High telecommunication tariffs have long been a major stumbling-block for electronic commerce in Europe. However, the implementation of the package of telecommunications liberalisation measures is already leading to lower prices and to more flexible pricing schemes. The take-up of electronic commerce is significantly higher in the most competitive markets. The WTO Agreement on Basic Telecommunications will contribute directly to the emergence of a global marketplace in electronic commerce. Similarly, recent international agreements to eliminate tariff (ITA) and non-tariff barriers (MRA) should rapidly bring down the cost of key information technology products, encourage the take up of electronic commerce, and reinforce European competitiveness. Removing capacity bottlenecks and providing high-bandwidth infrastructure is another challenge for Europe – a challenge actively addressed both by the private sector and by the Community.
Ensuring interoperability in a competitive environment is another powerful incentive. The Commission is actively promoting global interoperability in such key areas as secure technologies and payment systems, and giving special importance in a number of R&D programmes to electronic commerce to ensure wide availability and ease of use of key technologies and systems.
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