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The European Commission's Digital Services Act poses a threat to the development of B2B platforms

EU legislation with serious consequences for B2B digital platforms like Wucato

A thriving industrial B2B platform ecosystem is currently developing in Europe and Germany. The European Digital Services Act, a new legal basis that is intended to redefine the central rules of play for the digital economy, now poses a threat to this positive development. The Federation of German Industries (BDI), of which Wucato is also a member, has now published a position paper to defend itself against the EU's plans.

Iris Plöger, Member of the BDI Executive Board, comments on the conclusion of the consultation session on the Digital Services Act. “The planned European Digital Services Act must explicitly exclude B2B platforms. Otherwise, the European Commission threatens to nip the promising development of countless B2B platforms in Europe in the bud."

Unlike consumer platforms, B2B platforms do not make it difficult for new companies to enter the market. The industry association feels strongly that excessive regulation and restrictive e-commerce guidelines would be the wrong way to go. The BDI and Wucato are convinced: a diverse European platform ecosystem is needed to strengthen Europe's digital sovereignty in the global competitive landscape with China and the US. Digital B2B platforms are crucial for digital sovereignty and the implementation of Industry 4.0.

EU regulation with serious consequences for B2B platforms in Europe

In its position paper, the BDI cites a study commissioned by the ifo institute entitledIndustrial Digital Economy - B2B Platforms. Taking the example of ten German digital B2B platforms – including Wucato – ifo analyzed the central mechanisms of action of B2B platforms, including networking effects and economies of scale, competition on and between platforms, the extent to which the platforms are open, and the role played by data.

The study shows that, in the area of B2B platforms, there is no evidence of any “gatekeeper” position, akin to a monopoly, held by individual platforms neither for marketplaces nor for the "Industrial Internet of Things", logistics, supply chain management or networking platforms. Rather, the study was able to identify factors that promote healthy competition between platforms.

B2C platforms are fundamentally different from B2B e-commerce platforms in structural terms, which is why the BDI feels that they require different rules of play. For example, users in the B2B environment interact on a much more equal footing both with each other and with the platform because they are comparatively symmetrical in terms of their organization and professionalism. In addition, the individuals responsible can reach agreements with the platform on access, distributor contracts and data processing, resulting in a transparent relationship between equals.

In its position paper, the BDI writes that the European Commission is advised not to disregard just how important European B2B platforms are for Europe’s future as an industrial location when passing regulation on digital platforms. They must be explicitly exempted from platform regulation. Otherwise, the development of up-and-coming industrial platforms in Europe will be stifled entirely.

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