Brussels - The European Union's single market was meant to give customers a better deal by allowing them to find the cheapest product in any member state. But, while the internet may have produced virtual shopping malls of continental proportions, most online shops still prevent foreign customers from getting a bargain, according to a study published by the European Commission on Thursday.
The European e-commerce market has expanded rapidly in recent years, reaching a value of 106 billion euros (158 billion dollars) in 2006. More than half of the EU's retailers also sell their products over the internet. However, a recent "mystery shopping" exercise, in which commission officials posing as clients tried to buy 100 popular products including digital cameras, books and CDs, found that 60 per cent of cross-border transactions could not be completed.
This was either because the trader did not ship the product to their country, or because it did not offer them adequate means to make international payments.
Commenting on the findings, EU Competition Commissioner Meglena Kuneva said the commission should now introduce new rules aimed at helping online traders offer their goods abroad.
"Better deals and greater product choice for consumers on our vast European market could be just a click of a mouse away. But, in reality, online shoppers are still largely confined within national borders. Europe's consumers are being denied better choice and value for money. They deserve better," Kuneva said.
One well-known electronic goods retailer, for instance, is present in no less than 26 European countries. Its German website sells a high-end digital camera for 1,759.90 euros (2,626 dollars) in Germany. However, the same camera costs 132 euros more on its Irish website.
Even allowing for shipping costs, an Irish customer would still get a bargain by buying the product from the German website.
But the retailer does not allow them to do so, since it states that "in the event where you want your goods delivered in another country where (we are) present, you must purchase your order through that site that corresponds to your country."
The commission's study involved nearly 11,000 cross-border tests. It found that in more than half of EU member states, at least half of the products could be found 10 per cent cheaper from a website in another country, even when transport costs are included.
However, a purchase made from another country could be completed in only 39 per cent of cases.
Huge differences also exist within the 27-member bloc. For instance, 70 per cent of the turnover made by online shops is concentrated in three key markets: Britain, Germany and France. Meanwhile, Latvia, Belgium, Romania and Bulgaria are the countries where consumers are least able to buy from abroad.
The commission says the main obstacles to an EU-wide digital single market are legal. These include fragmented consumer protection rules and other rules on value-added Tax, recycling fees and levies.
The executive will now consult with business, consumer groups and experts in a bid to find a solution, with a first round of talks expected to take place in February.
