The global vitality of an electronic marketplace depends upon free and open trade. Tariffs, regulations, and similar barriers to e-commerce raise costs and can price many smaller, competitive firms out of the market. Similarly, e-commerce needs a solid, yet flexible, legal foundation that gives individuals and companies the confidence to trade online while not imposing barriers not present in the offline world. When trade is restricted, economic development is slowed, consumer choice is reduced and global prosperity is harmed.

BSA promotes market-driven rules on encryption and electronic contracts. We have been leaders in the successful effort to encourage governments to dismantle Cold-War era encryption rules in order to promote the development of electronic commerce. We also have promoted voluntary, technology-neutral, and non-bureaucratic laws that give legal recognition to electronic signatures.

At the same time, the BSA has consistently supported balanced liability rules for online service providers and other network intermediaries when Internet users engage in illegal activities on their networks. To this end, we are strong proponents of the EU E-Commerce Directive. This Directive, which harmonizes a number of important e-commerce rules EU-wide, is vital to the healthy development of the Internet and e-business in Europe.