Regulating payments for M-Content: The positive impact of the deregulation

Abstract

This paper analyses the regulatory regime potentially applicable to the prepaid m-payments for m-content before and after the introduction of the Electronic Money Directive (2009) and the Payment Services Directive (2009). The paper concludes that the regulatory regime pre-2009 was neither technologically neutral nor did it provide legal certainty. In fact, the pre-2009 regulatory regime caused arbitrary distinctions to be drawn between marginally different m-commerce transactions, given the application of E-Money Directive to prepaid m-payments, but not postpaid m-payments. This, of course, caused significant confusion as the rather small preference for one, rather than another payment method would trigger a substantially different regulatory regime. However, the introduction of the 2009 Directives and the inapplicability of m-content transactions in both of the Directives (the deregulation), has removed this confusion. Furthermore, it concludes that currently, all m-commerce transactions for m-content are simply regulated by the respective contractual agreements, relevant commercial law, and by the PhonepayPlus Code of Practice (the regulator of all premium rate services), which provides a more pleasant outcome. Therefore, the deregulation in this case has had a positive impact.