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European commission publishes proposal for E-commerce directive
Editorial
EDITORIAL EUROPEAN COMMISSION PUBLISHES PROPOSAL FOR E-COMMERCE DIRECTIVE Stephen Saxby c o m m u n i c a t i o n as existing definitions remain uncertain On 18 N o v e m b e r the European Commission published its w h e n applied to online services. It is not clear, for example, proposal for a Directive on certain legal aspects of Electronic w h e t h e r "simply having an Internet site, establishing a hyperC o m m e r c e in the Internal Market. This is intended to fulfill text link, or using a domain name constitutes commercial t h e c o m m i t m e n t m a d e in a 1997 C o m m u n i c a t i o n A communication". Third, Member States will be obliged to E u r o p e a n I n i t i a t i v e o n E l e c t r o n i c C o m m e r c e (Corn (97) 157 adjust national legislation to clarify the rules that govern final) 16 April 1997 to c r e a t e a " c o h e r e n t E u r o p e a n w h e n an online contract is made. This is necessary as the Framework by the Year 2000".This is intended to build on a n u m b e r of recent measures and initiatives on regulatory recent proposal for a Directive on electronic signatures did transparency, the p r o t e c t i o n of pernot deal w i t h any formal requirements other than signature. Fourth, sonal data, the p r o t e c t i o n of cons u m e r s in r e s p e c t o f c o n t r a c t s "The Commission sees this as a vital uncertainty as to the responsibility negotiated at a distance; proposals o f online s e r v i c e p r o v i d e r s for on the legal p r o t e c t i o n of condi- issue for the E U as it touches its very transmitting and storing third-party tional access services, electronic raison d'etre", information will be tackled.A ' me r e signatures, co p y r i g h t and related conduit' e x e m p t i o n will be introrights and electronic money. It also d u ced w i t h further limitations on a aims to stengthen the Community's service provider's liability for other hand in international discussions currently taking place in a ' i n t e r m e d i a r y ' activities introduced. Finally, e n f o r c e m e n t n u m b e r of fora such asWTO,WIPO, UNCITRAL and OECD. mechanisms will be strengthened to stimulate administrative At the broader policy level the Commission wants to proco o p er at i o n and 'effective' cross-border alternative dispute m o t e the conditions w h e r e b y E-commerce can flourish. It has resolution systems.The aim is for "fast. efficient legal redress recognized the potential of this n e w form of commercial appropriate to the online environment". In this way the p r a c t i c e in c r e a t i n g e c o n o m i c g r o w t h , a c o m p e t i t i v e Commission h o p es that a genuine internal market for online European industry and employment. It currently estimates services will emerge. that E-commerce alone is n o w supporting one in four of the These are ambitious and i m p o r t an t proposals that seek to n e w jobs available within the EU. balance a n u m b e r of c o m p e t i n g interests.The Commission is More specifically, the Proposal seeks to r e m o v e the obstaunder pressure to act as the g r o w t h of E-commerce activity in the marketplace is n o t going to wait u p o n the regulators. cles that have arisen in the d e v e l o p m e n t of a c o h e r e n t legal framework for E-commerce activities. Diverging jurispruThe Commission sees this as a vital issue for the EU as it d e n c e and accompanying uncertainty as to the application of touches its v e r y r a i s o n d ' e t r e in the construction of the internal market "E-commerce in an area w i t h o u t frontiers existing legislation to the online provision of services have b e e n largely responsible for this and the Commission wants will bring t o g e t h e r the p e o p l e s of Europe, p r o m o t e trade to address the p r o b l e m w i t h o u t further delay. It has identified b e t w e e n t h e m and increase k n o w l e d g e of their cultural "five key issues" w h i c h it says will "bring about the free circudiversity". The ultimate achievement, however, will lie in a lation of online services". The first is the removal of legal global a g r e e m e n t that establishes a multi-national framework for international trade using E-commerce techniques. To uncertainty surrotmding the establishment of information achieve that a considerable a m o u n t of further negotiation society service providers - - n e w proposals will define the M e m b e r State in w h i c h the operator is established so that the and hard bargaining will b e required. However, the first step relevant rules c o n c e r n i n g this can be identified. Second, there towards the a c h i e v e m e n t of an EU regulatory framework seems firmly on its way. will be clarification of w h a t constitutes a c o m m e r c i a l
Computer Law & Security Report Vol. 15 no. 1 1999 0267 3649/99/$- see front matter © 1999 Elsevier Science Ltd. All rights reserved
EDITORIAL EUROPEAN COMMISSION PUBLISHES PROPOSAL FOR E-COMMERCE DIRECTIVE Stephen Saxby c o m m u n i c a t i o n as existing definitions remain uncertain On 18 N o v e m b e r the European Commission published its w h e n applied to online services. It is not clear, for example, proposal for a Directive on certain legal aspects of Electronic w h e t h e r "simply having an Internet site, establishing a hyperC o m m e r c e in the Internal Market. This is intended to fulfill text link, or using a domain name constitutes commercial t h e c o m m i t m e n t m a d e in a 1997 C o m m u n i c a t i o n A communication". Third, Member States will be obliged to E u r o p e a n I n i t i a t i v e o n E l e c t r o n i c C o m m e r c e (Corn (97) 157 adjust national legislation to clarify the rules that govern final) 16 April 1997 to c r e a t e a " c o h e r e n t E u r o p e a n w h e n an online contract is made. This is necessary as the Framework by the Year 2000".This is intended to build on a n u m b e r of recent measures and initiatives on regulatory recent proposal for a Directive on electronic signatures did transparency, the p r o t e c t i o n of pernot deal w i t h any formal requirements other than signature. Fourth, sonal data, the p r o t e c t i o n of cons u m e r s in r e s p e c t o f c o n t r a c t s "The Commission sees this as a vital uncertainty as to the responsibility negotiated at a distance; proposals o f online s e r v i c e p r o v i d e r s for on the legal p r o t e c t i o n of condi- issue for the E U as it touches its very transmitting and storing third-party tional access services, electronic raison d'etre", information will be tackled.A ' me r e signatures, co p y r i g h t and related conduit' e x e m p t i o n will be introrights and electronic money. It also d u ced w i t h further limitations on a aims to stengthen the Community's service provider's liability for other hand in international discussions currently taking place in a ' i n t e r m e d i a r y ' activities introduced. Finally, e n f o r c e m e n t n u m b e r of fora such asWTO,WIPO, UNCITRAL and OECD. mechanisms will be strengthened to stimulate administrative At the broader policy level the Commission wants to proco o p er at i o n and 'effective' cross-border alternative dispute m o t e the conditions w h e r e b y E-commerce can flourish. It has resolution systems.The aim is for "fast. efficient legal redress recognized the potential of this n e w form of commercial appropriate to the online environment". In this way the p r a c t i c e in c r e a t i n g e c o n o m i c g r o w t h , a c o m p e t i t i v e Commission h o p es that a genuine internal market for online European industry and employment. It currently estimates services will emerge. that E-commerce alone is n o w supporting one in four of the These are ambitious and i m p o r t an t proposals that seek to n e w jobs available within the EU. balance a n u m b e r of c o m p e t i n g interests.The Commission is More specifically, the Proposal seeks to r e m o v e the obstaunder pressure to act as the g r o w t h of E-commerce activity in the marketplace is n o t going to wait u p o n the regulators. cles that have arisen in the d e v e l o p m e n t of a c o h e r e n t legal framework for E-commerce activities. Diverging jurispruThe Commission sees this as a vital issue for the EU as it d e n c e and accompanying uncertainty as to the application of touches its v e r y r a i s o n d ' e t r e in the construction of the internal market "E-commerce in an area w i t h o u t frontiers existing legislation to the online provision of services have b e e n largely responsible for this and the Commission wants will bring t o g e t h e r the p e o p l e s of Europe, p r o m o t e trade to address the p r o b l e m w i t h o u t further delay. It has identified b e t w e e n t h e m and increase k n o w l e d g e of their cultural "five key issues" w h i c h it says will "bring about the free circudiversity". The ultimate achievement, however, will lie in a lation of online services". The first is the removal of legal global a g r e e m e n t that establishes a multi-national framework for international trade using E-commerce techniques. To uncertainty surrotmding the establishment of information achieve that a considerable a m o u n t of further negotiation society service providers - - n e w proposals will define the M e m b e r State in w h i c h the operator is established so that the and hard bargaining will b e required. However, the first step relevant rules c o n c e r n i n g this can be identified. Second, there towards the a c h i e v e m e n t of an EU regulatory framework seems firmly on its way. will be clarification of w h a t constitutes a c o m m e r c i a l
Computer Law & Security Report Vol. 15 no. 1 1999 0267 3649/99/$- see front matter © 1999 Elsevier Science Ltd. All rights reserved