Dossier: ElectroniScomme INNOVATION PROGRAMME · DECEMBER 1998 'Λ \\\ PijiJ-nri al THE COMMERCIAL REVOLUTION Wholesaling and retailing were once thought of as parasitic activities which, because they didn't actually make anything, generated no real added value. Yet today they employ 22V2mil-lion Europeans, one-sixth of the entire workforce, and provide every one of us with everything we use. The sector is now undergoing massive restructuring as new technologies revolutionise the way we buy and sell things. As more and more people get connected to the Internet, they are finding it to be a cornucopia. Businesses large and small are hawking their wares world-wide by virtual means, and 20 million people have already made at least one on-line purchase. And it's not only retailing that can be done cheaper, faster and more competitively on-line: business-to-business transactions are expected to be the next big driver of Internet commerce. Making money on the web, page 8 Borderless trading throws up a plethora of legal issues, from personal privacy and the right of consumer redress to finanInnovation 3-7 cial fraud and pornography. A key issue over which Europe's Feature: regulators are battling it out with the Americans is whether Opening Pandora's letterbox 8-13 the law of the seller or the buyer should prevail when an international purchase goes wrong.