IEIM901120 - Businesses Selling their own Goods and Services

Where a business runs a website, app or other software that exclusively facilitates the sale of that business’s own goods or services that software is not a ‘Platform’ because it does not connect third party Sellers to users.

In this context, the term ‘business’ is intended to cover not just the entity that owns or operates the website or app itself, but also those related entities that are part of the same corporate group, which may also sell goods or services via that software.

For example, ABC plc has two subsidiaries, AB Ltd and BC Ltd. As well as being the parent company of the group, ABC plc runs and manages the group’s website. AB Ltd and BC Ltd both sell products via the website to the group’s customers. Although a customer buying a particular product may contract with AB Ltd or BC Ltd to buy the product, both companies sell products under the ABC brand. No other entities are able to sell goods or services via the ABC website.

In this scenario, the ABC website is not a Platform, because it does not allow third party Sellers to be connected to other users (i.e. the website’s customers) for the provision of relevant services or the sale of goods. The website is available to entities within the same ultimate business, selling goods or services under the same business name.

In contrast, where a website, app or other software is used by a business to sell its own goods or services, but the software is also open for use by other third-party Sellers that are not part of the same group or business as the software owner/ operator, then the software would fall within the definition of a Platform.