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By Sarah Left, 5 May 2000 00:25

NEWS The European Parliament has voted through the Ecommerce Directive in record time, and now member states have just 18 months to implement the new law. The European Commission said the legislation will sweep away the outdated laws of many countries which have been holding back the growth of ecommerce. Member states usually have between two and three years to either change existing laws or draft new laws to comply with directives. But the EU has moved at Internet speed on this directive, largely due to the efforts of Spanish MEP, Ana Palacio, who guided the legislation through the Parliament. Commission sources said: "She's the star of the day," adding that this is only the second or third time that the Parliament has voted through a Bill on the second reading. Her directive establishes the "country of origin" principle, which means online businesses will only need to follow the laws of their own country. This is in direct contrast to another piece of legislation now facing the Parliament - called the Brussels Convention - which requires Web traders to comply with the national laws of all 15 member states. According to sources within the Commission, one of Palacio's motives in moving so quickly on the Ecommerce Directive was to undercut the Brussels Convention. Mike Pullen, ecommerce lawyer with Dibb Lupton Alsop, said: "Getting the directive through is a very positive step." He has been lobbying the Commission to amend the Brussels Convention. To protect consumer interests online, the directive also establishes a framework for out-of-court settlement of cross-border disputes.