Balearic

How online trade on non-EU platforms is affecting commerce in the Balearic Islands

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Between 420 and 510 million euros. This is the estimated impact of large non-EU online sales platforms on the revenue of companies in the Balearic Islands. This was highlighted by the Federation of Business Associations for Trade in the Balearic Islands (AFEDECO), which is calling on public authorities to introduce measures to allow local businesses to compete on a level playing field with companies from outside the European Union that operate under a much lighter regulatory and tax burden.

The estimate is based on a study recently conducted by Análisis Económico Integral (AIE) for ANGED, the national association of distributors. The report indicates that, across Spain, this figure would amount to between 22 billion and 27 billion euros in cumulative sales by 2030, with a potential impact on up to 94,500 jobs. “We are not questioning the internet or consumer freedom; the problem is that our stores are competing with platforms that, in practice, do not assume the same level of costs or obligations, states AFEDECO president Joana Manresa, who stresses that the government must focus on the conditions under which these global platforms operate, which include well-known names to the general public, such as Amazon, AliExpress, Temu, Walmart, and eBay.

In this regard, it points out that Balearic companies operate within a particularly demanding regulatory framework, which becomes an obstacle when multinational digital giants operate with impunity. On paper, the rules should be binding for everyone, but the global network of micromarketing is so vast and dense that effective monitoring is practically impossible. “Formally, they should comply with European regulations, but the effective monitoring of millions of packages and products is clearly insufficient. This creates an imbalance that directly harms the companies that do comply. They estimate that in 2025 alone, nearly 5.9 billion low-value packages entered the EU, 25% more than the previous year. More than 90 percent of these originate from China and other Asian countries.

Furthermore, local business organizations warn that the lack of compliance also extends to environmental protection standards and workers’ rights in the countries of origin. Competing with production and logistics models that have looser regulations in these areas also impacts costs and, therefore, competitiveness. “We are not asking for preferential treatment or protectionism. We are asking for something as simple as ensuring that anyone selling to European consumers truly abides by the same rules. When some operators shoulder all the obligations while others can avoid them entirely or partially, we are not talking about competition, but about an imbalance.”

According to the business organization, companies in the Balearic Islands pay taxes to Spain, create jobs in accordance with labor legislation, and comply with strict obligations regarding consumer protection, product safety, and data protection, waste management, recycling, traceability, and environmental sustainability, and also bear the costs associated with facilities, licenses, inspections, Social Security contributions, and occupational health and safety.

In this context, the Federation is calling for measures such as strengthening customs controls, improving inspection systems, ensuring product traceability, and holding platforms effectively accountable. A comprehensive emergency plan that, in its view, must be a top priority on the Spanish and European economic agendas in the coming years. This is a long-standing issue that has been at the center of the demands of the islands’ local business community for more than a decade, and their complaints resonate with those expressed in so many other parts of Europe. Without a level playing field, they warn, this local business community will eventually disappear.