E‐Commerce Risks in the ‘Open and Competitive Market’

The face of the business market has changed beyond all recognition over the past decade, and while there is much talk of global markets some facts are indisputable. Europe is increasingly becoming a unified market, particularly in the field of financial services. The world economy is also becoming more transparent and open, which should lead to an increase in market opportunities, as well as to increased competition. Capital has become a highly mobile commodity, and with more use of Internet banking facilities and the use of e‐cash this will continue to intensify. New industries are being created through technological advances. In many instances these developments are extremely rapid, and the technology itself frequently allows new market participants to enter with minimal capital investment or established expertise. And the future economic prosperity of the UK will significantly depend on the ability this country has to adapt to the demands of increasingly knowledgeable and mobile consumers. One of the fundamental issues at stake for the credibility of UK business is whether it can sustain a competitive edge while at the same time ensuring that the rights of consumers and service providers are sufficiently well protected according to European and domestic legislation. Until recently the balance between ensuring fair treatment of consumers while promoting business productivity has been achieved within an environment of relatively slow‐moving market forces. The digital age has now arrived and the response from governments must be as rapid as the fast‐moving world in which international commerce is conducted. It is against the background of consumer and business use of computer and communications technology for the commercial exchange of products, services and information that the future of e‐commerce in the UK is discussed in this paper.