The economic interest group, dubbed “Luxembourg for Shopping”, was initially announced in June by secretary of state for economy, Francine Closener (LSAP).

The initiative follows the government’s goal to support e-commerce by removing barriers such as “geoblocking” while reducing the threat it poses to small businesses.

“The evolution of consumer habits makes this the first step in opening the digital distribution channel to a number of merchants who do not yet have an e-shopping solution,” according to a cabinet statement.

Luxembourg for Shopping will be in charge of developing, implementing and managing the electronic trading platform.

It is hoped that small businesses will also benefit from the recently proposed commercial lease reform, expected to be voted on in the autumn.