Officials at the European Commission have made a spectacular turnabout on a proposed law governing cross-border Internet commerce in Europe

Officials at the European Commission have made a spectacular turnabout on a proposed law governing cross-border Internet commerce in Europe, deciding to seek input and considering abandoning a long-held position on a key legal question. Justice and home affairs experts drafting a law dubbed "Rome II" will seek consultations with industry and consumer groups, after saying in April that to do so would be a waste of taxpayers money. The authors of the draft regulation further are contemplating abandoning the long-held legal position on the question of which national law to apply in a cross-border dispute. Until now, the officials have advocated applying the laws in the country where a consumer is situated, provoking criticism from industries, including fast-moving consumer goods, e-commerce merchants and publishers, that such an approach will smother e-commerce with legal obligations. "We are not sure whether to set up a special regime for e-commerce or to remove the country-of-destination principle altogether. This has yet to be clarified," said David Seite, one of the authors of the draft regulation. By applying a country-of-origin approach to cross-border online disputes, the regulation will be reinforcing, rather than contradicting existing European legislation such as the e-commerce directive, said an official inside another Commission department. However, he was wary of giving his full support to his justice and home affairs colleagues. "I'll reserve judgment until I see what they come up with," he said.