Accelerating EU Tech Transformations Amidst COVID-19
The COVID-19 pandemic has highlighted the key role technology plays in people’s lives. It has also made EU regulators aware of the necessity of achieving digital sovereignty to attain strategic autonomy. Since taking over as the President of the European Commission last fall, Ursula von der Leyen has repeatedly expressed her objective for Europe to be resilient, independent and inclusive in the digital space. The outbreak of the coronavirus has turned this priority into an urgency.
Connectivity
The need for inclusivity, resilience and independence is clear in the connectivity debate. The importance of telecom networks has been reinforced by the pandemic, which has accelerated the transition of work, education and social life into the virtual space.
EU leaders have called on the European Commission to propose new laws by the end of 2021 to boost investment in high-speed telecom networks. The Commission has committed to present an updated action plan for spectrum management in 2021 in addition to a review of the impact of the Broadband Cost Reduction Directive. Both initiatives will likely reflect the demands for greater connectivity to support digital transformation.
EU Member States are due to report to the Commission actions taken to ensure a safe and secure rollout of 5G networks, and we expect the 5G debate to continue in the EU as everyone waits for the outcome of the Commissions evaluation.
Cybersecurity
Looking ahead, legislation aimed at cyber-resilience will receive more attention. The EU’s Cybersecurity Agency says securing smart homes and smart buildings from cyber risks is more relevant than ever in light of the COVID-19 pandemic. The EU Cybersecurity Strategy and the review of the NIS directive, expected by the end of 2020, will ensure that Member States and their citizens can continue to make the most of living, working and studying online, while minimising risks.
Data
Data is at the centre of many COVID-19 related conversations and measures. From the lack of a common health data that could have addressed the virus earlier, to public resistance to data collection through contact tracing apps, to the debate on facial recognition uses by law enforcement, the need for a data space governing framework, including AI, has become all too clear. There is a widespread consensus across the EU that economic recovery should make the most of data and innovation without being hindered by excessively strict legislation.
The German Presidency of the Council of the European Union will seek to fast-track the proposal for a common EU data space to increase data sharing in key sectors, such as healthcare, advanced manufacturing, energy, transport, financial services and research. The German Presidency will also work to set a legal framework for a human-centric digital transformation by accelerating regulations on ePrivacy and AI. Moreover, the launch of the Franco-German initiative Gaia-X in June is another move toward European data sovereignty.
Online Platforms
The economic lockdown during COVID-19 resulted in spikes in business-to-consumers (B2C) and business-to-business (B2B) e-commerce. However, the existing digital divide between small producers and sellers unfamiliar with online platforms, and those already used to that business model, hampered greater participation in e-commerce.
With increased importance of online transactions, the European Commission is focusing on new rules on the gatekeeping power of digital platforms. Issues to address include eliminating favouritism in frequency and the manner shopping services are featured, the dual role as a marketplace and seller of products, and ensuring a more level playing field in e-commerce. This could take the form of ex-ante rules or defining online platforms as “public utilities,” leading to stricter obligations, similar to those for railways and power grids.
Financial Resources
Discussions around the post-COVID-19 Recovery Fund include the need for additional financial resources to boost digitisation in EU Member States’ economies and help the EU achieve its ambitions in technology. An increasing number of stakeholders are calling for an EU-wide digital tax, alongside a carbon tax, to finance the bloc’s economic recovery.
The EU faces a difficult task of realizing independence in key technologies while ensuring existing trade partnerships remain in place and technology is fully integrated into recovery plans. But for the first time, there is an alignment of the major actors and political willingness to reach a common goal. This is, in itself, an achievement.
Edited by Albin Sikora and Jillian Nystedt
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