Junker's jumbo strategy for the digital single market

Digital services Digitization THE EU

On Wednesday, the European Commission launched its Digital Single Market Growth Strategy. If implemented correctly, the Commission believes the strategy could boost the European economy by €415 billion annually and create hundreds of thousands of new jobs. Which sounds laudable when taxi drivers, accountants and models are expected to be rationalized away in the not too distant future. But what does the strategy really mean, and what does the Commission actually intend to do? Do they have the courage to challenge and push through necessary reforms, or will they protect vested interests at the expense of growth potential and global competitiveness?

To call the strategy comprehensive is probably the understatement of the year. It covers an almost incalculable number of complex and conflicting issues such as consumer power, copyright and data protection issues to telecom strategies and various conditions for a data-driven European economy. All packaged in three pillars containing 16 initiatives, which together involve half of the Commission's directorates-general.

Pillar 1: "Better access for consumers and businesses to digital goods and services across the EU"

European companies are losing ground to US digital services companies. To make it easier for European entrepreneurs to develop competitive services, the Commission wants to facilitate direct access to the European market. The Commission wants to harmonize consumer protection and copyright, simplify VAT accounting and remove geo-blocking.

Pillar 2: "Enabling digital networks and services to flourish by creating the right conditions and a level playing field"

The foundation for all digital growth and societal development is of course a well-functioning digital infrastructure. Equally obviously, a high degree of trust is required for individuals, businesses and organizations to dare to use various digital services and take advantage of the benefits and values they create. To this end, the Commission intends to further adjust and harmonize European telecoms regulation, examine the role of digital platforms in the market and strengthen privacy and cybersecurity.

Pillar 3: "Maximizing the growth potential of the digital economy"

Digitalization is a key prerequisite for increased productivity and a more efficient, higher-value European economy. In this respect, European companies are lagging behind compared to e.g. South-East Asia and the United States, which is why increasing digital skills and uptake of digital solutions in business and the public sector is a necessity to maintain European competitiveness. The Commission will strengthen the European market by facilitating the free flow of data within the Union, establishing pan-European ICT standards and developing a new eGovernment Action Plan.

The level of ambition is high, to say the least, and the Commission seems sincere in its desire to remove a lot of growth-inhibiting regulations that fragment the European market.

At the same time, the wording hides a few concerns. The fact that the Commission considers that the rules on the liability of internet and digital service providers for what their users do need to be "clarified" (should probably read "strengthened") raises questions.

All in all, at first glance, the strategy contains great ambitions - which is to be applauded. The big challenge will be to coordinate 20 Commissioners around 16 complicated initiatives while maintaining the focus (delivering growth opportunities for European businesses).