An authoritative study published by the Organisation for Economic Co-operation and Development (OECD) highlights the evolving dynamics and competitive hurdles within the e-commerce ecosystems of Poland, Latvia, and Lithuania. Funded by the European Union, the comprehensive report examines the structural layout of digital platform operations, outlining the immense market power wielded by established regional leaders, the distinct barriers confronting new competitors, and the underlying regulatory landscape. By gathering economic data and stakeholder insights, the research offers a definitive guide for regional policymakers and national competition authorities looking to refine market surveillance and ensure balanced trading environments across these Baltic and Central European sectors.
A primary catalyst for e-commerce expansion in these countries is the exceptionally high rate of weekly internet usage, which reached approximately 89 percent in Poland and Lithuania, and an impressive 94 percent in Latvia. This ubiquitous connectivity has allowed entrenched local marketplaces to secure powerful, self-reinforcing network effects. In Poland, the homegrown giant Allegro commands the vast majority of consumer engagement, successfully maintaining its footprint despite the entry of global gatekeepers like Amazon, which captured an estimated market share of only 6 percent. Similarly, the regional operator Pigu acts as the principal e-commerce hub for the Baltic nations, controlling a 72 percent share of consumer traffic on its Latvian platform, 220.lv. Pigu strategically positions itself as a specialized partner for local merchants by providing native language customer support and tailored domestic logistical networks.
However, this high market concentration leaves business users facing a significant structural imbalance. Because major platforms control essential transactional infrastructure, secure payment systems, and fulfillment logistics, smaller vendors cannot easily pivot to alternative channels like independent web shops or consumer sites without incurring prohibitive initial operational expenses. The OECD report notes that such deep asymmetrical dynamics create an environment ripe for ecosystem lock-in, where dominant players can dictate terms or grant structural advantages to their own first-party retail components. Consequently, the study emphasizes the critical importance of strictly enforcing both national competition rules and European Union mandates, such as the Digital Markets Act. Moving forward, the OECD recommends targeted regulatory updates to enhance data transparency, dismantle artificial barriers to cross-border expansion, and prohibit unfair trade practices. By implementing these cooperative adjustments, Poland, Latvia, and Lithuania can protect smaller enterprises, shield consumer choices, and cultivate a genuinely collaborative digital single market.
