ENF 19.2 Introduction

A key element of the E-Commerce Directive is the freedom of electronic commerce activity providers from one EEA State to provide information society services freely into another EEA State. Consistent with this principle, and subject to certain rules in ECO 1, the Handbook enables an incoming ECA provider to provide services in that capacity to UK ECA recipients without the need to comply with FSA requirements which fall within the Directive's coordinated field.

However, the Directive contains a 'derogation' which allows an EEA State where the recipient is based to restrict the freedom to provide an electronic commerce activity from another EEA State where certain conditions are met. The derogation is implemented in the United Kingdom through provisions of the ECD Regulations. This chapter outlines the relevant provisions of the ECD Regulations and the FSA's policy on the use of the power to make directions against incoming ECA providers.