IP: EU commissioners urge Internet business caution

[David Farber <farber () cis upenn edu>]

Wednesday June 4 10:07 AM EDT


EU commissioners urge Internet business caution


By Neil Winton, Science and Technology Correspondent


BRUSSELS, Belgium - Big business is dreaming of burgeoning sales across
the Internet, but the European Commission is saying "not so fast,"
delegates to a conference were told Tuesday.


European Commissioner for Consumer Affairs Emma Bonnie said many aspects
of trade across the Internet's worldwide network of computers have to be
carefully examined.


Bonino was concerned about privacy and censorship, while another
commissioner expressed concerns about potential dominance of the Net by
strong companies.


"We are aware of attempts to control these new multimedia markets," said
European Union competition Commissioner Karel van Miert. "If big
companies try to escape controls and dominate markets, we will step in."




Representatives of high-technology companies could hardly contain their
enthusiasm for the rich pickings they hope will soon be available from
these online markets.


"Europe can expect an exciting ride as we look ahead to the next 12
months," Sanjaya Addanki, IBM manager for Europe, the Middle and Africa,
told the conference.


"Europe has narrowed the gap with the U.S. and we are now about one year
behind. Europe is getting Net-happy and actually getting wired up," said
Addanki said.


Various market research organizations have attempted to predict the
scale of this new way of doing business. Most research presents charts
with figures close to zero for the current year, with exponential growth
predictions past the turn of the century.


This week, British-based Datamonitor published its latest guesstimates,
saying online consumer sales will reach $3.2 billion in Europe by 2001,
up from an estimated $96 million for 1997.


The major driver of this will be the travel business, which will account
for 35 percent of 2001's online sales, according to Datamonitor. Lesser
performers will be the clothes, computer software and hardware markets.


Only about 1 percent of European homes are currently shopping online,
but this should rise to 7 percent by 2001, when 33 million homes will
have a personal computer and modem access to the Internet. Germany will
be the leading market, Datamonitor said.


Commissioner Bonino attempted to add some realism to the debate, saying:
"This is major opportunity for companies and consumers but it is not
without risk."


She called for a debate on the issue over the next six months, and
expressed concern that illegal activities like bomb making, drugs and
crime could take place on an unprotected Net.


"I don't have the answer; it's a complex problem," Bonino said.


Another delegate to the conference, organized by The Wall Street Journal
Europe, said it would be wrong if governments, especially European ones
with little experience of the Internet, attempted over regulation which
might impinge on development.


"Any government which is not heavily involved (in online business) has
no right to speak," said Roel Pieper, chief executive officer of Tandem
Computers Inc. of the United States.


Copyright, Reuters Ltd. All rights reserved




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