The European Commission appears ready to suggest a compromise on the contentious issue of a legal framework for e-commerce, following hearings on the subject in Brussels last week.

Last week the Booksellers Association warned that the growth of e-commerce could be stifled if the EC awards legal jurisdiction in legal disputes arising from Internet-based transactions to the purchaser's country, rather than that of the e-tailer.

A spokesman for Antonio Vitorino, Commissioner for Justice and Internal Affairs, said that the commission felt that a new convention providing for cases to be heard in the country of destination rather than the country of origin "serves very well the normal forms of commerce, but maybe is not the ideal for e-commerce".

The commission called the hearings in an attempt to define a proposal that it can recommend to the EU Council of Ministers, which is split on two crucial issues: which country's courts should hear actions arising out of e-commerce disputes and which country's laws should apply.

Broadly the submissions fell into two distinct camps. Industry, including the BA, put the case for legal action in the country of the seller, while consumer organisations argued in favour of the buyer's courts. But while the industry lobby was more or less united, the consumer lobby was split, with many promoting their own national consumer protection legislation and ridiculing that of other countries.

The BA pointed out that certain promotions, such as offers of three books for the price of two, were illegal in some EU countries, exposing UK booksellers to legal action.

"If any change is made to the country of origin principle, the growth of electronic commerce in the EU would be severely affected in the bookselling sector," the BA said.

The EC does not accept this argument, according to Sr Vitorino's spokesman. It believes that e-tailers will grow, regardless of the location of consumer jurisdiction, by offering reduced prices through reduced overheads. But the spokesman added: "We shall give full consideration to what was said last week."

A key date will be 18th November, when the European Parliament considers the matter. However, the EP usually takes the side of the consumer.