Key Notes

Roll-out of a framework for the digital economy

The development of information society services within the European Union is vital to ensuring economic and social progress. The establishment of a clear and comprehensive legal framework for the increasingly important field of electronic commerce and other information services is a precondition to that.


I. What does the European Union do?

The Directive on electronic commerce adopted in June 2000 seeks to remove the legal obstacles which remain to the on-line provision of services. The directive aims at further clarifying the legal responsibilities of service providers and thus, at further improving consumer protection. The directive lays down that information society services should generally comply with the legislation in the country where the service provider is established. The directive seeks to remove the uncertainty about how existing legislation can be applied to the on-line provision of services.
The Commission Communication on e-commerce and financial services dating of February 2001 aims at encouraging consumer confidence in internet payments. As such it seeks to make sure that the Directive on electronic commerce interacts with existing financial services legislation.
The planned Regulation concerning sales promotions in the Internal Market seeks to introduce uniform rules for sales promotions, such as premium offers and free gifts, the main objective being to foster the free movement of goods that benefit from the use of sales promotion. Since sales promotions are directly linked to prices and play a key role in the market signalling process, it is essential that they be presented according to uniform rules.


II. The EPP-ED Group's position

With regard to commercial communications, such as advertising, the group recognises their importance in electronic commerce services, yet assigns much importance to provisions that clarify their use. To give an example, the group sets great store by ensuring that unsolicited commercial communication by email is not only easily identifiable as such, but that consumers must be given the opportunity to avoid receiving junk mail altogether. As regards the liability of on-line service-providers for transmitting and storing third party information, the group considers that these companies should be subject to the obligation to keep all information necessary for tracing and identifying providers of illegal content, as long as this does not violate EU rules on data protection.
With regard to the Communication on e-commerce and financial services, the group stresses the importance of the country of origin principle. It is felt that a promotion of the conclusion of cross-border contracts by electronic means in the area of financial services will only work out, when consumer confidence in such sensitive products is strengthened. The effective establishment of a country of origin regime for financial services is therefore essential, yet has to be accompanied by a close co-ordination of national legal frameworks in this issue in order to avoid distortions in competition.
The group strongly underlines that, although it generally welcomes and supports the idea of fostering the use of sales promotions within the internal market, steps have to be taken to ensure a high level of protection of small and medium-sized enterprises.


III. The EPP-ED Group's goals for the next legislative period

The enhanced importance of internet and the widespread use of internet by consumers has already changed many aspects of commercial life. The implementation for the existing rules has created a European set of rules for the digital economy. This framework must be kept up to date. The increased use of advertising via e-mail for instance creates new questions with regard to consumer protection and net safety.
The EPP-ED group will therefore start and support initiatives to offer to European consumers the best choice of products, as well as services, via internet. At the same time the EPP-ED group will keep digital economy as liberal as it is possible with due respect to the necessary high level of consumer protection.