The European Court of Justice (ECJ) has issued a significant ruling in favor of major eCommerce companies like Google, Amazon, Airbnb, and others. This ruling establishes that Italy cannot impose additional administrative obligations on eCommerce companies beyond those already required by the EU country where these companies are based.
📜 The ECJ Ruling
The ECJ ruled that Italy cannot impose additional obligations on eCommerce companies, such as registration with Agcom, providing periodic reports on their economic situation, or paying extra contributions. These requirements, introduced by Italy between 2020 and 2021, were deemed to be in conflict with EU law, which guarantees the free provision of services within the single market.
🇪🇺 The Principle of Free Provision of Services
According to the EU directive on eCommerce, it is the home country of the company that regulates the provision of online services. This means that companies like Google and Amazon, based in Ireland or Luxembourg, must adhere to the regulations of those countries and cannot be subjected to additional burdens imposed by other member states like Italy.
🛑 Italy’s Demands Rejected
The measures adopted by Italy were deemed unnecessary for the protection of the general interest objectives set out in European law. As a result, the ECJ clarified that Italy cannot impose additional obligations on online service providers operating in other member states if such obligations are not required in their country of origin.
🔍 The Impact of the Ruling
This ruling has significant implications for the eCommerce market in Europe, reinforcing the principle of free provision of services and reducing the risk of regulatory fragmentation within the Union. Companies like Amazon and Google can continue to operate in Italy and other member states without having to comply with additional administrative obligations not foreseen by their home country’s regulations.
The ECJ’s decision is a crucial step in safeguarding the European single market, ensuring that rules are uniform and respected across all member states, benefiting both businesses and consumers.