The Digital Single MarketState of Play

Prepared for the Digital Summit Tallinn 29 September 2017

LEGAL NOTICEBy the European Commission, Directorate-General for Communication Networks, Content and Technology.

Neither the European Commission nor any person acting on its behalf is responsible for the use which might be made of the information contained in the present publication. The European Commission is not responsible for the external web sites referred to in the present publication.

The views expressed in this publication are those of the authors and do not necessarily reflect the official European Commission’s view on the subject.

The Publications Office of the European Union.

ISBN: 978-92-79-72258-5doi:10.2759/746724

© European Union, 2017Reproduction is authorised provided the source is acknowledged.

All photographs & images © Thinkstock / iStock.

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The Digital Single MarketState of Play

1. What has been achieved?Digital technology and our response to it is an issue of paramount strategic, economic and social importance. The effect of digital is now so pervasive we can no longer think in terms of a separate ICT sector, but rather all aspects of economic and social life having a digital dimension. As a consequence to this development, since May 2015 the European Union has been delivering on an ambitious and comprehensive Digital Single Market Strategy. By mid-September 2017, the European Commission had put forward 38 policy initiatives, 23 of which are legislative proposals.

Digital Single Market – State of Play

38 policy initiatives, 23 of which are legislative proposals

Further actions on:• Online Platforms• High-Performance Computing• & more

The Strategy is built around (i) improving access to goods, services and content; (ii) creating the appropriate legal framework for digital networks and services, and (iii) reaping the benefits of a data-based economy. It has been estimated that the Strategy could contribute €415 billion per year to the EU economy and create hundreds of thousands of new jobs, consequently it would be hard to understate the importance of timely implementation1.

The 3 Pillars of the DSM Strategy

Better access for consumers and businesses

Enhance the digital economy

Advanced digital networks and innovative services

Telecom market

Media services

Platforms and intermediaries

Trust and security

Data economy

Inclusive digital economy and society

Interoperability and standardisation

Digitisation of European Industry

Geoblocking

E-commerce

Copyright

Parcel delivery

1 European Parliament Research Service, Mapping the cost of Non-Europe, 2014-19, 2015.

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Some of the Digital Single Market’s key initiatives have already been adopted by the European Parliament and Council. Those include:

Content portability, which, as of early 2018, will allow Europeans to travel with the films, the music or the e-books they have purchased or subscribed to at home.

Implementation of the Marrakesh Treaty which facilitates access

to published works for persons who are blind, visually impaired,

or otherwise print disabled

Roaming, which, from 15 June 2017, ended roaming surcharges

for subscribers in one Member State travelling in another.

The WiFi4EU initiative, which will provide

free public Wi-Fi hotspots in local communities across the EU.

Spectrum coordination, which releases the 700 MHz band

for the development of 5G and new online services

The implementation of non-legislative initiatives is ongoing, often in close cooperation with Member States and other stakeholders.

They, in turn, support 600 innovation experiments and more than 1200 Startups,

SMEs and mid-caps in their digital transformation. Initial results show

a significant return on investments for SMEs.

For example, under the Digitising European Industry initiative, the Commission is working closely with Member States and industry

to build a critical mass of initiatives and investments. Since the launch of the initiative in April 2016, the allocated investments so far (€100 million) have provided support

for more than 150 digital innovation hubs.

Digital Skills and Jobs Coalition – 70 organisations have already pledged action under this multi-stakeholder collaboration launched in December 2016 to boost digital skills across the EU. Many Member States have also taken an active part. Today there are 17 National Digital Skills Coalitions connecting public authorities, business, education, training and labour market stakeholders.

#DigitalSkills #DSJCoalition

2. What will be achieved over the next 18 months?While solid progress has been made, there is still much more to do to achieve a fully integrated Digital Single Market in Europe.

Legislative negotiations are still ongoing on a number of key proposals under the Digital Single Market Strategy (e.g. tackling unjustified geo-blocking, copyright reform, telecom reform and update of the audio-visual media framework). The European Council has repeatedly committed to implementing the Digital Single Market Strategy by December 2018. This will require the pace of the negotiations to be increased.

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Since May 2015, EU decision-makers have achieved the following:As of 15 June 2017, mobile roaming charges have finally been abolished in the EU.

As of May 2018, the EU will be equipped with its first ever common cybersecurity law to help keep network and information systems safe in all Member States.

As of early 2018, citizens will be able to enjoy their online films, sports broadcasts, music, video games, and e-book subscriptions when travelling in the EU.

As of May 2018, a new single set of EU rules on data protection and privacy in electronic communications.

As of 2020, EU Member States will for the first time coordinate their use of the high-quality band 700 MHz.

This will allow people to take back control of their personal data and set clear limits on the use of their data.

68% of online digital content providers block users in another Member State. 60% of young Europeans say cross-border portability is important for taking up a subscription.

This will enable 5G networks and bring new services such as connected cars, remote health care, smart cities or video streaming on the move and across borders.

The EU also supports the competitiveness of its cyber-security industry through a public-private partnership expected to generate €1.8 billion of investment by 2020 to help develop devices to defend against cyberattacks.

The e-government action plan will help modernising public services.

The action plan seeks to simplify the life of citizens and businesses by ensuring public registers are connected and by accelerating the transition to e-procurement and e-signatures.

€

34% of Europeans travel abroad at least once a year. In 2014, about half of Europeans would not use mobile internet abroad because it was too costly.

All proposals under negotiation are crucial for unlocking important benefits of the Digital Single Market2. The rules on e-privacy, digital contracts and geoblocking will provide EU citizens with some of the highest standards of consumer protection in the world. The new rules on audiovisual and media services and copyright will tear down barriers in cross-border content access. Through the adoption of new, investment-friendly telecoms rules, Europe will be a step closer to achieving its aim of global leadership in affordable, ubiquitous high capacity broadband connectivity across the EU. This seamless and ubiquitous connectivity is a prerequisite for many valuable digital innovations (connected mobility, high performance computing, digital health, etc.).

The Commission will continue putting forward initiatives that will further strengthen the Digital Single Market. In September 2017, two essential pieces of the Digital Single Market were adopted: a Regulation on the free flow of non-personal data and a cybersecurity package, including a revised European Cybersecurity Strategy and a European Cybersecurity Agency.

Data as a catalyst for growthData is at the core of the digital economy and ensuring its free flow throughout the European Union is essential. But simply gathering data and allowing it to flow freely is not, of itself, enough – we need to be able to capture its value, and this will require the capacity to analyse, interpret and extract value from data through the help of high performance computing. Without this, Europe will have to rely on processing power from third countries, thus missing out on one of the biggest sources of economic growth in the foreseeable future (the value of the data economy could reach €739 billion by 2020 – 4% of EU GDP3).

The European Commission has recently adopted a legislative proposal on the free flow of non-personal data. A proposal on a legal instrument that provides a procurement framework for high performance computing will follow by the end of 2017. By Spring 2018, an initiative on accessibility and re-use of public and publicly funded data will be prepared.

European Data Market

Data workers

Data economy value

Data companies6.16 million in 2016 255,000 in 2016

Source: European Data Market study

Almost € 300 billion in 2016 € 739 billion by 2020

10.43 million by 2020 359,050 by 2020

2 Digital Single Market – Policy initiatives, table at the end of this publication, page 7.3 European Data Market Study SMART 2013/0063, available at: http://datalandscape.eu/.

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Protecting businesses and citizens in the digital environmentEnsuring EU wide cybersecurity will be one of the most important challenges of the next decade. The ever increasing number and severity of cyberattacks requires a strong and coordinated response at European level. A revised Cybersecurity Strategy was presented this September. It proposes measures to increase resilience and improve our response in the face of cyberthreats. This is accompanied by a permanent mandate for ENISA, the EU Cybersecurity Agency, which will assist Member States in effectively preventing and responding to cyber-attacks.

In addition to the cybersecurity challenge, future initiatives on online platforms will aim to rebalance the relationship between platforms and their suppliers, as well as protect citizens from illegal content. By the end of 2017, the Commission will propose initiatives on unfair contractual clauses in platform-to-business relationships, as well as on addressing removal of illegal content online.

Cyber incidents and attacks are on the rise

In some Member States 50% of all the crimes committed are cybercrimes.

80% of European companies have experienced at least one cybersecurity incident last year.

+4000 ransomware attacks per day in 2016.

+150 countries and +230,000 systems across sectors and countries were affected with a substantial impact on essential services connected to the internet, including

hospitals and ambulance services.

Security incidents across all industries rose by 38% in 2015– the biggest increase in the past 12 years.

+38%

Managing the digital transformation of economy and society A thriving economy is built on creativity and innovation as the engines for creating jobs and adding value. The fundamental transformation of entire economic sectors will continue. Rather than trying to oppose this trend, the European Commission aims to anticipate and successfully manage the new digital revolution as it transforms sectors such as health, finance or automated transport (a package of proposals for the future of transport was adopted in May 2017). Overall, the combined economic impact of the automation of knowledge, work, robots and autonomous vehicles is estimated to reach between €6.5 trillion and €12 trillion annually by 20254.

Governments have a crucial role to play in the digital economy. Trust is the bedrock of business and consumer confidence in embracing the transition to digital. Streamlined and frictionless interactions with public authorities throughout the EU, as is the objective of the EU eGovernment Action Plan, are essential. At the same time, European, national and regional efforts to improve the overall level of digital skills for European citizens must continue. The New Skills Agenda will foster a better use of the available skills and equip our citizens with the new skills that are needed to help them find quality jobs and improve their life chances.

The demand for ICT specialists is growing.Since 2005, over 2 million additional ICT specialists were employed in the EU. However, 40% of companies who are trying to recruit ICT specialists find it difficult to do so. Today, there are at least 350,000 vacancies for ICT specialists in Europe.

2 million additional ICT specialists

were employed

350,000 vacancies for ICT specialists…

40% of companies who are trying to recruit

ICT specialists find it difficult to do so

The European Commission will adopt its Strategy on digital health and care by the end of 2017, and will update the eGovernment action plan to keep up with digital development. To complement ongoing initiatives on the digital skills, a Digital Opportunity pilot scheme to give graduates experience in the digital domain will be launched.

4 Disruptive technologies: Advances that will transform life, business, and the global economy; McKinsey Global Institute, 2013.

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Digital Single Market – State of Play

ISBN: 978-92-79-72258-5 doi:10.2759/746724

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