Digital Economy

Whether to protect against credit card fraud, to create climate models or to distribute police forces: Artificial Intelligence (AI) is penetrating everyday life ever more deeply. The data required for this mostly comes from phases of relative stability, which cannot be readily applied in times of crisis. The Centre for European Policy (cep) sees this as an underestimated systemic risk - and calls for rules.

Hybrid warfare, hacker attacks, cyber-attacks: Parliament and Council have agreed on new cyber security regulations in Brussels. According to the so-called NIS 2 Directive, around 160,000 European companies and public authorities will in future be subject to uniform EU requirements for managing cyber risks and reporting cyber incidents. The Centrum für Europäische Politik (cep) considers some regulations too broad and calls for a more efficient focus.

The European Union wants to massively expand the production of cutting-edge computer chips. The aim is to reduce dependence on countries such as the United States, Taiwan and South Korea through European research and production. The Centrum für Europäische Politik (cep), has doubts that the law will have this effect and fears a subsidy race worth billions. The cep had already warned against an industrial policy aberration last March.

Identity cards, driving licences, digital money: according to the Commission, Member States are to introduce so-called digital wallets. Smartphone apps are to replace the paper and card economy in purses by mid-2023. Each Member State must present a technical solution by then. The Commission has presented a corresponding proposal for a Regulation.

Whether healthcare, work, consumption or media: artificial intelligence (AI) will change the lives of many people in various ways. The Commission therefore wants to create rules to protect the health, safety and fundamental rights of AI users. It wants to ban particularly dangerous AI systems. Other AI systems will be subject to obligations depended on their risk or voluntary codes of conduct. In some cases, there should be no obligations at all.

Online platforms are often misused to spread terrorist propaganda and hate speech. Providers such as Facebook play a key role in combating illegal content. With the Digital Services Act (DSA), the Commission wants to improve the internal market and create a safe and transparent online environment.

Tech giants like Google, Amazon or Facebook dominate the global internet market. Competition law is not enough to prevent abuse of power. The Commission therefore presented the Digital Markets Act (DMA) last December. The law is intended to prevent operators of large internet platforms from restricting competition or imposing unfair conditions.

The second part of the cepPolicyBrief on the Digital Markets Act examines enforcement and procedures of the planned law. Enforcement at the EU level avoids divergent application of the DMA in the individual member states. However, to ensure speedy procedures, national authorities should be involved in the application of the DMA.

Tech giants like Google, Amazon, Facebook or Apple dominate the global internet market. Competition law is not enough to prevent abuse of power. The Commission therefore presented a law for digital services, the Digital Markets Act (DMA), last December. The law aims to prevent operators of large online platforms from restricting competition or imposing unfair conditions.

The EU Commission wants to promote the sharing of valuable data held by public authorities, companies and private individuals. This includes data donations, such as the voluntary sharing of health data for research into the Corona pandemic.

The Commission is to release the Digital Markets Act, a legislative proposal aimed at ensuring competition in digital markets. In light of two public consultations and a speech by Executive Vice-President Margrethe Vestager, a cepInput examines the Commission’s plans.

The EU-Commission presents several measures and tools to fight COVID-19 disinformation on online platforms. A cepPolicyBrief assesses the Commission’s approach.

Europe is falling further and further behind the United States and China, particularly in the areas of data economy and cloud computing. A cepStudy commissioned by the software provider SAP identifies three priorities and proposes seventeen detailed recommendations for policy measures that will enable the EU to take a leading role in the digital economy.

As part of its data strategy, the EU Commission wants to create European data spaces for various sectors, including the energy, health and financial sectors. It has announced its plans for this in a Communication.

The EU Commission wants to create a Single European Data Space for personal, non-personal, public and business data and promote the sharing, use and re-use of data in the EU. It has announced its plans for this in a communication.

The EU Commission wants to clarify the legal framework for cryptocurrencies. A cepInput provides an overview of the current state of regulation and examines whether and under which conditions cryptocurrencies are covered by the main provisions regulating the EU financial markets.

The EU-Commission has announced that it will update liabilities rules for digital services and products. Concrete proposals are to be published in the 4th quarter of 2020.

The European Commission proposes mandatory legal requirements for high-risk artificial intelligence (AI) applications, which must be followed by AI developers and users across the EU. A cepPolicyBrief evaluates the approach of the Commission's White Paper.

The European Commission launched an European strategy for artificial intelligence (AI) and released a White Paper on it. Based on a leaked Commission document, cep had assessed the plans in advance.

In a Communication, the EU Commission has outlined the current status of harmonisation by way of the General Data Protection Regulation (GDPR) in the EU and sets out what remains to be done to improve its uniform application. In May 2018, the GDPR replaced the existing Data Protection Directive.

The EU Commission wants to promote the development of "trustworthy" and "human-centric" artificial intelligence (AI) in the EU. Therefore, AI should - inter alia - comply with ethical principles. To ensure this, an independent "High-Level Expert Group" has developed non-binding "Ethics Guidelines" (guidelines) on behalf of the EU-Commission which should be followed by developers and users of AI across the EU.

This year, both the EU and the OECD have presented their own ethics guidelines for the development of Artificial Intelligence (AI). A cepInput compares the two guidelines.

The EU promotes the development and use of Artificial Intelligence (AI). In its AI strategy, the EU also addresses the challenges and risks and demands that AI has to be “trustworthy”. Therefore, AI should be subject to appropriate legal norms and follow ethical rules.

The EU-Commission wants to support the development and use of artificial intelligence (AI) in order to safeguard the EU's global competitiveness. For this purpose, the EU Commission proposes a three-pillar "AI Strategy". The Commission is calling on the Member States to adapt their education and social systems to the new working environment.

The EU wants to support the development and use of artificial intelligence (AI) in order to safeguard the EU’s global competitiveness. For this purpose, the EU Commission has submitted two Communications and a “Coordinated Plan” in which it proposes a three-pillar “AI Strategy”.

A cepAdhoc assesses the main tasks, regarding digitalisation, competition law and the internal market, which von der Leyen will be entrusting to her proposed Executive Vice-President Vestager and the Commissioners assigned to her in the area of Internal Market and (partly) Economy.

The EU Commission wants to set up a European cybersecurity certification scheme (ECCS) in order to increase confidence in products and services in the information and communication technology (ICT) sector. In the light of increasing cybersecurity risks and attacks, it has therefore submitted the proposal for a Regulation.

The EU Commission wants to improve cybersecurity in the EU and for this purpose strengthen the cybersecurity agency ENISA. In cep’s view, this is urgently needed. The proposal to give ENISA a permanent mandate and increasing its funding and staff is also appropriate.

The EU Commission wants to strengthen the Single Market and, to this end, set up an online portal providing information which citizens and businesses need in order to carry out cross-border activities in the EU. In addition, they will be able to use the portal to access and implement online administrative procedures of the Member States. Certain administrative procedures of the Member States will also be digitised.

By way of a Regulation, the EU-Commission wants to facilitate the free flow of non-personal data and improve competition between cloud providers and other data-processing services in the EU.

The EU Commission wants to make the transmission of personal data to non-EU countries easier in order to promote mutual trade and effectively combat international crime.

The EU Commission wants to create a level playing field for providers of conventional and new types of electronic communications services (OTT services) and largely harmonise end-user rights. In cep's view, there is however no justification for the many proposed exceptions for number-independent interpersonal communications services in the area of end-user rights.

The EU - Commission wants a Regulation to protect the confidentiality of electronic communications and related end-user data more effectively and at the same time ensure the freedom of movement of such data. In cep’s view, the envisaged coherence with the General Data Protection Regulation has not been achieved. This results in legal uncertainty which weakens the EU as a location for the data economy.

The EU Commission wants to further harmonise the rules on the use of radio spectrum. In cep’s view, the long minimum duration of 25 years for time-limited harmonised radio spectrum licences, envisaged by the Commission, should be abolished because, in the technologically fast moving telecommunications sector, it may result in the inefficient distribution of licences.

The EU-Commission wants to revise the universal service rules in order to enable all EU citizens to have a broadband connection at an “affordable price”. In cep’s view, however, an obligation for universal service providers, to offer social tariffs below market prices in order to give low-income citizens a broadband connection, would be in breach of the freedom to conduct a business.

According to the Commission, there are considerable weaknesses in the existing apparatus for supervising the telecommunications sector which consists of the national regulatory authorities (NRAs), other national authorities, the Commission, the Body of European Regulators for Electronic Communications (BEREC) and the BEREC Office. It therefore wants to restructure this apparatus.

The EU Commission wants to facilitate the use of protected content for public interest purposes by way of restrictions on copyright. At the same time it wants to ensure fair remuneration for rightholders and press publishers.

The Commission wants to extend the regulation of telecoms network operators independently of market power in order to speed up the deployment of very high capacity networks. Upper limits on termination charges will indirectly bring down the price of calls.

With the new Regulation, the EU Commission wants to facilitate cross-border access to television and radio programmes via digital channels. In cep's view, the Regulation distorts competition because it is framed in such a way that is neither supplier-neutral nor technology-neutral.

The EU Commission wants to speed up the deployment of fast telecommunications networks. An access regulation for telecoms network operators with a dominant market position which gives more consideration to competition at retail level will contribute to this. cep welcomes this step but criticises the preferential regulatory treatment given to "very high-capacity networks".

The Commission wants to create a European Open Science Cloud, strengthen data infrastructure and invest in quantum technologies. A European Cloud, in cep's view, contributes to the efficiency and quality of research. Success, however, depends on information actually being put in the Cloud.

The EU Commission is planning to ban geo-blocking and other discrimination based on nationality, place of residence or establishment in order to improve cross-border online trade in goods and services. In cep's view, the bans will only rarely result in customers buying more across borders.

The European Commission wants to speed up the digitisation of European industry and calls, inter alia, for an EU-wide network of "Digital Innovation Hubs". These will help small and medium-sized enterprises, in particular, to develop digital innovations more easily. In cep's view, public funds should not be channelled into such "Hubs".

In view of the changing media landscape, the Commission wants to revise the rules on the provision of audiovisual media services and video-sharing platforms. In this regard, it proposes the harmonisation of competition rules applicable to television programmes and video-on-demand services. In cep's view, this is appropriate because both media services are in competition with one another.

The Commission wants to press ahead with the standardisation of information and communications technology (ICT). It is focussing, in this regard, on the "priorities" of cloud computing, the internet of things, 5G communications, cybersecurity and data technologies. In cep's view, setting priorities is appropriate.

Subscriptions to films and other online content will also be available for use during temporary stays in another Member State. This is provided for under a EU Commission proposal for a Regulation on the cross-border portability of online content. Until now, this has been prevented inter alia by national copyrights and licences.

In addition to online sales of goods, the EU Commission also wants to boost the market for digital content and ensure that it can also be offered and acquired across borders. With the proposed Directive, it wants to fully harmonise the guarantee rights and other consumer rights in contracts relating to the supply of digital content and thereby remove legal uncertainty and promote sales of digital content.

In the presence of EU-Commission Guenther Oettinger, cep has presented in Brussels its latest study on competition challenges in the consumer internet industry.

EU Commission President Jean-Claude Juncker has declared that the completion of a Digital Single Market is one of the priorities of his period of office. With the Digital Single Market Strategy, the Commission wants to make the EU the leader of the digital economy. A central pillar of this strategy is the building of a "data economy" (Big Data, cloud services, Internet of Things).

In its Strategy for a Digital Single Market, the Commission lays down numerous measures to strengthen the European digital economy. This cepPolicyBrief deals with the second pillar of the Strategy (Digital networks and services). It deals, inter alia, with the reform of telecommunications regulations, the examination of the rules on audiovisual media services, online platforms, and with the rules on illegal content on the Internet.

The European Commission will harmonise the contractual rights of both parties in online purchasing EU wide. In addition, it will submit legislative proposals to prevent "unjustified geo-blocking". Geo-blocking is a technical measure used by online traders to restrict access to cross-border online purchasing by users in a specific geographical location.

The European Commission has announced a reform of the copyright rules in the EU before the end of this year. It intends to reduce the differences between national copyright rules by way of harmonised exceptions. The cep assesses the benefits and problems of mandatory exceptions to copyright.

The cep investigates how EU net neutrality rules are best shaped to guarantee innovation. We extend the focus to the upcoming US regulation and conclude with six recommendations to EU policy makers.

The EU Commission wants to promote financing by way of crowdfunding.

The EU Commission wants to promote investment in NGA networks and maintain effective competition on the broadband market. It wants to do this by stricter non-discrimination obligations, greater clarity as to when obligations on price control for NGA networks should be removed and by imposing a standard costing methodology.

The Commission wants to hold an open debate on the possibilities of mobile health and, in particular, to establish whether and what problems exist in relation to extending the sector. It calls on the public to answer a list of 23 questions.

With the proposal for a Directive on a 2nd Payment Services Directive, the Commission wants to promote the European payments market and encourage transparency, security and innovation in relation to payments.

In principle, every tax-liable business must submit a VAT return. The Commission wants to introduce an EU-wide mandatory standard VAT return. This consists of a standard form, harmonised tax periods and deadlines for the submission of VAT returns as well as harmonised rules on making corrections to the VAT return.

In order to speed up the arrival of emergency services, in the event of an accident, by 40-50%, the European Commission wants to introduce an EU-wide, standard emergency system for road traffic ("eCall"). An eCall device inside the vehicle will allow an emergency call to be sent, either automatically in the case of a "severe accident" or manually by the occupants of the vehicle, via the mobile telephone network to an emergency response centre. The aim is to reduce the number of fatalities and severe injuries caused by road accidents.

The Commission intends all phases of the public procurement process to take place electronically from end to end and software systems for this to be compatible EU-wide. A binding European standard is to be developed for electronic invoicing, in particular.

The EU Commission proposes an extensive overhaul of the digital single market rules. Part 1 of the cepPolicyBrief concerns net neutrality and the full harmonisation of the rights of end-users. Part 2 deals with the notification requirement for telecomms providers, radio frequencies and virtual broadband access. The change to the Roaming Regulation and cross-border fixed-network connections within the EU will be considered in Part 3.

In order to promote the deployment of broadband, the Commission wants to reduce construction costs.

The Directive aims to ensure a minimum level of network and information security. The Commission wants to impose technical requirements and reporting obligations on certain market operators and public authorities. The Member States are to adopt strategies for network and information security. 

The Commission wishes to reform the EU data protection law fundamentally with the General Data Protection Regulation. It is mainly aimed at an EU-wide full harmonisation of the data protection standard while taking account of the latest technical challenges of the internet age. It is to replace the existing Data Protection Directive (95/46/EC).

The Commission wishes to accelerate the deployment of Intelligent Transport Systems (ITS) and to establish a legal framework. In its Action Plan the Commission calls for action and sets a timeframe for the deployment and improvement of single ITS.

The Commission aims to implement a fully integrated payment market in the EU. In its Green Paper, the Commission presents action plans for the market integration.

The EU Commission wishes to promote the circulation of electronic money by simplifying the legal requirements for the institutions concerned. The issuance of money is to be supervised according to its actual economic risk potential. Hence, the Directive treats institutions licensed to issue e-money different from credit institutions. Moreover, e-money institutions will be entitled to engage in further business activities. 

The rapid development of the internet creates new services and applications. Not only the EU Commission, but also many national politicians call for "broadband access for all" and a quick expansion of high-speed networks in urban areas. The growing use of smart radio tags (RFID technology) storing and transmitting data, enables new applications on the one hand, but, at the same time, raises critical issues as to data protetion on the other hand.

By means of modern information and communication technologies (ICT) “smart grids“ are to coordinate the behaviour of all grid users in order to ensure an economically efficient power system. The Commission wishes to draw up “appropriate measures” to expedite the set-up of such grids by the end of 2011.

Driving times and rest periods in road transport are subject to rules in order to improve road transport safety, improve drivers‘ working conditions and ensure fair competition between road transport companies.  By applying technically modernised “smart” tachgraphs, the Commission wishes to better enforce the rules on driving time and rest periods and reduce the administrative burdens for road transport companies and control authorities.

The Regulation of mobile termination rates has become the arena of a power struggle between the EU-Commission and some Member States. The Commission insists that national regulators should apply the “pure-LRIC”-costing model.

On the one hand, the Commission wishes conduct enhanced surveillance of euro countries, which might need to request financial assistance in future. On the other hand, the Commission wishes to see the tasks assigned by the bail-out package enshrined in secondary EU legislation.

The Commission wishes to improve the transparency of financial market transactions, move derivatives trading to organised trading venues and strengthen supervision and competition. Moreover, it intends to strengthen investor protection. 

The Commission wishes to enhance trust in electronic transactions in the internal market. To this end, it proposes a Regulation designed to extend the provisions of the existing Electronic Signature Directive (1999/93/EC) and to complement electronic identification and additional trust services.

The Commission wishes to promote the digital single market by setting new framework conditions and removing obstacles. To this end, it presents an action plan.

The Commission is initiating a consultation with the aim to (at first) adopt a non-binding recommendation. The recommendation is to serve as guidance to national regulatory authorities for fixing access prices during the transition phase between copper networks and fibre glass networks.  This approach is to create incentives for investments in ultra-fast NGA networks.

The Commission proposes new price limits for calls, SMS and data communications services within a foreign EU Member State. These will be gradually reduced until 2014. Service providers are to receive access to networks of mobile network operators in other EU states to offer mobile communications services. Mobile users of roaming services may switch from their roaming provider to an alternative provider “at any moment”.

The Data Retention Directive stipulates that providers of telecommunications, mobile and internet services are obliged to retain traffic and location data of users. The purpose of this is the investigation, detection and prosecution of “serious crime”. In its Report, the Commission evaluates the Member States’ application of the Data Retention Directive, its benefit and impact. 

In its consultation paper the Commission presents a model for infrastructure financing („Europe 2020 Project Bond Initiative“): Private or public-private project companies issue bonds on capital markets to finance infrastructure (“project bonds”). Limited payment guarantees or credits provided by the European Investment Bank (EIB) are to encourage private investors to buy project bonds.

The “Digital Agenda” designates “key actions” which will facilitate “smarter work” and the establishment of the Digital Single Market. It aims at a sustainable economic and social use of the Digital Single Market, rooted in fast internet connections for EU-wide services.

The Commission names as “key performance targets” for 2015, amongst other things, that 50% of the population buy online, the removal of tariff differences between telephone calls at home and abroad (“roaming”) and an average price per minute of 13 cents (including roaming).

The Commission and many Member States have announced to support the deployment of boradband networks as part of their economic recovery packages. This includes not only traditional broadband networks but also new "NGA Networks". However, subsidies (State aid) are subject to certain conditions which the Commission clarifies in its latest Guidelines.

The public sector possesses extensive information such as satellite images, judicial decisions or statistics ("Public Sector Information" - PSI), all of which can serve as raw material for products and services offered by private providers such as navigation systems, weather forecasts or financial services. The Directive 2003/98/EC (“PSI Directive“) is to remove barriers to the private use (“re-use”) of PSI in the internal market. The aim of the Communication is to review the impact thus far of the PSI Directive and to show new ways to tap the full economic potential in re-using PSI.