No C 255/4 Official  Journal  of the European  Communities 7.11.75 
Having  regard  to the Opinion  adopted  by the Section 
for Industry,  Commerce,  Crafts  and  Services  at its 
meeting  on 2 April  1975; 
Having  regard  to the  report  submitted  by  the 
Rapporteur,  Mr Masprone; 
Having  regard  to the discussions  at its meeting  on 24 
April  1975  (129th  plenary  session  of 23 and  24 April 
1975), 
Done  at Brussels,  24 April  1975. HAS  ADOPTED  THE  FOLLOWING  OPINION 
by a unanimous  vote: 
1. The  Committee  approves  the proposal. 
1.1. The  Committee  trusts,  however,  that  the 
Commission  will  look  into  the problem  of the lateral 
visibility  of motor  vehicles,  and,  if need  be, submit 
appropriate  draft  Directives  at the earliest  possible 
opportunity. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
(Opinion  on the  communication  of the  Commission  to the  Council  concerning  a 
Community  policy  on data  processing 
The Opinion  of the Committee  does  not relate  to any  particular  text  published  in the 
Official  Journal  of the European  Communities. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 122nd  plenary  session  held  on 18 July  1974  the Committee,  acting  on a proposal 
from  its Bureau,  decided,  to deliver  an Opinion  on the abovementioned  subject  on its 
own initiative. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Econpmic  and  Social  Committee  drew  up its Opinion  at its 129th  plenary  session, 
held in Brussels  on 23 and 24 April  1975. 
The Opinion  is published  below: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to Article  20 (4) of its rules  of 
procedure; 
Having  regard  to the  decision  of the  plenary 
assembly  on IB July  1974,  following  a proposal  of 
its Bureau,  to deliver  on its own  initiative  an Opinion 
on the  Communication  of the  Commission  to the 
Council  concerning  a Community  policy  on data 
processing; Having  regard  to the decision  taken  by its Bureau  on 
16 July  1974,  instructing  the Section  for Industry, 
Commerce,  Crafts  and  Services,  to draw  up an 
Opinion  and a report  on the matter; 
Having  regard  to the Opinion  adopted  by the Section 
for Industry,  Commerce,  Crafts  and  Services  at its 
meeting  on 2 April  1975; 
Having  regard  to the  report  submitted  by  the 
Rapporteur,  Mr de Ferranti; 
7.11.  75 Official  Journal  of the  European  Communities No C 255/5 
Having  regard  to the discussions  at its meeting  on 24 
April  1975  (129th  plenary  session  of 23 and  24 April 
1975); 
Whereas  the Commission  has produced  an analysis  of 
the current  data-processing  position  in Europe  and 
initial  proposals  for  strengthening  the  industry  and 
promoting  the effective  use of computers; 
Whereas  the  Council  resolution  of 15 July  1974  (1) 
endorsed  these  proposals; 
Whereas  the  present  situation  of the  computer 
market  reveals  the dominant  position  of one  supplier 
of large-  and  medium-scale  general  purpose 
(mainframe)  computer  systems  but a higher  degree  of 
competition  in the  other  segments  of the  data-pro-
cessing  industry; 
Whereas  the  marketing  strategy  of the  largest 
mainframe  manufacturer  is based  on the  provision 
of a total  system  capability  to the  computer  user 
which  may  not,  in the  long  term,  be in the  users' 
interest; 
Whereas  the shape  of the industry  is changing  due  to 
various  developments  which  include:  the  rapidly 
declining  cost  of semi-conductor  based  hardware  (for 
example,  low  cost  mini-computers);  the  growing 
importance  of distributed  systems;  and  various 
developments  in the mainframe  computer  industry, 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
unanimously,  less  6 abstentions: 
The Committee  approves  the  Commission's 
communication  with  the following  comments. 
1. The  Committee  is anxious  to ensure  that  the 
European  policy  on  data  processing  should 
contribute  to the economic  and  social  development  of 
the Community. 
1.1. This  can  be achieved  by strengthening  the 
international  competitiveness  of  the  European 
data-processing  industry  and  by protecting  the  best 
interest  of users,  particularly  in providing  a wide  and 
more  effective  choice. 
(x) OJ  No C 86, 20. 7. 1974,  p. 1. 1.2. The  Committee  is aware  of the  need  to 
promote  the  more  widespread  and  effective  use of 
computers  and  to establish  competent  computer 
users,  for  example,  those  tackling  advanced 
applications.  This  is  one  area  where  public 
procurement  policy  should  be used  to wider  purpose 
than  that  proposed  in the Commission's  document. 
1.3. The  Committee  underlines  the  successful 
efforts  of many  companies  in areas  such  as 
peripherals,  terminals,  mini-computers  and  electronic 
components.  Though  the  market  for many  of these 
areas,  including  that  part  secured  by large  companies 
in some  Member  States,  is dependent  upon  the 
mainframe  computer  market,  it is only  partly 
controlled  and  not  dominated  by any  one  company. 
Thus,  companies,  including  parts  of the  European 
data-processing  industry,  have  been  able  to attack 
these  specialized  market  segments  and  establish 
competence  so that  they  can  play  their  part  in 
competing  on an international  scale. 
1.4. Noting  the  current  situation  in  the 
mainframe  computer  industry,  e.g.  the  effective 
limits  on competition,  the progress  made  in providing 
for compatibility,  the limited  steps  taken  to unbundle 
software,  the  growing  importance  of  data 
communication  based  systems  and  the various  actions 
in the  United  States  against  the  one  dominant 
manufacturer,  the  Committee  urges  a European 
policy  promoting  a restructured  and  competitive 
European  industry  while  avoiding  harmful  effects  on 
employment  opportunities  and  the general  public  and 
respecting  individual  privacy.  This  policy  should  be 
established  before  it is too  late  to grasp  the 
opportunities  which  the  changing  shape  of the 
industry  is opening  up. 
2. For  these  reasons,  the Committee  proposes  the 
following  strategy  for data  processing  to complement 
the Commission's  proposals: 
2.1. The  Community  should  encourage  and,  where 
necessary,  support  mainframe  manufacturers  in their 
efforts  to achieve  minimum  viable  size,  having  regard 
to the following  guidelines. 
2.2. The  policy  should  be  oriented  towards 
companies  which  can  be  expected  to  become 
competitive  and  technically  competent  without 
support  in a reasonable  period. 
No C 255/6 Official  Journal  of the European  Communities 7.11.75 
2.3. While  the  Committee  does  not  believe  that 
merger  is of itself  the  only  way  of achieving 
minimum  viable  size  unless  it is agreed  by  all 
concerned  to make  technical  and  commercial  sense, 
the lack  of a legal  framework  at European  level 
which  could  facilitate  any  desired  concentration 
between  manufacturers  of different  Member  States  is 
deplored.  In this  connection  the  Committee  would 
once  more  call  for  the  speedy  introduction  of a 
statute  for the European  company.  Such  a European 
legal  structure  will  be  eminently  suitable  for 
developing  further  concentration  —  if this  is 
necessary  — into  the right  channels. conclusions  and  recommendations.  Encouragement 
and enforcement,  where  necessary  and  sensible, 
should  be effected  via agreed  and  preferred  standards 
(e.g. for interfaces  and  programming  languages),  by 
adopting  other  EEC  measures  such  as those  devised 
under  Article  100  to remove  technical  barriers  to 
trade  and  under  Article  86  to avoid  dominant 
positions  and  by  well-conceived  government 
procurement  policies  in order  to work  towards  free 
access  to public  purchasing  within  the Community. 
2.4. This  policy  in  the  field  of  mainframe 
manufacturers  should  be complemented  by steps  to 
promote  cooperation  in other  industry  segments,  as 
indicated  below,  where  the opportunities  are greater 
and European  companies  better  placed  to grasp  them. 
This  will  provide  more  effective  competition  on an 
international  scale  and  offer  computer-users  a wider 
choice.  The  desired  cooperation  should  also  involve 
the mainframe  manufacturers  so as to reduce  the 
total  investment  required  to compete  internationally. 
3. Thus  the  Committee  recommends  the 
promotion  of companies  in the other  data-processing 
fields  so that  they  can  play  their  full  part  in 
competing  internationally.  These  include  communica-
tions  and  other  specialized  system  suppliers,  terminal, 
peripheral  and  mini-computer  manufacturers,  the 
semi-conductor  industry  and  various  service 
companies  such  as bureaux  and  systems,  software 
and consultancy  houses.  Many  of  these  will 
contribute  to data  communication  based  systems 
which  are growing  in importance  and  will  domin'ate 
the market  in the 1980's.  These  might  be employed 
for connecting  many  terminals  or sub-systems  to a 
large  central  computer  or to interconnect  distributed 
but related  user  systems  with  processing  input/output 
and file  storage  capacity  based  at many  places  nearer 
to the  user  environment.  Larger  data  networks  will 
also be developed  to interconnect  many  dissimilar 
systems,  perhaps  using  packet  switching  technology. 5. The$e  steps  will  need  to be taken  in a gradual 
and coordinated  manner  and  be designed  to protect 
particular  manufacturer  and  user  interests  as follows: 
5.1. The  mainframe  manufacturers  make  a large 
investment  in research  and  development  associated 
with  the  design  of a wide  and,  as far as possible, 
complete  range  of hardware,  software  and  related 
services.  If other  companies  need  to exploit  this 
investment  in order  to offer  alternative  products  or 
services  and  thereby  reduce  the  legitimate  share  of 
the market  which  the  investment  was  designed  to 
secure,  then  it is right  that  they  should  contribute  a 
fair proportion  of the cost. 
5.2. Similarly,  computer  users  should  not be faced 
with  additional  charges  applied  retrospectively 
(perhaps  as a result  of further  unbundling)  and  will 
need  time  to adapt  to the  opportunities  offered  by 
new marketing  practices,  particularly  if multi-vendor 
systems  are  to be installed  or main  contractors 
employed  other  than  the  mainframe  suppliers  who 
traditionally  offer  a total  system  capability  to users. 
6. The  Community  should,  as already  mentioned 
in 1.2,  pursue  ways  of promoting  more  effective  use 
of computers  such  as  those  proposed  by  the 
Commission. 
4. The  Community  should  ensure  that  all suppliers 
follow  new  marketing  practices,  based  on 
unbundling,  which  support  the  above  strategy  and 
open  the  computer  market  to a wide  range  of 
companies.  Promotion  of these  practices  can  be 
effected  by studying  which  of them  can  and  should 
be followed  or discouraged,  discussing  these  with  a 
wide  range  of interested  parties  and  publishing  the 6.1. Thus  it should  encourage  the  provision  of 
education  and  training  on  a national  scale  by 
independent  bodies  aimed  at establishing  a large 
market  base  of competent  users  able  to exploit 
computers  fully  and  to take  advantage  of the  more 
open  policies  now  emerging.  Management  education 
deserves  special  emphasis  in this  connection. 
7.11.  75 Official  Journal  of the  European  Communities No C 255/7 
6.2. In  particular,  the  Community  should  support 
pioneering  applications  of  an  advanced  nature, 
especially  in its own  areas  of interest  such  as customs 
administration.  It should  also  investigate  ways  of 
interchanging  user  experience  and  of promoting  the 
exploitation  of computers  in important  application 
areas  by national  centres  of systems  and  application 
excellence,  and  coordination  of  these  at  a 
Community  level. 
6.3. In  this  context,  the Committee  underlines  the 
importance  of the  Council  Decision  of 18 March 
1975  adopting  a first  three-year  plan  of action  in the 
field  of information  and  documentation  in science 
and technology  (based  on  the  Commission's 
proposal  (•*), provided  that  the  data-processing 
industry  of  the  Community  would  be  largely 
responsible  for its implementation. 
7. The  Committee  would  stress  that  whenever  the 
Community  grants  financial  aid  the  use  of these 
funds  must  be subject  to public  scrutiny  in the light 
of the Community's  policy  on data  processing. 
7.1. In  this  connection,  the  Commission  should 
come  to an agreement  with  the  economic  interests 
and social  groups  involved  and,  more  especially,  with 
the Economic  and  Social  Committee,  on all aspects  of 
(*) OJ No C 126,  17. 10. 1974. the policy^  (objectives,  funding,  conditions  for  aid, 
etc.). 
8. An  effective  policy  for data  processing  requires 
an analysis  of the  current  employment  situation  in 
the industry  and  of changes  and  future  developments 
in that  situation. 
8.1. It  is therefore  necessary  to  survey  the 
employment  structure,  working  conditions  and  initial 
and further  staff  training  in the  different  sectors  of 
the computer  and  allied  industries.  The  survey  should 
take in both  the production  and  application  side. 
8.2. These  investigations  will  then  serve  as a basis 
for assessing  the  likely  impact  of the  European 
data-processing  policy  on  future  employment 
opportunities  in the  industry,  and  developing  a 
prudent  manpower  policy  and  appropriate 
programmes. 
9. In  addition,  special  investigations  are  needed 
into the past  and  future  impact  of computers  on the 
performance  of the  economy  and  on workers,  jobs 
and work  organization  in  industry  and 
administration. 
10. A  policy  must  be established  which  guarantees 
individual  privacy  to an agreed  level  and  a European 
policy  for  data  processing  must  encompass  and 
support  this  in particular  by preventing  misuse. 
Done  at Brussels,  24 April  1975. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE