Key directives and regulations by type of marketplace

Whether targeting consumers (B2C), businesses (B2B) or individuals (C2C), marketplaces have transformed the e-commerce sector. They are also establishing themselves as major players in alternative financing. Public authorities have created a regulatory framework tailored to their specific characteristics as they have grown. Compliance has become a key issue between consumer protection, tax obligations, the fight against money laundering, and the supervision of financial activities. The aim is to ensure user confidence, guarantee fairness in the market and limit economic, legal and reputational risks. This overview of key regulations highlights best practices and levers for compliance.

B2C marketplaces: protecting consumers

Marketplaces dedicated to business-to-consumer (B2C) transactions are subject to a legal and regulatory framework designed primarily to protect the end buyer. Consumers are often considered the most vulnerable party in a transaction and benefit from an extensive and evolving legal arsenal.

• Key directives

  • Omnibus Directive: will come into force across the European Union in 2019. The Directive requires greater transparency on prices, sales conditions and promotions. B2C marketplaces will have to provide clear information on the conditions under which discounts are applied, indicate whether a customer review has been verified and guarantee the authenticity of reviews.

  • General Data Protection Regulation (GDPR): Consumers' data must be processed in accordance with the GDPR. This means, among other things, clearly informing customers about how their data will be used, implementing appropriate security measures and respecting their rights (access, rectification, erasure, portability).

  • Right of withdrawal: within the European Union, consumers have a standard 14-day right to change their mind without giving a reason. Platforms must ensure that third-party sellers respect this right by offering transparent return policies and explaining refund conditions.

• Application examples

  • Implementing transparency tools: many B2C platforms now include trust indicators, price comparators and details of whether the seller's profile has been verified. This information enables consumers to make informed choices.

  • Compliant refund processes: marketplaces are developing integrated refund systems that comply with legal deadlines. Automated tools trigger alerts if a seller is late in refunding a customer, ensuring that the right of withdrawal is respected.

B2B marketplaces: streamlining and securing business transactions

B2B platforms that connect suppliers, and professional buyers must address compliance issues that focus more on taxation, invoicing, and the fight against criminal practices such as money laundering. Mutual trust between businesses depends heavily on these regulatory frameworks.

• Key directives

  • Mandatory electronic invoicing: within the European Union, electronic invoicing is gradually being adopted, and in some Member States, its use has become mandatory. The European Directive on B2B invoicing aims to standardise and simplify accounting processes while reducing VAT fraud.

  • AML/CFT regulations: to combat money laundering and the financing of terrorism, B2B marketplaces are subject to Know Your Customer (KYC) obligations, tighter control of financial flows and reporting of suspicious transactions.

  • Tax management: B2B marketplaces operating within the European Union must comply with intra-Community VAT regimes, such as OSS (One-Stop Shop) and IOSS (Import One-Stop Shop), designed to simplify and harmonise VAT collection in cross-border trade.

• Application examples

  • Automated invoicing systems: B2B platforms include solutions for generating compliant electronic invoices, automatically archiving these documents and simplifying tax declarations.

  • Identity verification & validation and KYC: marketplaces implement stricter onboarding procedures, asking sellers for proof of identity and company information. Similarly, automated analysis tools can detect suspicious behaviour, initiating in-depth checks.

C2C marketplaces: controlling security and responsibilities

C2C marketplaces enable individuals to buy and sell products or services between themselves. The primary purpose of regulation is to clarify each party's responsibilities and ensure that products are genuine and meet expectations.

• Key directives

  • Control generated income: when individuals make regular sales, their income can be considered professional. They must comply with the applicable tax regimes, such as those regarding micro-entrepreneur status in France.

  • Liability for illegal content and products: C2C marketplaces must ensure that the products sold are not counterfeit or illicit. In accordance with the E-Commerce Directive, platforms must promptly remove any reported illegal content.

• Application examples

  • Tax notifications: platforms regularly remind private sellers of their tax obligations and even provide simplified calculation tools to determine the potential amount of tax due.

  • Reporting illicit content: C2C marketplaces deploy reporting systems and moderation teams. As soon as suspicious content is detected or reported, an analysis is carried out, and if necessary, the ad is removed.

Financial marketplaces: navigating complex regulations

Financial marketplaces, whether crowdfunding platforms, peer-to-peer lending services or crypto-asset trading platforms, are subject to a particularly complex regulatory framework. They operate in a high-risk environment where investor protection, transparency and financial stability are paramount.

• Key directives

  • European Regulation for Services for Participatory Financing (ECSPR) providers: This regulation standardises the rules for crowdfunding platforms at the European level. It provides a single authorisation to operate throughout the EU, transparency requirements and a harmonised cap on the amounts raised from non-professional investors.

  • Crypto-asset regulation (MiCA): The crypto-asset market is booming. The MiCA regulation introduces clear rules on the issuance and trading of crypto assets, the liability of platforms, investor protection and the fight against fraud. Platforms operating in this sector must obtain appropriate licences, apply enhanced AML/CFT procedures and comply with strict IT security standards.

  • ELTIF 2: The new regulation for European Long-Term Investment Funds, ELTIF 2, aims to broaden retail investors' access to long-term assets while guaranteeing solid protection. Marketplaces offering such products must comply with the regulations' diversification, distribution, and transparency requirements.

• Application examples

  • ECSPR compliance: A crowdfunding platform wishing to operate in several EU countries must obtain a single authorisation from the European Securities and Markets Authority. This authorisation provides investors uniform protection and requires the platform to be more transparent about risks, past performance and fees.

  • Implementation of MiCA rules: A crypto-asset platform must implement a robust authentication and transaction traceability system and inform users of the risks associated with crypto-currencies. It must also have sufficient funds to cover its operations and offer a backup mechanism in the event of default.

With complex and constantly changing regulations, marketplaces must demonstrate genuine legal agility. Complying with existing standards is insufficient because non-compliance carries significant risks: financial penalties, loss of user confidence, and damage to brand image. On the contrary, continuous legal monitoring and anticipating regulatory changes can become a competitive lever.

Platforms benefit from setting up internal compliance units, working with specialist law firms or approved payment service providers, and investing in dedicated technology solutions. Adopting a proactive approach helps meet legal requirements and enhances the user experience by guaranteeing an environment of trust and security.

Ultimately, compliance with the key directives and regulations, l whatever the type of marketplace, is a sine qua non-condition for sustaining an economic model based on trust, transparency and secure transactions. 

To support you in this process, Lemonway, an approved European payment institution, offers its expertise and payment solutions to marketplaces. Using certified tools, Lemonway helps you navigate all the regulations, whether they affect B2C, B2B or C2C marketplaces or financial platforms.

Contact Lemonway for personalised support and payment solutions designed to meet your platform's compliance and growth challenges!