New Swedish law curbs e-commerce kickbacks from credit firms

Sweden's interpretation of the EU's new Consumer Credit Directive is set to block the kickbacks that credit companies like Klarna, Qliro, Svea, and Norion have long offered to e-commerce retailers. This regulation marks a significant shift in the Swedish e-commerce landscape.

The new law restricts the commissions paid by credit firms to online retailers. These commissions were seen as a mechanism encouraging consumers to use credit for purchases. However, the EU directive aims to limit such practices to protect consumers.

Bengt Nilervall from the Swedish Trade Federation notes that many retailers will face a choice between increased administrative burden or loss of commission income. This could be particularly challenging for small and medium-sized enterprises.

The regulation aims to prevent excessive consumer debt and make credit usage more transparent. However, the e-commerce sector fears that the law may negatively impact sales.

Experts believe the new law will bring fundamental changes to Sweden's e-commerce market and could serve as a model for other EU countries. How the sector adapts in the coming months remains to be seen.