The E-Commerce Law Adoption in Saudi Arabia

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Table of Contents

Issue
Relevant Law
Applying to the Facts
Conclusion
References

Issue

The problem of determining jurisdiction over online merchants remains relevant to the legal system. In particular, in Saudi Arabia, before the adoption of e-commerce law, this issue was not regulated. Currently, the jurisdiction of an e-commerce business is determined by the location of its activities. However, the law still does not specify how foreign sellers should be prosecuted. Thus, the jurisdiction is governed by Sharia law and e-commerce law in Saudi Arabia.

Relevant Law

E-commerce systems in Saudi Arabia must comply with Islamic contract law and Sharia law. Thus, there are principles of fulfilling form (offer and acceptance), contracting parties (buyer and sellers) and subject matter (object and price). These rules are aimed at establishing mutual trust between the seller and the buyer. Therefore, according to Sharia law, commercial transactions must be transparent, and both parties must give their voluntary consent. An important aspect of Islamic law in relation to commerce is also the concept of the meeting place. This idea assumes that the buyer and the seller must be in the same place during a face-to-face transaction throughout the entire transaction. As soon as the transaction is completed or the discussion of the subject of the transaction is over, the place can be changed. In relation to e-commerce, this concept is also applicable since transactions are carried out instantly. After the transaction is completed, the meeting place can be changed.

E-commerce law in Saudi Arabia specifies how the jurisdiction of an online seller is determined. In particular, the law stipulates that the jurisdiction of business of registered service providers coincides with an entry from the trade register. For unregistered service providers, the place of business is determined by the information specified on the e-platform. Separately, it is specified that the location of the equipment and technical support of the e-seller do not determine the jurisdiction of the business. Thus, the jurisdiction of the business coincides with the place of its activity according to e-commerce law.

Applying to the Facts

In the practice of other countries and international e-commerce acts, it is customary to include a clause on the sellers jurisdiction in the contract. However, when such provision is absent, an ambiguous situation is created when it is difficult to determine the jurisdiction of the online seller. To alleviate the situation, an international treaty was created, which regulates the legislation regarding e-commerce at the cross-border level. These include the United Nations Convention on Contracts for the International Sale of Goods (CISG) and the United Nations Convention on the Use of Electronic Communications in International Contracts (CUECIC).

In particular, in EU cases, when it is necessary to determine the jurisdiction of an online seller, the laws of the member state are applied in the territory in which commercial activity was conducted. Thus, the jurisdiction of a website in international law is determined by the conduct of business or determined by contract.

Conclusion

The protection of buyers rights in transactions with foreign online sellers occurs under the Electronic Transactions Law, which governs all e-commerce transactions in Saudi Arabia. E-commerce law does not specify specific procedures for litigation against foreign sellers. At the same time, it specifies that the business jurisdiction is identified either by registration or information with an e-platform. Thus, the jurisdiction of the online seller is limited by the place of registration or business unless otherwise stated on the platform. If a foreign seller is eligible to do business in Saudi Arabia, then he is subject to domestic law. Therefore, the jurisdiction of the online merchant is determined by the place of business, which is considered the territory of Saudi Arabia.

References

Electronic commerce and contractual obligations. (2020). Court of Justice of the European Union. Web.

Kadasa, I. P. (2019). Saudi Arabian E-commerce law A step towards consumer protection [PDF-file]. Web.

Pandey, V. (2020). Choice of law and jurisdiction in e-commerce contract: A comparative study. SSRN. Web.

Ribadu, M. B., & Rahman, W. (2019). An integrated approach towards Sharia compliance E-commerce trust. Applied Computing and Informatics, 15(1), 1-6. Web.

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The E-Commerce Law Adoption in Saudi Arabia

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