This paper discusses the potential of learning technologies to foster competence development of students. It aims to improve understanding of pedagogical conditions that have to be met to establish a competence orientation in e-learning. We review the literature to summarise recent changes in e-learning, identify attributes of web 2.0 technologies, revisit the concept of competence and specify implications for the competence-oriented design of learning environments. By referring to Kolb's learning cycle, we illustrate this view with a case study on the use of Google Apps as collaborative learning environment and recommend how competence-oriented e-learning activities can be created. Our findings reinforce the position that web 2.0 tools enable a shift from a distributive to a more collaborative mode in e-learning. In particular, the ease of use and intuition of web 2.0 technologies allow creating learning environments, which realise activity-rich pedagogical models and facilitate competence development of students. The paper concludes that, despite the demand of firms for versatile graduates and the obvious potential of learning technologies to foster competence development of students, universities need to establish institutional strategies to make this pedagogical change happen.Introduction e-Learning is currently changing. While the first generation of e-learning has been primarily a means for distributing information and learning materials, we now observe, with the adoption of web 2.0 technologies, a change that facilitates participation and interaction between students rather than continuous focus on receptive modes of communication. Change in e-learning is not surprising as rapid technological advancements and the development of new tools have always driven the innovation of electronic learning platforms. However, the nature of the current change is not restricted to technological advancements at the edge of learning environments but goes right into the conceptual core of e-learning. Authors like Chatti, Jarke and Frosch-Wilke (2007), Downes ), Happ (2008), Niemeier (2008), Sclater (2008 and Wilson et al (2006) propose new pedagogical and information design perspectives that are closely coupled with the web 2.0 philosophy. These perspectives help to rethink the purpose of technology-enhanced learning environments in education, question the existing industry standards and open the way towards competence development of learners. We develop in our paper this 2.0 perspective for e-learning and argue that the change of technological possibilities is less important than its

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