Whether you are setting up an online business, or planning to take your business online into Europe, you will not be able to target European customers without understanding EU law as applied in each country you are targeting.
As noted in our previous bulletin on e-commerce businesses after Brexit, from 1 January 2021 any UK providers of online goods and services to consumers and business customers in the EEA jurisdictions must comply with local laws.
Historically, the E-Commerce Directive allowed that if an online business complies with the laws of the EEA country in which it is established, it is allowed to operate its e-commerce business in all other EEA countries. This protection for UK online businesses has now ended with the UK’s departure from the EEA zone as a result of Brexit.
The compliance requirement applies to you if you are:
You must ensure compliance with local laws of every EEA country where you provide online goods and services. This means if you have customers based in, for instance, Germany and France you must comply with both German and French laws.
If you operate in regulated sectors such as financial services you may be required to obtain prior authorisation.
You should:
Given the substantial impact on online trade, we can assist you in planning and implementing an appropriate approach to meet this new requirement. With our large network of trusted law firms across Europe, we can manage multijurisdictional assignments on your behalf working alongside other local jurisdiction lawyers to identify and address mandatory legal obligations in the relevant jurisdictions and to provide you with necessary legal guidance.
If you have any questions about this change, please contact Jonathan Croley.