Digital single market legislation 'struggling to keep up with innovation'

The European parliament's working group on the digital single market has met to discuss the digital revolution.

By Rebecka Allen

09 Mar 2015

Parliament's internal market and consumer protection committee working group on the digital single market has held discussions focused on the digital revolution, which were introduced by Jeremy Rifkin, president of the foundation on economic trends. 

Defending the central ideas of his two most recent books - 'The third industrial revolution', published in 2011, and 'The zero marginal cost society', published in 2014 - the US economic and social theorist pointed to the benefits of a fully digitalised economy and of the internet of things. "If businesses across Europe can tap into this platform, at low to near zero costs, European businesses will be the most competitive in the world", he said. 

DG communications networks, content and technology (CONNECT) director general Robert Madelin underlined that the commission has been echoing these thoughts for over a decade. Commission president Jean-Claude Juncker's mandate is about 'saying less and doing more', he argued. 

He mentioned very concrete decisions to be made in terms of protecting and empowering consumers online and ensuring that no one gets left behind in the digitalisation process. 

"If businesses across Europe can tap into this platform, at low to near zero costs, European businesses will be the most competitive in the world" -  Jeremy Rifkin

As for economic prospects for Europe, he warned against over-regulation, saying, "we have to really think about how we can build a safe harbour for start-ups and innovators". Nonetheless, he highlighted the need for a common approach in Europe, pointing out that not everything will be subsidiarity neutral if a digital single market is to become reality. 

Across the political groups, MEPs seemed inspired by Jeremy Rifkin’s vision for Europe. EPP deputy Andreas Schwab insisted that the digital single market will need a holistic approach - better coordination between parliamentary committees as well as between the 28 member states. 

Socialist MEP Evelyne Gebhardt and ECR deputy Anneleen Van Bossuyt agreed that decision makers must promote an online environment which is favourable for innovation and creation. 

Kaja Kallas, from parliament's ALDE group, underlined the fundamental role of security in the digital space, arguing that without trust consumers will not be on board. 

Introducing the business perspective, Edwin Maaskant from Gartner consulting agreed that legislation is struggling to keep up with innovation and that security is a necessary prerequisite for the digital revolution. The challenge faced by legislators is striking the right balance between the need for regulation and creating a business environment in which European companies can compete. 

Maaskant’s conviction is that every industry will have to be digitally remastered in the near future. Gaining control of the platform is winning the game; whether through apps such as Uber, Skype, Netflix, Amazon or eBay - the solution will be mobile.

 

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