E-business comes under Commission spotlight
Tackling the role of e-commerce in Europe came under scrutiny on 23 April as two Commissioners pointed to the further measures required to ensure that Europe benefits fully from e-commerce. While Commissioner for consumer protection David Byrne was talking about the need to focus more fully on encouraging e-confidence amongst European consumers, Commissioner for Enterprise and information society Erkki Liikanen was opening a workshop looking at the development of e-marketplaces. Mr Liikanen addressed the challenge that e-marketplaces represent for SMEs (small and medium sized enterprises) and how this also represents a challenge for governments and policymakers. The business to business nature of e-marketplaces has been beneficial in helping to reduce purchasing and procurement costs, as well as reducing the tie to market and increasing productivity. And there has been a great drive towards creating these market places with a 3000 estimated to be set up in the coming years. However, only one in five of those is predicted to survive. Survival of e-marketplaces, according to Mr Liikanen, is dependent on SMEs embracing them. 'Only if SMEs are also fully integrated into e-marketplaces will e-business become the norm,' he said. Helping SMEs 'go digital' is one of the main challenges for enterprise policymakers. Mr Liikanen indicated how this could be addressed. Firstly changing the general awareness that many SMEs have of e-business to business decisions by them. They need help in turning knowledge into involvement and organisations such as chambers of commerce should help them in making these decisions. Secondly, Member States and regions should promote the use of e-business, using as many instruments as possible. Mr Liikanen highlighted Ireland as a particularly good example of this. Finally, more information is needed on best practice and on the actual take up of e-business by SMEs. But e-marketplaces also need to work together and this is where standardisation is a key element. There are many incompatible ICT (information communication technologies) applications, and this serves to isolate rather than unify the individual e-marketplaces. As well as technical compatibility, development of trust in the institution of an e-marketplace is essential for it to prosper. Standardisation in all of these areas is a challenge for European policymakers. Progress has already been made in this respect as major European standards organisations have already given their support to the eEurope action plan. One of the consumer fears that has been generated by e-marketplaces is that there is a possibility that they will be used for the exchange of competitive information between producers, providing the opportunity for anti-competitive behaviour. The Commission has already assessed and cleared several e-marketplaces, but Mr Liikanen conceded that this procedure is still evolving. Consumer confidence was also the issue that Commissioner Byrne tackled in discussing the e-confidence initiative. This again is an attempt to provide a standardised code whereby consumers can have more confidence that the site from which they are purchasing is safe and recognised. 'I think there needs to be clarity and certainty about what core standards in e-commerce mean,' said Commissioner Byrne. 'And I think there needs to be a fair and credible system to ensure that agreed standards are implemented in practice.' The European Commission will be discussing internally and with the European Parliament and Member States how to develop this area, and will bring forward a recommendation after consultation.