EU antitrust regulators probe curbs on cross-border online sales

By Foo Yun Chee BRUSSELS (Reuters) - EU regulators will investigate whether electronics and digital content companies illegally curb cross-border online sales, the EU's antitrust chief said on Wednesday, a move likely to affect both e-commerce giant Amazon and traditional retailers. The inquiry into the retail sector is part of a broader strategy by the European Commission to overhaul the 28-nation bloc's digital market. Commission data showed that even though one in two EU consumers shopped online last year, just 15 percent bought a product online in another EU country because of restrictions such as language, different laws and anti-competitive practices. European Competition Commissioner Margrethe Vestager, who had announced her intention in March to open the inquiry, warned of further action. "With this sector inquiry my aim is to determine how widespread these barriers are and what effects they have on competition and consumers. If they are anti-competitive we will not hesitate to take enforcement action under EU antitrust rules," she said in a statement. Vestager will present a preliminary report in mid-2016, with a final report due in the first quarter of 2017. Previous inquiries into the banking, pharmaceutical and energy industries resulted in antitrust cases against several companies. In addition to electronics and digital content, the investigation will also look into clothing and shoe retailers. While U.S. online retailers such as Amazon and e-Bay dominate the e-commerce industry, traditional companies are boosting their presence. The sector inquiry will target everyone in the e-commerce area and not just platforms and well-known online brands like Amazon, booking.com and eBay, said Salome Cisnal De Ugarte, a partner at law firm Crowell & Moring. "Essentially, every company that sells products online, including their suppliers and their technology providers, will be affected. Potentially, the scope will be very wide," she said. (Reporting by Foo Yun Chee; editing by Adrian Croft and Keith Weir)