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5 J. Int'l Com. L. & Tech. 1 (2010)

handle is hein.journals/jcolate5 and id is 1 raw text is: New Challenges and Possible Policy Options for the Regulation of Electronic Identity * Anssi Hoikkanen, Margherita Bacigalupo, Ram6n Compafi6, Wainer Lusoli & toannis Maghiros European Commission's Joint Research Center-IPTS Anssi.HOIKKANEN ec.europa.eu Abstract: This paper discusses the challenges and possible policy options for the regulation of electronic identity (eldentity). Policy-oriented literature has often focused on technological solutions, and while this interest is warranted, much less has been said on the regulatory challenges and possible solutions arising directly from developments in eldentity. In this context, we distinguish five main challenges for policymakers: eldentity as a new legal category, issues related to identity rights, changing role of governments, developments in the eldentity industry, and proliferation of identity management systems. We analyse these five challenges as they apply to two use cases, Augmented ID and Pinch Analytics, which highlight some practical problems for consumers that have emerged as a result of new concepts of eldentity. We conclude by discussing possible policy options such as driving the development of a single regulatory market, supporting the development of common standards, enhancing cross-border legislation, defining a clear incentive framework for companies, and uniformly implementing existing legislation. 1. Introduction The increasing reliance of governments, companies and individuals on technology to manage identity raises a new set of challenges for policy-makers. With the growth of content and services over digital infrastructure, people increasingly lead quasi-digital lives, moving in and out of analogue and digital spaces. Policy makers are increasingly aware that digital identities are vital to the way Internet services are provided and to citizens' everyday life. They have a crucial role to play in setting the framework conditions so as to sustain this shift while maximising the benefits for economy and society.' Identity, considered as an enabler of the digital economy, is likely to become a key component of DG Information Society and the Media new Commissioner and portfolio.2 But there is also a consensus that only when European citizens will be aware of, understand and fully enjoy the 'digital rights' granted to them by current EU regulation, will consumer confidence and the single market for businesses blossom, hence fulfilling the promise of the European digital market.3 Members of the European Parliament4, the Council of Europe and EU Commissioners Reding and Kuneva have repeatedly expressed the importance of regulation in addressing the risks associated with these developments.5 This paper won the 2009 JICLT Best Academic Paper Award at the 4th International Conference on Legal Security and Privacy Issues in IT held on November 3-5, 2009 at Malta. Originally published in Kierkegaard, S. (2009) Legal Discourse in Cyberlaw and Trade.IAITL. 1 Council of the European Union, Council Conclusions on Future Networks and the Internet (Brussels: Council of the European Union, 2008). 2 Euractive, Reding Makes Plans for New Commission Term, 23 June 2009, InfoSociety News, Euractive, Available: http://www.euractiv.com/en/infosociety/reding-plans-new-commission-term/article-i 83406, 29 June 2009. 3European Commission, Consumer Rights: Commission Wants Consumers to Surf the Web without Borders (Luxembourg: European Commission, 2009). 4EP Press Release. MEPs Call for Stricter Legislation to Protect Citizens from the Effects of Profiling. Justice and Home Affairs, 24.04.2009. Also see Sarah Ludford, Report with a Proposal for a European Parliament Recommendation to the Council on the Problem of Profiling, Notably on the Basis of Ethnicity and Race, in Counterterrorism, Law Enforcement, Immigration, Customs and Border Control (2008/2020(Ini)) (Strasbourg: EP Committee on Civil Liberties, Justice and Home Affairs, 2009). 5 Viviane Reding, Citizens' Privacy Must Become Priority in Digital Age, Says Eu Commissioner Reding (Brussels, 14 April 2009: EC DG Information Society and Media, 2009), Meglena Kuneva, Keynote Speech at Roundtable on Online

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