Crossborder ECommerce Dentons Europe August 2017 Crossborder Ecommerce

Cross-border E-Commerce Dentons Europe August 2017

Cross-border E-commerce Global market trends • 2021 forecast: cross-border B 2 C ecommerce will reach US$424 billion/14% of all online commerce • Cross-border ecommerce continues to grow driven by: • More of the population becoming digital buyers • Retailers becoming better able to facilitate online transactions • Mobile leads the way but omnichannel also continues to grow bridging the gap between physical and online shopping • Social Media networks respond with dynamic ad integration and chatbots • China continues to grow: • The no. 1 cross-border online shopping destination followed by the US and the UK • Despite its popularity just over one quarter of top retailers in China sell internationally • The potential of mobile - almost 75% of the Chinese population use smartphones 24/11/2020 2

E-commerce in Europe market trends • Ecommerce continues to prosper in Europe but markets grow at different speeds • In 2016 European ecommerce turnover increased by 15% to € 530 billion • 2017 forecasts has this growing at almost 14% - reaching around € 602 billion • The pace of growth varies across Europe • Western Europe remains the largest market for ecommerce • UK tops the list with approx. 33% of all European online sales • Central and Eastern Europe saw the highest ecommerce sales growth • Romania led the way with sales increasing by 38% • 33% of online shoppers purchased abroad in 2016 • Luxembourg, Russia and Switzerland topped the list (each over 60%) 24/11/2020 3

E-commerce, Europe and Brexit Looking to the future • Short term impact • Currency and the devaluation of the British pound • Longer term impacts • Trade: exiting the EU free-trade zone will complicate cross-border sales. Import fees will apply - exports from the UK will become more expensive • Regulatory uncertainty • Geo-blocking: will UK-based online merchants be free to geo-block? • General Data Protection Regulation: GDPR may apply initially but what are the longer term prospects? • Consumer Policy: online retailers may have to comply with two different regulatory frameworks for consumer protection if they wish to operate in both the UK and the EU 24/11/2020 4

Regulating E-commerce Global regulatory trends to watch in 2017 • Dentons’ team of regulatory lawyers around the world weigh in on the key regulatory trends to watch • Focus on Europe: E-commerce inquiry by the European Commission • Focus on China: Rapid changes as China moves on cybersecurity and data protection • Focus on Canada: Eyes on Europe while preparing for mandatory breach reporting 24/11/2020 5

Regulating E-commerce in Europe Digital Single Market strategy • Cross-border e-commerce in the EU is growing but its full potential remains untapped • Only 15% of consumers buy online from another EU country • 8% of companies sell cross-border • Harmonization • The lack of harmonization poses many challenges, with Members States developing their own digital strategies • The European Commission has developed a three prong plan to boost e-commerce • Tackling geoblocking • Making cross-border parcel delivery more affordable and efficient • Promoting customer trust through better protection and enforcement 24/11/2020 6

Regulating E-commerce in Europe Digital Single Market strategy • Geoblocking: Addressing unjustified geoblocking on grounds of nationality, residence or establishment • Cross-border parcel delivery: Increasing price transparency and regulatory oversight of cross border parcel deliver services • Customer trust: Strengthening consumer rights, including clarifying unfair commercial practices in the digital world. Includes the proposed revision of the Consumer Protection Cooperation Regulation and the launch of Online Dispute Resolution platform. • Additionally streamlining data protection policies and simplification of VAT further supports the drive towards the Digital Single Market 24/11/2020 7

Dentons – Global Perspective Meeting market needs Countries Locations 60+ 150+ Total number of lawyers Number of lawyers Total people 7, 800+ 10, 000+ 13, 800+ 24 November 2020

E-commerce and Technology Dentons – meeting market needs • Our 360 -degree view of the sector gives us unparalleled domain capabilities for providing strategic, cutting-edge counsel. Experience: It's not just about numbers, it's about having genuine expertise in this converged discipline. We have lived and breathed in this space for over two decades. Understand: we understand the inner workings of cyberspace law, and we know how crucial jurisdiction and ISP liability issues are for usergenerated content for the whole world. Know: We also know that different countries solve these problems in different ways, and almost every country or region has certain nuances to their methods of solving the legal problems created by e-commerce, epayments, and internet business. Navigate: our global team helps clients navigate the new challenges that are presented by the unlimited possibilities for businesses offered by the internet today. 24/11/2020 9

Ecommerce Challenges and Opportunities Challenges • Consumers: the challenges consistently raised/faced by EU consumers • Speed of delivery • Technical failures • Damaged goods • Businesses: ongoing challenges in the EU • Streamlining policies – with greater harmonization at EU level for data protection, customer and consumer policies, and e-payments (including mobile) • Cross-border ecommerce - applicable laws and jurisdiction • Language barriers 24/11/2020 10

Ecommerce Challenges and Opportunities • Improved use of social networks? • European online retailers aren’t that popular or active on social networks like Facebook and Twitter, when compared to American e-retailers. • Mobile leading the way? • Surveys indicate that the growth of mcommerce is seen as biggest game changer for cross-border ecommerce • Will November become the ultimate shopping month? • Singles Day, Black Friday and Cyber Monday • Will they merge to form the ultimate online shopping discount month? • E-commerce without borders • EU – Digital Single Market developments • Alibaba – proposal to develop an electronic world trade platform (e. WTP)? 24/11/2020 11

Yang Yu Europe Strategic Investments Director M +48 507 275 874 | Wechat +86 138 16547719 yang. yu@dentons. com www. dentons. com Dentons Business. Services EMEA sp. z o. o. Al. Jana Pawła II 27, 00 -867 Warsaw, Poland Sławomir Majman Europe Strategic Investments Managing Director M + 48 600 400 813 D + 48 22 24 25 533 slawomir. majman@dentons. com Dentons Europe Dąbrowski I Wspolnicy sp. k Rondo ONZ 1, 00 -124 Warsaw, POLAND Dentons is the world's largest law firm, delivering quality and value to clients around the globe. Dentons is a leader on the Acritas Global Elite Brand Index, a BTI Client Service 30 Award winner and recognized by prominent business and legal publications for its innovations in client service, including founding Nextlaw Labs and the Nextlaw Global Referral Network. Dentons' polycentric approach and world-class talent challenge the status quo to advance client interests in the communities in which we live and work. www. dentons. com. © 2017 Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. This publication is not designed to provide legal or other advice and you should not take, or refrain from taking, action based on its content. Please see dentons. com for Legal Notices. 12