Market definition is of crucial significance to competition law. The anti-competitive aspects of a companies’ activity can only be determined by defining the relevant market. The basic test is one of costumer substitutability. Can the consumer easily change products?

Jurisdiction
The international nature of e-commerce naturally gives rise to jurisdictional problems. Which contract law is to apply? Which courts are to have power to deal with contractual disputes? Does the lawsuit follow the pursuer or defender, claimant or defendant, plaintiff or defendant, consumer/customer or the supplier? Can disputes be settled via arbitration?

Contractual Issues
The internet throws up interesting contractual issues, in addition to the jurisdictional issues raised above. When is the contract formed? Does the national law recognise the doctrine of invitation to treat? Divergent rules on capacity to contract, the validity of electronic signatures, the level of consumer protection and the methods for incorporation of the companies’ terms and conditions into the contract can all have a detrimental effect upon the willingness of companies and customers to engage in online trad英语论文网 【http://www.51lunwen.org】ing.

Benefits of E-commerce
The perceived negative aspects of e-commerce are significantly outweighed by the positive benefits of e-commerce.
The e-retailer benefits from lower transaction costs. The internet and e-commerce does not only allow the e-retailer to dispense with having a physical presence on the high street, the new technology has also led to the invention of new services and products. Thus, the e-retailer is more efficient.
Internet retailers may also increase price transparency in the market. The pro-competitive effects of internet retailing are clear. The use of the internet, and specifically the use of search engines, such as http://www.Google.com, can assist the customer in finding the best priced product.  
The internet can help the company reach a new consumer base
Customer service can be radically improved
The Virtual office or shop is open 24/7
Customers without a local distributor can order goods direct
Customers will not demand instant delivery, unlike a physical shop
Customers’ buying habits can be tracked
The internet assists commerce in specialist items, basic commodities and information

Topic Activities
1.  Should e-commerce be widely or narrowly defined?
2. Should States encourage e-commerce through specific legislation? If so, are there any potential problems with this approach?
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