Future potential of the digital single market and possible initiatives

• Author: Hocepied, Christian; Streel, Alexandre de
• Pages: 46-50

IPOL | Policy Department for Economic, Scientifi c and Quality of Life Policies

46 PE 638.395

4. FUTURE POTENTIAL OF THE DIGITAL SINGLE MARKET AND

POSSIBLE INITIATIVES

KEY FINDINGS

As many regulatory and non-regulatory actions have been taken during the 8th legislature, the first task is

to implement those new rules in an effective and harmonised manner across Europe. This is particularly

important because most of those EU substantive rules are implemented by national authorities. Then the

efficiency and the effectiveness of the rules and their enforcement should be evaluated, in par ticular

the impacts on the economy and the society.

However, evaluating the effects of the actions already adopted will not be enough given the importance of

the digital technologies for the European economy and society, the rapid pace of evolution of those

technologies and the increasing global competition for digital leadership. To respond to change, the pace

of reform should remain important during the forthcoming 9th legislature.

Regarding the objectives and policy fields, we have identified following priorities:

- Make the EU a technological powerho use for the emerging and important technologies such as AI,

quantum computing, security of connected devices or data exchanges that should be designed and

developed according to European values enshrined in the Treaties and the Charter of Fundamental Rights;

- Stimulate the development of online platforms: (i) star t-ups should be stimulated by rules ensuring a

level playing and access to the main capabilities for digital innovation (in par ticular data) and to the eco-

system of products that are used by consumers, (ii) scale-up should be stimulated by one set of rules and

enforcement all over Europe, (iii) significant platforms should be subject to an increased duty of care

should be imposed;

- Stimulate e-government: given the potential benefits of digital public services, the EU should stimulate

the adoption and the diffusion of national and cross-borders e-government services as well as the

adoption of digital technologies, such as blockchain, to improve public regulation.

Regarding the policy and regulatory techniques, we recommend the reliance of principles-based

legislation that can easily adapt to fast and unpredictable technology and market evolutions

complemented with codes of conduct agreed with all the digital players (firms, consumers associations,

NGOs …) under the auspices of EU institutions and with a close monitoring by the EU institutions. We also

recommend that the enforcement of those rules is more Europeanised either with the continuous

strengthening of the cooperation network of national regulatory authorities or with the establishment of

a EU regulator for significant platforms as it was done some year ago for the significant banks with the

creation of the Single Supervisory Mechanism within the European Central Bank. The regulatory

authorities in Europe should also size the potential of digital techno logies, such as big data or AI, to

improve their operations (RegTech). To go further when feasible, enforcement may be automatized in the

computer code as it is the case for smart contracts or privacy by design (more generally, compliance by

design).

Those regulatory actions should be complemented with non-regulatory ini tiatives, in particular the

monitoring and exchange of best practices of key digital national policies, the increasing smart use of EU

funds to stimulate the deployment and the adoption of key digital networks and services and the

development of the digital skills of EU workers and citizens.