Welcome to the ROME I E-BUSINESS GROUP website

This web page has been created by representatives from a cross section of businesses, organisations and communities who operate online across the European Union and globally

List of Signatories

It offers our Opinions and Recommendations on the draft regulation on the law applicable to contractual obligations (known as Rome I) which is currently being debated in the European Parliament and the Council of the European Union, specifically Article 5 and Recital 10 on consumer contracts. 

To view our Position Papers, click here

Rome I in the Media & Press, click here

For Press Contacts, click here

To view Other Resources click here

Track developments on Rome I by visiting the European Parliament's

Legislative Observatory

Reference COD/2005/0261

NEXT MEETING

Telephone conference

For details, contact

will.roebuck@e-ra.org.uk

Our Opinions

1. Latest Opinion on texts (November 2007)

Article 5: We do not agree with the Commission's original text on Article 5 on consumer contracts. However, we do support the Final Compromise Amendment text on Article 5 that was voted by MEPs at the first Plenary in November 2007.

Recital 10: We believe that whilst the Commission's original text on Recital 10 raises some concerns from the e-business community, subsequent amendment proposals from Parliament, Council and Member States raise even more issues for online business.     

2. Opinion on Procedure

Rome I will significantly damage consumer choice and the availability of products and services across Europe!

Rome I will have a negative impact upon the consumer's ability to purchase goods and services online. Under Article 5 on Consumer Contracts, the draft regulation will fragment the online market for consumer services by increasing the regulatory burden and liability for online service providers by localising EU contract law. The result will particularly damage small to medium-sized businesses unable to participate in cross border trade because of compliance costs, and this, in turn will prevent consumers from being given the wide choice in goods and services that they enjoy today. 

We believe that

• high costs in legal, translation and implementation fees, and costs in increased staff hours will put a brake on e-commerce!

• a new regulation is really not necessary. Everything seems to be working well under the current rules! 

• the European Commission has absolutely no interest in consulting properly with consumers and online businesses about this issue. Legal academics without any online business or consumer knowledge and experience have advised the Commission to adopt this regulation. They have lacked a judgment and common-sense that will leave us all out of pocket!

• the application of the strict consumer country principle will totally change and complicate the way companies set out their contracts. Suppliers will not be able to operate throughout the EU with a single model contract, but will need a different contract for all 27 national legal systems.

• the targeting test will catch websites not intending to sell products and services to consumers in a particular country. This will create greater obligations upon the supplier than under the current regime.

• national markets will be insulated from competition from suppliers in other member states. Consumers will also be cut off from services in other member states. This is why Luxembourg fears for its citizens!

• uncertainty is created with a conflict between the consumer country principle, and a supplier country principle which is set down in existing rules, for example the E-commerce Directive and the Directive on Markets in Financial Instruments (MiFID).

• consumers who have migrated across the EU will not be allowed to choose the more familiar law from their own country.

Our Recommendations

The European Commission must listen to e-business concerns!

We request that the European Commission

• undertakes a full regulatory impact assessment on all markets that Rome I will affect. This will be in line with the EU's 'Better Regulation' strategy, given that Rome I will significantly alter the current regime.

• clarifies the targeting test in the proposal to include 'positive conduct' and that a contract 'results from such conduct'. This will protect traders who have not deliberately targeted a member state with their websites, and is consistent with the amendment put forward by Klaus-Heinmer Lehne MEP.

• listens to the concerns of businesses, large and small - they are consumers too!

We ask all MEPs*, the European Council and Member States to intervene in order to resolve our concerns.

* The European Parliament's Legal Affairs Committee (JURI) is leading Opinion on Rome I. MEPs who have provided amendments to Commissioner Frattini's proposal are shown right. All MEPs will have a vote when the matter comes before the European Parliament.

For a full list of JURI members click here