The dreaded (by some) European Digital Markets Act.

The dreaded (by some) European Digital Markets Act.


With the DMA and DSA at the forefront of the EU and the popular backlash on digital platforms, we are entering another era

Joseph Francesc Waltz
Chair Director of Future Retail, Tourism and Services Scenarios UPF-BSM
12.03.2024 05.30 h.

Last week it came into effect in the European Union (EU). Direct Direct Access (DMA).; It's not a “let me run everywhere” thing like big tech companies do, however Digital Markets Law European who wears it around the waist. This step forward coincides with a period of online pressure: online shopping that skyrocketed with the pandemic has declined, the online shopping experience is getting worse, and the shopping cart abandonment rate remains steady at 80% of online shopping in Europe, according to SaleCycle. .

The DMA is afraid of large digital groups. along with DSA, Digital Services Act, forming a legal battery to put an end once and for all to those who camped in Europe as if they were in the West, controlling the stage with their laws, preying on the competition and winning in every corner by paying the lowest taxes. There is now a legal framework and therefore rules that the platforms adhere to or do not adhere to. All their actions will be audited, and if they do not comply within six months, they will have to pay fines of 10% of their sales; Now that's fine and they'll need to make sure that unsubscribing customers is as easy as subscribing, reporting on mergers and acquisitions, ensuring interoperability between platforms, that business users have access to performance data, and that they treat other products equally to their own, from Among other obligations.

There is now a legal framework and therefore rules that platforms adhere to or do not adhere to

All of this must be achieved through search engines, app stores, video sharing platforms, online mediation services, instant messengers, social networks, browsers, operating systems, cloud services, virtual assistants, and advertising services. That is, all of them.

See also  Borsa Italiana, suspension of January 5, 2023 hearing

More information: Trade windows

This good news comes at a time when Europeans are still shopping online because prices are lower, because they find deals, and because they save time; Your purchase becomes even more satisfying if it also includes free home delivery and free returns. Geopost offers a study, however, that online shopping declined slightly after the outbreak of the epidemic, although 77% of European shoppers admit that they have purchased at least once online, especially food, fresh produce, prepared foods, beverages, shoes, cosmetics and body care, And pharmaceutical products, preferably received at home. The Italians, English, Bulgarians, Germans and Dutch are the most advanced. 63% of the sample indicate that this channel saves them money and they place an average of one order per month.

Decreases satisfaction through online shopping with opaque web and prices; Complex payment process or doubts about security and privacy

The majority of buyers are from urban areas and are against the general idea that Millennials They buy a lot more than BirthsThe average age is high, 42.4 years. The big concern discovered in this survey is the gradual deterioration of online experiences. Cart abandonment still accounts for about 80% of transactions in Europe, according to SaleCycle, more on mobile than on computer. Satisfaction with online shopping is declining for a number of reasons: lack of online transparency and pricing; Complicated payment process or few options; Security and privacy concerns; Non-compliance with delivery dates and low level of professionalism for new sites; Technical problems interrupt the conversation; Of adaptation between show and reality.

See also  Interest rate hike, good news for savers

Gift box case

We present a specific case in which many of the above aspects combine for online shopping failure.

  1. Gift a gastronomic experience through a gift box.
  2. During the deadline, the recipient reserves the date and time at the agreed upon restaurant.
  3. A letter from the facility reporting a problem authenticating the gift check.
  4. Communicate via the web with the gift box issuer.
  5. The source gives the green light.
  6. Return delivery to the restaurant.
  7. remains invalid.
  8. New phone call with the gift fund issuer; Seven attempts through phone numbers listed online did not work.
  9. After going through different phone operators, the tangle was resolved: the verification code needed to be changed.
  10. They modify it.
  11. Send the new numbers to the restaurant.
  12. Happy Ending… Meanwhile, the client begins to be bombarded daily by an online broadcaster offering all kinds of experiences

The majority of buyers are from urban areas and are against the general idea that Millennials They buy a lot more than BirthsThe average age is high, 42.4 years

While these distortions occur that reduce the effectiveness of online shopping, a study conducted by PricewaterhouseCoopers showed that all these distortions in the online shopping process push many customers towards physical purchases; 40% of respondents say they plan to return to face-to-face communication.

More information: Managers win the ultimate battle for capital

This is not an irreversible decline. It is a process that adapts and develops with curvy shapes. What is clear is that with the DMA and DSA on the EU front and the popular backlash against digital platforms, we are entering another era in which they will take more account of customers and abuses of power will be mitigated.

See also  Exhibitions: Opening of the Biomass Heating Exhibition in Verona - Veneto

Leave a Reply

Your email address will not be published. Required fields are marked *