The Commission has published the results of a consultation on a
draft proposal for an EU Regulation, known as Rome II, which would
determine which country's laws would apply to certain disputes
between parties based in different countries. The Regulation would
apply only to non-contractual disputes, such as cases of defamation
or liability for defective products.
According to the Commission, about 80 contributions were made by 31st October by governments, businesses and academics and reactions ranged "from blunt refusal of the draft as a whole to approval with some points of criticism."
Many contributors expressed doubts as to the necessity of Rome II, arguing that, in practice, businesses do not face problems with diverging rules on conflict of laws in the Member States. Others, however, took the view that Rome II would increase legal certainty.
The scope of Rome II was also criticised as "too extensive" by the majority of the contributors. It was almost unanimously suggested that issues related to intellectual property rights should be excluded from the scope of the Regulation.
Most of the commentators also objected to a general rule of the draft which states that, in cases where the act complained of and the place of damage are located in different countries, the applicable law is that of the country where the loss is sustained. It was argued that the rule would create unpredictability and that it would be difficult to apply in the case of financial loss.
Finally, the necessity to balance consumer protection and predictability of applicable law for product liability was emphasised, whilst provisions regarding unfair competition and unfair practices were welcomed by consumer groups and lawyers' associations.
The Rome II draft can be found at:
http://europa.eu.int/comm/justice_home/unit/civil/consultation/index_en.htm
The results of the consultation and detailed submissions are available from:
http://europa.eu.int/comm/justice_home/unit/civil/consultation/contributions_en.htm
