The British Retail Consortium (BRC) says barriers such as different consumer rights and incompatible payment systems are preventing trade and therefore hindering economic growth.
Previously, the prime minister David Cameron, as well as other European leaders, has supported calls for the creation of a single market for digital, however there is still considerable work to be done.
Data from the European Commission suggests the increase in EU income could be as much as 4% if a “truly single market” for digital were created.
It is also thought the UK would be a primary beneficiary due to the strength of its online retail sector.
“Retail is something the UK excels at and we’re already global leaders online,” said Stephen Robertson, director general of the BRC.
“There is a multitude of hurdles which any company wanting to trade in Europe must overcome, not least 27 different sets of consumer rights legislation, tax and legal regimes.
“The EU machinery is making gradual progress on some key areas but there needs to be a greater sense of urgency.
“Opening up Europe’s digital market would be a win-win situation. Consumers across the continent would benefit from the extra competition, which we know encourages innovation and helps bring prices down.
He added: “The UK’s world-leading retailers would be well-placed to achieve even greater success. We need to see pressure from retailers and the UK Government resulting in a faster rate of change in Brussels.”
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