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Image header Agence Europe
Europe Daily Bulletin No. 11850
SECTORAL POLICIES / Digital

Short and medium-term single digital market development areas

The new Commissioner for the Digital Economy and Society, Mariya Gabriel, is about to take up her new job. During a meeting with a number of journalists on 29 August, she expressed her intention to focus on cyber security, fake news, the free movement of data, supercomputers and digital skills.

The Bulgarian Commissioner was confirmed in her role by Parliament on 4 July last and stated that on the basis of her mission statement, she would attempt to finalise the simple digital market strategy and that there were also a number of new initiatives, particularly on cyber security, the free movement of data and platforms. On this latter issue she said, It is also important to talk with platforms to tackle illicit content : we need a balance between “duty of care” and freedom of expression”.

The Commissioner also stated, "I want to propose a public consultation on fake news and create a high level expert group. It's really important to work all together, including researchers, media, Member States and EU institutions."

Future initiatives

As indicated in EUROPE 11842, the European Commission is expected to propose a communication, at the end of the summer recess, on cyber security, initiatives to tackle illegal online content and a legislative proposal on the free movement of data.

On the issue of cyber security, she will also be proposing a review of the current European strategy dating back to 2013, a more robust mandate for the European Network Information Security Agency (ENISA) and will encourage measures in the field of connected products certification and labelling.

In the field of illegal content, she will publish guidelines clarifying “notification and takedown”, as well as guidelines on responsibility. She will then get to grips with unfair contractual clauses and commercial practices between platforms and businesses.

On the subject of the free movement of data, the Commission is expected to present a legislative proposal tackling unfair data localisation obligations and opportunities for businesses to “cloud switch” (change cloud computing services).

Current progress in discussions

14 of the 18 legislative initiatives presented as part of the Digital Single Market (DSM) strategy are still being negotiated. The following insight into these is provided below:

Provision of digital content:  the proposal seeks to get rid of the major barriers relating to contracts that hamper cross-border trade. It suggests harmonising the responsibility of providers in the event of defects, overturning the burden of proof and the right to end a contract and use personal data. Although the Council obtained a general approach on 8 June, the “consumers” IMCO and “legal affairs” JURI committees at the European Parliament still have to give their positions on 28 September. The negotiating mandate is expected to be announced during the plenary on 2 October. 

Online sales: the legislative text is proposing to clarify certain provisions in the 1999/44/EC directive on specific aspects of sales and guarantees for consumer goods. It is also seeking to introduce a comprehensive harmonisation of the compliance criteria for goods that will involve a hierarchy between compensation modes available to consumers, as well as deadlines for overturning the burden of proof and legal guarantees. Although discussions have just begun at the Council, the IMCO committee is preparing its compromise amendments. The vote is expected to take place on 11/12 October and the mandate has been announced for the plenary on 23 October. 

Parcel deliveries: the proposal focuses on regulatory monitoring and price transparency in the area of cross-border parcel delivery services. Although the Council reached a general approach on 9 June, Parliament has barely made any progress. The “transport” TRAN committee effectively rejected the report by Lucy Anderson (S&D, UK) and a coordinators’ meeting on 6 September is expected to decide how to go forward (see EUROPE 11827)

Audiovisual: the draft text seeks to create a fairer regulatory environment between traditional services and over the top (OTT) services, provide greater flexibility in the rules governing advertising and support creativity in Europe by way of obligations to promote European work (see EUROPE 11558). An initial trialogue between the three institutions took place on 10 July and a second one is planned for 28 September. 

Geoblocking: the draft regulation compels traders to make their goods and services accessible to all consumers in the EU, free from discrimination in terms of access to prices, sales or payment conditions (see EUROPE 11558). So far, three trialogues have taken place between Parliament, the Council and Commission (18 May, 13 June and 27 June) and a fourth is expected to take place at the end of September.  The main stumbling block involves inclusion – as called for with regard to non-audiovisual content protected by copyright (see EUROPE 11818)

Electronic Communications Code: the draft directive consists in a recasting of the framework directive, the “authorisation” directive, the “access” directive and the “universal service” directive. The report by Vera Del Castillo will be put to a vote during the “industry” ITRE committee on 11 September, whilst at the Council, the working group is expected to discuss the most recent Presidency compromises on the “services” and “spectrum” sections on 5 and 6 September (see EUROPE 11848).

Office of European Regulators (BEREC): the proposal expands the current BEREC mandate and seeks to transform it into a bone fide agency. The vote on the communications code and ITRE votes are both expected for 11 September.

Copyright: the text adapts copyright exceptions applicable to the digital and cross-border environments, improves licensing practices in an effort to tackle discrepancies involving remuneration and introduce a new neighbouring law for press publishers. Parliament has just appointed a new rapporteur - Axel Voss (EPP, Germany) - following the departure of Ms Therese Comodini Cachia - and the legal affairs committee (JURI) is expected to give its opinion on 10 October. At the Council, the Estonian Presidency is preparing a draft compromise on controversial questions involving value discrepancies (article 13) and neighbouring law (article 11).

CabSat: this very controversial (in principle), proposal seeks to promote the cross-border provision of online services and facilitate the digital retransmission of TV and radio emissions from other member states (see EUROPE 11624). The examination of the amendment that Parliament is expected to take place on 7 September (see EUROPE 11788), while the Presidency of the Council will focus on the “retransmission” part in an effort to reach a general approach before the end of the year. 

Private life in electronic communications: this text seeks to build trust in online transactions, whilst allowing service providers to use the personal data of customers if they have given their prior consent (see EUROPE 11700). The Estonian Presidency of the Council has already announced that it will not manage to complete this dossier and will therefore only provide a progress report. The civil liberties committee vote at the European Parliament is planned for 11 October but this timetable appears to be too tight. It may even be interrupted by the local elections in Estonia on 15 October and the fact that the rapporteur Marju Lauristin (S&D, Estonia) has announced that she will join the opposition in her country if her party is defeated.  

VAT for e-commerce: this text aims to simplify VAT rules applicable to cross-border e-commerce, particularly by scrapping the exceptions for small parcels from non-EU countries (see EUROPE 11676). According to a Commission paper, working group discussions are “advancing well” at the Council and the Estonian Presidency will attempt to strike an agreement during the economic and financial affairs ministers’ meeting (ECOFIN) in November. The economic affairs Committee at Parliament is expected to reach its position on 9 October and the Parliamentary Assembly, on 13 November. 

VAT for online publications: the Council’s draft directive amends “VAT” legislation (2006/112/EC) in a way that will grant all member states the possibility of applying the same rates of VAT to electronic publications as they are currently applied by a number of member states to printed publications. The European Parliament decided its position on 1 June, while the Estonian Presidency will attempt to reach an agreement at the October Ecofin Council. 

Single digital portal: the draft regulation presented on 2 May last set up a single digital portal that will enable users to obtain all kinds of information, assistance and services resolving problems they need when exercising their activities efficiently in a cross-border context. So far, there has only been an orientation debate at the Competitiveness Council on 29 May and we are now waiting for the opinion from the European Economic and Social Committee. 

The return after the summer break is therefore expected to be very busy. (Original version in French by Sophie Petitjean)

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