The proposal aims to regulate the access to the market for online sharing platforms and providers. It also provides easy registration of the platforms and providers and ensures transparent business and caps the income providers can generate this way.

Arguing that sharing economy is growing at a fast pace, the initiators believe new business models could contribute much to competitiveness and growth. Some experts believe it could add between EUR 160bn and EUR 572bn to the economy of the EU, they added.

Sharing platforms allow individuals as well as micro and small companies to promote their services and goods, and improve competitiveness and efficiency in a market by matching supply and demand more closely.

Currently, each platform is regulated by legislation in its respective field, including vacation rentals and transport, which can hinder the development of sharing economy and prevent it from reaching its full potential, MPs also argue.

Nevertheless, the proponents believe that the field must be regulated because sharing economy poses a challenge to existing stakeholders in the market. Moreover, grey areas can be abused to avoid rules.

Gross revenue of online sharing platforms in the EU has been assessed at EUR 28bn in 2015 and continue to grow.