Minister of Commerce: The List of New Electronic Platforms and Applications Represents a Quantum Leap
The Minister of Commerce and Industry, Osama Al-Boudi, said on Friday that the new regulation 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 country.
Minister Al-Boudi added in a statement to KUNA that the regulation is based on an equation that achieves a balance between the interests of consumers, small and medium-sized enterprise (SME) owners, and electronic platforms, thereby consolidating 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 regulation does 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 its rights and obligations in advance.”
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. This regulation establishes 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. While entrepreneurs rely on electronic platforms to reach their customers, the rise in certain commercial costs in recent years could be reflected in product and service prices. Hence, the regulation was introduced to establish a balanced regulatory framework that ensures justice and provides these enterprises with a broader scope for growth and expansion.”
He explained that when business owners find a more just and transparent business 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, higher service quality, and price stability.
The minister affirmed that the regulation 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 so that purchasing decisions are based on clarity and prior knowledge. He noted that all of this is without impairing the platforms’ ability to continue, grow, and develop their services.
He added that the clarity of the 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 built on justice and equal opportunity.
He stated 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 will remain open with all relevant parties during the implementation phase of the regulation, and that the Ministry will listen to every comment or suggestion that contributes to its proper implementation. He emphasized that the success of platforms and the success of small and medium-sized enterprises are not conflicting goals, but rather form the backbone of a sustainable digital economy.
He explained that this regulation serves 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 equation is achieved, the greatest winner is the Kuwaiti economy as a whole.”
