Individual project

MINISTRY OF INFORMATION TECHNOLOGY AND COMMUNICATION DEVELOPMENT OF THE REPUBLIC OF UZBEKISTAN TASHKENT UNIVERSITY OF INFORMATION TECHNOLOGIES NAMED AFTER MUHAMMAD AL-KHWARAZMI





INDIVIDUAL PROJECT
Theme: History and Development of E-commerce in Portugal - Current Situation, and Impact on Portugal's Economic Development

Preapared by: Student of 124-20 group

Sobirov Dostonjon
Checked by: Shin Hyuk





Date: 15.12.2022y
Tashkent – 2023
PLAN:

I. INTRODUCTION

II. MAIN PART

1. 
   History of e-commerce
   
2. 
   Development of e- commerce
   
3. 
   Current Situation of e- commerce
   
4. 
   Impact on Portugal's economic development
   
5. 
   E-government
   
6. 
   Digital economy
   
7. 
   Internet
   
8. 
   E-shop
   
9. 
   E-shopping
   
10. 
    Legal basis of electronic commerce
    
11. 
    Internet Banking
    
12. 
    Information security
    

III. CONCLUSION

IV. REFERENCES

INTRODUCTION
E-commerce or electronic commerce, also known as e-business, refers to the transaction of goods and services through electronic communications. Although the general public has become familiar with e-commerce only in the last decade or so, e-commerce has actually been around for over 30 years. There are two basic types of e-commerce: business-to-business (B2B) and business-to-consumer (B2C). In B2B, companies conduct business with their suppliers, distributors, and other partners through electronic networks. In B2C, companies sell products and services to consumers. Although B2C is the better known to the general public, B2B is the form that actually dominates e-commerce in terms of revenue.1 The concept of e-commerce is related to notions of Internet economy and digital economy.
All these concepts relate to the use of new information and communication technologies for economic activities, but with different focuses. Internet economy refers to the economic activities that generate revenue from the Internet or Internet-related products or services (Costa, 2001). Therefore, pre-Internet e-commerce, as will be detailed in the following section, cannot be called Internet economy. On the other hand, some activities, such as building Internet connections for commercial purposes, are a part of Internet economy, but they are not necessarily e-commerce. Digital economy is based on digital technologies such as computer, software, and digital networks. In most cases, digital economy is the same as e-commerce.
However, not all activities in the digital economy are e-commerce activities. For example, purchasing computer gear from a storefront retailer is not an activity of e-commerce, although it certainly is a key component of the digital economy. Hence, e-commerce, Internet economy, and digital economy are closely related but have different concepts. E-commerce has been perhaps one of the most prevalent terms in this digital era. Although e-commerce was once looked upon simply as an expressway to wealth, it has actually transformed the way people conduct business. An historical analysis of e-commerce will provide insights into the evolution of the application of information and communication technologies in the commercial arena. Furthermore, an analysis of the evolution of e-commerce in the past as well as its present state will enable us to project future trends in e-commerce.
E-commerce is the use of electronic technology to conduct commercial transactions online. It involves a wide range of activities, such as online shopping, online banking, electronic payments, and online auctions. E-commerce has transformed the way businesses operate and interact with their customers. It has made it possible for businesses to reach customers around the world, expand their customer base, and increase their revenue. E-commerce platforms typically provide a range of services, including web hosting, payment processing, order fulfillment, and customer support. These platforms enable businesses to set up an online store quickly and easily, without needing extensive technical knowledge. There are several different types of e-commerce. Business-to-consumer (B2C) e-commerce involves selling products or services directly to consumers over the internet. Business-to-business (B2B) e-commerce involves selling products or services between businesses over the internet. Consumer-to-consumer (C2C) e-commerce involves individuals buying and selling products or services to other individuals through online marketplaces. E-commerce has many advantages for businesses, including the ability to reach a global audience, reduce costs associated with traditional brick-and-mortar stores, and provide a more convenient shopping experience for customers. However, there are also some challenges associated with e-commerce, such as security concerns, competition from other online retailers, and the need for effective marketing strategies to stand out in a crowded online marketplace. Overall, e-commerce has become an essential part of the modern business landscape, providing both opportunities and challenges for businesses of all sizes.
History of e-commerce
E-commerce, or online commerce, has been steadily growing in Portugal over the past few years. Here is a brief history of e-commerce in Portugal: The first e-commerce websites in Portugal began to appear in the late 1990s, with the introduction of the internet in the country. However, at that time, online commerce was still in its infancy and there were few consumers who trusted this new form of commerce. In the early 2000s, with the growth of the internet and the increase in the number of online users, e-commerce in Portugal began to gain more momentum. Online stores started to emerge and consumers began to use them more often to purchase goods and services.
In 2004, the Portuguese government introduced legislation to regulate e-commerce in the country. This legislation aimed to provide more security for consumers and to establish rules for online stores. Over the past decade, e-commerce in Portugal has continued to grow steadily, with more and more consumers turning to online stores to purchase goods and services. This growth has been driven in part by the increasing use of smartphones and tablets, which allow consumers to shop online from anywhere and at any time. In recent years, Portugal has seen the emergence of several successful e-commerce startups, such as Chic by Choice (an online designer dress rental service) and Uniplaces (an online platform for student accommodation). Overall, the growth of e-commerce in Portugal has been driven by increasing internet access, the growth of the smartphone market, and a growing consumer confidence in online shopping. As a result, it is expected that e-commerce will continue to grow in Portugal in the years to come.
In the early days of e-commerce in Portugal, online shopping was primarily focused on books, music, and consumer electronics. These products were often purchased from large international retailers like Amazon and eBay, which offered a wide range of products and competitive prices. As internet penetration rates in Portugal began to increase, more domestic retailers began to embrace the online channel. In 2005, the Portuguese retailer Sonae launched its first online store, offering a range of products including clothing, electronics, and home appliances. Other retailers soon followed suit, including Fnac, Worten, and Continente. The rise of online marketplaces like OLX, CustoJusto, and KuantoKusta also helped to drive the growth of e-commerce in Portugal. These platforms allowed individuals and small businesses to sell products online, without the need for a dedicated e-commerce website. The Portuguese government has also played a role in promoting e-commerce in the country. In 2016, the government launched the "Comércio Digital" program, which provides support and funding to SMEs looking to sell online. The program includes training and consultancy services, as well as financial support for the development of e-commerce platforms. Today, e-commerce in Portugal is a thriving industry, with a wide range of domestic and international retailers offering products and services online. The COVID-19 pandemic has accelerated the growth of e-commerce in the country, as more consumers have turned to online shopping to avoid physical stores and reduce the risk of infection. Overall, the history of e-commerce in Portugal has been marked by steady growth and increasing acceptance among consumers and retailers. With the continued growth of online shopping and the increasing importance of digital channels, it is likely that e-commerce in Portugal will continue to play an important role in the country's retail landscape.



Portugal is a Southern European country next to Spain. It is considered a developed country with an advanced economy and high living standards. In May 2011, Portugal became the third Eurozone country to be bailed out of a sovereign debt crisis. The ecommerce market in Portugal is growing.
The share of online shoppers in Portugal has grown in recent years. Between 2019 and 2020, the amount of Portuguese buying online increased with almost 14 percent. Although the ecommerce market is growing fast, the amount of online shoppers in Portugal is still below average compared to the rest of Europe. But in Southern Europe, Portugal is the third biggest ecommerce market after Spain and Italy, looking at internet shoppers and the ecommerce share of the country’s GDP.
The Portuguese B2C eCommerce market has been growing steadily in recent years and accounted for USD 3.740 billion in 2020. With an increase of 30%, the Portuguese eCommerce market contributed to the worldwide growth rate of 29% in 2020. In the first 6 months of 2020, eCommerce experienced a boom like never before, with a substantial increase of international and national digital shopping. According to local media, and a consumer habits study by MARCO “Post Covid-19 Consumer Habits”, a Madrid based consultant, more than 50% of Portuguese purchased online in the period of March through May, which contributed to the reinvention of traditional commerce and consolidated the eCommerce boom. 
According to a December 2019 report, prepared by Deloitte for APED - Portuguese Association of Retailing Companies, Portugal is ranked 30th in the global eCommerce competitiveness ranking (compiled by Eshopworld) and is expected to grow above the average of European countries by 2021. Metrics include logistics performance, sector revenues, number of buyers, online commerce penetration and its recent evolution.
As stated on a survey carried out jointly by CIP-Confederação Empresarial de Portugal (Portuguese Entrepreneurs Association) and ISCTE-Business School, sales through digital channels are worth close to a quarter of the revenues of Portuguese companies that have diversified in their sales methods and opted for digital sales. The estimated weight of digital sales in the companies selling through this channel is 23%, and this may help Portuguese companies to position themselves for EU support – which has a strong component in relation to digital channels. Of the 652 companies surveyed, 56% did not sell digitally before the pandemic and started to do so. About 15% of these companies recorded an increase between 11% and 20% in sales and 2.5% of companies recorded an increase of 40% in sales.

As reported by Unicre (Portuguese credit card management system), the top 5 online shopping cities in Portugal during the pandemic were Porto, Lisbon, Coimbra, Aveiro and São Miguel. Five categories are considered by ecommerceDB. Fashion is the largest segment in in Portugal and accounts for 32% of the eCommerce revenue in in Portugal. This is followed by Electronics & Media with 27%, Toys, Hobby & DIY with 21%, Food & Personal Care with 10% and Furniture & Appliances with the remaining 10%. Market expansion in in Portugal is expected to continue over the next few years, as indicated by the Statista Digital Market Outlook. It has been predicted that the compound annual growth rate (CAGR 20-24) for the next four years will be 8%. Compared to the year-over-year growth of 30%, this decrease suggests a moderately flooded market. Another indicator of market saturation is the online penetration of 47% in in Portugal; in other words, 47% of the Portuguese population have bought at least one product online in 2020.
Regulations for eCommerce in Portugal, are distributed among 6 regulatory agents:

• 
  The National Communications Authority (ANACOM) is the official entity regulating the communications sector, including electronic communications.
  

• 
  The Competition Authority (AC) has the mission to enforce competition rules and foster the implementation of a culture of competition.
  

• 
  The General Directorate of Consumers (DGC) promotes the policy of safeguarding consumers’ rights, and coordinates and implements measures aimed to protect the consumer.
  

• 
  The Food and Economic Security Authority (ASAE) supervises and prevents non-compliance with the regulatory legislation, and is the national liaison body with its similar entities, at European and international levels. 
  

• 
  The Tax and Customs Authority (AT) has the mission to administer taxes, customs duties and other feeds attributed to purchases, and exercises border control within the European Union.
  

• 
  Banco de Portugal has two essential missions: maintaining price stability and promoting stability in the financial system.
  

Currently, there is no working group for cooperation between the 6 regulatory bodies mentioned above.
Nevertheless, there is an Interinstitutional Group for eCommerce that includes: Authority for Working Conditions (ACT), Food and Economic Security Authority (ASAE), Tax and Customs Authority (AT), National Republican Guard (GNR), Public Security Police (PSP), Maritime Police (PM) and Foreigners and Borders Service (SEF). This national cooperation activity aims to strengthen institutional relations and enhance the existing synergies between the various entities, with the objective of guaranteeing compliance with the law and benefiting the various economic operators and citizens with the performance, in a single act, of several entities.
Following laws must be generally observed:

• 
  Decree-Law 7/2004, known as eCommerce law
  
• 
  Law 46/2012 on data protection and privacy in electronic communications
  
• 
  Decree Law 63/85, known as the copyright code
  
• 
  Decree-Law 330/90, known as the Advertising Code
  
• 
  Decree-Law 138/90, known as the Consumer Price Law
  
• 
  Law 24/96, known as the Consumer Law
  
• 
  Law 67/98, known as the Personal Data Protection Act
  
• 
  Decree-Law 143/2001, known as the law on distance contracts
  
• 
  Decree-Law 70/2007, known as the law on price reductions
  

There are more laws regulating commercial activity and some are intended only for specific sectors, so this is not a comprehensive collection of all legislation applicable to eCommerce.
We highlight from Decree Law 7/2004, known as eCommerce law, the implications that it has on the information that must be permanently available in your online store, namely:

• 
  Identification of the managing entity of the site;
  
• 
  Geographical address;
  
• 
  E-mail address;
  
• 
  Taxpayer number;
  
• 
  Other public registers;
  

We also highlight Law 46/2012 which implies that the acceptance of cookies is previously granted by the visitor and which places most eCommerce systems in operation outside the law.