Consumer arbitration in the EU: A forced marriage with incompatible expectations

Abstract

This article explores the way in which the European Union (EU) legal order interacts-or maybe rather 'collides'-with the world of arbitration. The EU invariably refuses to consider arbitration as a full-fledged alternative to court proceedings. Arbitrators, in turn, take great liberty in defining the legal rules to which they will adhere. This article offers no prescriptions on how both worlds should ideally coexist but rather examines how and why they continue to operate as two distinct and almost antagonistic legal orders. It also points to the potential consequences of this stand-off for both legal orders. The article focuses on consumer regulation/arbitration. The case-law ensuing from the Directive 93/13 on unfair terms in consumer contracts offers a particularly useful starting point for this inquiry.