IP: Business Group Sets Internet Proposals

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

> Business Group Sets Internet Proposals
>
> By Neal Boudette, European Telecommunications Correspondent
>
>
> PARIS (Reuters) - An industry group backed by some of the world's heaviest
> hitting executives will unveil a set of proposals on regulating the Internet
> Monday, all in the hope of making it easier to do business in cyberspace.
>
> The initiatives, providing guidelines for security, privacy, consumer
> protection, taxation, liability and other issues, will be presented at a
> meeting in Paris of the Global Business Dialog on Electronic Commerce (GBDe).
>
> They are intended to help governments and international trade organizations
> iron out differences in laws and regulations that can crimp the explosion of
> electronic commerce.
>
> But even the combined weight of companies such as America Online Inc,
> DaimlerChrysler AG, IBM Corp, Time Warner Inc and Toshiba Corp are unlikely
> to have much impact, analysts said.
>
> While the United States, Europe, and Asia will continue to clash, even the
> thorniest issues are not really hindering the Internet revolution. Regulation
> or not, e-commerce will keep on expanding, the analysts said.
>
> ``I don't believe the absence of regulation has seriously impeded
> e-commerce,'' said Ken Fraser at market researcher International Data Corp.
> ``There are things that make it a bit bumpy, but the road is open.''
>
> Millions of consumers are not holding back because, for example, Europe has
> not decided how to tax online purchases, or because the U.S. restricts
> exports of powerful encryption technology, other analysts said.
>
> ``I don't think consumers are waiting for concrete legislation,'' said
> Caroline Sceats at Fletcher Research in London. ``These (e-commerce business)
> models are going to carry on developing regardless of whether there are
> regulations in place.''
>
> Forecasts on e-commerce give no hint of stumbling blocks. According to
> Forrester Research,  online business trade in the U.S. alone is set to soar
> to $1.3 trillion in 2003, from $43 billion in 1998.
>
> Nevertheless, the Paris meeting will highlight issues that major corporations
> around the world are anxious to clear up -- without turning them over to
> government and political bodies.
>
> ``We are committing ourselves to creating a self-regulatory framework as well
> as proposals for politicians,'' said Markus Payer, a spokesman for German
> media giant Bertelsmann, whose chief executive is chairman of the GBDe.
>
> Formed in January, the GBDe includes more than 100 companies from all corners
> of the globe. Along with Bertelsmann's Thomas Middelhoff, Time Warner Chief
> Executive Gerald Levin and Fujitsu Ltd's Michio Naruto also serve as
> co-chairman, providing representation at the top from Europe, the U.S. and
> Japan.
>
> Walt Disney Co, Deutsche Bank, Nokia Oyj, and Japan's NEC Corp and NTT are
> also among the group's members.
>
> The proposals will deal with at least eight areas where laws vary from
> country to country, and can hinder online commerce.
>
> Yet no matter how well thought out, the GBDe initiatives still have to
> contend with significant and often politically sensitive disagreements.
>
> For example, many countries want powerful encryption technology to be widely
> available for protecting data on the Internet. But the U.S. bans export of
> the latest software. It wants law enforcement authorities to have a key to
> decode data used in drug dealing or money laundering.
>
> At the same time, Europe wants greater measures to protect personal
> information on the Internet, while the U.S. so far has allowed the industry
> to set its own guidelines.
>
> Even the GBDe recognizes the enormity of the task it is taking on. ``It won't
> be final and finished Monday,'' said Payer, the Bertelsmann spokesman. ``The
> effort will go on.''