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eBay Urges Rethink On EU Plan's "Brick and Mortar" Vendor Requirement
mernil writes with this snippet from Reuters: "According to a draft regulation drawn up by the European Commission and seen by Reuters, suppliers may be allowed to require that distributors have a 'brick-and-mortar' shop before they can sell online. The proposed rules would replace existing guidelines exempting companies from strict EU competition rules under certain circumstances. Those rules expire at the end of May."
From the article
Brand owners - often in the high-end or luxury segment - say the provision is necessary to stop so-called free riders, competitors who benefit from promotions carried out by brand name companies, shifting stock online on the back of advertising of a brand's products and services.
Because "free riders" do not have to pay for the costs of a shop and related overheads, they can frequently offer brand-name products over the Internet at discounted prices.
"The purpose of a brick-and-mortar shop provision is to help retailers invest in luxury shops," said Antoine Winkler, a partner at law firm Cleary Gottlieb Steen & Hamilton who represents several brand name companies.
I'm slightly confused. Are they doing this to help the brick-and-mortar stores? Are they doing this to help the brands? I'm confused. It sounds like they are trying to take down low-overhead companies because they are too efficient. Does anyone know why this would be a good idea?
Going to the Newegg store, where it's a warehouse with a couple of cashiers in the front. The employees aren't there to help you they are there to get stuff to shipping. I'd wander around there for hours.
I like this requirement. I think they should also require that all brick-and-mortar stores have an online store that sells everything they have in the brick-and-mortar store, and always be up to date.