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

Kuwait’s Minister of Commerce and Industry, Osama Al-Boudi, said on Friday that the new regulations governing the sector of intermediary electronic platforms and applications for displaying, ordering, and delivering products to consumers represent a qualitative leap in the regulation of e-commerce in the country.

Minister Al-Boudi added in a statement to the Kuwait News Agency (KUNA) that the regulations are based on a formula that achieves a balance between the interests of consumers, small and medium-sized enterprise (SME) owners, and electronic platforms, thereby establishing a stable and clear investment environment amid the rapid pace of development witnessed by the sector.

The minister clarified that “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.” He emphasized that “the regulations do not aim to stifle the growth of this sector or diminish its investment appeal, but rather to regulate it through clear and fair rules that allow each party to know in advance their rights and obligations.”

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

The minister pointed out that “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 may have been reflected in product and service prices. Consequently, these regulations provide a balanced regulatory framework that establishes justice and opens a wider scope for these enterprises to grow and expand.”

He explained that when business owners find a more fair and transparent working environment, they feel confident in investing, developing their businesses, improving service quality, and offering more competitive prices, all of which benefit consumers who gain access to more diverse options, as well as 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, and obligating platforms to disclose paid advertisements and offers to consumers, ensuring that purchasing decisions are made with full knowledge and awareness. All of this is done without impairing the platforms’ ability to continue, grow, and develop their services.

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

He mentioned that true competition is achieved through service quality, innovation, and operational efficiency, not through burdens that weigh down business owners and are ultimately paid for by consumers.

The minister stressed that the door for dialogue remains open with all concerned parties during the implementation phase of the regulations, and that the Ministry will listen to every observation or suggestion that contributes to their proper implementation. He affirmed that the success of platforms and the success of small and medium-sized enterprises are not conflicting goals, but rather constitute the backbone of a sustainable digital economy.

He explained that these regulations serve the public interest: consumers deserve fair prices and distinguished services, while business owners deserve a fair environment that enables them to grow. There must be a clear framework for platforms to ensure their sustainability. He noted that “when this formula is realized, the greatest winner is the Kuwaiti economy as a whole.”