Minister of Commerce: New List of Platforms and Applications Marks a Qualitative Leap in Regulating E-Commerce - Sarmad
Kuwait’s Minister of Commerce and Industry, Osama 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 Boudi added in a statement to 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.
He clarified that the Ministry is fully aware of the pivotal 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 their rights and obligations in advance.
“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 the consumer’s ability to obtain goods at fair prices and reliable services. This regulation establishes a clear relationship that is fair to all parties,” he said.
The minister pointed out that SMEs 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 impacted product and service prices. Consequently, the regulations were introduced to establish a balanced regulatory framework that ensures fairness and provides these enterprises with a broader scope for growth and expansion.
He noted 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. This ultimately benefits consumers, who gain access to a wider variety of 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 operating, growing, and developing their services.
He highlighted that a clear regulatory framework is an asset for any economic sector, as it provides investors with confidence and stability. He cited international experiences that have proven that more regulated markets are more attractive to investment because they are built on fairness 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 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 affirmed that the success of platforms and the success of SMEs are not conflicting goals; rather, they 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 growth. A clear framework for platforms is essential to ensure their sustainability. He noted that when this equation is achieved, the greatest beneficiary is the Kuwaiti economy as a whole.
