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What is the future of the Rome II dispute law?

OUT-LAW News, 04/02/2003

In an open letter to the European Commission, representatives of the advertising and internet industries have called into question the future of Rome II, a proposed EU Regulation to determine which country's laws would apply to certain disputes between parties based in different countries.

In spring 2002, the Commission launched a public consultation on Rome II, which would apply only to non-contractual disputes, such as cases of defamation, liability for defective products and unfair competition. Most contributors, including the UK government and major organisations, expressed doubts about the need for the measure.

The open letter, dated 31st January, attacks a Commission hearing held in Brussels last month. Signatories include representatives of Yahoo!, the Advertising Information Group, e.centre, the Direct Marketing Association, Cable & Wireless and many others. Also putting their names to the letter are MEPs Theresa Villiers, Malcolm Harbour and Lord Inglewood.

The hearing of 7th January, which marked the end of the consultation process, offered no justification for Rome II. The group also describes as "unacceptable" the Commission's promise at the hearing that any supporting justification and research documents would only accompany the final proposal itself.

The letter states:

"We would like to point to the fact that an overwhelming majority of attendees at the hearing expressed strong concern that far from improving legal certainty, a proposal based on the Commission's internal working paper would seriously undermine legal certainty in the EU."

The letter calls upon the Commission to carry out a "thorough impact assessment" and a "substantial consultation" before contemplating a legal text. The letter concludes: "If the Commission cannot find any need for a Regulation and does not intend to carry out an impact assessment study, we strongly urge you to abandon plans for a Rome II measure."

Phil Murphy, European Public Affairs Manager at the Advertising Association (AA), told OUT-LAW.COM:

"The letter to the Commission highlights industry's continued concern about a possible Rome II Regulation, renewing attention to the policy process and the lack of justification of the need for the measure.

"Having MEPs join together with business organisations in this way is an unprecedented development, demonstrating the depth of concern felt in the European Parliament as well as within the industry".

 

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