The Digital Policy Alliance (DPA) has said that the European Commission’s (EC) proposals for a regulation on electronic identification and trust services for electronic transactions is flawed, as it could threaten exports and force high costs on small business.
The proposal says that liability for any damage caused to consumers and businesses due to non-compliance with any of the provisions in the regulations lies entirely on the providers. According to the DPA: “This excessive burden presents a massive disincentive for the provision of trust services, and will increase costs as providers insure themselves against the extra liability risk.”
Instead, the DPA believes that the EC should work ” towards a framework of common standards that can be adopted by the private and public sector as appropriate.”
According to the Earl of Erroll, chairman of the DPA: “The regulation needs to focus on that which will help achieve the stated objectives and make Europe a wealth and job creating location of choice for globally trusted on-line organisations. At a time of financial pressure, that means recognising existing good practice and taking a technology neutral approach to facilitating the adoption of better practice to remove fraud, inefficiency, risk and uncertainty with regard to cross-border transactions, particularly on the part of individuals and small firms.”
Privately run electronic IDs are crucial to the UK government’s digital by default policy while the EC wants to ensure that member states’ electronic IDs operate across borders.
The proposals are due for consideration by the EU Parliament’s Committees on Internal Market and Consumer Protection (IMCO) and Industry, Research and Energy (ITRE) by July.
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