Source: EURLEX
Language: en
Format: md

_**te**_ *****

**COMMISSION OF THE EUROPEAN COMMUNITIES**

**Brussels, 16.04.1997**
COM(97) 157 final

**COMMUNICATION FROM THE COMMISSION**

**TO THE COUNCIL, THE EUROPEAN PARLIAMENT,**

**THE ECONOMIC AND SOCIAL COMMITTEE**

**AND THE COMMITTEE OF THE REGIONS**

##### **A European Initiative in Electronic Commerce**

##### **Table of Contents**

**Executive Summary**

**Introduction**

**1.** **The Electronic Commerce Revolution**

**Electronic Commerce: the Internet revolution**

**The next generation markets**
**The opportunities for Europe**
**Electronic Commerce: international comparisons**
**Marshalling Europe's strengths**
**The need for global consensus**

**2.** **Ensuring Access to the Global Marketplace: Infrastructure, Technology and**

**Services** **8**

**Maximising the effects of telecommunications liberalisation** **8**
**Maximising the benefits of the liberalisation of IT markets** **9**
**Removing capacity bottlenecks** **9**
**Ensuring interoperability in a competitive environment** **10**
**Making user-friendly electronic commerce services available: European R&D** **11**
**International industrial cooperation in infrastructure, technologies and services** **12**

**3.** **Creating a Favourable Regulatory Framework**
**Building trust and confidence**
**Ensuring full access to the single market**
**The principles of an electronic commerce regulatory** **framework**
**The essential features of a regulatory approach**

**A regulatory approach that develops appropriate horizontal** **pol icies**
**Working towards a consistent global regulatory framework**

**4.** **Promoting a Favourable Business Environment**
**Consumers: creating awareness and confidence**
**Business: creating awareness and encouraging** **bsst** **practice**
**Public administrations: promoting a more pro-active public sector**
**Putting electronic commerce at the service of the citizen**

**12**

**12**

**13**

**14**

**15**

**17**

**19**

**20**

**20**

**21**

**22**

**23**

**24**
**Conclusions**

###### _Asu_

##### PREFACE

This Communication and related initiatives as well as coming legislation can be accessed
electronically on [http://www.ispo.cec.be/Ecommerce.](http://www.ispo.cec.be/Ecommerce)

##### EXECUTIVE SUMMARY

The aim of this European Initiative is to encourage the vigorous growth of electronic
commerce in Europe. A fast moving sector, electronic commerce will have a
considerable impact on Europe's competitiveness in global markets. Building upon
Commission's work to date, it provides a coherent policy framework for future
Community action, and aims at establishing a common European position to achieve
global consensus through international negotiations.

I. THE ELECTRONIC COMMERCE REVOLUTION: CHALLENGES AND OPPORTUNITIES

"Born global", electronic commerce encompasses a wide spectrum of activities, some
well established, most of them very new. Driven by the Internet revolution, electronic
commerce is dramatically expanding and undergoing radical changes. It includes
indirect electronic commerce (electronic ordering of tangible goods), as well as direct
electronic commerce (online delivery of intangibles ). A fast moving environment,
electronic commerce is engendering a wide array of innovative businesses, markets
and trading communities - creating new functions and new revenue streams.

Electronic commerce presents enormous potential opportunities for consumers and for
businesses in Europe, particularly for SMEs. Its rapid implementation is an urgent
challenge for commerce, industry and governments in Europe. Electronic commerce
makes it possible to trade at low cost across regions and national frontiers. To reap its
full benefits, the development of efficient distribution channels and trans-European
network is necessary for the physical delivery of goods ordered electronically,
including efficient, modern postal services.

Stimulating competition in the Single Market, electronic commerce is already
bringing profound structural changes. New skills will be needed to create and
maintain new [r] jobs in Europe. Europe's main competitors have already resolutely
seized opportunities offered by electronic commerce - with the US building a
substantial lead. However, Internet commerce is catching up in a number of Member
States. In this respect, Europe can marshal a number of specific strengths in the fields
of technologies, content creation and linguistic and cultural diversity. Similarly, the
use of a single currency in the world's largest Single Market will represent a strong
incentive for the take up of electronic commerce in Europe whereas, conversely,
electronic commerce can contribute to the acceptability of the Euro.

Thus there is an urgent need to engage in an early political debate with the aim to
provide a stimulus to electronic commerce and to avoid a fragmentation _of this_
promising market.

##### **_AL_**

**IL** **A C C E S S** **T O THE G L O B A L** **MARKETPLACE:** **INFRASTRUCTURES,** **TECHNOLOGIES** **&**

SERVICES

High telecommunication tariffs have long been a major stumbling block for electronic
commerce in Europe. However, the implementation of the package of
telecommunication liberalisation measures is already leading to lower prices and to
more flexible pricing schemes. The take up of electronic commerce is significantly
higher in the most competitive markets. The WTO Agreement on Basic
Telecommunication will contribute directly to the emergence of a global marketplace
in electronic commerce. Similarly, recent international agreements to eliminate tariff
(ITA) and non tariff barriers (MRA) should rapidly bring down the cost of key
Information Technology products, encourage the take up of electronic commerce and
reinforce European competitiveness. Removing capacity bottlenecks, and providing
high bandwidth infrastructure is another challenge for Europe - a challenge actively
addressed both by the private sector and by the Community.

Ensuring interoperability in a competitive environment is another powerful incentive.
The Commission is actively promoting global interoperability in such key areas as
secure technologies and payment systems and giving special importance in a number
of R&D programmes to electronic commerce to ensure wide availability and ease of
use of key technologies and systems.

III. CREATING A FAVOURABLE REGULATORY FRAMEWORK

The Single Market framework has proved its worth for traditional forms of businesses.
It must be now made to work for electronic commerce. Building trust and confidence
among businesses and consumers implies the deployment of secure technologies (such
as digital signatures, digital certificates and secure electronic payment mechanisms)
and of a predictable legal and institutional framework to support these technologies. In
order to allow for electronic commerce operators to reap the frill benefits of the Single
Market, it is essential to avoid regulatory inconsistencies and to ensure a coherent
legal and regulatory framework for electronic commerce at EU level. This should be
based on the application of key Internal Market principles.

Regulatory responses, where appropriate, need to be addressed at every step of the
business activity, from the establishment of business, to the promotion and provision
of electronic commerce activities, through ccnclusion of contracts, to the making of
electronic payments. In parallel, a number of key '"horizontal" issues affecting the
entire electronic commerce activity, need to be addressed. These include data security,
protection of intellectual property rights and conditional access services, privacy, as
well as a clear and neutral tax environment.

Considering the essentially transnational nature of electronic commerce, global
consensus needs to be achieved. The Commission will actively pursue international
dialogue, involving government and industry, in the appropriate multilateral fora, as
well as bilaterally with its main trading partners. This includes international
cooperation to fight against organised transnational crime on new communication
networks (e.g. P8).

A t

**IV. PROMOTING A FAVOURABLE BUSINESS ENVIRONMENT**

**Promoting a favourable business environment will involve reinforcing awareness and**
**confidence in electronic commerce for customers, as** **well** **as encouraging best practice**
**among European businesses (particularly through SME programmes, support actions,**
**and R&D and G7 pilot schemes). In parallel, public administrations will have a key**
**role to play through their procurement power and their early implementation of key**
**electronic commerce technologies. In the future, strong synergies between "electronic**
**commerce"** **and "electronic administration"** **should** **be actively encouraged to develop,**
**for the benefit of all involved.**

**In summary, the present Initiative proposes a comprehensive set of actions in the**
**specific field of electronic commerce - a field crucial for Europe's competitiveness** **on**
**world's markets. These specific actions must be considered in the wider** **framework** **of**
**Information Society initiatives- and, in particular,** **will** **be integrated into the** **Rolling**
**Action Plan for the Information Society.**

**The political objective of the** **Commission** **is to implement this coherent** **framework** **of**
**technological, regulatory** **and support** **actions, as a matter of urgency, by the year**
**2000.**

##### **INTRODUCTION**

1. The aim of this Initiative is to encourage the vigorous growth of electronic
commerce in Europe. In the Communication "Putting Services to Work" [1] the
fundamental importance of electronic commerce was emphasised, as was the
Commission's commitment to make Europe the heartland of electronic commerce.

2. This Communication builds on the Commission's work on the Information Society
to date [2] and in particular upon the Rolling Action Plan [3] . It provides a coherent policy
framework for future Commission actions in the field of electronic commerce, and
seeks to raise awareness and stimulate dialogue between all parties at all levels.

3. The expansion of electronic commerce will be market-driven. Europe is well placed
to capitalise on the global business opportunities now opening up. The completion of
the Single Market, the development of Europe's know-how and skills, and the
introduction of the Euro create the strengths for the European economy and European
businesses to be at the forefront of the emerging global electronic marketplace. The
challenge is to promote widespread adoption of electronic commerce as an integral
part of the European way of doing business.

4. This Initiative builds on the particular characteristics of European business and the
diversity of its social and cultural fabric to present a distinctive and coherent European
approach to the development of electronic commerce in the global market place. The
key elements of the Initiative are the following:

- Promote the technology and infrastructure needed to ensure the competitiveness of
the European electronic commerce industry, and put in place structures that will
provide efficient access systems for existing and potential users. This will be
pursued by ensuring the effective implementation of a fully competitive
telecommunications market and by harnessing and refocusing R&D efforts so that
Europe's high level of scientific and technological capability can be translated
more successfully into marketable products and services. It will also be ensured by
encouraging a broad consensus on standards and on the interoperability of
electronic market systems;

 - Capitalise on the Single Market by ensuring a coherent regulatory framework for
electronic commerce in Europe and in wider global markets. This framework needs
to boost the trust and confidence of businesses for investments and consumers to

make use of electronic commerce by dismantling remaining legal and regulatory
barriers and preventing the creation of new obstacles.

CSE(96)6final of 27 Nov 96
2 In particular: the Communications "Standardisation and the Global Information Socicty"(COM(96)359final of 24 July 96);
"Learning in the Information Society - Action Plan for a European education initiative (COM(96)471 of 2 October 1996);
"Illegal and Harmful Content on the Internet" (COM(96)487 of 16 Oct 96);; "Cohesion **and** the Information Society"
(COM(97)7 of 22 Jan 97; and the Green Papers "Living and Working in the Information Society" (COM(96)389 of 24 July 96);
"The Protection of Minors and Human Dignity in Audiovisiual and Information Services"(COM(96)483 of 16 Oct 96).
^"Europe at the Forefront of the Global Information Society: Rolling Action Plan" (COM(96)607of 27 Nov 96);

###### a Foster a favourable business environment for electronic commerce by promoting adequate skills, and by making consumers and industry aware of the opportunities offered by electronic commerce. This will be realised through training, information and demonstration projects; by exploiting synergies between government and industries; and by leveraging specific European strengths, in terms of technologies, markets, linguistic and cultural diversity. G Work towards global consensus from a common European position to ensure effective participation in current international cooperation and negotiation. Europe should identify its own strengths and interests and argue accordingly in the international forums and groups best suited for mis purpose. This Initiative provides a coherent framework for these mutually re-eriforcing technological, regulatory and support actions to facilitate the development of the electronic commerce market whilst adequately safeguarding public interest objectives. The political objective of the Commission is to implement mis coherent framework, as a matter of urgency, by the yes»- 2000. **CHAPTER 1: THE ELECTRONIC COMMERCE REVOLUTION** 5. Electronic commerce is about doing business electronically. It is based on the electronic processing and transmission of data, including text, sound and video. It encompasses many diverse activities including electronic trading of goods and services, on-line delivery of digital content, electronic fund transfers, electronic share trading, electronic bills of lading, commercial auctions, collaborative design and engineering, on-line sourcing, public procurement, direct consumer marketing and after-sales service. It involves both products (e.g. consumer goods, specialised medical equipment) and services (e.g. information services, financial end legal services); traditional activities (e.g. healthcare, education) and new activities (e.g. virtual malls).

ELECTRONIC COMMERCE: THE INTERNET REVOLUTION

###### 6. Electronic commerce is not a new phenomenon. For many years companies have exchanged business data over a variety of communication networks. But mere is now accelerated expansion and radical changes, driven by the exponential growth of the Internet. Until recently no more than a business-to-business activity on closed proprietary networks, electronic commerce is now rapidly expanding into a complex web of commercial activities transacted on a global scale between an ever increasing number of participants, corporate and individual, known and unknown, on global open networks such as the Internet.

_**Table 1: For traditional electronic commerce**_ _**the'network**_ _**is a means to move data:**_
_**for**_ _**Internet**_ _**electronic**_ _**commerce,**_ _**the**_ _**network**_ _**is**_ _**the**_ _**market.**_

TRADITIONAL E-COMMERCE I INTERNET E-CQMMERCE
_business-to-business only_ _business-to-consumers_
_business-to-business_

_business-to-public administration_

_user-to-user_

_closed "clubs_ ", _often industry specific_ _open marketplace, global scale_
_limited number of corporate partners_ _unlimited_ _number of partners_
_closed proprietary networks_ _open, unprotected networks_
_known and trusted partners_ _known and unknown partners_
_security part of network design_ _security and authentication needed_
```
THE MARKET IS A CLUB j THE NETWORK IS THE MARKET

```

7. Electronic commerce covers mainly two types of activities: indirect electronic
commerce - the electronic ordering of tangible goods, which still must be physically
delivered using traditional channels such as postal services or commercial couriers;
and direct electronic commerce - the on-line ordering, payment and delivery of
intangible goods and services such as computer software, entertainment content, or
information services on a global scale. Both direct and indirect electronic commerce
offer specific opportunities. Both are often undertaken by the same companies -who,
for example, sell software on-line as well as off the shelf. Indirect electronic
commerce is, however, dependent on a number of external factors, such as the
efficiency of the transportation system. Direct electronic commerce - which enables
seamless, end-to-end electronic transactions across geographical boundaries - exploits
the full potential of global electronic markets [4] .

**THE NEXT GENERATION MARKETS**

8. Electronic commerce, of course, is not limited to the Internet. It includes a wide
number of applications in the narrowband (videotex), broadcast (teleshopping), and
off-line environment (catalogue sales on CD-ROM), as well as proprietary corporate
networks (banking). However the Internet, with its robust and network-independent
protocols, is rapidly federating different forms of electronic commerce. Corporate
networks are becoming Intranets. At the same time, the Internet is generating many
innovative hybrid forms of electronic commerce - combining, for example, digital
television infomercials with Internet response mechanisms (for immediate ordering),
CD-ROM catalogues with Internet connections (for content or price updates), and
commercial Web sites with local CD-ROM extensions (for memory-intensive
multimedia demonstrations).

9. Electronic commerce is an emerging market. In this fast moving and highly fluid
environment, we are seeing the development of a wide array of innovative virtual
businesses, markets and trading communities. Companies are now routinely
outsourcing over the Internet functions such as order fulfilment and shipping to
distributors which specialise in such services. Distributors themselves are "going
virtual", outsourcing the physical warehousing and movement of goods to logistics

 - The Minitel experience in France shows that "intangible" goods and services companies initially stand as the main
beneficiaries of online commerce development.

**specialists such as commercial courier companies** **[5]** **. Buyers, sellers and intermediaries**
**are forming industry-specific Internet markets in such diverse fields as real estate,**
**automobile parts and construction equipment. Similarly, global manufacturing**
**industries, such as automobile, computers and aerospace, are actively integrating their**
**supply chains through the Internet.**

**10.** **New functions are now being created. Innovative virtual middlemen are providing**
**value-added services - such as brokering, search and** **referral** **- to businesses and**
**consumers. Catalogue aggregators offer** **buyers** **"one-stop** **shops"** **to select products at**
**the best price from many niche merchants. Classified advertising supersites present**
**single points of access to scores of other sites carrying advertisements. Government-**
**sponsored gateways, such as the United** **Kingdom's** **Department of Trade and**
**Industry's** _**Trade UK**_ **website** **[6]** **, provide a single path to large numbers of selected**
**companies trading on the Internet. Network operators, barks and computer companies**
**are generating new revenues in their "hosting** **business"** **- offering turnkey virtual**
**store-fronts and virtual** **malls.**

**11.** **The era of the Web as a gift economy is ending. New forms of individual to**
**individual** **commerce are appearing, as users themselves can charge small sums for**
**content they publish on the Web. Similarly, commercial publishers can now sell**
**information on the Web** **"** **by the sip, rather than by the gulp", page by page, article by**
**article, photograph by photograph. The very small payments for such services**
**generate new revenue** **streams,** **maximise the use of archives,** **and** **encourage**
**widespread content development.**

**THE OPPORTUNITIES FOR EUROPE**

**12.** **Electronic commerce offers enormous opportunities for Europe.** **It** **is estimated**
**that electronic commerce revenues on the Internet may increase to 200 billion ECU**
**world-wide by the year 2000** **[7]** **. This revolutionary growth will lead to** **profound**
**structural changes. Sectors such as retail and distribution** **with** **20 million employed**
**and tourism with 6 million employed, will need to adapt to exploit these opportunities,**
**expand existing businesses and launch new ones. Some existing services** **will** **be**
**substituted by new** **ones.** **Significant efficiency gains will be realised.**

**13.** **As a result, electronic commerce** **will** **have considerable impact on the structure**
**and operations of the labour market. Further analysis is** **needed** **to fully assess these**
**changes. Already at this stage it is apparent that new employment potential will**
**principally be in information-based, high-value services. Training and education for**
**these new skills will be needed. Faced** **with** **intense, global competition in a borderless**
**digital environment, we must ensure that these new jobs are created and maintained in**
**the European Single Market.**

**5** **The most successful Internet bookstores and music stores in Europe and in the US are thus truly "virtual companies": orders**
**and shipments are made directly from** **publishers'** **warehouses, and providers' databases are fully integrated with transportation**
**companies'.**
**6** **See** _**[http://www.trackuk.com.](http://www.trackuk.com)**_
_**1**_ **Source** **ActivMedia,** **Romtec, in European Information Technology Observatory 97.**

14. In Europe electronic commerce already offers considerable incentives for both
established and new players. SMEs are capitalising on the unprecedented
opportunities to access global markets which the World Wide Web offers. Similarly,
large economic sectors, such as the distance selling industry in Europe, are actively
integrating the Internet into their marketing and order-fulfilment strategies. Electronic
commerce offers improved transaction management and enhances business efficiency.
It brings increased responsiveness and accountability - as well as cost reductions. It
lowers barriers to entry, enlarges existing markets and creates whole new business
areas for knowledge-based intangible products - potentially one of Europe's greatest
strengths.

15. Consumers also stand to gain significantly. Electronic commerce revolutionises
the relationship between consumer and provider. The consumer benefits from
increased choice by being able to compare and choose instantly from a wide range of
offers. Specialised products are increasingly available. Lower prices are possible as
overheads and "bricks and mortar" costs fall and efficiency improves. A personalised,
one-to-one relationship is replacing traditional mass-marketing and mass-distribution
techniques, bringing more responsive service.

16. By its very nature, electronic commerce is transnational and encourages crossborder ordering and delivery of goods and services. It directly stimulates competition
in the Single Market. The Single Market, in turn, offers electronic commerce the
prospect of a critical mass of businesses and customers across national borders. In
addition, electronic commerce gives peripheral regions new opportunities for
accessing main markets . Electronic commerce represents, therefore, a potentially vital
factor for cohesion and integration in Europe.

ELECTRONIC COMMERCE: INTERNATIONAL COMPARISONS

17. The opportunities electronic commerce offers have all too frequently been seized
most energetically by Europe's main competitors. In the US, the Internet is fostering a
thriving Internet core economy, creating new businesses, new revenue streams, and,
more importantly, new jobs. Traditional economic sectors, such as the travel industry
or catalogue business are migrating substantial parts of their commercial activities online.

_**Table**_ _**2: New**_ _**business in**_ _**the**_ _**Internet:**_ _**initiatives**_ _**and**_ _**innovations.**_

_Internet commerce_ _in the US is_ _building_ _on a_ _specific structural strength: innovative_ _micro-enterprises._ _The_

_US is already boasting more than 250.000 "cyber_ _companies_ _"_ _using the Internet commercially_ _in a_ _variety_ _of_

_ways._
_In_ _the US,_ _travel services_ _and_ _flower distribution_ _are_ _particular success stories. Travel services currently_
_amount_ _to_ _more than half of electronic commerce._ _The_ _current market_ _leade,_ _launched_ _in_ _October 1996,_ _is_
_already claiming 250.000_ _users._ _There_ _are nearly_ _a_ _thousand Internet flower distributors_ _on_ _the_ _Web,_ _with_ _the_
_market leader boasting $_ _30_ _millions_ _in_ _sales_ _in_ _1996._
_In Europe,_ _the_ _direct marketing_ _industry,_ _which_ _represented_ _revenues_ _of ECU_ _37_ _billion_ _in_ _1995,_ _is_ _vigorously_
_embracing_ _the_ _Internet._ _For_ _example,_ _one_ _of the largest mail order companies_ _in_ _Europe, claimed electronic_
_commerce sales of DM 400 million_ _in_ _1996._ _Similarly the largest supermarket chain_ _in the_ _Netherlands offers_
_an innovative_ _"Internet_ _teleshopper_ _"_ _service._
_Similarly,_ _new_ _businesses_ _are_ _emerging_ _in_ _Europe_ _in_ _such strategic areas_ _as_ _electronic commerce tools_ _and_

_technologies._ _Success stories include,_ _for_ _example,_ _the_ _world leader_ _in_ _smart card technology,_ _a_ _secure_
_electronic_ _payment_ _pioneer,_ _and_ _a_ _market_ _leader in the_ _Internet_ _secure_ _"virtual_ _storefront_ _"_ _business._

18. This is a crucial area for future growth and competitiveness. Driven by corporate
players, Internet commerce in the US is also drawing strength from a dense network
of micro-companies. Ideally suited to the Internet environment, and enjoying
essentially the same access to world markets as multinational corporations, some of
these start-ups claim impressive growth rates and profitability [8] . At this stage, the US
has built a substantial lead over Europe. A similar lead is opening up in the strategic
sector of electronic commerce tools- products and technologies which underpin the
future development of electronic commerce. Similarly, Japan and the Asia/Pacific
region also are rapidly catching up. Spurred by industry and government, these
countries are enjoying huge growth in Internet connectivity sud electronic commerce.
Based on today's growth rate and investments, they could rive! Europe in terms of
electronic commerce revenues by the year 2000 [9] .

MARSHALLING EUROPE'S STRENGTHS

19. Recent figures indicate that in some Member States Internet commerce usage has
caught up with, and sometimes overtaken, the US. Finland and the Netherlands are
now among the most dynamic on-line markets in the world [10] . In this highly
competitive environment, Europe can and must marshal its specific strengths.

Europe has a strong base in technology and infrastructure. It has powerful
telecommunication operators (incumbents as well as new players), highly reliable
basic infrastructure, and early deployment of advanced digital networks, Commitment
to standardization, exemplified by the success of industry-driven standards such as the
GSM and the DVB. is another crucial asset. So is Europe's commercial advances in
key electronic commerce technologies such as smart cards and intelligent agents.
Content development is another of Europe's greatest strengths. Content ~ computer
software, business information, video entertainment - is the very essence of
immaterial electronic commerce. European companies, in particular publishing and
multimedia industries, are harnessing their considerable resources and know-how _in_
the global electronic information markets. Similarly, highly innovative SMEs are
positioning themselves successfully in specialised markets such as multimedia
production and multilingual content localisation. Europe also has a competitive retail
sector, with adapted product ranges and an in-depth knowledge of the various
consumer tastes around the continent, a strength which can be leveraged too.

Furthermore, the ability to trade electronically in a single currency - the Euro - across
the world's largest single market will give European businesses considerable
competitive advantages. Cross-border price transparency resulting from the Euro will

**8** **A recent market** **survey** **of** **1.100** **Web based firms suggested that over** **30%** **were profitable after a year, and that** **30%** **more**
**expected to be profitable within two years. Reported profit margins of twenty per cent and above are common (Figures from**
**ActivMedia, reported in** _**Business**_ _**Week,**_ **23/9/1996).**
**"** **Source: Gartner Group**

**'"** **The Netherlands is now one of** **the** **most developed electronic commerce markets in the world, with high PC** **penetration**
**(38%** **of households), high** **use** **of Internet** **(22%** **of** **PC** **users have access to Internet, against** **16%** **in the US, and** **12%** **in**
**Germany), and high use of electronic commerce** **(33%** **of** **Internet** **users use it to buy online, against** **22%** **in the US). Source:**
**International Data Corporation/Link**

**6**

stimulate the use of electronic commerce; conversely, electronic commerce will
facilitate the transition to the euro.

20. Europe must tap the tremendous power of the entrepreneurial process and the
force of the market. The ability of the Community and its Member States to steer
developments is particularly important: if our companies are to succeed in today's
competitive global electronic commerce market, they need an optimal environment to
operate in.

This means competitive telecommunications, the availability of standards and
interoperable solutions, and focused R&D. A sound and flexible regulatory
framework which generates confidence for both business and consumers and ensures
full and unlimited access to the Single Market is an essential key to Europe's success.
Such a regulatory framework will be a major competitive advantage in itself. Steps
must also be taken to improve the business environment: to exchange best-practice,
facilitate access to venture capital and stimulate training. Ultimately, global solutions
must be found. The Community should be in the lead in exploring and offering
solutions at international level. The changes described and the actions to be taken are
developed in the next chapter. They are ambitious. And they will take effort and
political will to carry through. But if they succeed, Europe will be well placed to
become the heartland of electronic commerce.

THE NEED **FOR** GLOBAL CONSENSUS

21. Electronic commerce is inherently a global activity. Improved access to global
markets is accompanied by the challenge from other parts of the world. Multilateral
dialogue, involving governments and industry, is currently being pursued in many
forums. The private sector has been playing a pioneering role, for example, in the
process leading to landmark global agreements such as the Information Technology
Agreement (ITA) and the Mutual Recognition Agreements on conformity assessment
(MRAs). With the successful conclusion of the World Trade Organisation (WTO)
negotiations on services (1993) and telecommunications (1997), the Community has
committed itself, together with Member States, to the opening of most electronic
commerce activities. Any European action on electronic commerce therefore has to be
compatible with those WTO commitments.

At the same time, the Community will continue to fight trade barriers, in order to
secure access to infrastructure and services in other countries. This will be achieved

by enforcing multilateral commitments made by the European Union's partners in
WTO. Many trade issues specific to electronic commerce will also need to be pursued
at a bilateral level, in particular with the US. In this perspective, the New TransAtlantic Agenda, the Information Society Dialogue and the Trans-Atlantic Business
Dialogue will continue to play a major role.

22. An issue of growing concern is the challenge posed by the emergence of cybercrime, such as electronic money laundering, illegal money gambling, malicious
hacking, or copyright infringement. International co-operation is already well

###### **4**

advanced in a number of key areas, such as the fight against organised transnational
crime on new communication networks. Faced with new forms of high technology
and computer crime on global networks [11] (reported criminal hacking cases are
doubling every year), governments have responded vigorously.

In Europe (Europol), as well as in the wider international environment (P8),
specialised task forces have been set up, and transborder operational co-operation
reinforced in such key areas as the real-time "trap and trace" of on-line criminals and
"search and seize" of digital evidence. Efforts are similarly being mads to harmonise
the criminalisation of computer offences and avoid digital havens. A high level
Group, set up following the Dublin Council, is finalising an Action Plan to fight
cybercrime. These efforts are crucial to reinforce trust and confidence in transnational
electronic commerce.

**CHAPTER** **2:** **ENSURING ACCESS TO THE GLOBAL MARKETPLACE:**

**INFRASTRUCTURE, TECHNOLOGY AND SERVICES**

j | The widespread adoption of electronic commerce requires efficient, affordable and
widely available telecommunications infrastructures, technologies and services.
Europe must match the cost, capacity, access, choice, security and user-friendliness of
such facilities throughout the world.

**MAXIMISING THE EFFECTS OF TELECOMMUNICATIONS LIBERALISATION**

23. A fully competitive European telecommunications market, implemented through
effective telecommunications liberalisation will lower telecommunications tariffs and

act as a major incentive to the development of electronic commerce in Europe.
Comprehensive legislation is now being implemented by Member States to ensure full
competition in all business sectors from 1 January 1998. By fostering greater
competition between established operators and new players alike, telecommunication
liberalisation is already leading to lower telecommunication prices and to the
introduction of more flexible tariff schemes for businesses and private on-line users.
As a result, Internet use is already significantly higher in the most competitive
markets, and so is the take-up of electronic commerce.

24. In the wider international context, the recently concluded WTO Agreement on
Basic Telecommunications represents a major landmark. This Agreement contributes
significantly to the emergence of a global marketplace, since it contains commitments
from 69 countries on market access and national treatment. It covers all
telecommunications services, regardless of the technological means used for delivery
of those services. Most countries have also underpinned such commitments by
regulatory measures. The Commission will work with the EU Member States, as well
as with its trading partners, towards the full and timely implementation of this
Agreement which will enter into force by 1 January 1998.

The US Federal Trade Commission and the Gendarmerie Royale du Canada each maintain Web sites to inform users of
various types of illegal schemes and abuses on the Internet. See _[http://www.ftc.gov](http://www.ftc.gov)_ and _[http://www.rcmp-](http://www.rcmpgrc)_
_[grc.](http://www.rcmpgrc)_ _gc._ _ca/html/scams-f.htm_

25. Regional disparities in the cost, quality and accessibility of electronic commerce
infrastructure and services must be reduced to allow full access for remote areas to

global markets and to overcome regional isolation. Electronic commerce provides an
important impulse to revitalising regions and to renewing and sustaining local
services. The widespread availability of electronic commerce infrastructure at an
attractive price is required if SMEs are to fully exploit the opportunities. However,
significant regional disparities may remain across Europe. Market forces alone may
not close these gaps. This situation will have to be monitored closely in the evolving
context of the Information Society. The Commission has addressed this issue in its
Communication on "Cohesion and the Information Society" [12] and will continue to
seek to ensure that the enterprise sector is consulted to find effective solutions.

MAXIMISING THE BENEFITS OF THE LIBERALISATION OF INFORMATION

TECHNOLOGY MARKETS

26. Recent international agreements to eliminate tariff and non-tariff barriers on
products in the area of information and communication technologies should rapidly
bring down costs in particular of the basic tools (computers, software, networking, CD
Roms) and directly stimulate the take up of electronic commerce.

The Ministerial Declaration on Trade in Information Technology Products agreed in
December 1996 provides for the expansion of world trade in information technology.
As a result, the recently adopted Information Technology Agreement (ITA), which
covers more than 90% of world trade in IT products, provides for the gradual
élimination of tariffs on these key products for electronic commerce _by_ _thz_ year 2000.

Similarly, the Mutual Recognition Agreements of conformity assessment (MRA) will
contribute significantly to the elimination of non-tariff barriers on IT products.
Extending the Single Market principle of mutual recognition into the global
environment, the MRA guarantees the recognition of certification procedures carried
out in the exporting country - which, in turn, should substantially reduce costs.
Welcomed by European IT and ITC industries, both agreements will strengthen the
entire electronic commerce sector, directly benefiting European businesses and
consumers. The Commission will work towards the full implementation of these
agreements, and ensure that respective commitments, concerning in particular tariff
schedules, will be met.

REMOVING CAPACITY BOTTLENECKS

27. Europe must take steps to ensure that a high bandwidth infrastructure is put in
place in order to ensure that consumers and businesses take full benefit of the ongoing
technological developments which, inevitably, lead to ever increasing needs for more
transmission capacity. The private sector is already working at removing capacity

**12** **COM(97)7 of of 22 Jan 97.**

bottlenecks in some Member States [13] . Telecammumcf^tioii operators are heavily
investing in Internet infrastructure and services.

The Commission will pursue a co-ordinated European approach to tackling capacity
bottlenecks through the European Union R&D programmes in information and
communication technologies, including actions in the Fifth Framework Programme
and in the Trans-European Networks. This will involve setting-up an operational highspeed network for researchers, complemented by facilities to test technologies and
applications. The Commission will also facilitate'the active involvement of Europe's
industry and public bodies in global decision-making on the evolution of the Internet.
In parallel, to promote the rapid use of the new broadband services, education and
training initiatives will be developed for SMEs, schools and local authorities.

28. The future competitiveness of European industry depends on the sustained
development of high-performance information and telecommunications
infrastructures. Immediate action for the early development and implementation of an
advanced, high capacity Internet infrastructure based on terrestrial and satellite
networks [14] is essential [15] .

ENSURING INTEROPERABILITY IN A COMPETITIVE ENVIRONMENT

29. Should the present trend of developing incompatible standards [16] continue, both
businesses and consumers will be severely disadvantaged [17] . There is a risk that users
become "locked in" specific solutions. Similarly, it may be difficult to carry
transactions between mutually incompatible systems. Without interoperability, critical
mass may be difficult to achieve. Furthermore secure technologies aie also necessary
to create trust in information security. These technologies are for the most part
available, but important issues of commercial or technical interoperability remain to
be solved, while ensuring full competition. To facilitate interoperability between
various electronic commerce services, the Commission will launch a specific actions
on standardization projects for electronic commerce in June 1997.

30. New forms of industry collaboration in standardization in electronic commerce
have emerged. Efforts are already underway at industry level (e.g. Financial Services
Technology Consortium; World Wide Web Consortium [18] ) to secure _de facto_
interoperability in the global environment for a wide range cf key electronic
commerce technologies such as electronic payment systems' [9] . Similarly, the

**'•*** **An example is Finland,** **where** **massive investments in** **Internet** **infrastructure by telecom operators (in particular a dense**
**network of ATM networks) have virtually eliminated bottlenecks.**

**1 4** **C0M(97)..., EU Action Plan on Satellite Communications in the Information Society.**
**^** **The US government has allocated $100 million to the "Next Generation Internet Initiative" designed for high-bandwidth**
**applications.**

**'"** **The term 'standard' is used as meaning any formally or informally accepted technical specification and not necessarily only**
**documents adopted by** **a** **recognised standards body.**

**' '** **For example, in** **Europe** **there** **arc** **more** **thnii** **20 mutually incompatible** **standurds** **for 'stored** **value'** **cards (cards storing**
**money similar in concept to telephone cards)**

**18** **The** **World Wide** **Web** **(WWW) was invented at** **CERN,** **the European Laboratory for Particle Physics.**
**'** **[9]** **A consortium of** **160** **computer, telecommunications and content companies, half of them European, the WWW Consortium**
**is currently working on a series of initiatives to ensure** _**de**_ _**facto**_ **interoperability between existing technologies in the field of**
**electronic payment systems (Joint Electronic Payment Initiative), digital signatures (Digital Signature Project). It is also**
**working on innovative solutions in the field of content filtering (Platform for Internet Content Selection, or** **PICS),** **and of**
**personal data protection (Privacy and Demographics Project). See** _**[http://www.w3.org.](http://www.w3.org)**_

**10**

Commission has been encouraging consensus through the Memorandum of
Understanding on Open Access to Electronic Commerce for European SMEs. [20] The
involvement of European industry and users in standardization and specification work
will be facilitated through a system of flexible, ad hoc, open workshops at European
level, preferably within or in collaboration with the European standards bodies CEN,
CENELEC and ETSI. This will enable participants to anticipate and react quickly to
fast-moving global developments. Furthermore steps will be taken to better address
user needs, in particular of SMEs, in standardization.
31. The Commission will present a Communication on a European standardization
initiative for electronic commerce. This Communication will identify technical
barriers for the take-up of electronic commerce and propose concrete steps to remove
these with the active involvement of European companies. Furthermore, the
Commission is examining regulatory proposals in order to establish a procedure to
identify and select publicly available specifications for the support of Community
policies.

32. The benefits of electronic commerce will only be achieved if interoperability is
ensured at global level. The European Community and its Member States have
consistently been committed to international standards, and expect its major trading
partners to act likewise.

In order to further promote international standardization, the Commission will host the
global standardization conference "Building the Global Information Society for the
21st Century", to be held in October 1997 which will focus on interoperability and
standardization for the Information Society. Particular emphasis will be put on
electronic commerce.

MAKING USER-FRIENDLY ELECTRONIC COMMERCE SERVICES AVAILABLE:

EUROPEAN'R&D

33. To improve user-friendliness and create opportunities for business innovation,
further work is required based on strong user involvement. The aim is to offer simple,
user-friendly solutions to handling each stags _in_ the transaction chain electronically.
This will facilitate the widespread take-up of electronic commerce, especially by
SMEs and allow them to get started, using and staying up-to-date with electronic
commerce technologies. The Commission contributes to overcoming technological
barriers by giving special importance in its relevant R&D programmes to electronic
commerce and bringing related work together [21] . The first steps have already been
taken through the launch of an electronic commerce call for proposals in the Esprit
(Information Technologies) programme. The approach is to pursue a complementary
mix of research, technology development and take-up measures so that the business
innovation process is comprehensively supported. The opportunities offered by R&D
in socio-economic issues need to be exploited too.

**2 0**
**Sec** _**[http://www.eto.org.uk/ltrade/mou/](http://www.eto.org.uk/ltrade/mou/on)**_ **on** **the** **World-Wide Web.**
**2 1** **An** **inventory of electronic** **commerce** **related work in the Esprit (information technologies)** **ind** **ACTS** **(communications**
**technologies) programmes can** **be** **found** **on (he** **World-Wide** **Web** **at** _**[http://www.cordis.lu/esprit/src/ecomproj.htm.](http://www.cordis.lu/esprit/src/ecomproj.htm)**_

**13**

Electronic commerce appears as a key action in fee "Creating a User-Friendly
Information Society" programme, proposed as part ci the forthcoming. Fifth
Framework Programme [22] . Technological developments £.id take-up promotion
projects in European Union R&D programmes should concentrate on providing a
wide range of interoperable, compatible electronic commerce building-blocks. These
could be for services such as payments, IPR management etc., to support the steps in
the transaction chain. They could equally address integrated solutions — for example,
to integrate better smart-card technology, mobile communications and information
appliances. They should favour technologies which minimise the need for personal
data and thus enhance the protection of the right to privacy of consumers (privacy
enhancing technologies). User-friendly access to information must also be ensured (in
particular to deal with information overload). Multilingualism, including on-line
translation, must be supported. Full use must also be made of multimedia and
knowledge-based systems to simplify the interface to the user and better support users
with different characteristics. As indicated in the Innovation Action Plan [23], other
factors besides R&D will also have to be addressed to create an environment which

fully favours the exploitation of innovation.

INTERNATIONAL INDUSTRIAL COOPERATION _m_ INFRASTRUCTURE, TECHNOLOGIES

AND SERVICES

34. The global infrastructure needs to be harnessed by international industrial and
technological co-operation, in particular in areas such as secure electronic commerce,
international electronic payments, multilingual support, etc. The European
Commission has already undertaken several international industrial cooperation
actions. Projects will be launched during 1997 as pari of the Prague Action Plan
involving Central and Eastern European countries, and in cooperation with non-Union
Mediterranean countries. Particularly, such projects help Central and Eastern
European countries in their preparation for accession tc the EU. International
industrial cooperation in electronic commerce with major trading partners such as the
USA, Canada, Australia, the European Economic Area, Israel and Japan is part of
bilateral dialogue and Science and Technology Agreements. The Commission will
also strengthen its ongoing international cooperation in the field of electronic
commerce by promoting global pilot projects in the G7 Global Marketplace for SMEs
collaboration.

#### `CHAPTER 3: CREATING A FAVOURABLE REGULATORY FRAMEWORK`

The pace and the extent to which Europe will benefit from electronic commerce
greatly depends on having up-to-date legislation that fully meets the needs of business
and consumers. The objective of the Commission is to implement the appropriate
regulatory framework by the year 2000. The existing Single Market regulatory
framework has proved its worth for traditional forms of business. It must now be
made _to_ work for electronic commerce by achieving two complementary objectives:
building trust and confidence and ensuring full access to the _Single_ Market.

**22** **COM(97)142**
**2 3** **Innovation Action Plan COM(96)589 of 20** **November** **1996.**

**12**

BUILDING TRUST AND CONFIDENCE

35. The first objective is to build trust and confidence. For electronic commerce to
develop, both consumers and businesses must be confident that their transaction will
not be intercepted or modified, that the seller and the buyer are who they say they are,
and that transaction mechanisms are available, legal and secure. Building such trust
and confidence is the prerequisite to win over businesses and consumers to electronic
commerce. Yet many remain concerned about the identity and solvency of suppliers,
their actual physical location, the integrity of information, the protection of privacy
and personal data [24], the enforcement of contracts at a distance, the reliability of
payments, the recourse for errors or fraud, the possible abuses of dominant positionsconsiderations which are heightened in cross-border trading.

36. Secure technologies - such as digital signatures and digital certificates - go some
way to meeting these challenges. Digital signatures enable the unambiguous
confirmation of the identity of the sender and the authenticity and integrity of
electronic documents. Unique to the sender and unique to the message sent, digital
signatures are verifiable and non-repudiable. Similarly, the exchange of digital
certificates ("Internet ID cards") through an automatic "digital handshake" between
computers provides assurance that the parties are who they say they are, and helps to
assess whether the service provided and the goods or services delivered are genuine.

Copyright protection mechanisms, also based on secure technologies such as
encryption and smart cards, ensure the protection of digital material and are a crucial
factor in the emergence of a mass-market in electronic content. Also based on
cryptographic methods, secure electronic payment mechanisms provide the final
element of trust: the ability to pay and to be paid. Such secure technologies are for the
most part fully operational and commercially available. However, the necessary
regulatory and institutional framework supporting such technologies is not yet
complete, particularly in areas such as interoperability and mutual recognition across
borders.

ENSURING FULL ACCESS TO THE SINGLE MARKET

37. The second objective is to ensure full access for electronic commerce to the Single
Market. Given its size, the Single Market potentially offers businesses a "critical
mass" of customers before addressing further global markets. However, faced with the
new challenges posed by electronic commerce, Member States are responding in
different ways. The development of divergent legislative approaches is not only
ineffective given the transfrontier nature of electronic commerce but also risks
fragmenting the Single Market and thus inhibiting the development of electronic

**2 4**
**Privacy is a particular concern of** **consumers.** **According to the survey "Information Technology and Data Protection",**
_**Eurobarometer**_ **46.1,** **January 1997, two thirds of** **respondents** **are worried about trails of personal data that are** **left** **behind** **when**
**using** **digital information networks.**
**"•** **Additionally, virtual shopping malls which operate across borders could become very dominant once they achieve a**
**substantial size.** **Some** **adaptation of** **retail** **legislation may be required.**

**13**

commerce in Europe. The proposed Transparency Mechanism Directive [26] is precisely
targeted at reducing the risk that new measures, by being different from one Member
State to another, could restrict the free movement of Information Society services.

38. However important it is to avoid regulatory inconsistency by discouraging
divergent actions at national level, the Union must also ensure that a coherent
regulatory framework for electronic commerce is created at European level. Such a
regulatory framework will inevitably be built on existing Single Market legislation
which already largely creates the right conditions for on-line businesses. As part of
that framework, specific measures have already been taken to respond to new
developments. They include the recently adopted directives on data protection [27], on
the legal protection of data bases [28] and on contracts negotiated at a distance [29] ; and the
proposed revision of the "Television without Frontiers" Directive [30] . In addition, a
number of consultation or policy documents have been issued to stimulate debate on
various policy areas including the legal protection of encrypted services [31], copyright
and related rights [32], industrial property [33], commercial communications [34], public
procurement [35] and the protection of minors and human dignity in audiovisual and
information services [36] .

THE PRINCIPLES OF AN ELECTRONIC COMMERCE REGULATORY FRAMEWORK

39. The application of four principles will provide the Union with an adaptable and
appropriate framework of legislation.

_No regulation for_ _regulation's_ _sake:_ in many cases, the free movement of electronic
commerce services can be effectively achieved by mutual recognition of national rules
and of appropriate self-regulatory codes. This means that companies engaged in crossborder business operate under the law of the country of origin ("home country
control"). Only where mutual recognition does not suffice to remove obstacles in the
market or to protect general interest objectives, will there be a need for Community
action . Any legislative action should impose the fewest possible burdens on the
market and keep pace with market developments.

**2 6** **Proposal for an European Parliament and Council Directive amending for the third time Directive** **83/189/1-10** **laying down**
**a procedure for the provision of information in the field of technical standards and regulations, COM (96) 392 final,**
**30.08.19%.**

_**-**_ **Directive** **95/46/1** **•'('** **of the European Parliament and the Council on the protection of individuals with** **rejwrtls lo** **the**
**moecssiug** **of personal data and the free** **movement** **of** **such** **data. ()J** **1.281** **23.11.1995** **p.31**
**"** **[X]** **Directive** **96/9/1** **•'('** **of** **the** **European Parliament and of the Council** **on** **the legal protection of databases OJ 1.77 27 0VI996**

***** **Directive 97/7** **ol** **the European Parliament and the Council** **ol** **17 February** **1997** **on the protection** **ol** **consumers in respect of**
**distance contracts (to be published in the Official Journal).**

**-**
**Proposal for a European Parliament and Council Directive amending Council Directive 89/552/EEC on the coordination of**
**certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television**
**broadcasting activities.**
**COM(95)** **86 Final of 31.05.1995,** **O.J.** **C 185 of 19.07.95, p. 4.**
**-** **'** **Commission Green Paper "Legal Protection of** **Encrypted** **Services in the Internal Market", COM (96) 76 final. 06.03.96.**
**3 2** **Communication from the Commission "Follow-Up to the Green Paper on Copyright and Related Rights in** **the** **Information**
**Society", COM(96)568 final,** **20.11.1996.**
**3** **-** **Questionnaire on** **"Industrial** **Property Rights in the Information Society". Version 5.0. September** **1996.** **DG XV/E/3.**

**_** **Green Paper on "Commercial Communications in the Internal Market", COM (96) 192 final.** **08.05.1996.**

**•*** **Green Paper on "Public Procurement in the** **EU:** **exploring the way forward",** **COM(96)** **583 final -** **27/11/96**

**(keen Paper on the "Protection of** **Minors** **and Human Dignity in Audiovisual and Information Services". COM (96) 483**
**final** **16.10.1996.**

**14**

_**Any regulation must be based on all Single Market freedoms:**_ **electronic commerce**
**cuts across a wide range of cross-borders activities. Whether companies engaged in**
**electronic commerce are providing one or several goods and/or services, freedom to**
**do so -easily and effectively- must be at the heart of future policies. Equal weight**
**must be given to all the** **freedoms** **offered by the Single Market: the realisation of the**
**free movement of goods, persons, services and capital together with the freedom of**
**establishment. Only in this way can the crucial objectives of coherence, predictability**
**and operational simplicity be achieved.**

_**Any regulation must take account of**_ _**business**_ _**realities:**_ **in any electronic commerce**
**operation, a trader needs to set up business, to promote its products or services and to**
**sell, deliver and finance them. This is part of the normal process of trading - a**
**commercial chain. In many cases, legislation will not be necessary to tackle actual or**
**potential problems. Where it does, it must seek to facilitate operations throughout the**
**commercial chain, for it makes no sense to remove barriers in only one part of that**
**chain whilst leaving others untouched.**

_**Any regulation must meet general interest objectives**_ _**effectively**_ _**and**_ _**efficiently:**_ **a**
**Single Market for electronic commerce will not develop without the effective**
**safeguarding of recognised general interest objectives such as privacy or consumer**
**protection and other public interests such as wide accessibility to the networks.**
**Without such protection there is a real risk that national regulatory borders will remain**
**in place as individual Member States seek to safeguard the legitimate concerns of their**
**citizens.**

**THE ESSENTIAL FEATURES OF A REGULATORY APPROACH**

**Based on these four principles, an appropriate regulatory response must be developed**
**where necessary. In some cases, responses have already been identified; in other**
**cases,** **responses need to be found urgently. To ensure that electronic commerce freely**
**flows across national frontiers, different legal issues need to be addressed at each step**
**of business activity.**

**From the establishment of the business ....**

**40.** **A wide range of regulations at national level could inhibit the establishment of**
**service providers across frontiers. These include differing professional requirements,**
**differing prudential and supervisory systems, and notification or licensing**
**requirements (for example for regulated professions or financial services). The**
**Commission is therefore examining how best such obstacles can be tackled while**
**respecting general interest objectives and will come forward with policy proposals.**

**41.** **The new virtual environment also makes it more difficult to determine who are the**

**contracting parties, where an electronic commerce operator is established and whether**
**that operator is complying with all relevant legal conditions. This can create legal**
**uncertainty about which Member State will be competent and about the applicable law**
**in disputed cases. It also complicates the application of Single Market principles, in**

**15**

**r**

particular the principle of country of origin control. The Commission will examine
these and related issues to clarify any areas of doubt or inconsistency - including the
application of the Rome Convention [37] and the Brussels Convention [38] in the new
electronic context -and will work to improve consumers access to justice, in particular
the possibilities for redress.

To **the promotion and provision of electronic commerce activities** ...

42. Any on line service provider or company establishing a Web site is subject to
divergent national regulations including those on commercial communications
(covering advertising, direct marketing, self-promoticns, sponsorship and pufcHc
relations). This hampers the use of efficient and creative cross border commercial
communications strategies and creates legal uncertainty. As a foilow-up to the Grten
Paper on Commercial Communications, the Commission will come forward with
detailed proposals to remedy actual or potential difficulties.

43. At present Member States apply certain restrictions to the marketing of particular
financial services to protect the public interest. The effect of such restrictions is that
the Single Market for financial services, including financial services provided
electronically, is fragmented. Before the end of the year, the Commission will put
forward a proposal for a directive on financial services contracts negotiated at a
distance which will seek to remove obstacles to cross-border provision whilst
safeguarding consumer protection.

**Through negotiation and conclusion of contracts** ...

44. A Directive on contracts negotiated at a distance which covers electronic
transactions and a certain number of horizontal directives (on unfair contract terms in
consumer contracts, on misleading advertising) and sectorial directives (on consumer
credit, travel packages, timeshare) have been adopted. Furthermore a proposal en the
sale of consumer goods and associated guarantees is in the pipeline. These directives
are establishing a minimum level of protection for consumers which is also applicable
to electronic commerce transactions within the EU.

45. A number of Member States' rules governing the formation and the performance
of contracts are not appropriate for an electronic commerce environment and are
generating uncertainties relating to the validity and enforceability of electronic
contracts (for example the requirements for written documents, for hand written
signatures, or the rules of evidence that do not take into account electronic
documents). The Commission will take concrete steps to address the problem of how
to eliminate barriers for the legal recognition of electronic contracts within the Single
Market. Furthermore, as regards consumer protection in the field of electronic
commerce, this point shall be dealt with in the Communication on the Consumer
Dimension of the Information Society.

_**J**_ **Convention on the law applicable to contractual obligations. Rome 1980. OJ** **L266,9.10.80** **p.l.**
**3 8** **Convention on jurisdiction and enforcement of judgements in civil and commercial matters. Brussels 1968. OJ C97, of** **11**
**April 1983.**

**16**

46. Bookkeeping, accounting and audit rules will also have to be adapted to electronic
commerce and will have to allow, for example, for electronic verifications without any
paper copies or for electronic invoices. National rules could develop in a divergent
way and threaten the Single market. The Commission will initiate discussions with the
Member States in order to prepare appropriate action.

... **To the making and receipt of electronic payments.**

47. Electronic commerce will not develop without sound, user-friendly, efficient and
secure electronic payment systems. The Commission, the EMI and the Member States
are currently considering the appropriate supervisory framework for the issuance of
electronic money. In the light of this discussion the Commission intends to present by
the end of 1997 (i.e. the target date for completion of the work) a proposal for a
Directive on the issuance of electronic money, so as to ensure the stability and
soundness of issuers of such payment products. This will contribute to boosting
consumer confidence. Meanwhile, the Commission envisages modernising and updating the Recommendation of 1988 concerning payment systems [39] before the middle
of 1997 in order to provide guidance for the relationship between issuers and users of
all new means of payment (e.g. on liability, transparency and redress procedures).

48. Compatibility between electronic payment systems, which is in the interest of both
consumers and business, will mainly rely on agreements among operators. Such
agreements must be in conformity with the Community's competition rules. To
provide guidance, the Commission will in the course of 1998 issue a competition
notice which will clarify the application of competition rules to new means of
payments .

49. Fraudulent use and counterfeiting, which is a serious concern for means of
electronic payments, is only punishable in a minority of Member States. The financial
industry and users have requested the Commission to take initiatives covering all noncash means of payment to improve the security of new payment systems.

**A REGULATORY APPROACH THAT DEVELOPS APPROPRIATE HORIZONTAL POLICIES**

**Ensuring Data Security and Privacy**

50. The use of strong encryption which ensures the confidentiality of both sensitive
commercial and of personal data is one of the foundation stones of electronic
commerce. Widely divergent national laws restricting the use, exportation importation
and offering of encryption technologies and products are adding substantial barriers to
the development of electronic commerce in Europe. The removal of such cross border
barriers is crucial for the implementation of the Single Market in electronic
commerce. The Commission will seek to develop a policy which will aim to guarantee
the free movement of encryption technologies and products while safeguarding public
security concerns. The Community shall work at international level towards the

Commission Recommendation of 17 November 1998 concerning payment systems, and in particular the relationship
between card-holder and card issuer. OJ 1.317 ol"24 November 1988. p.55.

**17**

removal of trade barriers for encryption products. The recently adopted OECD
Cryptography Guidelines constitute a first attempt to achieve international consensus
on this matter.

51. A more specific issue is that of digital signatures which will be the subject of a
Commission initiative. This initiative will aim at ensuring a common legal framework
encompassing the legal recognition of digital signatures in the Single Market and the
setting up of minimum criteria for certification authorities. World wide agreements on
digital signatures will also be needed.

52. Key amongst confidence-building measures is the need to safeguard the
individual's and a company's right to privacy while avoiding obstacles to the crossborder provision of electronic commerce services. The EU Framework Directive on
the protection of personal data meets these two objectives. It remains to be seen
whether further regulatory measures may be needed to address specific issues
emerging from the developments of electronic commerce. In particular, privacy
principles need to be safeguarded in the area of electronic payment systems, taxation
and copyright management systems. The Commission will pursue a WTO initiative
aiming at a multilateral agreement on trade related aspects of global information flows
whilst protecting the right to privacy and personal data.

Establishing Appropriate Protection for intellectual Property Eights and
Conditional Access Services

53. The protection of copyright and related rights is essential for the development of
electronic trade. The Commission will take a legislative initiative to deal with certain
aspects of copyright and related rights [40] . It will focus on on-line communications,
reproduction and distribution of protected material. This will be flanked by adequate
legal protection against the circumvention of anti-copy devices and electronic
management systems. The two international Treaties adopted in December I996 [41 ]

under the auspices of the World Intellectual Property Organisation (WIPO) are
essential to stimulate and facilitate electronic commerce internationally. The
Community shall aim for their early entry into force. Moreover, a successful outcome
of the present WIPO negotiations on the legal protection of the substantial investment
made in databases will constitute a further milestone in facilitating electronic
commerce world-wide. The work on this issue will continue in the framework of

WIPO, during the second half of 1997 and the Commission considers it of importance
to adopt an international convention in the near future on this topic.

54. Trademarks are major commercial instruments that will play an important role in
the electronic market place. However in an open network environment the trademark
owner is faced by severe difficulties in controlling the legitimate use of his trademark.
The Commission is now consulting interested circles about this and related issues and
will take appropriate steps to resolve conflicts between the allocation of Internet
domain names and trademarks. The Commission will seek to ensure that European

**4(** **'** **For** **further** **details see Communication from the Commission "Follow-Up tc the Green Paper on Copyright and Related**

**Rights in** **the** **Information Society",** **COM(96)568** **final,** **20.11.1996.**
**4 1** **The** **"WIPO Copyright Treaty" and the "WIPO Performances and Phonograms Treaty".**

**18**

interests are duly taken into account in the reorganization of the Internet Domain
Name System (DNS). In the context of the WIPO Consultative Group on trademarks
and Internet domain names, the Commission is actively contributing to the definition
of internationally acceptable solutions, such as on-line arbitration, mediation and
challenge panels.

55. A secure distribution of services will require adequate legal protection of
conditional access services across the Single Market. Many services will use some
form of encryption or other conditional access system to ensure proper remuneration.
Service providers will .need to be protected against the piracy of their services by
illicit decoders, smart cards or other piracy devices. The Commission will propose a
directive to establish an equivalent level of protection for service providers across
Europe.

**Ensuring a clear and neutral tax environment**

56. To allow electronic commerce to develop, it is vital for tax systems to provide
legal certainty (so that tax obligations are clear, transparent and predictable), and tax
neutrality (so there is no extra burden on these new activities as compared to more
traditional commerce).The potential speed, untraceability and anonymity of electronic
transactions may also create new possibilities for tax avoidance and evasion. These
need to be addressed in order to safeguard the revenue interests of governments and to
prevent market distortions.

57. Indirect taxation, and particularly VAT, is the area in which the Community rules
are most harmonised. Electronic trade in goods and services clearly falls within the
scope of VAT, in the same way as more traditional forms of trade do. However,
thorough analysis is needed to evaluate the possible impact of electronic commerce on
present VAT legislation (on issues such as definition, control and enforceability) and
to judge if, and to what extent, present legislation needs to be adapted, while ensuring
tax neutrality. Adaptations should avoid putting excessive burdens on small
companies. While some commentators have suggested that there might be a need to
look at alternative taxes such as "bit tax" [42], the Commission is of the opinion that this
is not appropriate since VAT already applies to these transactions.

58. The territorial concepts which underlie direct taxation systems ("residence" and
the "source" of income) also need to be examined in the light of commercial and
technological developments. As with indirect taxation, the goal is threefold: to
provide legal certainty, to avoid undue revenue losses, and to ensure neutrality.

59. The Commission and the Member States have recently decided to start an analysis
of the impact and consequences of electronic commerce on Customs and Indirect
Taxation. The Commission will use the Taxation Policy Group to explore these issues
at EU level with Member States. Further work at an international level will be done in

the OECD Committee on Fiscal Affairs.

**4 2** **"Interim Report of the High Level Group of** **Experts** **on the Social Aspects of** **the** **Information Society",**
_**hitp://www.**_ _**ispo.**_ _**cec.**_ _**be/hleg/hleg.**_ _**html.**_

**19**

**WORKING TOWARDS A CONSISTENT GLOBAL REGULATORY FRAMEWORK**

**60.** **At present, the pioneers of electronic commerce are operating in a fragmented**
**regulatory environment despite the fact that a number of aspects of electronic**
**commerce are already covered by international agreements such as WTO/GATS**
**(General Agreement on Trade in Services) and WIPO. As in the case of the Single**
**Market existing and new national legislation in diverse areas (for example encryption,**
**digital signatures, data protection and privacy, contract law, new electronic means of**
**payments) can create trade barriers which will hamper the development of electronic**
**commerce at a global level. Solutions need to be found to provide for a consistent**
**international regulatory framework for electronic commerce.**

**Important steps have already been taken in a variety of different international fora**
**such as WIPO, WTO, OECD (Organisation for Economic Cooperation and**
**Development), the World Customs Organisation, UNCTAD (United Nations**
**Conference on Trade and Development), UNCITRAL (United Nations Commission**
**on International Trade Law) the Exports Credits Arrangement and the Council of**
**Europe.**

**Building on this, the Community should further work through appropriate**
**international fora and bilaterally with its major trading partners to establish a coherent**
**global regulatory framework.**

**61.** **An International Ministerial Conference on "Global Information Networks:**
**Realising the Potential" will be organized by the Commission and German**
**Government in Bonn on 6-8 July** **1997** **which will address international policy-making**
**amongst others for electronic commerce with a view to adopting a Ministerial**
**Declaration.**

**CHAPTER** **4:** **PROMOTING A FAVOURABLE BUSINESS ENVIRONMENT**

**A further challenge facing the European Union lies in achieving the widespread**
**adoption of electronic** **commerce by consumers, businesses, and public**
**administrations. The awareness and confidence of consumers and businesses needs to**

**be enhanced, and support is needed for the development of relevant skills and**
**widespread network literacy. SMEs, in particular, need to be encouraged to adopt new**
**business methods, techniques and innovations. Public administrations have an**
**important role to play by adopting a favourable attitude to electronic commerce.**

**CONSUMERS: CREATING AWARENESS AND CONFIDENCE**

**62.** **Consumers have much to gain from electronic commerce when they buy goods**
**and services from their own homes: a wider choice, easier and more comprehensive**
**pre-purchase information, and potentially lower prices. The Commission has already**
**indicated in its three year action plan on priorities for consumer policy** **(1996-1998)**
**the potential benefits which the development of** **the** **Information Society will bring to**

**consumers.**

**20**

The Commission will prepare a Communication on the consumer dimension of the
Information Society which will aim to promote consumer access to the Information
Society, including new consumer skills which will require special education and
training.

63. Consumers need to have confidence in the electronic commerce process itself.
"Hard trust" in electronic commerce, through the use of secure technologies, needs to
be complemented by "psychological trust". Industry, trade and consumer
organizations need to work together to boost this by the use, for example, of quality
labels; by issuing comparative reports [43] ; or by the endorsement of new services by
trusted commercial brand names such as banks, credit card companies, or network
operators [44] .

Trust can also be encouraged by increasing the transparency of transactions (for
example, concerning the identity, origin and liability of the supplier), keeping to a
minimum the personal data required from the consumer, and by making clear the legal
status of any information provided. Industry can also increase the level of trust by
adopting and abiding by codes of conduct. Ideally, labelling and codes of conduct
would need to be applied at a European or global level to win mass acceptance
amongst consumers and businesses and avoid the creation of new barriers. The
Commission encourages the creation of widely accepted quality labels and codes of
conduct to increase trust and confidence in electronic commerce.

64. For consumers, the use of the Euro and electronic commerce should simplify and
lower the cost of transactions. The Commission will therefore encourage pilot work
on quality labels for electronic payments in the future. This could guarantee that the
electronic payment service meets a set of minimum quality criteria (e.g. dual display
of prices pi as automatic conversion between Euro and national currencies without
surcharge). The financial industry, consumer representatives and public authorities
would together define these criteria. Quality labels could also be applied to electronic
purses and other existing payment instruments, such as debit and credit cards.

BUSINESS: CREATING AWARENESS AND ENCOURAGING BEST PRACTICE

65. Small businesses need to understand the potential benefits of electronic commerce
in terms of cost savings, opening up of new markets and opportunities for new
products and services. Awareness actions will build on the insights gained through the
Commission's Commerce 2000 pilot programme, the consultation process on the
Green Paper on Commerce and in the G7 context, and will take into account the
limited resources available to SMEs for staff training. They will aim to encourage
industrial organizations and associations to publicise case studies, disseminate training
materials and use electronic commerce themselves. This could involve Chambers of

**4** **^ The European ConsumerNet** **project, launched recently, is an example of** **such** **a service. Sec**
_**[http://www.ispo.cec.be/ispo/call/quacii.him](http://www.ispo.cec.be/ispo/call/quacii.him)**_ **«n** **the World-Wide Web.**
**4 4** **Trade associations and Better Business Bureaus already grant** **"labels"** **and "accreditations", which can be certified**
**electronically,** **to** **«ew** **cyber-firms.**

**21**

Commerce, industry groupings at local, national and European level technology
promotion associations, and groups of SMEs, as well as partnership programmes
(such as Europartnertariat and Interprise).

The Euro-Info Centres network will undertake, in the context, of the Multi-annual
Programme for SMEs [45] specific initiatives to increase the exposure of companies, _::i_
particular SMEs, to electronic commerce techniques. Following the completion of the
consultation on the Green Paper on Commerce and Distribution, [46] a work programme
will be launched by the end of 1997, including electronic commerce actions for the
retail and distribution sector to respond to user requirements. Awareness promotion
will furthermore be pursued through the G7 project Global Marketplace for SMEs
building amongst others upon the first annual conference of this project in April 1997
which addressed many of the issues that directly concern SMEs and policy-makers in
global electronic commerce. The use and development of standards to facilitate
international product sourcing will also be promoted.

_66._ Best practice pilot projects play an important role in raising awareness. Pilot
projects can be designed, for example, to test business innovations and examine their
compatibility with existing legal and fiscal environments. They can also contribute to
the analysis of structural changes in and across sectors and of the impact on
employment. SMEs often lack the resources to try out new applications individually.
Pilot projects typically develop business models that take full account of Europe's
multilingual and multicultural character and the particular preferences of European
consumers and businesses.

The Commission will increase support for best practice pilots and will extend largescale awareness and take-up actions to promote business innovation across a wide
range of market sectors, such as retail, food and agribusiness, electro-mechanical
engineering, shoes, textiles, publishing, and tourism. Relevant programmes for these
actions such as R&D programmes in information technologies snd structural funds
will be exploited to the full. Where appropriate, European coordination structures will
be set up. The Commission encourages private sector initiatives to stimulate just-intime business-to-business markets for accounting, invoicing, and settlement flows, to
facilitate the adoption of integrated financial management software and tc reduce
cross-border payment periods in commercial transactions [47] .

PUBLIC ADMINISTRATIONS: PROMOTING A MORE PRC-ACTIVE PUBLIC SECTOR

67. The public sector has an important role tc play in the promotion of electronic
commerce. Administrative formalities and requirements, as well as the services
provided by the public sector, form part of day-to-day business. 70% of the data
handled by administrations originates in industry. Areas where electronic support
could be applied include customs and taxes, social security, employment services,
public registries and public procurement. Organizational (and possibly regulatory

**4 5** **COM(96)98** **final**
**4 6** **COM(96)5** **final**
**4 7** **The estimated cost savings achievable by introducing integrated 'just in time' financial management is estimated to be 2-3%**
**of of a company's turnover. It should also be possible to** **reduce** **cross-border payment periods significantly from the current**
**average of** **two** **weeks.**

**22**

changes) may be required for the effective introduction of electronic commerce in
business-public administration relationships. The Commission will launch
benchmarking initiatives (studies, pilot projects) to learn from practical experience of
public administrations and to identify specific European needs, including
requirements for interoperability at European level.

68. Under the present IDA programme, trans-European networks for administrations
are being introduced. They will involve commercially available technical solutions
whilst interoperability issues will need to be considered by both public
administrations and the private sector. The Commission will issue guidelines to
identify projects of common interest and implement measures to ensure the
interoperability of networks.

69. The Member States themselves should confirm their confidence in electronic

commerce by using it at the various levels of public administration. This would act as
a catalyst on the market as a whole. The most exemplary action will be for public
administrations to use electronic commerce for their own purchases. Public
procurement represents a large part of the economy (some 12% of EU GDP).
Administrations could not only realise considerable potential savings for their tax
payers but their actions would also speak louder than words [48] .

Bringing together the experiences of the SIMAP public procurement project, the
results of related projects funded under research and development programmes, and
responses to the Green Paper on Public Procurement, the Commission will present a
strategy paper later this year, together with an action plan to stimulate the
development of electronic procurement. The paper will identify any measures that
need to be taken to ensure that electronic commerce improves transparency, ensures
non-discrimination and does not create new barriers to openness in public
procurement markets. The Commission will examine to what extent existing public
procurement directives need review in order to facilitate the use of electronic
commerce and simplify or reduce any administrative requirement or procedure that is
unnecessary in the new electronic environment.

70. The Commission will step up its own efforts to be a major user of electronic
commerce. The Commission has already piloted the electronic submission of
proposals in the ACTS and Esprit R&D programmes, and has made use of an Internet
forum to encourage interactive response and comment to the Public Procurement
Green Paper. The Commission will make more extensive use of "virtual" discussions
to stimulate public debate on Community policy [49] . Links with its agencies and
Member State administrations and the general public will also be developed further.
The Commission will present an Action Plan for its use of electronic commerce by the
end of 1997.

**4 8** **The Swedish** **Association of** **Local** **Authorities has estimated that savings of** **3%** **of the procurement budget could** **be**
**achieved through the use of electronic commerce.**
**4 9** **Recently a successful public debate was** **held** **with Commissioner** **Oreja** **via the Internet on the Intergovernmental**

**Conference.**

**23**

**P U T T I N G E L E C T R O N I C C O M M E R C E** A T T H E S E R V I C E O F T H E C I T I Z E N

71. Electronic commerce is the Information Society in practice. However, as the
Information Society Forum has pointed out in their first annual report [50] "neither our
people nor our institutions nor most of our companies are really prepared for the new
technologies". The Forum emphasised the need for better education in the use of the
new technologies, next to other key issues such as awareness creation and readiness
by governments and public authorities to assume their responsibilities. Electronic
commerce requires new skills for network literacy. Consumers will need to become
familiar with information technology for communicating and ordering goods and
services electronically. The basis for such skills should already be laid in primary and
secondary schools. Employees and managers, especially in SMEs, may have to get
used to doing business internationally instead of in a national or regional market place
and will require retraining to this end. As the Forum expressed clearly, the
Information Society will be a Lifelong Learning Society.

The Commission will supplement policies at regional and national levels to improve
skills. Regarding consumers, the above mentioned Communication on the consumer
dimension of the Information Society will address this. Regarding employee skills
vocational (re-)training to help adapt to industrial change is foreseen, e.g. in the
context of the Socrates and Leonardo programmes, and the Action Plan "Learning in
the Information Society" with a view to training for the knowledge society, as well as
pursued by the ADAPT-BIS programme and the activities of the European Social
Fund's "Objective 4". Furthermore a Euromanagement Programme will be initiated to
promote greater understanding of electronic commerce amongst management in
SMEs.

72. Finally, the Information Society Forum as well as the High Level Expert Group on
the Social Aspects in the Information Society have stressed the need for public and
widespread participation in the evolving Information Society, to avoid the risk of
creating classes of information 'have-nots' and 'want-nots'. While the Commission
expects that electronic commerce will have a profound impact on businesses,
institutions and upon our lives as consumers and employees, it is not self-evident how
exactly electronic commerce will and should develop in Europe. A broad and
continued societal dialogue about these questions is essential to overcome the hurdles
and reap the benefits. In this context, the Commission particularly welcomes
collaboration at European level between industry and consumer groupings and their
members to stimulate the necessary private-public dialogue and to support the
implementation of the actions of this Initiative. As part of this Initiative, the
Commission will actively stimulate the public debate on electronic commerce in
I'Aimpc.

CONCLUSIONS

I. This Communication presents the European Initiative in Electronic Commerce as a
set of action-oriented proposals for advancing electronic commerce in Europe. These

^ First Annual Report to the European Commission from the Information Society Forum, 'Networks for People and their
Communities', June 1996

**24**

proposals address access to the global marketplace, legal and regulatory issues, and
promoting a favourable business environment. Some of them are already included in
the Rolling Action Plan for the Information Society, others are new and require an
update. Their implementation will involve close consultation with the relevant
industry sectors and involve all relevant policy domains. Coherence between
technological, regulatory and support actions is an essential element of the approach
advocated by this Initiative. With this Initiative the Commission also issues an
invitation to all parties involved to engage in a public dialogue about the development
and take-up of electronic commerce in Europe.

II. To implement this European Initiative in Electronic Commerce the Commission
plans to undertake the following key actions which should be completed by the year
2000 with a mid-term review (new actions which are not yet included in the current
Information Society Action Plan are marked with an asterisk):

**25**

ENSURING ACCESS TO THE GLOBAL MARKETPLACE: INFRASTRUCTURE, TECHNOLOGY

AND SERVICES _ __
Ensure full implementation of the telecommunications liberalisation by 1.1.98
package by Member States
. Pursue full implementation of WTO basic telecommunications bv 1.1.98
agreement by its signatories

bv 1.1.98

## Implement the ITA and MRA Agreements for the removal of tariff ongoing' 1

and non-tariff barriers on !T products

ongoing'

Promote active involvement of Europe's industry and public bodies
in the evolution of the Internet and the provision of high bandwidth
infrastructure through the R&D and TEN-TELECOM programme.

97*

**4-**
Implement thematic call on electronic commerce in the ESPRIT j 15 March
R&D programme; further focus appropriate R&D programmes [ 97- _QPA_ 98*
Launch Fifth Framework Programme with electronic commerce as ongoing
a priority for technology development and take-up

ongoing

Adopt Communication on a European standardization initiative for
electronic commerce (with action plan)

Launch of a specific action on standardization projects for
electronic commerce

Organize global standardization conference, Brussels, 1 -3 October
97

July 97

June 97*

October 97

Launch of specific actions for international cooperation in CEEC, ! 97'
MED, G7 Global Marketplace for SMEs within the EU R&D j

programmes

CREATING A FAVOURABLE REGULATORY FRAMEWORK

Identify Single Market barriers and legal uncertainties affecting
electronic commerce

Launch regulatory initiatives in the area of electronic payments*,
contracts negotiated at a distance for financial services*, copyright
and neighbouring rights, legal protection of conditional access
services and digital signatures

Assess the need for further initiatives covering Single Market
horizontal questions, regulated professions, commercial
communications, contract law, accountancy, fraudulent use of
electronic payments, data security, data protection, industrial
properly, direct and indirect taxation and public procurement

Reinforce international dialogue in the appropriate multilateral and
bilateral fora to achieve an adequate global regulatory framework
for electronic commerce, in particular in data security, data
protection, intellectual property rights, and taxation
Organize with the German Government the Ministerial Conference
on Global Information Networks, Bonn, 6-8 July 97

**26**

ongoing

_end_ 1997*

ongoing*

ongoing

July 97*

PROMOTING A FAVOURABLE BUSINESS ENVIRONMENT

Adopt Communication on consumer dimension of Information
Society, including promotion of consumer access to electronic

commerce

Promote electronic commerce awareness and best practice actions,
by implementing a specific Euro-Info-Centres initiative, launching
a Euromanagement programme and setting up a European coordination structure for electronic commerce use in the tourism

sector, as well as through promotion of the Euro for SMEs.

Intensify support for and launch new best-practice pilots, largescale awareness activities, take-up actions using ICT R&D,
innovation and standardization programmes and Structural Funds

Present an action plan on stimulating the development of electronic
procurement

Present Guidelines and measures addressing interoperability issues
related to public administrations in IDA

Present Action Plan for Commission to become leading user of
electronic commerce

Learning and training initiatives for electronic commerce in
programmes such as Leonardo and Socrates

Stimulate the public dialogue on electronic commerce in Europe,
including establishment of dedicated Website

June 97

End 97*

Sept 97*

end 97*

Sept 97*

end 97*

1997

April 1997*

**III.** **The Commission invites the** **European** **Parliament, the Council,**

**the Economic and Social Committee and the Committee of the**

**Regions to discuss the issues involved and to give their political**

**support to this European Initiative** **in** **Electronic Commerce.**

**This document is accessible at the following Internet address:**

**[http://www.ispo.cec.be/Ecommerce](http://www.ispo.cec.be/Ecommerce)**

**27** 17/04/27

##### **ISSN 0254-1475**

## **COM(97) 157 final**

# **DOCUMENTS**

### **EN 10 15 16** **Catalogue number : CB-CO-97-I55-EN-C** **ISBN 92-78-18682-1**

**Office for Official Publications of the European Communities**

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