E-commerce continues to show strong growth across Europe, but its trajectory is far from smooth. According to the Finnish Commerce Federation and mobile payment provider MobilePay, fragmentation within the EU’s internal market and the dominant position of large American tech companies threaten to slow down progress that could otherwise unlock major opportunities for European businesses and consumers. A particularly critical issue is the payments infrastructure, where competition is currently anything but fair.
MobilePay and the Finnish Commerce Federation have raised concerns about what they call a “digital trade war,” where tech giants like Apple and Google act as gatekeepers in mobile payments. For example, Apple’s refusal to open up NFC technology to third-party apps effectively blocks European alternatives from fairly competing for iPhone users. This results in reduced consumer choice and significant obstacles for new innovations trying to enter the market.
At the same time, MobilePay has reported robust growth in Finland. In April, the service surpassed both Apple Pay and Google Pay as the most popular mobile payment method in the country. This demonstrates that European providers have the potential to thrive—if they are given the chance to compete on equal footing.
The Finnish Commerce Federation stresses that the European Union must urgently address the state of the digital single market. This means harmonizing digital services, ensuring fair competition in payments, and establishing clear rules to curb the market dominance of tech giants. Initiatives like the EU’s Digital Markets Act (DMA) are a step in the right direction, but their enforcement and oversight must be both effective and determined.
The timing is especially critical because e-commerce continues to grow rapidly. In Finland, online retail sales increased by 8 percent in the early part of the year, and many retailers are now actively investing in digital services and smoother payment options. Consumer expectations are high—they demand a shopping experience that is seamless, fast, and secure. However, these expectations cannot be met if European companies are forced to operate under rules dictated by dominant global players.
There are also geopolitical tensions at play. The Finnish Commerce Federation warns of a potential “trade war,” where access to digital services may become a pawn in broader political conflicts. In this light, the EU’s heavy reliance on a few American service providers is not only an economic risk, but also a strategic vulnerability.
One particularly noteworthy development is the merger of European payment providers like MobilePay and Vipps, which are forming a Nordic payments powerhouse. This demonstrates that European collaboration can generate the scale needed to challenge global players. It also raises the question: could similar cooperation be expanded across the EU?
The future of e-commerce remains bright, but its direction is not guaranteed. If the European Union fails to respond to the challenges of the digital economy quickly and decisively, there is a real risk that European companies will become permanent underdogs. This is not just an economic issue—it’s a matter of digital sovereignty and the future of innovation in Europe.
