Application of the E-Money Directive to Mobile Operators

The Commission launched a consultation process in May 2004 on the question of the application of the E-Money Directive (Directive 2000/46) to mobile telephone operators. A large number of responses were received by the Commission. Following an analysis of those, and in line with publicly stated commitments, the Commission is publishing a ‘feedback document’ on the consultation in parallel with this guidance note.

This note aims to summarise the Commission services’ views on the issue of the applicability of the E-Money Directive to mobile phone operators and other potential ‘hybrid’ issuers of e-money. Following the extensive consultation process that the Commission has undertaken, it is appropriate that the Commission services draw some conclusions and make these public. However, it is not intended to provide a binding interpretation of the treatment of mobile phone operators.

The responses to the consultation process did not give rise to any consensus view on the part of mobile operators, third-party content providers, existing e-money institutions or other interested parties as to how to determine precisely where e-money may be created by mobile phone operators whose customers use pre-paid cards to purchase third-party content. In framing its views, the Commission services have no wish to impose unwarranted constraints on mobile operators. On the other hand, it is important that a level playing field exists between e-money issuers already regulated under the E-Money Directive and other service providers who may be issuing e-money as a non-core part of their business.

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