A Note On Services In The European Union Regulations: Is Online Digital Content A Service?

The first section analyses European Union legal texts on the goods-services distinction. They view the former as tangible entities, while the latter covers all intangible ones. The writing of the key article on services in the EU main Treaty may also be confusing. The second section explains the new approach of the service that the economic analysis has developed, especially relevant in the context of the knowledge economy. The third section shows that the Single Market Digital Strategy of the European Commission faces difficulties caused by the outdated service definition it uses. The problems affect the VAT rate applicable to intangible goods, regarded as services (e.g. e-books vs. tangible books), and the Directives or Communications handling the provision of Digital Content. This concept, coined among other things to bypass the outdated definition, induces a contorted law treatment of intangible goods and, at least, undue contractual idiosyncrasies. Adopting the new economic approach of the serv ce would solve the problems underlined and help fostering the digital economy.