Short term solutions
The consultation document stresses the need to apply the rules in a proportionate way, taking into account the fact that any issuance of e-money is an ancillary activity for a mobile operator and that not all (or indeed, any) of the pre-paid balance will be used as e-money (if it is used exclusively to make calls, for example). It goes on to suggest that businesses involved in activities that do indeed constitute the issue of e-money should consider various short term measures to achieve compliance, including:
The consultation seeks views on the commercial viability of these options.
What information is the Commission seeking?
The consultation document sets out 23 questions, directed not only at mobile operators but also others in the m-commerce supply chain. Specific information sought includes:
Other consultation questions concern:
Long term proposals
The in addition to formulating short term guidance on application of the Directives, Commission is considering reviewing the Directives in the light of market developments, to ensure proportionate application of the rules and to avoid hampering innovation. The results of this consultation will therefore contribute to the review which is due to take place in 2005. Readers may recall that separate and more wide-ranging proposals concerning payments in the Internal Market, including e-money were also released recently by another part of the Commission.
What steps should my business take?
The Commission is clearly alive to the potentially damaging impact of the e-money regime on the mobile sector. It acknowledges the risk of over-burdening the sector with regulation which may be disproportionate to the sums of money and the risks involved. It is therefore essential for businesses involved in mobile transactions to respond to the consultation in order to influence the Commission's thinking on this issue. The deadline for submitting comments is 16 July. Affected businesses should also seek advice from the FSA on a case-by-case basis.
