Another step towards an european framework for electronic signatures: the Commission's directive proposal

Parties involved in electronic commerce in open networks such as the Internet are faced with the problem of authentication of the communicating parties, i.e. knowing that the sender of an electronic message is actually the person he purports to be. In addition, communicating parties also need to ensure that the electronic message received is the one that actually was sent, i.e. the integrity of the message.

These goals can be achieved through the use of electronic signatures, including digital signatures created through public key cryptography. However, for electronic signatures to accomplish such objectives in open networks, they need to be used together with certificates issued by certification service providers that certify the link between the electronic signature and the identity of the electronic signature holder. Therefore, for electronic commerce to flourish, electronic signatures must be legally recognized as equivalent to their hand-written counterparts. In addition, a legal regime must be created for the establishment and operation of certification service providers that will generate trust among trading parties in certification authorities, and thereby in electronic signatures.

In May 1998, the Commission presented a Proposal for a Directive aimed at establishing a legal framework for electronic signatures and certification service providers in Europe. The Proposal addresses, inter alia, the liability of certificate service providers towards third parties and the legal recognition of electronic signatures, both within Europe and internationally. The proposal provides that certification service providers need not obtain authorization to act as such, although Member States are free to introduce a system of voluntary accreditation for service providers. The Proposal has adopted a technologically neutral approach — governing electronic signatures generally rather than only digital signatures — in an effort to ensure that the Directive will not be made obsolete as technology progresses.

Despite lacking clarity in certain important respects, the Proposal is to be welcomed and the Commission congratulated in taking a key step forward in promoting electronic commerce in Europe.