EU Parliament gives with one hand on mobiles but takes with the other on websites

23 May 2007

The UK’s largest business organisation, the Federation of Small Businesses (FSB), today welcomed the European Parliament’s decision to cap “roaming” charges for making and receiving mobile calls across the EU.

The Parliament’s decision will mean the cost of making a mobile call anywhere in the EU would be capped at 33p a minute and receiving a call would cost no more than 16p a minute.

The decision will not only benefit businesses that trade across borders but it will specifically assist businesses in border regions of Northern Ireland that often suffer from roaming costs when their phone automatically switches to a stronger signal in the Republic.

However, UK businesses are concerned that the European Parliament is giving with one hand as it prepares to take away with the other.A European Commission proposal to change the rules governing contractual arrangements known as “Rome I” will be considered by MEPs soon.It suggests that online selling by businesses should comply with the differing sets of consumer protection laws in all of the 27 EU member state.

The FSB is concerned that not only will this cost small firms many millions of pounds in legal advice fees, but it will also force many to stop providing information online about their prices and products.

Tina Sommer, FSB EU Affairs Chairman, said:

“This is great news for small businesses like mine that operate across EU member states and find charges for making and receiving calls hugely expensive. Euro MPs today voted to break down another barrier to the Single Market but they must remain vigilant to prevent increased domestic call costs from mobile providers.

“Nearly a quarter of FSB members currently trade with other EU member states. Information technology and e-commerce have opened up the Single Market to small businesses.

“Unfortunately, what the EU is giving with one hand it is threatening to take away with the other. Plans to reverse the way consumer law is applied to sales over the internet could make trading in the Single Market too expensive and risky for millions of small businesses in the UK.This would also hit consumer choice and the ability of shoppers to do online research into prices to make sure they get the best deal.

“The European Parliament and the other EU institutions need to ensure that their good work here is not undone by adding costs to the use of information technology elsewhere.”

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