle the spread of illegal content, online disinformation and other societal risks.

The DSA obligations approved include:

?? New measures to counter illegal content online and obligations for platforms to react fast while respecting fundamental rights, including the freedom of expression and data protection;

?? Increased transparency and accountability of platforms; for example, by providing clear information on content moderation or algorithms for recommending content, users can challenge content moderation decisions.

?? Strengthened traceability and checks on traders in online marketplaces to ensure products and services are safe, including efforts to perform random checks on whether illegal content resurfaces.

?? Bans misleading practices and certain types of targeted advertising, such as ads targeting children and ads based on sensitive data. The so-called “dark patterns” and deceptive practices to manipulate users’ choices will also be prohibited.

?? The?Digital Markets Act (DMA)?instead sets obligations for large online platforms to act as “gatekeepers” (platforms whose dominant online position makes them hard for consumers to avoid) to ensure a fairer business environment and more services for consumers.

To prevent unfair business practices, those designated as gatekeepers will have to:

?? Allow third parties to inter-operate with their services, meaning that smaller platforms will be able to request that dominant messaging platforms enable their users to exchange messages and send voice messages or files across messaging apps. This way, users will have more choice and avoid the so-called “lock-in” effect to one or very few apps/platforms;

?? Allow business users to access the data they generate on the gatekeeper’s platform, promote their offers and conclude contracts with their customers outside the gatekeeper’s platforms.

Gatekeepers (such as a relevant app marketplace) can no longer:

?? Prevent users from easily un-installing any pre-loaded software or apps or using third-party applications and app stores;

?? Rank their services or products more favourably (self-preferencing) than other third parties on their platforms;

?? Process users’ data for targeted advertising unless users explicitly granted consent first.


?? GLOBAL POLICIES

The 2022 edition of the Cross-Border E-Commerce Package by World Customer Organization (WCO) is now online

WCO Council in Brussels, 2022

The World Customs Organization (WCO), the intergovernmental organization headquartered in Brussels, Belgium, published the revised versions of the Framework of Standards on Cross-Border E-Commerce (E-Commerce FoS) and the Technical Specifications to the FoS resulting.

Cross-Border E-Commerce WCO package

The periodic review started in January 2021 and confirmed the key principles on which the E-Commerce FoS is based: Advance Electronic Data and Risk Management; Facilitation and Simplification; Fair and Efficient Revenue Collection; Safety and Security; Partnerships; Public Awareness, Outreach and Capacity Building; Measurement and Analysis; and Leveraging Transformative Technologies.?

?? Download the Cross-Border E-Commerce FoS by WCO (June 2022)

The WCO Council also endorsed the 3rd edition of the Compendium of Case Studies on E-Commerce, including the European Union. Ten new case studies have been added to the Compendium bringing the total number of case studies to thirty-four.

?? Download the 3rd Compendium of Case Studies on E-Commerce by WCO (June 2022)

Focus: The e-commerce approach of the European Union ????

Content adapted from the WCO 3rd Compendium of Case Studies on E-Commerce.

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The EU aims to facilitate legitimate trade while ensuring adequate safety and security controls, preventing illicit trade and combatting fraud. The primary duty of EU Member States' Customs authorities is to protect citizens and consumers, public revenue, and compliant businesses. The rise of e-commerce and the fragmentation of imports causes specific challenges.?

Over the past decade, the exponential growth of e-commerce, the tsunami of low-value parcels, the significant revenue losses for the EU and its Member States and the unlevelled playing field between third country sellers and EU businesses have prompted the revamp of VAT rules for e-commerce goods.?

The five core aims of the EU approach to e-commerce remain:

  1. Facilitating legitimate trade: with streamlined formalities and simplifications for the export and import of goods. These involve improved data use, providing a level playing field for all stakeholders. Features like the Authorized Economic Operator (AEO) partnership and the VAT one-stop-shop play a key role.
  2. Ensuring Control: the new EU regulatory framework (Union Customs Code, VAT E-commerce package) and IT environment (notably upgraded advance data for safety and security risk targeting (the "ICS2" system)) that is being rolled out, combined with adequate resources for enforcement, should improve compliance.?
  3. Enhancing collection and transmission of information: the EU is improving the availability of advanced electronic data for Customs and tax processing. The EU aims to have EU data protection principles applied by its main trading partners and have these reflected in international e-commerce standards.?
  4. ?Redefining the role of marketplaces/platforms: Intermediaries and marketplaces need to play their part in ensuring compliance.?
  5. Removing the VAT de minimis levels.

The Compendium of Case Studies on E-Commerce includes practical examples of how individual Members address priority issues such as the exchange of advanced electronic data, facilitation, safety, security and revenue collection.

?? Browse the full WCO E-Commerce Package (2022)


??? RETAILERS EVENTS

Cross-Border C-Suite Fashion 2022: Brussels, 14-15 September

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Cross-Border C-Suite Fashion is?an invite-only event, free of charge?(including hotel and gourmet experiences, excluding travel expenses from/to Brussels) where 120 C-Level executives the?top fashion retail companies in Europe gather to network and take part in a series of roundtables and debates where they can learn and share the latest relevant news for the industry, particularly from a cross-border perspective.

If you are interested to take part, let's book a short call to receive more details about this unique opportunity and arrange next steps.

???Learn more and book a short intro call with our Managing Director, Carine Moitier

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Testimonials: Hear Laura Rademaker from G-Star Raw, part of the Customer Centricity High-Level Group


?? INDUSTRY INSIGHTS

11 Tech Trends shaping Retail in 2022

AI generated image with Pixray

According to the consulting and software development company inVerita, these are the most relevant Retail Technology Trends in 2022.

  1. Voice Commerce: Natural language processing (NLP) and its adoption in retail have significantly evolved over the last few years. Text-to-Speech (TTS) and neural translations are also facilitating retail.
  2. Digital Payments: E-wallets, contactless cards, and Real-Time Payments via QR codes rapidly substitute cash payments.?
  3. Social Media Shopping: Social media shopping will grow three times faster than traditional e-commerce in the next four years (source: Accenture). Instagram, Facebook, TikTok, Pinterest, and Snapchat allow retailers to sell items directly through their platforms, reaching their target audience and enhancing their social media presence and brand awareness. Users can seamlessly explore brands and their offers and buy them without leaving their favourite social media platform.?
  4. Augmented Reality (AR) and Virtual Reality (VR): With AR & VR, users can better picture the product. The level of customization reduces returns and significantly increases the conversion rates.
  5. Visual Search: Today, more and more users take photos of the item they want to buy and upload them to the web rather than running a text search.?
  6. Predictive Analytics: With predictive analytics, retailers turn big data into actionable insights to understand consumer behaviour and preferences and predict sales growth and market trends. Machine learning algorithms allow users to track customer behaviour across various channels to find out when and where they browse in offline or online stores and offer personalized loyalty programs, product recommendations, and more.
  7. Fast Delivery: Rather than calling it one of the retail technology trends, we’ll call it retail must (we mentioned this phenomenon in our previous Weekly Digest #4). Ensuring fast delivery is nowadays impossible without digital transformation.?
  8. Personalization: E-commerce sites can offer users highly personalized recommendations based on user demographic and psychographic data, as well as their purchasing behaviour.?
  9. User Data Protection: E-commerce stores collect, store, and use vast amounts of user data. Institutions set stricter privacy and data rules (think of GDPR); therefore, having clear and effective policies and processes is crucial. Cybersecurity is another essential feature to protect customers from related risks.?
  10. Artificial Intelligence and Chatbots: Chatbots are available 24/7 to answer customers’ questions at every stage of their journey. AI-powered chatbots not only answer the customers’ questions and guide them but also learn from them and build a relationship.?
  11. Indoor Positioning Systems (IPS): In-store navigation systems create customers a more personalized shopping experience by simplifying the process of getting to the needed store in big shopping malls, using top-notch in-store navigation, and sending targeted ads.

Learn more (inVerita on Medium)


?? Also worth reading...

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