Experts discussed the topic of e-commerce regulation in Russia

The role of intermediary digital platforms involved in the realization of consumer goods and the transformation of the consumer market continues to grow. The rapid development of e-commerce in Russia requires not only new approaches to regulation, but also support for small counterparties competing with large players, said Artur Gafarov, Director of the Autonomous Nonprofit Organization "Institute for the Development of Entrepreneurship and Economics".

"We see how conflict in the market is growing faster than the market itself. The law on trade can become a solution by providing guarantees for small sellers and owners of order delivery points," Gafarov said, speaking at the roundtable "Where the platform revolution in Russia is going."

Gafarov pointed out that the lack of regulation has contributed to the creation of advantages for digital platforms, allowing them to exert serious pressure on other market participants. This pressure has been felt not only by sellers or PVZ owners, but also by traditional offline stores.

According to experts and industry participants, small retailers, including specialized retail chains represented in medium and small Russian cities, are the hardest hit.

Artur Gafarov believes that the situation requires government involvement in creating balanced rules that will protect the interests of small companies and help avoid market monopolization.

Anna Ivanova, Director of the Department of the Union of Enterprises and Masters of Needlework and Creativity Industry "Sozidanie", drew attention to the fact that it is necessary to create equal conditions for competition, especially for small businesses and domestic producers.

"If we remove restrictions for classic retail, such as responsibility for the quality of goods, labeling, the competition in the market will become much fairer. It is important to create such conditions so that a Russian manufacturer can compete on an equal footing with international companies, rather than suffer from inequality with foreign supplies," Ivanova believes. She added that the regulation should promote the development of domestic production and make it easier for small entrepreneurs, who face many problems under the sanctions.

Sergey Rybakov, CEO of the Nature and People Foundation, stressed that e-commerce market leaders are becoming determining factors for the well-being of many citizens, but their rapid growth provokes imbalances in the traditional economy and labor market, which requires effective regulation. In his opinion, the development of sustainable digital models is only possible through an open dialog among all stakeholders. This will help to take into account national economic, social, environmental and technological aspects and realize Russia's potential as a leader in digital innovation at the international level.

According to Georgy Bagiryan, Director of the Electronic Commerce Union, member of the Public Council under the FAS of Russia, in 5-10 years, e-commerce development indicators will be at an even higher level. "It is important, however, to support this process without going overboard in regulation. It is necessary to form a working body that will deal with regulation so that the norms of the law ("On Platform Economy" - Ed.) do not create opportunities for manipulation and protect the interests of small market players," he said.

Experts noted that now the operator of the intermediary digital platform is considered as an information intermediary, which only provides its partners with technical capabilities to place cards of goods and transactions. This approach, according to the experts, fails to recognize the market power of digital platforms and the problems associated with it: imposing conditions on partners, disproportionate penalties, and delays in payments for goods delivered.

According to the panelists, ignoring the imbalance of legal regulation between digital platforms and other market participants entails significant risks for both entrepreneurs and consumers, who are increasingly faced with low-quality goods and sometimes counterfeit goods.

According to the Roskachevo Center for the Study of Consumer Behavior, every fifth Russian resident has encountered problems when buying goods through online marketplaces. Most often it is a defect (29.3%), inconsistency of goods with the described characteristics (28.8%). Counterfeit was not singled out as a separate line, but according to Roskachevo, after complaints from rights holders, more than 2.4 million product cards were blocked only from July to December 2023 (i.e. they were recognized as counterfeit).

"So far, the market has failed to cope with self-regulation, and this is a signal that new legislative solutions are needed," said Alexey Koitov, chairman of the Consumer Union of the Russian Federation.