EC vs. US re: UIGEA, NATO
The European Commission, regulatory branch of the European Union, has again done what it does best: namely, release a long-crafted, thick-ass report on some matter demanding further legislation and/or regulation among EU member states. Naturally, since you’re reading about it here on Live Casino Direct, the Commission this time focused on questions on internet gambling and the United States government’s prohibition of same.
On behalf of the European trade association the Remote Gambling Association, the EC found the United States to be violating World Trade Organization rules – a viewpoint long espoused by much smaller economic forces such as Antigua – in international trade practices in the country’s “unfair enforcement of online gambling laws.” This complaint is based primarily in the overarching Unlawful Internet Gambling Enforcement Act but also in continuing America-based business practices.
Some of the main findings of the EC report included:
• European Union companies are “discriminated against: US companies are allowed to freely operate online gambling on horseracing in the US, while European companies and individuals cannot offer any type of online gambling and even face legal action. This is incompatible with US WTO commitments on trade in services…”
• Critically adverse effects for the European Union would entail “revenue and stock market value lost by affected companies as a result of their absence from the US market, and also the threat of serious sanctions hanging over them that affect their normal operation outside the US.”
• Bringing a case against the US before WTO officials remains “feasible,” and “If the US continues to act against EC companies with respect to their past activities, a WTO case will remain feasible even after the withdrawal of [the United States’ commitment to the WTO in this area].”
Upon release of the report European Union Trade Commissioner Catherine Ashton stated that “Internet gambling is a complex and delicate area, and we do not want to dictate how the US should regulate its market. However, the US must respect its WTO obligations.” Per business as usual, the EC, as voiced by Ashton hopes “that we will be able to reach an amicable solution to this issue."
The full report, entitled fully “Report to the Trade Barriers Regulation Committee: Examination procedure concerning an obstacle to trade, within the meaning of Council Regulation (EC) No. 3286/94, consisting of measure adopted by the United States of America affecting trade in remote gambling services,” can be read in full at the EC’s official website.