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to remove any unjustified public or regulatory barriers plus those erected by individual companies.
This DSMI is combined with a special sector inquiry and investigation of the EU Commission, which focuses
in particular on the (offline and online) sales of footwear and textiles – and this includes the athletic
footwear and sports apparel product segment too. In a first round of consultation, the Commission has sent
out comprehensive questionnaires to selected offline and online retailers in July 2015 and subsequently
in a second round in the last quarter of 2015 similar questionnaires to brand owners and manufacturers.
Under EU Community laws and regulations, the addressed parties are legally obliged to cooperate with the
commission to fill in such questionnaires. Otherwise the Commission can impose very substantial fines. If
it finds any violations of antitrust laws in the course of this sector inquiry, it can initiate formal proceedings
against the respective individual commercial operator.
The EU Commission’s current timetable foresees that it will issue its first preliminary report by mid-2016,
which will then be released for public consultation. As it stands now, a final report should be available in
2017, yet it is not unlikely that such current time frames may be revised by the Brussels authorities in terms
of being extended later on.
3. Chances and Challenges for Taiwanese Manufacturers and
Exporters of Sporting Goods:
Does this DSMI action plan of the European Commission look good for the Taiwanese manufacturers and
exporters ?? At a very first glance, it may indeed.
A more liberalized, unified and open digital single market throughout the European Union promises
increased sales of sporting goods, a higher demand by European importers at manufacturing level and
easier direct access for Taiwanese sports products in Europe at the point of sales level in particular in the area
of online sales.
Nevertheless, apart from these chances, there are also some considerable challenges and risks, which should
not be neglected:
For Taiwanese manufacturers, in particular those with OEM business and supplier status a liberalized and
unified single digital market in Europe could also imply that competition might become even fiercer in the
future than is already now. Aggressive pricing policies up to price wars at European retail level could result
into throat-cutting practices at sourcing level in terms of squeezing suppliers to produce at the lowest (im)
possible price. This could in particular negatively affect smaller to medium-sized companies, who can be
easily substituted by other suppliers.