Minister of Commerce: New Regulations for Platforms and Applications Mark a Qualitative Leap in E-Commerce Regulation

The Minister of Commerce and Industry, Osama Khaled Boudi, affirmed that the issuance of the new regulations governing the sector of intermediary electronic platforms and applications for displaying, ordering, and delivering products to consumers represents a qualitative leap in the regulation of e-commerce in the State of Kuwait. This development was necessitated by the rapid pace of growth witnessed by this sector. The regulations are based on a single equation: balancing the interests of consumers, small and medium-sized enterprise (SME) owners, and electronic platforms, thereby establishing a stable and clear investment environment.

The Minister stated, “The Ministry is fully aware of the profound role played by intermediary electronic platforms in supporting the digital economy, generating employment opportunities, and facilitating access to products and services for consumers. We emphasize that these regulations do not aim to stifle the growth of this sector or diminish its investment attractiveness, but rather to regulate it through clear and fair rules that allow each party to know their rights and obligations in advance.”

He added, “We are not against electronic platforms; rather, we consider them genuine partners in economic development. Their success matters to us just as much as the success of business owners, and as much as we value consumers obtaining goods at fair prices and receiving trustworthy services. These regulations establish a clear relationship that is fair to all parties.”

The Minister clarified, “Small and medium-sized enterprises are a fundamental pillar of the national economy, and entrepreneurs rely on electronic platforms to reach their customers. However, the rise in certain commercial costs in recent years could negatively impact product and service prices. Therefore, these regulations introduce a balanced regulatory framework that establishes justice and provides these enterprises with a broader scope for growth and expansion.”

He continued, “When business owners find a more fair and transparent working environment, they gain confidence to invest in and develop their businesses, improve service quality, and offer more competitive prices. The result of all this ultimately benefits the consumer, who will find greater variety in options, higher service quality, and price stability.”

The Minister confirmed that the regulations have organized the contractual relationship between platforms and customers on clear bases, setting specific controls for commissions and delivery fees. They also mandate that platforms disclose paid advertisements and offers to consumers, ensuring that purchasing decisions are made with full knowledge and transparency. All of this is done without impairing the platforms’ ability to continue, grow, and develop their services.

He pointed out that a clear regulatory framework is an asset for any economic sector, as it provides investors with confidence and stability. Citing international experiences, he noted that more regulated markets are more attractive to investment because they are built on justice and equal opportunity.

He added, “True competition is achieved through service quality, innovation, and operational efficiency, not through burdens that weigh down business owners and are ultimately passed on to consumers.”

The Minister stressed that the door for dialogue remains open with all concerned parties during the implementation phase of the regulations. The Ministry will listen to every comment or suggestion that contributes to the proper application of the rules. He emphasized that the success of platforms and the success of small and medium-sized enterprises are not conflicting goals; rather, they are jointly the cornerstone of a strong and sustainable digital economy.

Concluding his statement, the Minister said, “These regulations are not designed to benefit one party at the expense of another, but to achieve the public interest. The consumer deserves fair prices and distinguished service. The business owner deserves a fair environment that enables growth. Platforms deserve a clear framework that ensures the sustainability of their operations. When this equation is realized, the greatest winner will be the Kuwaiti economy as a whole.”