All these are major drivers for online commerce in the U.S., but they are barriers in Europe. Although recent research shows European businesses are catching up with the United States in terms of infrastructure, the long- term prediction is they will not receive their fair share of revenue generated by consumers. Puni Rajah, European research director at IDC, said though the number of users connected and engaged in transactions by 2003 will be almost in line with that of the United States, the amount being earned by businesses will not. For Didier Benchimol, founder of several start-up companies, and now CEO of online publisher iMediation, the lack of European support for entrepreneurial business is causing revenue to be earned elsewhere. Even if this capital starts coming through, success could be stifled without an integrated European market that has consistent tax, business, and labor laws.
Businesses are in an incredible phase of confusion.
When Apple built its online store in Europe, it decided to provide price transparency. The U.K. government is due to present its revised e-commerce bill to parliament before the summer session ends, and it has already launched an enquiry into unfair pricing differences across Europe and the United States. However, many businesses said they feel the government is not clear about what needs to be done. European voters are not helping. According to IDC's Blackall, businesses must raise the profile of these issues, but this did not happen before last week's European elections.