THE BRAVE
DIGITAL WORLD

On issues where EU’s main concern is related to the asymmetric power wielded by the global tech giants the regulatory paradigm should shift from a one-size-fits-all macro-regulation approach to more-targeted micro-regulation efforts.

POLICY PROPOSAL NO. 1:

The European Commission should update its guidance on the abuse of dominant position to better fit with the demands of the digital era.

The DG Competition’s efforts to enforce the EU’s antitrust and state aid laws against the U.S. technological giants such as Google (abuse of dominant position), and Amazon and Apple (unlawful state aid) are a good example of a more effective and better-tailored enforcement tool.

In cases where a macro-regulatory approach remains necessary, effective enforcement mechanisms have to apply to all (both EU –and non-EU based) market players.

POLICY PROPOSAL NO. 2:

The EU should establish a centralized consumer protection agency shaped after DG Competition to police breaches of EU regulations concerning the consumer rights acquis.

The current enforcement system relying on the national courts is insufficient. Unlike EU directives, EU regulations are uniformly and directly applicable across the entire single market. An EU-wide, centralized agency endowed with the power to punish companies which violate EU regulations would reduce the power asymmetry and ensure strict enforcement of rules.

POLICY PROPOSAL NO. 3:

The EU should increase pressure on the Chinese government to tackle the issue of industrial subsidies and their impact on trade.

Despite the ongoing EU-China discussions, the uneven level-playing field between EU companies and their state-supported Chinese counterparts remains in place. While the EU’s trade agreements now all include provisions on state aid control, the lack of effective framework to tackle the issue of Chinese industrial subsidies is among the largest competitive disadvantages faced by EU businesses.

In order to prosper, EU-based scale ups should receive stronger support by the European Union.

POLICY PROPOSAL NO. 4:

The EU has to rethink its approach to data by moving away from singular focus on privacy and towards an economic assessment of data as a necessary input for digital industries.

The current approach taken by the European Commission when it comes to personal data is predicated on the notion of data gathering as an inherent threat. This has far-reaching negative effects on the competitiveness of the EU tech sector. The EU should consider reducing its privacy requirements with respect to data that does not confer long term competitive advantage to companies, by taking into account its cost of acquisition and rate of depreciation.

POLICY PROPOSAL NO. 5:

The EU should radically increase its financial commitment to supporting the EU tech sector through the Digital Europe Programme and the InvestEU initiative.

Both of the EU’s flagship initiatives, which were designed to provide a financial spark to the digital sector over the span of the next decade, pale in comparison to even the current investment levels in the U.S. and China. The EU is already lagging in the digital arms race, and the continent’s pool of venture capital is relatively shallow. This makes a much larger public investment package a necessity