Uncertainty reigns over legal position of B2B exchanges

A group of B2B players, including Ariba and Oracle, are calling for the European Union to set out clear guidelines over the regulation of internet marketplaces.

Exchange software provider Oracle said uncertainty over regulation could stifle B2B (business to business) marketplace growth. Ariba said guidance from the EU was key for removing uncertainty from the B2B sector.

The European Commission (EC) has so far only investigated one B2B exchange - MyAircraft.com - to ensure no competition regulations were being breached.

The EC found that no action was required, easing industry fears that regulators will take a hard line on internet exchanges.

However, industry players are still concerned, as they have no indication of exactly what will be regarded as anti-competitive behaviour.

Ben Wright, VP of marketing and alliances at Ariba, said: "Where governments feel they have to step in, they should at least let industry know in advance what they're looking for."

Phil Wood, B2B ecommerce manager at Oracle, said: "At the moment people are having to build massive flexibility and contingency into their marketplaces because of this. We're not looking for standards or dictats but some guidance to reduce the ambiguity is in everyone's interest."

In the US the Federal Trade Commission (FTC) is about to rule on the Covisint marketplace for the automotive industry, which is being investigated for potential anti-competitive practices. It is widely believed the FTC will take the opportunity to offer wider guidance for conduct on B2B exchanges.

Competition lawyers agreed that clarification is needed. Simon Stokes, head of competition law at Tarlo Lyons, said: "Regulators naturally get nervous when competitors sit down and work together. However they need to give business some guidelines because the principles behind this are still vague and uncertain."

Mike Pullen, partner at law firm DLA, said: "The EU should issue guidelines on this - anything clarifying law in a developing area is always useful."

He added that the EU was unlikely to make any move until the US had made a ruling on Covisint.

An EU spokeswoman denied there was need for further clarification in the area, saying the principles and regulations were well established.