Toc Winter 2009 - Table of Contents
| Citation | Vol. 5 No. 3 |
| Publication year | 2009 |
5 Shidler J. L. Com. and
Tech. 11 1 Standardization in the European
Information and Technology Sector: Official Procedures on the Verge of Being
Overhauled Shidler Journal of Law, Commerce and Technology Volume 5, Issue 3 Winter 2009
Standardization in the European Information and Technology Sector: Official Procedures on the Verge of Being Overhauled
Dr. Patrick Van Eecke and Maarten Truyens(fn1)
Dr. Patrick Van Eecke and Maarten Truyens
Abstract
As the European Commission pushes for a reform of traditional procedures in the Information and Communications Technology ("ICT") sector, the standardization process is intensely debated on the European Union level. This Article provides a concise overview of the past and future European Union policies on ICT standardization and the issues such policies raise.
Table of Contents
Introduction
The Rise of Informal Standardization Procedures
ICT Characteristics
The Way Forward
Conclusion
Introduction
Standardization is a voluntary effort among industry, consumers and public authorities to develop consensus-based technical specifications in a certain domain.(fn2) Standardization has evolved from an engineering tool to a business tool.(fn3) When standards are properly implemented, they can play an important role in the economy by bringing predictability and compatibility to market players, thereby ensuring a level playing field.(fn4) Standards can also further public interest by imposing safety, health, security and quality requirements.(fn5) Moreover, despite the fact that innovation tends to be associated with exclusivity and a desire for change, standards actually encourage innovation by providing a solid base for further development.(fn6)
It is therefore not surprising that legal systems use standards as a tool for reaching various policy objectives.(fn7) On the European Union ("EU") level, for example, these policy objectives consist primarily of diminishing technical trade barriers between Member States to improve the EU Single Market and increase innovation and competitiveness among EU industry players.(fn8)
Recognizing the importance of standards, the EU has introduced a formal legal framework to support the EU-level standardization process in certain areas. The current European standardization framework(fn9)-referred to as the "New Approach" despite being over two decades old-formally recognizes and financially supports three organizations, each with its own specific area of expertise: the European Committee for Standardization ("CEN"), the European Committee for Electrotechnical Standardization ("CENELEC"), and the European Telecommunications Standards Institute ("ETSI"). These three European standards organizations are complemented by national standards bodies.(fn10) Together, they form the center of gravity for the official standardization process, although public interest stakeholders and EU public authorities are also involved in the process.
This Article discusses general efforts taken by standardization bodies and then comments on the ongoing trend of moving from formal to informal standardization platforms, driven primarily by characteristics specific to the Information and Communications Technology ("ICT") sector. Finally, the Article provides insight into current initiatives to strike a balance between formal and informal standardization as the sector moves forward.
The Rise of Informal Standardization Procedures
While the formal EU standardization bodies' past efforts have generally reached their objectives of developing high-quality standards and respecting the principles of openness and neutrality,(fn11) only a few EU ICT standards have been taken up by the market.(fn12) In contrast, the most widely implemented ICT standards, such as Wifi(fn13) and XML,(fn14) have been drafted by informal standardization organizations.
Several factors have undermined the legal standardization monopoly of formal EU standardization bodies. The decline of standards created by these formal standardization bodies is attributed to the following; (1) the ICT sector witnessing the rise of de facto standards;(fn15) (2) the creation of hundreds of standardization bodies outside the formal standardization process; (3) the increase of standardization activities in Asian countries; and (4) the rise of informal ICT standardization bodies with a global reach. As a result of these developments, informal bodies are more likely to have the necessary know-how and technical expertise for future ICT standardization.
The increasing participation of informal bodies has led to a fragmentation of the standardization landscape in which formal bodies are no longer the only relevant initiators.(fn16) Although the formal standardization bodies have tried to adapt themselves to these new initiatives, it cannot be denied that the standardization center of gravity has shifted.
ICT Characteristics
The rise of the informal standardization initiatives should not come as a surprise in light of the specific nature and requirements of the ICT sector.(fn17) Despite certain efforts taken by the formal standardization bodies, specific characteristics of the ICT sector have played a role in the increasing shift to informal standardization initiatives.
First, the ICT sector is characterized by a fast-changing landscape. For instance, hardware doubles in performance and capacity every eighteen months and major software releases are often issued at least once per year. Technical requirements are thus quickly needed to satisfy the ever decreasing time-to-market of ICT services. However, creation of standards through formal standardization bodies takes significant amounts of time because they are legally required to consult all stakeholders.(fn18) Informal fora and consortia of companies, often composed of major industry players, can react much quicker and can produce a standard in a fraction of the time required by the formal bodies.(fn19)
Second, given the ICT sector's global reach, local standards become almost irrelevant. While the formal EU standardization bodies are primarily focused on standards for the EU region and there are formal procedures for incorporating global standards into EU standards, these procedures are regarded as cumbersome and not user friendly.(fn20) Global organizations such as the Internet Engineering Task Force ("IETF") and the World Wide Web Consortium ("W3C") have, therefore, been able to gradually take over the role of the formal EU bodies in several specific ICT segments. Further, the ever-increasing importance of Asian manufacturers of ICT products has also intensified standardization activities outside Europe.
Third, ICT products and services are highly susceptible to network effects,(fn21) i.e. their value increases exponentially with the number of users. From the moment a considerable number of users (e.g., 40%) use a certain IT product or service, a tipping point can be reached where the use of this product or service becomes compelling to all other parties, even on the sole basis of the number of users. Such successful IT products or services can then drive the direction of the industry, rule out competing products or services, and become the basis of future development- effectively becoming a de facto standard. There are many examples of de facto standards in the ICT industry, such as the USB port and several technical protocols used by Microsoft. Although the de facto standards are not officially recognized, they are followed by most industry players.(fn22)
For a number of years, the formal EU standardization bodies have adapted their rules and procedures to address the demands stemming from the ICT evolution. Examples of these efforts include: the use of "fast track" procedures to speed up the standardization process;(fn23) the involvement of different stakeholders in the standardization process; the installation of the ICT Standards Board ("ICTSB");(fn24) the delegation of representatives to Asian countries;(fn25) the translation of standards developed by non-formal standardization organizations into formal standards; the funding of research activities in which standards are developed outside of the formal bodies; and the marketing of European standards on an international level.
However, these efforts are not enough to meet the EU's standardization policy objectives. Most measures were taken on an ad hoc basis to react to immediate concerns, leading to a scattered range of often halfway measures without paying attention to a long-term strategy.(fn26) Moreover, some of the initiatives lack legal underpinnings. While the EU policymakers and formal bodies have adapted to ICT sector demands with changing...
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