EU publishes agenda for collaborative economy

The executive body of the European Union (EU) Thursday presented a guidance aimed at supporting consumers, businesses and public authorities to engage confidently in the collaborative economy.

"These new business models can make an important contribution to jobs and growth in the European Union (EU), if encouraged and developed in a responsible manner," the European Commission said in a statement.

The collaborative economy is growing rapidly in the bloc in recent years. However, as it takes root in the EU, national and local authorities are responding with a patchwork of different regulatory actions.

The European Commission concerned that this fragmented approach to new business models may create uncertainty for traditional operators, new services providers and consumers alike and may hamper innovation, job creation and growth.

"A competitive European economy requires innovation, be it in the area of products or services." Vice-President of European Commission, said Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness.

"Our role is to encourage a regulatory environment that allows new business models to develop while protecting consumers and ensuring fair taxation and employment conditions," he added.

The Communication "A European agenda for the collaborative economy" provides guidance on how existing EU law should be applied to this dynamic and fast evolving sector, clarifying key issues faced by market operators and public authorities alike, the statement said.

The EU said that, intermediary platforms, such as Uber or Airbnb, should not be subject to authorizations or licenses. Service providers should only be obliged to obtain business authorizations or licenses where strictly necessary to meet relevant public interest objectives.

"Absolute bans of an activity should only be a measure of last resort," the Communication stated.

Meanwhile, the EU said collaborative platforms can be exempted from being held liable for information they store on behalf of those offering a service. But the platforms should not be exempted from liability for any services they themselves offer, such as payment services.

The EU stressed that, collaborative economy service providers and platforms have to pay taxes, including tax on personal income, corporate income and value added tax.

"Today we are providing legal guidance for public authorities and market operators for the balanced and sustainable development of these new business models. We invite member states to review their regulation in the light of this guidance and stand ready to support them in this process," said EU Commissioner Elzbieta Bienkowska, responsible for Internal Market, Industry, Entrepreneurship and SMEs. Enditem