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Title page

Contents

Executive Summary 3

CROSS-BORDER E-COMMERCE AND THE DIGITAL SINGLE MARKET (DSM) 3

NEW SECTOR-SPECIFIC INITIATIVES IN HEALTH, FINANCE, AND ELSEWHERE 4

CONSISTENT REGULATION OF ONLINE PLATFORMS 5

KEY RECOMMENDATIONS 5

1. Introduction 9

1.1. A PLETHORA OF PROBLEMS CALLS FOR A PLETHORA OF SOLUTIONS 10

1.2. FLOW OF THIS PAPER 11

2. Key literature 12

3. Challenges related to cross-border e-commerce 14

4. Mitigating barriers to cross-border e-commerce 18

4.1. VALUE ADDED TAX (VAT) 20

4.2. GEO-BLOCKING 23

4.3. CONSUMER PROTECTION RULES 27

4.4. PARCEL DELIVERY 29

4.5. INSUFFICIENT INFORMATION ABOUT APPLICABLE RULES 32

4.6. OVERALL 38

5. Cross-border e-Health in the EU 40

6. Cross-border e-Finance in the EU 43

7. New laws to deal with online platforms raise new risks for harmonisation 45

8. The way forward 47

Bibliography 50

Figures

Figure 1. Reasons for consumers not to purchase a product online from abroad, averages across the Member States (2014/2015) 15

Figure 2. Share of all EU merchant respondents who viewed a barrier to the Single Market as being 'significant' or 'extremely significant', 2019 16

Figure 3. Share of EU firms with e-sales across EU borders 17

Figure 4. Impediments to cross-border web sales, by firm size, 2021 19

Figure 5. Evolution over time of impediments to trade for firms with more than 10 employees that sell cross border via the web within the EU 20

Figure 6. Actions that businesses take when confronted with a Single Market obstacle, 2019 33

Figure 7. Visits per year to Single Digital Gateway (SDG) websites 35

Figure 8. Obstacles reported by businesses in the Single Market Obstacle Tool (SMOT) since December 2020 37

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