NEWSLETTER-2017

96 NEWSLETTER 2017 gard to the e-commerce subjects related to digital content. This article will evaluate the section on consumer goods. Main Conclusions of the E-Commerce Report Within the context of the sector inquiry, the EU Commission em- phasizes the remarkable development experienced in the e-commerce sector in the last ten years. The EU Commission states that this devel- opment had significant effects on the undertakings’ strategies on their distribution channels and consumer behaviors. The EU Commission’s main findings are as follows: • Price transparency in the market has increased with e-commerce: The EU Commission points out that consu- mers are now able to make online price comparisons, and may switch from one channel to another. However, it is de- termined that it also creates a free-riding problem between retailers in traditional distribution channels and sellers on e-commerce channels. • Opportunity to make online price comparison increases the price competition: The ability to make price comparisons results in an increased price competition that affects both online and offline sales. • The increased price transparency allows undertakings to monitor their prices: The EU Commission states that a ma- jority of the undertakings track their own products and com- petitors’ product prices by way of computer programs. This allows them to easily detect the possible deviations from recommended prices. According to the EU Commission, the availability of real-time online pricing information may also trigger price coordination. The EU Commission states that under certain conditions, these programs may raise competi- tive concerns. • The existence of the alternative online distribution chan- nels results in undertakings to access customers easily: Through online platforms, retailers that have limited in- vestment opportunities can sell their products to customers

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