EU may stifle e-commerce - GIP

Controversial European Union Internet policy proposals could stifle the growth of e-commerce in Europe and set damaging precedents globally, according to the Global Internet Project, an international advisory body composed of leading Internet industry figures. The group, which met in Brussels yesterday, formally voiced strong support for the beleaguered Internet Corporation for Assigned Names and Numbers (ICANN). ICANN is the private sector body selected by the US government to take over one of the most basic and essential administrative tasks on the Internet, the allocation and administration of domain names. Domain names are the alphabetical names, such as www.irishtimes.com, given to mask the actual numerical "addresses" of websites, making them easier to remember.

"We need a wide range of support for ICANN," said GIP member and MCI WorldCom vice-president Mr Vint Cerf.

GIP is concerned that existing regulatory practices worldwide may not suit the borderless reach of the Internet. GIP chairman and IBM vice-president for Internet technology, Mr John Patrick, said, "We need new models for a new medium." However, the group specifically pinpointed EU regulatory stances. One area of concern, caching, is a technology that enables temporary copies of websites to be held on numerous computers and prevents online traffic jams when many people want to access the same site. GIP said the EU initially decided to ban caching out of fears that it compromised copyright law. While the EU has backed away from a strict ban, GIP fears it will enact legislation more restrictive than the US's Digital Millennium Copyright Act, passed last year.

Mr Raimund Trierscheid, GIP member and executive director of multimedia business, Deutsche Bank, said GIP was "shocked" when it found the EU was considering banning caching. "We thought we had to intervene" by issuing the position paper, he said.