ЕВА is concerned about increased prices on electronics

16/ 04/ 2020

The European Business Association is concerned about some provisions of the Law on Collective Management of Copyright, namely an obligation to pay a percentage of the cost of certain electronics to the so-called collective management organizations. In particular, electronic devices and data medium that can be used to copy a music piece (MP3 player, music center, TV, mobile phone, laptop, disc, flash drive) or a literary work, such as a printer or paper. Thus, the data of the collective management organization accredited by the Mineconomy, in particular, the Ukrainian Music Alliance and the All-Ukrainian Copyright Agency have already published preliminary payment tariffs starting from 0.44% (for TVs) to 4.71% (printers) of the cost of the electronic device. According to the business, the proposed charge rates are too high and will increase the cost of such devices for Ukrainian consumers and lead to further growth of the shadow economy. Thus, on April 14-15 there were negotiations between business and these organizations in a bid to tackle the situation. As a result, a business is granted a month to set new tariffs. Viktoriia Kulykova. Consumer Electronics Committee Manager. The situation becomes more complicated as manufacturers have limited ability to participate in these negotiations due to the lockdown and restrictive measures like it happened yesterday. No representatives from the business could participate in the event. Therefore, to my mind, it cannot be considered as a negotiation. Real negotiations should be resumed upon the end of the restrictive measures. Besides, it is worth noting that, due to the closure of stores and other facilities around the world, the home appliances and electronics industry is suffering significant economic losses. In addition, the purchasing power of citizens is decreasing. In such circumstances, the introduction of additional fees for manufacturers of such devices can significantly complicate or even disrupt the activities of law-abiding companies. Consequently, the crisis will hit citizens even worse with the increased cost of electronic products. Therefore, the European Business Association appeals to the Prime Minister of Ukraine, Denys Shmyhal, to consider this situation, in order to avoid unjustified burden on both business and citizens of Ukraine. At the same time, two things are important now. First, to delay the start of the negotiation process at least until the end of the quarantine measures in Ukraine. Secondly, to suspend the operation of the abovementioned Law until the end of the year. We hope that the voice of a transparent business, which pays all taxes even in times of crisis, will still be heard!

Thus, the data of the collective management organization accredited by the Mineconomy, in particular, the Ukrainian Music Alliance and the All-Ukrainian Copyright Agency have already published preliminary payment tariffs starting from 0.44% (for TVs) to 4.71% (printers) of the cost of the electronic device. According to the business, the proposed charge rates are too high and will increase the cost of such devices for Ukrainian consumers and lead to further growth of the shadow economy.

Thus, on April 14-15 there were negotiations between business and these organizations in a bid to tackle the situation. As a result, a business is granted a month to set new tariffs.

Viktoriia Kulykova Consumer Electronics Committee Manager

The situation becomes more complicated as manufacturers have limited ability to participate in these negotiations due to the lockdown and restrictive measures like it happened yesterday. No representatives from the business could participate in the event. Therefore, to my mind, it cannot be considered as a negotiation. Real negotiations should be resumed upon the end of the restrictive measures.

Besides, it is worth noting that, due to the closure of stores and other facilities around the world, the home appliances and electronics industry is suffering significant economic losses. In addition, the purchasing power of citizens is decreasing. In such circumstances, the introduction of additional fees for manufacturers of such devices can significantly complicate or even disrupt the activities of law-abiding companies. Consequently, the crisis will hit citizens even worse with the increased cost of electronic products.

Therefore, the European Business Association appeals to the Prime Minister of Ukraine, Denys Shmyhal, to consider this situation, in order to avoid unjustified burden on both business and citizens of Ukraine.

At the same time, two things are important now. First, to delay the start of the negotiation process at least until the end of the quarantine measures in Ukraine. Secondly, to suspend the operation of the abovementioned Law until the end of the year. We hope that the voice of a transparent business, which pays all taxes even in times of crisis, will still be heard!