WRITTEN QUESTION E-1472/00

by Alejandro Agag Longo (PPE-DE) to the Commission

(10 May 2000)

Subject: Electronic commerce

In its recommendation on the Major Economic Policy Guidelines the Commission refers on several occasions to the productivity and economic growth potential latent in electronic commerce. Indeed, the Commission explicitly urges the Member States to take steps to enable such potential to be fully harnessed.

Could the Commission be more specific and explain what general guidelines the Member States' governments should, in its opinion, be following in this area?

Answer given by Mr Liikanen on behalf of the Commission

(30 June 2000)

Electronic commerce is expected to have far-reaching effects on the organisation and competitiveness of enterprises, as well as providing great benefits to consumers. By electronic commerce, companies can modernise their business processes, obtain cost savings, and provide better services to customer. The diffusion of electronic commerce is the condition for making traditional industries more competitive and allowing new business activities and enterprises to emerge. The experience from the United States demonstrates that electronic commerce has made important contributions to economic growth and the creation of new jobs.

The Commission therefore encourages European enterprises to exploit the potential of electronic commerce and recommends Member States to put in place effective measures, in order to favour the diffusion of electronic commerce.

The Commission is establishing a legislative framework to encourage electronic commerce and to remove possible barriers. This includes a number of legislative actions regarding privacy, security, copyright, and telecom regulations. A framework Directive(1) has recently been adopted, establishing the principle that single market Community rules apply to electronic commerce services. The Directive covers the right of establishment, on-line contracts, liability for illegal transmission, as well as protection of the consumer.

The e-Europe initiative, launched by the Commission in December 1999, aims at accelerating the uptake of digital technologies across Europe, and addresses several areas, including education, internet access, research, risk capital and applications of public interest. The Lisbon European Council called for the Council and the Parliament to adopt all pending legislation on electronic commerce by the end of 2000. Member States should accelerate their implementation into national law, which should be finalised by 2001.

In its communication Challenges for enterprise policy in the knowledge-driven economy(2), the Commission sets out its approach to fostering entrepreneurship and encouraging companies, in particular small and medium-sized enterprises (SMEs), to take up electronic commerce. In line with this initiative, the Commission has also launched a benchmarking exercise, to measure, by appropriate indicators,

the progress in the Community and in the Member States towards the new economy, and to provide results each year to the European Council.

(1) Directive of the Parliament and the Council on certain legal aspects of Information Society services, in particular electronic commerce, in the Internal Market 4/5/2000.

(2) COM(2000) 256 final.