EU needs a regulatory framework that supports digital first countries
An overly centralized and detailed approach risks hampering digital development in EU countries. This is according to Robert Liljeström, an expert on industrial policy, in a commentary.
A review of the regulatory framework for electronic communications is under discussion in the EU. The current regulatory framework, based on the era of national copper monopolies, is not designed for the Swedish market with hundreds of local and national fiber networks, several parallel mobile networks and rapidly growing broadband via satellite. A regulatory framework designed to regulate in detail access to the network of a dominant player is ill-suited to a dynamic market where technology neutrality and good conditions for investment and innovation are crucial to keep up with rapid global development.
The European Commission's White Paper "How to master Europe's digital infrastructure needs?" describes the problem of Europe's digital development not keeping pace with much of the rest of the world and the need for change. However, the proposals put forward are largely based on the current regulatory framework and the assumption that it is possible to "regulate" development. There is a real risk that the proposals would result in even more detailed rules in more areas and a continued development where Europe falls further and further behind.
"However, the proposals put forward largely build on the current regulatory framework"
Achieving change and regaining leadership in digitalization requires a new approach that shifts the focus from regulation to supporting the development of digital infrastructures. This requires a regulatory framework that sets the boundaries but gives the market incentives to invest and the freedom to evolve, create new business models, phase out old technologies and scale. Increased harmonization is important to complete the Digital Single Market, but it must be balanced with the opportunity for digital pioneers to take the lead and show the way. An overly centralized and detailed approach based on the lowest common denominator risks hampering the development of the countries at the forefront and thus the EU as a whole.
TechSverige welcomes the Commission's initiative for a broad dialogue with the aim of reversing the trend through promotional initiatives and a changed regulatory framework.After five years of focusing on more and more extensive regulations, it is high time to take a regulatory pause, look up and evaluate what regulatory direction is needed to support the development of a smart and sustainable EU at the global digital forefront. Read more in TechSweden's consultation response and take part of the Commission's White Paper.