login
login
Image header Agence Europe
Europe Daily Bulletin No. 10529
SECTORAL POLICY / (ae) digital

Action plan for developing electronic trade

Brussels, 11/01/2012 (Agence Europe) - On Wednesday 11 January, the European Commission adopted a communication presenting 16 concrete actions to double the share of electronic trade among retail sales by 2015. This action plan, which was resented jointly by Commissioners Neelie Kroes (digital agenda), Michel Barnier (internal market) and John Dalli (consumers), comes under the framework of digital strategy and the single market act.

It also responds to the request by the European Council to present a roadmap to complete the digital internal market by 2012.

Electronic trade and online services represent considerable potential for economic growth and offers consequent benefits to consumers and business. It is also a generator of jobs, because for every “off-line” job lost, 2.6 are created in the internet economy, in innovative sectors which bring many benefits. Currently, online transactions are still largely focused on the national markets and are only spread across a few member states (Germany, the United Kingdom and France). There are many obstacles and three of them are matters for the single market, Commissioner Barnier explained: 1) delivery of purchases to another member state: transactions remain too expensive and are ill-adapted to consumers' actual needs; 2) illegal content: this undermines consumer confidence, hence the need to increase a varied and attractive legal offer; 3) online payments: these continue to be problematic, notably due to payment cards which are not accepted in other member states, or with excessive commission levels. Currently, profits from prices practised online (which are lower than prices for “real” purchases) are estimated at €11.7 billion, a figure equivalent to 0.12% of European GDP. If electronic trade - e-commerce - represented 15% of retail trade and obstacles to the single market were removed, gains for consumers could reach € 204 billion, or 1.7% of GDP. The action plan aims to double the share of electronic trade among retail sales (currently 3.4%) by 2015, and to double the share of the internet economy in European GDP (currently less than 3%). If these objectives are reached, online trade and services could represent more than 20% of gross and net job creation in the member states most active in e-commerce, such as France, Germany, the United Kingdom and Sweden, by 2015. In order to achieve this, the action plan will tackle the obstacles identified: facilitating cross-border access to online products and content, remedying payment and delivery problems, and consumer protection and information (fighting cybercrime), facilitating dispute resolution and the getting rid of illegal content. This will help to develop a safer internet which is more respectful of fundamental freedoms. This objective can be achieved by developing new-generation fixed lines and wireless connections and developing cloud computing, objectives which are laid down in the Digital Agenda, Commissioner Kroes points out. The communication identifies the potential of e-commerce and online services as potentially representing up to 20% of growth and employment in the next five years. Access to goods and services for people who are geographically isolated or vulnerable will also be facilitated, helping to contribute to cohesion within Europe.

The “electronic commerce” directive contains rules to facilitate the provision of online services in the European Union and guarantee that these services fulfil certain criteria. This text, which is technologically neutral, has laid the foundation for the cross-border development of online services and constitutes the cornerstone of the digital single market. It must, therefore, be added to rather than revised, as confirmed by the recent results of an online consultation, the Commission adds.

BEUC pleased with an initiative which is going in the right direction

In a press release, the European Consumers' Organisation (BEUC) has welcomed the communication presented by the Commission, because it will make a contribution to consolidating the digital single market. The action plan tackles five obstacles which matter to consumers: 1) poor supply of legal online content (software, music, video, etc.); 2) restrictions on payment methods and for delivery of goods; 3) disputes arising from unsatisfactory transactions on the net; 4) lack of data protection for online users; 5) lack of infrastructure for high-speed broadband telecoms networks.

However, BEUC is calling for greater caution in the fight against illegal content, in order to avoid unfairly criminalising consumers. “Europeans have clearly shown that more legal choice with the chance to confidently and safely pay is where the future lies”, said BEUC Director General, Monique Goyens. A more determined fight against illegal commercial practice is also recommended by BEUC, as practices of this kind are too widespread. (IL/transl.fl)

Contents

ECONOMY - FINANCE - BUSINESS
SECTORAL POLICY
EXTERNAL ACTION
INSTITUTIONAL
SUPPLEMENT