Single Market & Competition

European family businesses are groaning under bureaucratic burdens that leads to inefficiencies - first, by the requirements of the European Union itself and second, by the impractical implementation and operation on the national level. Moreover, different rules in individual member states complicate the process.

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 EU is under pressure both geopolitically and in terms of its industrial policy, and is in danger of being left behind by the USA and China. Last week, therefore, the Commission presented three draft laws and a communication which aim to strengthen European sovereignty, competitiveness and resilience. The Centrum für Europäische Politik (cep) finds the proposals fragmented and overly bureaucratic.

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.

More rights in damage cases: The Commission has presented a recast of the Product Liability Directive. The directive dates back to 1985 and is to be adapted to digitalisation and the circular economy. In the future, software is to be considered as a product throughout the Union. The Centrum für Europäische Politik (cep) sees the rights of injured parties strengthened, but warns of legal uncertainties and vagueness when looking in the details.

Employment contracts, pay slips, proof of medical examination: European family businesses are groaning under bureaucratic  burdens that leads to inefficiencies – first, by the requirements of the European Union itself and second, by the impractical  implementation and operation on the national level. Moreover, different rules in individual member states complicate the process. This can be seen in the posting of workers across national borders.

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.

European Family Businesses are groaning under the strain of bureaucracy of the European Union, which is full of inconsistencies – on the one hand, because of the requirements of the EU itself and on the other hand, because of its impracticable, domestic implementation. This is visible in the so-called A1 Certificate. The Centres for European Policy Network (cep), the Prognos AG Berlin and the Centre for Industrial Studies Milano issued this study for the Foundation for Family Businesses.

Well intended, not well done: The European Union wants to oblige companies to protect human rights and the environment in the EU and third countries - from raw materials to products and their disposal, throughout the entire value chain. The Centrum für Europäische Politik (cep) criticises the Commission's draft directive as too vague.

The expansion of future technologies creates an enormous demand for indispensable raw materials. The European Union faces the challenge of securing the supply of these critical materials. In a cepInput, the Centrum für Europäische Politik (cep) gives recommendations for an EU raw materials strategy.

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.

The EU Commission wants to check companies from third countries more strictly for prohibited state aid. The focus is especially on China. On 05 May 2021 the EU Commission presented a new regulation. The Centre for European Policy calls on Brussels to act uniformly.

Numerous companies from the EU are still illegally transferring personal data to the USA. This is the result of a study by the Centre for European Policy (cep), which examines the consequences of the ECJ ruling of July 2020.

A Temporary Framework published by the European Commission sets up the conditions that COVID-19-related state aid measures have to fulfil in order not to violate EU law. This cepInput assesses the impact on competition in the Single Market that the design of the state aid measures contained in the Temporary Framework will have.

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 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 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.

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 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.

The EU wants to combat disinformation more effectively, particularly via the Internet. This is based on a joint communication from the European Commission and the High Representative of the Union for Foreign Affairs and Security Policy.

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”.

Whistleblowers are to be given better protection in the EU which will improve the enforcement of EU law. For this purpose, the EU Commission wants a Directive to create mechanisms with minimum standards to protect whistleblowers against retaliation for reporting breaches of specific EU law.

The EU Commission wants to introduce transparency obligations for online platforms and search engines EU-wide, as well as possibilities for redress for online traders using such online platforms. The EU Commission wants to regulate this by way of a Regulation.

Minimum standards will protect micro, small and medium-sized suppliers against unfair trading practices in the food trade. For this purpose, the EU Commission has proposed a Directive. Until now there have been no EU-wide standard rules on dealing with unfair trading practices.

The principle of mutual recognition in the field of the free movement of goods is to be strengthened. A proposed Regulation from the EU Commission aims to ensure that goods, which are already lawfully marketed in a Member State, will not be subject to hasty bans or restrictions in other Member States due to only divergent product requirements.

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.

53 retail and wholesale trading companies in 22 EU Member States were asked whether and by what measures they are hampered when trading in the EU internal market. Companies were also asked whether they suffer discrimination as a result of national laws or by national authorities in other EU countries as compared with domestic companies.

In future, the EU Commission is to be able to oblige undertakings to submit information. It thereby wants to ensure better enforcement of EU law and better preparation of legislative measures. This could also allow easier investigation and proof of infringements of internal market rules.

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.

By introducing an electronic services card (E-Card), the EU Commission wants to facilitate the cross-border provision of services. This voluntary electronic proof is intended to reduce red tape for service providers from other EU countries and strengthen the internal market. cep finds this to be questionable and the E-Card to be unlawful under EU law because it is in part disproportionate.

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 improve cooperation between national consumer protection authorities in combating cross-border infringements of EU consumer protection laws. In cep's view, however, burdensome duties of cooperation should only apply to infringements which could noticeably damage the internal market.

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 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.

In order to improve cross-border parcel delivery, the EU Commission proposes uniform information obligations for delivery services. In addition, obligations for universal service providers to report tariffs and terminal rates, an "assessment of affordability" of these tariffs by the regulatory authorities and network access obligations applicable to universal service providers vis à vis third parties are proposed.

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.

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.

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 negotiations between the EU and the US on the free trade agreement TTIP are a hot topic at the moment. Investment protection in particular is the subject of heated debate. The cep takes a closer look at what kind of investment protection is really needed.

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 Commission wants to combat unfair trading practices in the food supply chain. It wants to examine the effectiveness of the voluntary Supply Chain Initiative (SCI) and encourage more companies and associations to join. In addition, the exchange of information about national legislation to combat unfair trading practices between the Member States will be improved. The authorities responsible for implementing national legislation will work together "effectively". The Commission wants to assess the progress of national implementation measures.

The Commission wants to improve the enforcement of intellectual property rights. Intellectual property rights, e.g. patents and trademarks, ensure that companies, inventors and creators are able to obtain a return on their investment, inventions and work. In order to improve the enforcement of these rights, the Commission, together with the "European Observatory on Infringements of Intellectual Property Rights", is planning ten non-legislative measures to prevent commercial scale infringements of intellectual property rights.

The Commission discusses whether and how geographical indications for non-agricultural products can be protected EU wide. A protected geographical indication consists of a product denomination which contains the geographical origin of a product. A protected geographical indication may be used by all producers provided their products originate from the specified geographical place of origin and the products possess the established product characteristics – e.g. quality features, production methods or "reputation" – attributable to that place of origin. The Commission discusses in particular whether protected geographical indications could be entered into a central register which would be administered e.g. by the Commission. 

The Commission wants to get an insight into national safety regulations for tourist accommodation. By way of this Green Paper, it wants to present its ideas and thoughts on how the confidence of providers and consumers can be increased, including, where necessary, by way of follow-up measures at EU level. In addition, the Commission wants to collect additional information on the safety of tourist accommodation by holding a public consultation.

Online traders avoid offering their goods across borders for reasons of cost; consumers are discouraged from online purchases abroad due to uncertainty about their rights. The EU Commission wants to change this by way of the proposed Directive. With full harmonisation of the law on legal guarantees for online sales of goods, it wants to remove legal uncertainty in crossborder online trade and thereby encourage such trade.

The Commission wants decisions by stock companies to be based to a greater extent on long-term performance and less on short-term share price fluctuations. It therefore proposes measures aiming to ensure that decisions by stock companies take more account of shareholders' interests.

The Commission wants to facilitate the establishment of a new form of company known as "Societas Unius Personae (SUP)". A SUP is a private limited liability company with one share owned by a single shareholder. The Directive obliges Member States to introduce the SUP into their legal systems.

The Commission wants to stimulate cross-border e-commerce in the EU by improving parcel delivery conditions.

The Commission wants to harmonise the protection of trade secrets in the Member States. The proposed Directive contains, in particular, standard definitions of trade secrets and of their unlawful acquisition, use and disclosure as well as possibilities for obtaining redress for any infringement.

The EU-Commission proposes to revise the Directve as to doorstep selling, unfair contract terms, distant selling, as well as to the purchase of consumer goods and subsume it under a new directive. The main target of the Directive is the transition from minimum harmonisation of consumer contractual rights to a full harmonisation.

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.

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 Commission wants to harmonise consumer protection for travellers. For this purpose, bookings in travel agents and online will be placed on an equal footing.

The Commission recommends that the Member States introduce collective actions. Collective actions refers to actions brought by two or more affected parties or by an authority or entity on their behalf. Collective actions should facilitate the enforcement of legal rights, particularly where individual actions are too costly for affected parties.

EU competition law is enforced by competition authorities who find infringements of competition law and, where applicable, impose fines, and by victims who bring actions for damages before national courts. With this Directive, the Commission is seeking, on the one hand, to ensure that victims of an infringement of competition law throughout the EU are able to enforce their right to full damages. On the other hand, it wants to ensure the coordination of enforcement by way of actions for damages and enforcement by way of the competition authorities.

The European Commission wants to increase competition for seaport services in important EU ports by extending the freedom to provide services to include port services. It also wants to make the financial relations between public authorities and port service providers more transparent and strengthen the autonomy of port management bodies to set their own infrastructure charges in order to improve investment conditions.

The European Commission has proposed a "Product Safety and Market Surveillance Package" containing, in particular, a proposal for a Regulation on consumer product safety and a proposal for a Regulation on the regulatory market surveillance of products. With its proposal for a Regulation on market surveillance, the Commission wants to prevent, by way of effective and EU-wide market surveillance, the distribution of products which represent a risk to any aspect of public interest protection, such as health, safety, consumer protection and the environment.

The European Commission has proposed a "Product Safety and Market Surveillance Package" containing, in particular, a proposal for a Regulation on consumer product safety and a proposal for a Regulation on the regulatory market surveillance of products. The proposal for a Regulation on product safety aims to simplify the different rules on consumer product safety as well as ensuring that consumer products are safe.

The Commission revises the legal framework for cross-border insolvencies. There should (preferably) be integrated insolvency proceedings by applying just one (national) insolvency regime in each case.

The Commission is considering a partial harmonisation of the insolvency law of the Member States. This is intended to facilitate the reorganisation rather than liquidation of businesses and provide entrepreneurs with a "second chance".

The Commission wants to expand Corporate Social Responsibilities (CSR) and at the same time commit companies to greater transparency. Large and medium-sized companies should therefore be required to report on „non-financial risks“ on one hand, and on the other, report on its diversity policies for the appointment to management and supervisory bodies.

The Commission wants to combat unfair trading practices by laying down requirements on the content of contracts between companies in the supply chain. Unfair trading practices result from unequal negotiating power and unequal levels of information on the part of the contracting parties.

The European Commission intends to promote the dissemination of green products and green commercial practices by ways of transparency and consistency with the labelling of environmental performances of products and practices. Within a three-year test phase, the Commission recommends to apply its developed methods of the “Product Environmental Footprint“ and that of the “Organisation Environmental Footprint“.

The Commission wants to stimulate cross-border e-commerce and, for this purpose, is considering regulating the parcel delivery market.

The Commission wishes to reform State aid law and in particular re-target it as to better promote economic growth in Member States. This serves the purpose of implementing the growth strategy “Europe 2020” and of supporting Member States in consolidating their public budgets through a re-targeted State aid approach.

The Commission outlines its medium-term strategy for EU consumer policy by 2014 under the European Consumer Agenda.

The Commission wishes to improve the access of European providers to public contracts in third countries and therefore extend the right to exclude providers from third countries from public procurement in the EU.

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 identifies six key enabling technologies (KET) which are essential for the EU’s economy and presents a strategy on how the EU and Member States could better coordinate KET funding and use it more efficiently. The proposed measures are aimed at the technology development stages following basic research (technological research, product demonstration, competitive manufacturing activities). Thus the gap between basic KET knowledge generation and its commercialisation into goods and services is to be closed.

The Commission has published a Directive Proposal replacing the existing Sector Directive (2004/17/EC). The aim of the new Directive is to remove legal uncertainty in public procurement between contracting authorities and their cooperation. Moreover, access for small- and medium-sized enterprises (SME) to the procurement procedure is to be made easier. In future, public procurement is to be used for societal and environmental policy targets.

If a motor vehicle is already registered in a Member State, e.g. cross-border workers or car-rental companies are obliged to register it again in the Member State in which the motor vehicle is used. Now, the Commission proposes to determine the Member State in which a motor vehicle must be registered, to shorten the re-registration procedures and to simplify the data exchange between national registration authorities.

The Commission has published a Directive Proposal which is to replace the existing Procurement Directive (2004/18/EC). The Commission’s proposal aims to eliminate legal uncertainty in the procurement between public entities and their cooperation. Moreover, it is to facilitate access to public procurement for small and medium-sized enterprises (SME). Public procurement will continue to be used in support of societal and environmental goals.

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 Commission wishes to boost competition on the audit market by the obligation to change auditors regularly (“rotation rule”). A prohibition of non-audit services (e.g. tax advice) is to strengthen the independence of auditors. 

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.

With its Regulation, the Commission wishes to exempt aid of up to 500,000 Euros for the provision of services of general economic interest (SGEI) from the obligation to obtain approval for the period of three fiscal years. According to the Commission de minimis aid is  unproblematic for they are regarded as measures  which do not distort competition and also do not have a negative effect on trade between Member States.

The Commission wishes to create a unitary European protection law for intellectual properties including digital business models. The Commission’s plans mainly focus on the introduction of an EU unitary patent protection including a European patent litigation system, a modernised EU framework for copyrights and an improved fight against counterfeiting and piracy. 

The Commission proposes a Regulation in order to reform the legal framework for European standardisation to establish an efficient and technically up-to-date European standardisation system. European standardisation means defining technical and quality-related specifications through recognised European standardisation bodies. The legal framework is to be extended to services.

The EU has been granting tariff preferences to developing countries since 1971 to help them improve their performance on the global market and to aid their economic development. The basis for that is the “Scheme of Generalised Tariff Preferences” (GSP). The Commission wishes to revise the existing tariff preference scheme and to suspend a number of countries which until now have been GSP beneficiaries as it deems them competitive at international level. 

The Commission proposes two Regulations regarding the introduction of a unitary patent protection in 25 Member States. Italy and Spain will not be participating in this enhanced cooperation. The Patent Regulation provides for the possibility of granting unitary patent protection to the European patent, which consists of a “bundle” of various national patents, in 25 Member States. The Translation Requirements Regulation contains translation requirements for the EU Patent with unitary effect.

According to the Commission, short-termism and excessive risk-taking endanger sustainable economic growth and the stability of the financial market. To tackle these issues, the Commission proposes to increase shareholders’ participation in corporate decisions and the transparency of asset managers’ and advisors’ activities. Finally the Commission discusses the promotion of women and calls for a women’s quota system.

Citizens, organisations and authorities may comment on the Green Paper and its 114 concrete questions within a consultation procedure. The Commission wishes to reform the tools and methods of public procurement in order to improve teh process and to increase the efficiency of public spending. In future, public procurement is to take into account “policy objectives”, such as the promotion of innovation.

The Commission presents new trade policy measures in order to achieve the growth and employment targets of the Europe 2020 strategy. The Commission is especially keen on the increased opening of foreign markets for services, investments and public procurement. Moreover, the future EU trade policy is support “green growth” and “climate change objectives” in principle.

The Commission wishes to revive the single market with the Single Market Act, incorporating it into the economic strategy “Europe 2020” for sustainable growth and increased employment. The Commission has made 50 proposals, both legislative and non-legislative, which are to be adopted by 2012. The idea is that by “completing, deepening and making full use of the single market” an annual potential growth of 4% of the GDP over the next ten years can be achieved.

According to the Commission, “major societal challenges” (e.g. climate change, energy scarcity and demographic change) can only be overcome through research and innovation. To this end, the Commission intends to improve the framework conditions for research and innovation and to coordinate innovations effectively. In addition to the establishment of a “European Research Area”, it propagates (pre-commercial) public procurement to promote innovations. In order to tackle “grand challenges”, “European Innovation Partnerships” are to be initiated.