E-commerce: Commission aims for integrated retail market by 2005
As part of its Financial services action plan, the European Commission is launching a strategy to create a regulatory and supervisory environment to encourage the development of e-commerce in financial services and build consumer confidence. 'Harnessing the power of new technology is vital if the Lisbon European Council deadline of 2005 for the creation of an integrated European market in financial services is to be met,' says the Commission. The approach outlined in the Commission communication is based on the principle that the trading rules services should be those of the Member State where the service provider is established. 'This should ensure a level playing field between on-line and more traditional modes of distance trade,' says the Commission. A series of measures designed to enhance consumer confidence and protection, underpins the strategy, including further harmonisation of national consumer and investor protection rules, the establishment of out-of court redress, measures to build trust in Internet payments and enhanced cooperation between public authorities responsible for the supervision of cross-border trade in financial services. The Communication also aims to clarify the impact of the e-commerce legal framework directive in financial services. Commenting on the move, Internal market Commissioner Frits Bolkestein said: 'The steps outlined today represent a change of gear toward the establishment of an integrated European market in retail financial services. Updating our legislative framework to harness the benefits of the new knowledge economy is essential if the benefits are to feed through to the European consumer in terms of increased choice, competition and lower prices.'