The European Commission has confirmed that it has shelved plans
for the so-called Rome II legislation which would have covered
cross-border liability in situations where there is no contract,
for example, defamation and product liability.
The Commission had previously introduced a Green Paper on Rome
II following the passing of the Brussels Regulation which comes
into force on 1st March 2002.
The Brussels Regulation provides that consumers (as opposed to
businesses) can sue suppliers in their home country, instead of
suing where the supplier is based. The Rome II proposal applied
this country of destination principle to non-contractual
transactions. So, if a UK-based web site could be accessed in
Germany, the UK e-tailer would be subject to the non-contractual
liability laws of Germany. At present, such disputes are resolved
in the country where the seller is established.
The decision to shelve Rome II is perhaps the result of strong
industry opposition to the measure, although it is still possible
that the Commission will re-introduce a Rome II Green Paper at a
future date. Businesses had complained that Rome II would place an
unnecessary burden on e-commerce.
