E-trade law in spotlight

The European Commission is looking to cut the amount of red tape and legislation that affects e-business, after asking companies for their frank appraisal of current regulations.

"It's time to take stock of remaining barriers and decide how to remove them," said enterprise commissioner Erkki Liikanen, last week. "This discussion should be based on practical examples and experience, not just theoretical rules."

The EC said it hopes to make it easier to carry out business online in Europe through measures such as the removal of variations in national laws concerning electronic invoicing, and other matters. The eight-week consultation process will end on 7 November, and the conclusions will be discussed at a conference in March.

However, lawyers in the UK said that compliance with current legislation, although not always easy, provides an excellent basis for doing business.

John Barker, a lawyer at Last Cawthra Feather, said that the UK was the only European country to have implemented all current EU directives for e-commerce, including the Distance Selling Regulations 2000 and Electric Commerce Regulations 2002. "The downside for business is the red tape," he said. "But this infrastructure provides an excellent foundation and protection for all those involved, service providers and customers alike."