>
>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.''
