BRUSSELS—Europe's antitrust police have asked a broad swath of
Internet commerce firms to hand over sensitive business information
and copies of contracts as part of a sweeping investigation into
possible abuses in the sector.
The investigation, announced in March, aims to establish whether
some companies are raising contractual or other barriers to limit
how consumers can shop online across national borders inside the
European Union. It could lead to formal antitrust cases against
individual companies that are suspected of abusing their dominant
market position to restrict trade, in violation of EU law.
The European Commission, the bloc's top antitrust regulator,
sent out the first batch of questionnaires last week to businesses
in all 28 EU countries. More than 2,000 businesses are expected to
be questioned as part of the probe, including online marketplaces
like eBay Inc.; Internet streaming services such as Netflix Inc.;
content producers like Disney; manufacturers that sell goods
online; and broadcasters.
The questionnaires, running to more than 150 pages, aim to give
regulators "a better understanding of e-commerce-related business
practices as they affect providers of digital content," according
to one copy seen by The Wall Street Journal.
They drill down into the competitive landscape in markets for
digital content, including online films, news and music—asking
firms to provide copies of contracts with their 30 main
suppliers.
While the probe isn't aimed specifically at U.S. firms, the
activities of some U.S. online giants are expected to come under
serious scrutiny given their powerful presence in Europe's online
economy. The EU's antitrust chief, Margrethe Vestager, said when
she announced the probe that U.S. companies dominate parts of
Europe's e-commerce sector.
The European Commission confirmed it had sent out the
questionnaires last week but declined to comment further.
The length and nature of the questionnaire makes it seem like "a
bit of a fishing expedition," said one Brussels-based antitrust
expert.
Companies are asked to provide their sales figures globally and
by EU country, in some cases dating back to 2010. They are asked to
list their top 30 suppliers of various types of digital content,
from films to music; how much each was paid; and about possible
clauses that could restrict how the content is sold across national
borders. They are also asked to hand over copies of "all agreements
currently in force" with those suppliers.
Other questions focus on business models and tariff structures,
how contracts are negotiated and financing decisions.
According to EU officials, the commission considered the
administrative burden of lengthy questionnaires but ultimately
thought it needed sufficient data to understand the region's
complex digital markets. The impact will be much less for smaller
firms, to which only parts of the questionnaire will be relevant,
officials added.
The deadline for responses is July 31. A second questionnaire
covering online sales of physical goods is expected to be sent out
next week.
The EU plans to publish a preliminary report on its findings in
mid-2016, and a final report in early 2017, after carrying out a
public consultation.
The investigation is the latest in a flurry of separate probes
and legislative initiatives in Europe that could end up curbing the
businesses of U.S. Internet firms whose dominance of the region's
online landscape is causing concern in top policy circles.
Internet giants like Google, Amazon, Apple Inc. and Facebook
Inc. are being scrutinized over issues ranging from possible
data-privacy violations to anticompetitive behavior to tax
payments.
The EU will soon open a major inquiry into how large online
companies operate in Europe, amid concerns that they have too much
power over smaller firms. It could potentially lead to stringent
new regulations for Internet firms.
Write to Tom Fairless at tom.fairless@wsj.com
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