The United Kingdom’s exit from the European Union was finally confirmed at the end of January 2020, but its fully impact will not be known for many years.
Brexit has dominated the headlines for the past three-and-a-half years, with the referendum in 2016 just the start of a bitter period within UK politics.
A huge victory for the Conservative Party in the 2019 General Election gave the government the freedom to push Brexit through and the UK subsequently left the EU on January 31.
While its full effect on the UK remains unclear at the moment, some online industries have already been affected, so read on as we take a closer look.
Online Travel Industry
The UK negotiated a transition period with the EU to ensure that there would be no impact on travellers up to the end of 2020.
However, from 2021 people are likely to require a new document – the European Travel Information and Authorisation Scheme (ETIAS) – in order to travel to Europe.
That will add an additional administrative layer for anyone wishing to travel to Europe, although the application process is fairly straightforward.
However, this will only be implemented if the UK doesn’t adopt a system that requires visitors to possess a visa in order to enter the country.
Brexit may also have an impact on travel costs, with a weak pound, additional insurances and an increase in the cost of flights amongst the factors that may affect people.
To conclude: According to Mark Okerstrom, the chief executive of the online-booking platform Expedia, “Brexit is a concern”
Online Gambling Industry
According to the online betting experts at BettingTop10 UK Brexit has already impacted the online gambling industry, with LeoVegas confirming the withdrawal of its Royal Panda brand from the UK.
The company had been extremely pro-active in marketing Royal Panda in the UK, but Brexit forced them to reconsider its position.
Licensing and regulatory issues, along with an upcoming credit card ban for UK online gambling. could cause other firms to stop offering their services to UK punters, particularly those whose headquarters are based in EU countries.
With trading agreements still to be negotiated, bookmakers will be wary about the potential for them to be hit with higher tax rates.
Single market trading has been hugely advantageous to the gambling industry and Brexit has created plenty of uncertainty within the sector.
Online Shopping Industry
Online shopping is massive in the UK, with research by Statista saying that around 93 percent of internet users in the country will buy products online by 2021.
Companies like Amazon, Alibaba and many more have enjoyed huge success in the UK, but leaving the EU may have a huge impact on the sector in the future.
Experts believe that Brexit will result in major disruption to trade, with all cross-channel shipments having to pass through customs before they can be forwarded to their destination.
Customs duties could also have a severe impact on online shopping, while changes to consumer rights are currently a major grey area.
With both imports and exports expected to be impacted by Brexit, many UK-based online retailers are understandably worried for the future.