Electronic commerce

•EDI (8 decade) – base of EC.

•1994 – “Netscape” – propose SSL (Secure Sockets Layer)

•1995 – “Amazon.com” “eBay.com”

•1998 – DSL (Digital Subscriber Line)

EC feature

1. EC - Global commerce (WAN-Wide Area Networks; LAN-Local Area Networks)

•E’mailE’mail – SMTP-Simple Mail Transfer Protocol; MIME-Multipurpose Internet Mail Extension; IMAP-Internet Message Access Protocol; POP3-Post Office Protocol.

•WWW serviceWWW service – HTTP-Hyper Tex Transfer Protocol.

EC feature

Usenet groupsUsenet groups – NNTP-Network News Transfer Protocol.

IRCIRC – IRC-Internet Related Chart.

FTP serviceFTP service – FTP-File Transfer Protocol.

EC feature

2. Anonymity.

3. Digital goods (services).

4. Virtual enterprises.

5. Intangible.

6. Cyberspace.

EC types

“European electronic commerce initiative” (1997)

1. Direct (exchange of intangible goods either on-line or using electronic means)

2. Indirect (electronic ordering of tangible goods)

EC models

E-shops

E-services

E-auctions

E-banking

E-conferences

E-advertisement

E-media

E-mail

EC definition

Electronic Commerce: The transacting of business electronically rather than via

paper

Electronic Commerce: A way to handle business transactions such as buying or

selling goods and services online or through a computer network.

Global EC environment

1. Enhancing the information infrastructure

Striving to ensure effective access to low costs and high quality information infrastructures and services for e-commerce by means of effective competition in telecommunications networks and services.

Global EC environment

2. Establishing transparent, objective ground rules for the digital marketplace

Ensuring that existing legal and commercial frameworks in areas such as contract law and intellectual property apply to electronic transmissions and enable the future growth of e-commerce and its social potential.

Global EC environment

3. Building trust for users and consumers

Ensuring safeguards to provide protection and increased confidence in the digital marketplace by addressing such issues as privacy, security, and consumer protection.

Global EC environment

4. Maximizing the social and economic benefits

Addressing the needs of business, including small and medium-sized enterprises, organizations, and consumers in developing and developed countries.

Global EC environment

5. Promoting global participation

Developing a broad collaborative approach that includes governments, the private sector, the wider community, and international organizations which aims at maximizing the social and economic potential of electronic commerce across all economies and societies.

EC development principles

• The private sector should lead in the development of electronic commerce and in establishing business practices

• The primary role of governments is to create a favourable environment for global electronic commerce and to maximise its potential for social, civic and community development

• International co-operation and harmonisation among all countries

Governments role of EC development

•Optimizes private sector innovation and initiative in a competitive environment.

•Minimizes legal and regulatory barriers to e-commerce and avoids the emergence of new ones

Governments role of EC development

•Provides confidence in the instruments and networks of e-commerce through appropriate government action

•Takes account of the needs and interests of the wider community through consultation with representative groups

Bilateral action

•Consumer protection•Privacy•Security•Business partnerships•Market development / E-commerce acceleration

•Skills and training

Multilateral action

•OECD•WIPO•G-8•United Nations System•WTO•International Telecommunication Union (ITU)

OECD

•Development of partnership

•Global forum: e-commerce-knowledge based economy

•Information and communication policy (Committee for Information, Computer and Communications Policy)

•E-commerce estimation

•E-commerce and taxation•E-commerce influence (OECD Trade Committee)

EC legislation principles

•Technological neutrality

•Functional equivalence

•Self-regulation

Hands-off principle (USA)

Self-regulation

Self-regulation fields:Self-regulation fields:

•Internet content•ISP liability•Customers protection•Procedures of services rendering

Self-regulation

Advantages:Advantages:

• Flexibility• Interest to follow that rules (self-regulation by itself

motivates to follow that rules)• Self-regulation process cost less than gov. regulation• jurisdiction

Self-regulation

Weaknesses:Weaknesses:

• Self-interest• Self-regulation private nature, can not answer to public

needs• Sanctions