COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A Digital Single Market Strategy for Europe
Date: 2015-05-06
Institutions: European Commission
Subjects: computer crime, consumer protection, copyright, data protection, digital literacy, digital technology, electronic commerce, information society, telecommunications

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 6.5.2015  COM(2015) 192 final   COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS   A Digital Single Market Strategy for Europe {SWD(2015) 100 final}  
 
 
Extract from the Political Guidelines for the next European Commission – A New Start 
for  Europe:  My  Agenda  for  Jobs,  Growth,  Fairness  and  Democratic  Change  (15  July 
2014) 

Priority n°2: A Connected Digital Single Market 

"I  believe  that  we  must  make  much  better  use  of  the  great  opportunities  offered  by  digital 
technologies,  which  know  no  borders.  To  do  so,  we  will  need  to  have  the  courage  to  break 
down national silos in telecoms regulation, in copyright and data protection legislation, in the 
management of radio waves and in the application of competition law. 

If  we  do  this,  we  can  ensure  that  European  citizens  will  soon  be  able  to  use  their  mobile 
phones across Europe without having to pay roaming charges. We can ensure that consumers 
can access services, music, movies and sports events on their electronic devices wherever they 
are in Europe and regardless of borders. We can create a fair level playing field where all 
companies  offering  their  goods  or  services  in  the  European  Union  are  subject  to  the  same 
data protection and consumer rules, regardless of where their server is based. By creating a 
connected  digital  single  market,  we  can  generate  up  to  EUR  250  billion  of  additional 
growth  in  Europe  in  the  course  of the  mandate  of  the  next  Commission,  thereby  creating 
hundreds  of  thousands  of  new  jobs,  notably  for  younger  job-seekers,  and  a  vibrant 
knowledge-based society. 

To  achieve  this,  I  intend  to  take,  within  the  first  six  months  of  my  mandate,  ambitious 
legislative  steps  towards  a  connected  digital  single  market,  notably  by  swiftly  concluding 
negotiations  on  common  European  data  protection  rules;  by  adding  more  ambition  to  the 
ongoing  reform  of  our  telecoms  rules;  by  modernising  copyright  rules  in  the  light  of  the 
digital  revolution  and  changed  consumer  behaviour;  and  by  modernising  and  simplifying 
consumer rules for online and digital purchases. This should go hand-in-hand with efforts to 
boost  digital  skills  and  learning  across  society  and  to  facilitate  the  creation  of  innovative 
start-ups.  Enhancing  the  use  of  digital  technologies  and  online  services  should  become  a 
horizontal policy, covering all sectors of the economy and of the public sector." 

Jean-Claude Juncker 

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1. 

INTRODUCTION: WHY WE NEED A DIGITAL SINGLE MARKET 

The  global  economy  is  rapidly  becoming  digital.  Information  and  Communications 
Technology (ICT) is no longer a specific sector but the foundation of all modern innovative 
economic systems. The Internet and digital technologies are transforming  the lives we lead, 
the way we work – as individuals, in business, and in our communities as they become more 
integrated across all sectors of our economy and society. 

These  changes  are  happening  at  a  scale  and  speed  that  bring  immense  opportunities  for 
innovation, growth and jobs. They also raise challenging policy issues for public authorities 
which require coordinated EU action. All Member States are wrestling with similar problems 
but  on a national  basis which is too limited to  allow them to  seize all the opportunities and 
deal  with  all  the  challenges  of  this  transformational  change.  For  many  issues  the  European 
level offers the right framework. That is why the European Commission has set the creation 
of a Digital Single Market as one of its key priorities. 

A Digital Single Market is one in which the free movement of goods, persons, services and 
capital  is  ensured  and  where  individuals  and  businesses  can  seamlessly  access  and  exercise 
online  activities  under  conditions  of  fair  competition,  and  a  high  level  of  consumer  and 
personal  data  protection,  irrespective  of  their  nationality  or  place  of  residence.  Achieving  a 
Digital Single Market will ensure that Europe maintains its position as a world leader in the 
digital economy, helping European companies to grow globally.  

Europe  has  the  capabilities  to  lead  in  the  global  digital  economy  but  we  are  currently  not 
making the most of them. Fragmentation and barriers that do not exist in the physical Single 
Market are holding the EU back. Bringing down these barriers within Europe could contribute 
an additional EUR 415 billion to European GDP1. The digital economy can expand markets 
and  foster  better  services  at  better  prices,  offer  more  choice  and  create  new  sources  of 
employment.  A  Digital  Single  Market  can  create  opportunities  for  new  start-ups  and  allow 
existing companies to grow and profit from the scale of a market of over 500 million people. 

This  Digital  Single  Market  Strategy  has  benefitted  from  input  and  dialogue  with  Member 
States, the European Parliament and stakeholders. It has a multi-annual scope and is focused 
on key interdependent actions that can only be taken at EU level. They have been chosen to 
have maximum impact, can be delivered during this Commission's mandate, and will be taken 
forward in line with Better Regulation principles. Each action will be subject to appropriate 
consultation and impact assessment. The Digital Single Market Strategy will be built on three 
pillars: 

  Better  access  for  consumers  and  businesses  to  online  goods  and  services  across 
Europe – this requires the rapid removal of key differences between the online and offline 
worlds to break down barriers to cross-border online activity. 

  Creating  the  right  conditions  for  digital  networks  and  services  to  flourish  –  this 
requires high-speed, secure and trustworthy infrastructures and content services, supported 

1   The references for the factual information presented in this document are provided in the accompanying 
Commission Staff Working Document "A Digital Single Market Strategy for Europe – Analysis and 
Evidence" [SWD(2015) 100]. That document also contains more detail on the nature of the challenges 
addressed and evidence in support of the Strategy. 

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by the right regulatory conditions for innovation, investment, fair competition and a level 
playing field. 

  Maximising  the  growth  potential  of  our  European  Digital  Economy  –  this  requires 
investment in ICT infrastructures and technologies such as Cloud computing and Big Data, 
and  research  and  innovation  to  boost  industrial  competiveness  as  well  as  better  public 
services, inclusiveness and skills. 

2. 

BETTER ONLINE ACCESS FOR CONSUMERS AND BUSINESSES ACROSS EUROPE 

The  Digital  Single  Market  will  provide  businesses,  particularly  entrepreneurs,  with  new 
opportunities to scale up across Europe. Immediate action is therefore required to break down 
barriers  to  cross-border  online  activity  including  differences  in  contract  and  copyright  law 
between Member States and reducing VAT related burden. Part of building consumer trust in 
cross-border  online  sales  requires  affordable  and  high  quality  cross-border  parcel  delivery 
services,  which  do  not  exist  today.  The  Strategy  is  also  about  defining  an  appropriate  e-
commerce framework and preventing unfair discrimination against consumers and businesses 
when  they  try  to  access  content  or  buy  goods  and  services  online  within  the  EU. 
Discrimination  can  come  in  the  form  of  nationality,  residence  or  geographical  location 
restrictions which run counter to the basic principles of the EU. 

2.1. 

Cross-border e-commerce rules that consumers and business can trust 

One  of  the  reasons  why  consumers  and  smaller  companies  do  not  engage  more  in  cross-
border  e-commerce  is  because  the  rules  that  apply  to  these  transactions  can  be  complex, 
unclear  and  may  differ  between  Member  States.  Having  28  different  national  consumer 
protection  and  contract  laws  discourages  companies  from  cross-border  trading  and  prevents 
consumers from benefitting from the most competitive offers and from the full range of online 
offers. 

  EU consumers could save EUR 11.7 billion each year if they could choose from a full range of EU 

goods and services when shopping online.  

  61% of EU consumers feel confident about purchasing via the Internet from a retailer located in 
their  own  Member  State  while  only  38%  feel  confident  about  purchasing  from  another  EU 
Member State. 

  Only 7% of SMEs in the EU sell cross-border. 

In a Single Market, companies should be able to manage their sales under a common set of 
rules.  Some  aspects  of  consumer  and  contract  law  have  already  been  fully  harmonised  for 
online sales (such as the information that should be provided to consumers before they enter 
into a contract or the rules governing their right to withdraw from the deal if they have second 
thoughts).  However,  other  aspects  of  the  contract  (such  as  what  remedies  are  available  if 
tangible  goods  are  not  in  conformity  with  the contract  of  sale)  are  only  subject to  EU  rules 
providing  minimum  harmonisation,  with  the  possibility  for  Member  States  to  go  further. 
When it comes to remedies for defective digital content purchased online (such as e-books) no 
specific EU rules exist at all, and only few national ones.  

Simplified  and  modern  rules  for  online  and  digital  cross-border  purchases  will  encourage 
more  businesses  to  sell  online  across  borders  and  increase  consumer  confidence  in  cross-
border e-commerce. If the same rules for e-commerce were applied in all EU Member States, 

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57%  of  companies  say  they  would  either  start  or  increase  their  online  sales  to  other  EU 
Member States.  

To  deliver  the  right  conditions  to  enable  cross-border  e-commerce  to  flourish,  the 
Commission,  as  announced  in  its  Work  Programme  for  2015,  will  make  an  amended 
legislative  proposal2  to  allow  sellers  to  rely  on  their  national  laws,  further  harmonising  the 
main  rights  and  obligations  of  the  parties  to  a  sales  contract.  This  will  be  done  notably  by 
providing  remedies  for  non-performance  and  the  appropriate  periods  for  the  right  to  a  legal 
guarantee. The purpose is to ensure that traders in the  internal market are not deterred from 
cross-border  trading  by  differences  in  mandatory  national  consumer  contract  laws,  or  to 
differences arising from product specific rules such as labelling.  

However,  just  having  a  common  set  of  rules  is  not  enough.  There  is  also  a  need  for  more 
rapid, agile and consistent enforcement of consumer rules for online and digital purchases to 
make them fully effective. The Commission will submit a proposal to review the Regulation 
on Consumer Protection Cooperation3 that will clarify and develop the powers of enforcement 
authorities  and  improve  the  coordination  of  their  market  monitoring  activities  and  alert 
mechanisms  to  detect  infringements  faster.  Furthermore,  the  Commission  will  establish  in 
2016 an EU-wide online dispute resolution platform. 

The  Commission  will  make  an  amended  proposal  before  the  end  of  2015  (i)  covering 
harmonised EU rules for online purchases of digital content, and (ii) allowing traders to rely 
on  their  national  laws  based  on  a  focused  set  of  key  mandatory  EU  contractual  rights  for 
domestic and cross-border online sales of tangible goods.  

The  Commission  will  submit  a  proposal  for  a  review  of  the  Regulation  on  Consumer 
Protection Cooperation in order to develop more efficient cooperation mechanisms. 

2.2. 

Affordable high-quality cross-border parcel delivery  

Affordable,  high-quality  cross-border  delivery  services  can  build  consumer  trust  in  cross-
border online sales. Stakeholders complain about a lack of transparency, the excessive costs 
of small shipments and the lack of inter-operability between the different operators typically 
involved  in  a  cross-border  shipment  and  the  resulting  lack  of  convenience  for  the  final 
consumer. 

  For  companies  that  currently  do  not  sell  online  but  are  trying  to  do  so,  62%  say  the  fact  that 

delivery costs are too high is a problem.  

  Listed tariffs for cross-border parcel delivery charged by national postal operators are estimated to 

be two to five times higher than domestic prices. 

The high prices and inefficiency of parcel delivery should not be an obstacle to cross-border 
online  commerce.  A  self-regulation  exercise  by  industry  will  report  to  the  Commission  in 
June 2015. This exercise is concentrated on quality and interoperability aspects like "track and 
trace"  and  faster  delivery  of  parcels  but  does  not  cover  the  price  dimension  or  regulatory 
oversight.  The  Commission  will  assess  action  taken  by  industry  and  launch  complementary 
measures to improve price transparency for European deliveries, including for prices of small 
shipments, and to enhance regulatory oversight of the cross-border parcel markets to ensure 

2  COM(2011) 635, 2011/0284/COD 
3  Regulation (EC) No 2006/2004 

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well-functioning  cross-border  delivery.  The  Commission  will  assess  the  need  for  additional 
measures after a period of two years from adoption of these measures, taking due account of 
progress made. 

The Commission will launch measures in the first half of 2016 to improve price transparency 
and enhance regulatory oversight of parcel delivery.  

2.3. 

Preventing unjustified geo-blocking 

Geo-blocking refers to practices used for commercial reasons by online sellers that result in 
the denial of access to websites based in other Member States. Sometimes consumers are able 
to  access  the  website,  but  still  cannot  purchase  products  or  services  from  it.  The  consumer 
may  also  be  re-routed  to  a  local  website  of  the  same  company  with  different  prices  or  a 
different  product  or  service.  In  other  cases,  where  the  sale  is  not  denied,  geo-localising 
practices are used as a result of which different prices are automatically applied on the basis 
of  geographic  location,  for  example  when  online  car  rental  customers  in  one  Member  State 
pay more for the identical car rental in a given destination than online customers in another 
Member State. Geo-blocking is  one of several  tools  used  by companies  to  segment  markets 
along  national  borders  (territorial  restrictions).  By  limiting  consumer  opportunities  and 
choice, geo-blocking is a significant cause of consumer dissatisfaction and of fragmentation 
of the Internal Market.  

  74%  of  the  complaints  received  by  the  European  Consumer  Centres  Network  regarding  price 
differences or other geographical discrimination faced by consumers relate to online cross-border 
purchases.  

Geo-blocking  practices  may  be  the  result  of  a  unilateral  decision  by  market  players,  of 
agreements among competitors to share the market, or of vertical agreements (for distribution 
rights on a territory). Sometimes these restrictions on supply and ensuing price differentiation 
can be justified, for instance where the seller needs to comply with specific legal obligations. 
However,  in  many  cases  online  geo-blocking  is  not  justified.  These  unjustified  practices 
should be expressly prohibited so that EU consumers and businesses can take full advantage 
of the single market in terms of choice and lower prices.  

The  Commission  will  make  legislative  proposals  in  the  first  half  of  2016  to  end  unjustified 
geo-blocking. Action could  include targeted change to the e-Commerce  framework4 and the 
framework set out by Article 20 of the Services Directive5. 

The Commission is also launching a Competition Sector Inquiry focusing on the application 
of competition law in the e-commerce area.  

2.4. 
framework  

Better  access  to  digital  content  -  A  modern,  more  European  copyright 

Copyright underpins creativity and the cultural industry in Europe. The EU strongly relies on 
creativity  to  compete  globally  and  is  a  world  leader  in  certain  copyright-intensive  sectors. 
Digital  content  is  one  of  the  main  drivers  of  the  growth  of  the  digital  economy.  56%  of 
Europeans  use  the  internet  for  cultural  purposes  and  spending  on  digital  entertainment  and 

4   Directive 2000/31/EC 
5   Directive 2006/123/EC 

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media  is  predicted  to  see  double  digit  growth  rates  (around  12%)  for  the  next  five  years. 
Behaviour is changing as consumers increasingly view content on mobile devices and expect 
to be able to access content from everywhere and wherever they are.  

Barriers to cross-border access to copyright-protected content services and their portability are 
still  common,  particularly  for  audiovisual  programmes.  As  regards  portability,  when 
consumers  cross  an  internal  EU  border  they  are  often  prevented,  on  grounds  of  copyright, 
from using the content services (e.g. video services) which they have acquired in their home 
country. 

  45% of companies considering  selling digital  services online to  individuals stated that copyright 

restrictions preventing them from selling abroad are a problem. 

  Less than 4% of all video on demand content in the EU is accessible cross-border. 

In  addition,  when  trying  to  access  or  purchase  online  copyright-protected  content  from 
another  Member  State,  consumers  are  sometimes  told  that  it  is  unavailable  or  cannot  be 
accessed  from  their  own  country.  This  situation  is  partly  linked  to  the  territoriality  of 
copyright  and  difficulties  associated  with  the  clearing  of  rights.  In  other  cases,  the  lack  of 
availability and/or access may result from contractual restrictions between rights holders and 
distributors, or from business decisions taken by distributors. This may sometimes be due to 
the role territorial exclusivity plays in the financing of certain types of (audiovisual) works.  

Innovation in research for both non-commercial and commercial purposes, based on the use 
of text and data mining (e.g. copying of text and datasets in search of significant correlations 
or  occurrences)  may  be  hampered  because  of  an  unclear  legal  framework  and  divergent 
approaches  at  national  level.  The  need  for  greater  legal  certainty  to  enable  researchers  and 
educational  institutions  to  make  wider  use  of  copyright-protected  material,  including  across 
borders,  so  that  they  can  benefit  from  the  potential  of  these  technologies  and  from  cross-
border collaboration will be assessed, as with all parts of the copyright proposals in the light 
of its impact on all interested parties.  

An effective and balanced civil enforcement system against commercial scale infringements 
of  copyright  is  central  to  investment  in  innovation  and  job  creation.  In  addition  the  rules 
applicable  to  activities  of  online  intermediaries  in  relation  to  copyright  protected  works 
require  clarification,  given  in  particular  the  growing  involvement  of  these  intermediaries in 
content  distribution.  Measures  to  safeguard  fair  remuneration  of  creators  also  need  to  be 
considered in order to encourage the future generation of content.  

Europe needs a more harmonised copyright regime which provides incentives to create and 
invest  while  allowing  transmission  and  consumption  of  content  across  borders,  building  on 
our  rich  cultural  diversity.  To  this  end,  the  Commission  will  propose  solutions  which 
maximise  the  offers  available  to  users  and  open  up  new  opportunities  for  content  creators, 
while  preserving  the  financing  of  EU  media  and  innovative  content.  Furthermore,  the 
Commission  will  review  the  satellite  and  cable  directive6  to  assess  the  need  to  enlarge  its 
scope to broadcasters' online transmissions and the need to tackle further measures to ensure 
enhanced cross-border access to broadcasters' services in Europe.  

6   Council Directive 93/83/EEC of 27 September 1993 

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The  Commission  will  make  legislative  proposals  before  the  end  of  2015  to  reduce  the 
differences between national copyright regimes and allow for wider online access to works by 
users across the EU, including through further harmonisation measures. The proposals will 
include: (i) portability of legally acquired content, (ii) ensuring cross-border access to legally 
purchased online services while respecting the value of rights in the audiovisual sector, (iii) 
greater legal certainty for the cross-border use of content for specific purposes (e.g. research, 
education, text and data mining, etc.) through harmonised exceptions,(iv) clarifying the rules 
on the activities of intermediaries in relation to copyright-protected content and, in 2016, (v) 
modernising  enforcement  of  intellectual  property  rights,  focusing  on  commercial-scale 
infringements (the 'follow the money' approach) as well as its cross-border applicability.   

2.5. 

Reducing VAT related burdens and obstacles when selling across borders 

The  complications  of  having  to  deal  with  many  different  national  systems  represent  a  real 
obstacle for companies trying to trade cross-border both on and offline. Since 1 January 2015, 
with the entry into force of new "place of supply" rules (backed unanimously by 28 Member 
States), VAT on all telecommunications, broadcasting and electronic services is levied where 
the customer is based, rather than where the supplier is located.  

In parallel, an electronic registration and payment system has been implemented to reduce the 
costs  and  administrative  burdens  for  businesses  concerned.  This  should  be  extended  to 
tangible  goods  ordered  online  both  within  and  outside  the  EU.  Instead  of  having  to  declare 
and pay VAT to each individual Member State where their customers are based, businesses 
would be able to make a single declaration and payment in their own Member State.  

Currently  goods  ordered  online  from  third  country  suppliers  can  benefit  from  the  small 
consignment import exemption allowing shipment free of VAT to EU private customers. This 
gives  them  a  competitive  advantage  over  EU  suppliers  and  market  distortions  have  already 
been  signalled  in  various  Member  States.  Such  an  exception  would  no  longer  be  needed  if 
VAT were to be collected through a single and simplified electronic registration and payment 
mechanism.  

  An EU business wishing to make cross-border sales faces a VAT compliance cost of at least EUR 

5,000 annually for each targeted Member State.  

  EU  businesses  face  significant  distortions  from  VAT  free  goods  supplied  by  non-EU  business. 

These distortions cost EU business turnover of up to EUR 4.5 billion annually.  

The Commission is working to minimise burdens attached to cross-border e-commerce arising 
from  different  VAT  regimes,  provide  a  level  playing  field  for  EU  business  and  ensure  that 
VAT  revenues  accrue  to  the  Member  State  of  the  consumer.  The  Commission  will  also 
explore  how  to  address  the  tax  treatment  of  certain  e-services,  such  as  digital  books  and 
online publications, in the context of the general VAT reform. 

In addition, as regards direct taxation, the Commission will shortly present an Action Plan on 
a renewed approach for corporate taxation in the Single Market, under which profits should be 
taxed where the value is generated, including in the digital economy. 

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The Commission will make legislative proposals in 2016 to reduce the administrative burden 
on  businesses  arising  from  different  VAT  regimes  including  (i)  extending  the  current  single 
electronic registration and payment mechanism to intra-EU and 3rd country online sales of 
tangible goods, (ii) introducing a common EU-wide simplification measure (VAT threshold) 
to  help  small  start-up  e-commerce  businesses,  (iii)  allowing  for  home  country  controls 
including a single audit of cross-border businesses for VAT purposes and (iv) removing the 
VAT exemption for the importation of small consignments from suppliers in third countries. 

3. 

CREATING  THE  RIGHT  CONDITIONS  AND  A  LEVEL  PLAYING  FIELD  FOR  ADVANCED 
DIGITAL NETWORKS AND INNOVATIVE SERVICES 

The  Digital  Single  Market  must  be  built  on  reliable,  trustworthy,  high-speed,  affordable 
networks and services that safeguard consumers' fundamental rights to privacy and personal 
data  protection  while  also  encouraging  innovation.  This  requires  a  strong,  competitive  and 
dynamic telecoms sector to carry out the necessary investments, to exploit innovations such as 
Cloud computing, Big Data tools or the Internet of Things. The market power of some online 
platforms potentially raises concerns, particularly in relation to the most powerful platforms 
whose importance for other market participants is becoming increasingly critical. 

3.1.  Making the telecoms rules fit for purpose 

ICT networks provide the backbone for digital products and services which have the potential 
to  support  all  aspects  of  our  lives,  and  drive  Europe's  economic  recovery.  Well-functioning 
markets  deliver  access  to  high-performance  fixed  and  wireless  broadband  infrastructure,  at 
affordable  prices.  Successive  adaptations  of  the  EU's  telecoms  rules  combined  with  the 
application of EU competition rules, have been instrumental in ensuring that markets operate 
more  competitively,  bringing  lower  prices  and  better  quality  of  service  to  consumers  and 
businesses. Effective competition is a key driver for investment in telecoms networks.  

Today,  the  sector  is  undergoing  structural  changes  and  still  suffers  from  isolated  national 
markets,  a  lack  of  regulatory  consistency  and  predictability  across  the  EU,  particularly  for 
radio spectrum, and lack of sufficient investment notably in rural areas, problems which will 
not be fully resolved in the context of the ongoing discussions on the Telecoms Single Market 
package. Therefore with a view to injecting greater ambition in this process, the Commission 
will review all of the existing legislation and make proposals for changes where necessary. A 
first  essential  step  is  the  adoption  of  the  Telecoms  Single  Market  package  which  the 
Commission expects will provide clear and harmonized rules for net neutrality and will set in 
motion the final elimination of roaming surcharges in particular for data.  

Radio  spectrum  is  a  vital  building  block  for  the  deployment  of  broadband  services.  It  is 
managed  at  national  level  and  Member  States  receive  valuable  revenues  from  the  sale  of 
spectrum rights – and these revenues will remain exclusively with Member States. However, 
national  spectrum  management  results  in  widely  varying  conditions  (e.g.  different  licence 
durations, coverage requirements): the absence of consistent EU-wide objectives and criteria 
for  spectrum  assignment  at  national  level  creates  barriers  to  entry,  hinders  competition  and 
reduces  predictability  for  investors  across  Europe.  Therefore,  the  radio  spectrum  should  be 
managed by Member States under a more harmonised framework that is consistent with the 
need for a Digital Single Market. 

9 

 
The  Commission  will  make  specific  proposals  regarding  the  coordinated  release  of  the  700 
MHz band, which is particularly well-suited for ensuring the provision of broadband services 
in rural areas, while accommodating the specific needs of audiovisual media distribution.  

However,  more  fundamental  change  is  also  necessary  in  the  way  spectrum  is  managed  and 
regulated  given  its  vital  importance  for  connectivity.  For  example,  the  slow  and  still 
incomplete release of the 800 MHz band (the original "digital dividend" spectrum band) for 
wireless  broadband  has  impeded  the  roll-out  of  4G  mobile  networks  and  the  uptake  of 
smartphones adapted for this band.   

In addition, little full "infrastructure competition" has emerged in fixed-line networks, except 
in very densely populated areas, where cable networks were already present, or where local 
authorities have been active. There is a need for simpler and more proportionate regulation in 
those  areas  where  infrastructure  competition  has  emerged  at  regional  or  national  scale.  The 
deployment  of  very  high  capacity  networks  needs  to  be  encouraged  while  maintaining 
effective competition and adequate returns relative to risks. The question of how to cover the 
most  inaccessible  areas  and  to  realise  public-interest  objectives  (like  high-capacity 
connectivity for schools and universities/research hubs) will be considered, also as part of the 
review of the Universal Service Directive.7 

The changing market and technological environment calls for strengthening the institutional 
framework.  Enhancing  the  role  of  bodies  in  which  the  Member  States'  authorities  are 
themselves  represented  –  such  as  the  Body  of  European  Regulators  for  Electronic 
Communications or the Radio Spectrum Policy Group will also be required. 

Telecoms  operators  compete  with  services  which  are  increasingly  used  by  end-users  as 
substitutes  for  traditional  electronic  communications  services  such  as  voice  telephony,  but 
which  are  not  subject  to  the  same  regulatory  regime.  The  review  of  the  telecoms  rules  will 
look  at  ways  of  ensuring  a  level  playing  field  for  players  to  the  extent  that  they  provide 
competing services and also of meeting the long term connectivity needs of the EU.  

The  Commission  will  present  proposals  in  2016  for  an  ambitious  overhaul  of  the  telecoms 
regulatory framework focusing on (i) a consistent single market approach to spectrum policy 
and management (ii) delivering the conditions for a true single market by tackling regulatory 
fragmentation  to  allow  economies  of  scale  for  efficient  network  operators  and  service 
providers and effective protection of consumers, (iii) ensuring a level playing field for  market 
players  and  consistent  application  of  the  rules,  (iv)  incentivising  investment  in  high  speed 
broadband networks (including a review of the Universal Service Directive) and (v) a more 
effective regulatory institutional framework. 

3.2. 

A media framework for the 21st century 

The audiovisual landscape is affected by rapid technological changes and by the development 
of new business models for content distribution. Viewers access audiovisual  content via the 
Internet  in  an  increasing  variety  of  ways,  and  portable  devices  (such  as  smart  phones)  are 
changing  viewing  patterns.  The  Audiovisual  Media  Services  Directive8  has  facilitated  the 
circulation  of  audiovisual  programmes  and  media  services  across  the  EU.  The  scope  of  the 

7   Directive 2002/22/EC 
8   Directive 2010/13/EU 

10 

 
                                                 
Directive  already  covers  both  traditional  television  broadcasts  and  on-demand  audiovisual 
media  services,  and  imposes  a  set  of  minimum  rules  on  both  types  of  services.  In  some 
respects,  however,  on-demand  services  are  subject  to  lower  obligations,  since  users  have  a 
higher degree of choice and control over the content and the time of viewing. 

This  regulatory  framework  has  facilitated  the  emergence  of  a  vibrant  market  and  it  is 
important to ensure  that it  fully keeps up with market and  technological developments. The 
Commission  will  examine  whether  the  current system  of  rules  applying  to  broadcast  and  to 
on-demand services should be adapted. It will also consider whether the current scope or the 
rules  should  be  broadened  to  encompass  new  services  and  players  that  are  currently  not 
considered as audiovisual media services under the Directive and/or providers that fall outside 
its  current  geographical  scope.  The  Commission  will  also  work  on  measures  to  promote 
catalogues of European works on Video on Demand platforms. 

The  Commission  will  review  the  Audiovisual  Media  Services  Directive  with  a  focus  on  its 
scope and on the nature of the rules applicable to all market players, in particular measures 
for the promotion of European works, and the rules on protection of minors and advertising 
rules.  

3.3. 

A fit for purpose regulatory environment for platforms and intermediaries  

3.3.1.  Role of online platforms 

Online platforms (e.g. search engines, social media, e-commerce platforms, app stores, price 
comparison websites) are playing an ever more central role in social and economic life: they 
enable  consumers  to  find  online  information  and  businesses  to  exploit  the  advantages  of  e-
commerce. Europe has a strong potential in this area but is held back by fragmented markets 
which make it hard for businesses to scale-up. 

Platforms  generate,  accumulate  and  control  an  enormous  amount  of  data  about  their 
customers and use algorithms to turn this into usable information. The growth of such data is 
exponential – 90% of all data circulating on the Internet were created less than 2 years ago. 
Moreover,  platforms  have  proven  to  be  innovators  in  the  digital  economy,  helping  smaller 
businesses  to  move  online  and  reach  new  markets.  New  platforms  in  mobility  services, 
tourism, music, audiovisual, education, finance, accommodation and recruitment have rapidly 
and  profoundly  challenged  traditional  business  models  and  have  grown  exponentially.  The 
rise  of  the  sharing  economy  also  offers  opportunities  for  increased  efficiency,  growth  and 
jobs,  through  improved  consumer  choice,  but  also  potentially  raises  new  regulatory 
questions.9  

Although  their  impact  depends  on  the  types  of  platform  concerned  and  their  market  power, 
some  platforms  can  control  access  to  online  markets  and  can  exercise  significant  influence 
over how various players in the market are remunerated. This has led to a number of concerns 
over the growing market power of some platforms. These include a lack of transparency as to 
how they use the information they acquire, their strong bargaining power compared to that of 
their  clients,  which  may  be  reflected  in  their  terms  and  conditions  (particularly  for  SMEs), 
promotion  of  their  own  services  to  the  disadvantage  of  competitors,  and  non-transparent 
pricing policies, or restrictions on pricing and sale conditions.  

9   These will be addressed in the up-coming Internal Market Strategy and in the e-commerce framework. 

11 

 
                                                 
Some  online  platforms  have  evolved  to  become  players  competing  in  many  sectors  of  the 
economy  and  the  way  they  use  their  market  power  raises  a  number  of  issues  that  warrant 
further analysis beyond the application of competition law in specific cases.  

3.3.2.  Combatting illegal content on the Internet  

The  principle,  enshrined  in  the  e-Commerce  Directive,  that  Internet  intermediary  service 
providers should not be liable for the content that they transmit, store or host, as long as they 
act in a strictly passive manner has underpinned the development of the Internet in Europe. At 
the  same  time  when  illegal  content  is  identified,  whether it  be information related to  illegal 
activities such as terrorism/child pornography or information that infringes the property rights 
of others (e.g. copyright), intermediaries should take effective action to remove it. Today the 
disabling of access to and the removal of illegal content by providers of hosting services can 
be slow and complicated, while content that is actually legal can be taken down erroneously. 
52.7%  of  stakeholders  say  that  action  against  illegal  content  is  often  ineffective  and  lacks 
transparency.  Differences  in  national  practices  can  impede  enforcement  (with  a  detrimental 
effect on the fight against online crime) and undermine confidence in the online world. As the 
amount of digital content available on the Internet grows, current arrangements are likely to 
be increasingly tested. It is not always easy to define the limits on what intermediaries can do 
with the content that they transmit, store or host before losing the possibility to benefit from 
the exemptions from liability set out in the e-Commerce Directive.  

Recent  events  have  added  to  the  public  debate  on  whether  to  enhance  the  overall  level  of 
protection  from  illegal  material  on  the  Internet.  In  tandem  with  its  assessment  of  online 
platforms, the Commission will analyse the need for new measures to tackle illegal content on 
the Internet, with due regard to their impact on the fundamental right to freedom of expression 
and information, such as rigorous procedures for removing illegal content while avoiding the 
take  down  of  legal  content,  and  whether  to  require  intermediaries  to  exercise  greater 
responsibility and due diligence in the way they manage their networks and systems – a duty 
of care.   

The Commission will launch before the end of 2015 a comprehensive assessment of the role of 
platforms, including in the sharing economy, and of online intermediaries, which  will cover 
issues  such  as  (i)  transparency  e.g.  in  search  results  (involving  paid  for  links  and/or 
advertisement),  (ii)  platforms'  usage  of  the  information  they  collect,  (iii)  relations  between 
platforms and suppliers, (iv) constraints on the ability of individuals and businesses to move 
from one platform to another and will analyse, (v) how best to tackle illegal content on the 
Internet.  

3.4. 

Reinforcing trust and security in digital services and in the handling of personal 
data 

Cyber  threats  are  a  borderless  problem  and  have  a  negative  impact  on  our  economy,  on 
citizens'  fundamental  rights  and  on  society  at  large.  The  growing  number  of  offences  (for 
instance data interception, online payment fraud, identity theft, trade secrets theft) is leading 
to significant economic losses. They often result in disruption of services, fundamental rights 
violations and undermine citizens' trust in online activities.   

Member States and EU institutions have long acknowledged the need to protect our networks 
and  critical  infrastructure  and  respond  effectively  to  cyber-threats,  and  have  adopted  both 
national  and  EU-level  cybersecurity  strategies  and  regulation.  The  adoption  of  the  Network 

12 

 
and  Information  Security  Directive10,  currently  in  the  legislative  process,  should  mark  an 
important step forward.  One of the key priorities of the European Cybersecurity Strategy11 is 
to develop industrial and technological resources for cybersecurity. Specific gaps still exist in 
the fast moving area of technologies and solutions for online network security. A more joined-
up approach is therefore needed to step up the supply of more secure solutions by EU industry 
and to stimulate their take-up by enterprises, public authorities, and citizens. In addition, an 
effective law enforcement response to online criminal activity is necessary. The Commission 
has set out proposals for this issue in its European Agenda on Security12. 

  Only  22%  of  Europeans  have  full  trust  in  companies  such  as  search  engines,  social  networking 

sites and e-mail services.  

  72% of Internet users worry that they are being asked for too much personal data online.   

As  regards  personal  data  and  privacy,  the  EU  is  committed  to  the  highest  standards  of 
protection guaranteed by Articles 7 and 8 of the Charter of Fundamental Rights. The General 
Data  Protection  Regulation13  will  increase  trust  in  digital  services,  as  it  should  protect 
individuals  with  respect  to  processing  of  personal  data  by  all  companies  that  offer  their 
services on the European market. 

Special rules apply to electronic communications services (e-Privacy Directive14) which may 
need  to  be  reassessed  once  the  general  EU  rules  on  data  protection  are  agreed,  particularly 
since  most  of  the  articles  of  the  current  e-Privacy  Directive  apply  only  to  providers  of 
electronic communications services, i.e. traditional telecoms companies. Information society 
service  providers  using  the  Internet  to  provide  communication  services  are  thus  generally 
excluded from its scope. 

In  the  first  half  of  2016  the  Commission  will  initiate  the  establishment  a  Public-Private 
Partnership  on  cybersecurity  in  the  area  of  technologies  and  solutions  for  online  network 
security.  

Once the new EU rules on data protection are adopted, which should be by the end of 2015, 
the Commission will review the ePrivacy Directive with a focus on ensuring a high level of 
protection for data subjects and a level playing field for all market players.  

4. 

MAXIMISING THE GROWTH POTENTIAL OF THE DIGITAL ECONOMY  

Within  less  than  a  decade,  most  economic  activity  will  depend  on  digital  ecosystems, 
integrating digital infrastructure, hardware and software, applications and data. Digitisation of 
all sectors will be needed if the EU is to maintain its competitiveness, keep a strong industrial 
base and manage the transition to a smart industrial and services economy. 75% of the value 
added by the Digital Economy comes from traditional industries, rather than ICT producers, 
but the integration of digital technology by businesses is the weakest element. Only 1.7% of 
EU enterprises make full use of advanced digital technologies15, while 41% do not use them 

10   COM(2013) 48 final 
11   JOIN(2013) 1 final 
12   COM(2015) 185 
13   COM(2012)11 final 
14   Directive 2002/58/EC 
15   Including mobile internet, cloud computing, social networks or big data 

13 

 
                                                 
at all. Digitisation also offers unprecedented opportunities to other economic sectors, such as 
transport (e.g. intelligent transport systems) or energy (e.g. smart grids, metering)16. 

The  EU  needs  a  range  of  measures  to  ensure  European  industries  are  at  the  forefront  of 
developing  and  exploiting  ICT,  automation,  sustainable  manufacturing  and  processing 
technologies to serve the markets of the future. A digital economy can also make society more 
inclusive.  Citizens  and  businesses  are  not  currently  getting  the  full  benefits  from  digital 
services  (from  e-government,  e-health,  e-energy  to  e-transport)  that  should  be  available 
seamlessly across the EU.  

The Commission will inform the social partners and invite them to include the Digital Single 
Market in their social dialogue at European level. 

4.1. 

Building a data economy 

Big data,  cloud services and the Internet  of Things  are central to  the EU’s competitiveness. 
Data is often considered as a catalyst for economic growth, innovation and digitisation across 
all  economic  sectors,  particularly  for  SMEs  (and  start-ups)  and  for  society  as  a  whole.  Big 
Data and High Performance Computing are also changing the way research is performed and 
knowledge  is  shared,  as  part  of  a  transition  towards  a  more  efficient  and  responsive  'Open 
Science'.  

  The Big Data sector is growing by 40% per year, seven times faster than the IT market. 

A fragmented market does not provide sufficient scale for cloud computing, Big Data, data-
driven  science  and  the  Internet  of  Things  to  reach  their  full  potential  in  Europe.  To  benefit 
fully from the potential of digital and data technologies, we will need to remove a series of 
technical  and  legislative  barriers.  Restrictions,  such  as  those  related  to  data  location  (i.e. 
Member  States  requirements  to  keep  data  inside  their  territory)  force  service  providers  to 
build  expensive  local  infrastructures  (data  centres)  in  each  region  or  country.  Fragmented 
implementation of copyright rules and lack of clarity over rights to use data further obstruct 
the development of cross-border data use and new applications of technologies (e.g. text and 
data mining). The lack of open and interoperable systems and services and of data portability 
between  services  represents  another  barrier  for  the  cross-border  flow  of  data  and  the 
development  of  new  services  (e.g.  multi-modal  travel  information  systems,  data-driven 
science). Legal certainty as  to  the allocation of liability (other than personal data related)  is 
important for the roll-out of the Internet of Things.    

Businesses  and  consumers  still  do  not  feel  confident  enough  to  adopt  cross-border  cloud 
services  for storing  or  processing data, because of concerns relating to  security, compliance 
with  fundamental  rights  and  data  protection  more  generally.  The  adoption  of  the  data 
protection  reform  package  will  ensure  that  the  processing  of  personal  data  is  governed  by 
uniform, up-to-date rules throughout the Union. However, contracts often exclude, or severely 
limit,  the  contractual  liability  of  the  cloud  provider  if  the  data  is  no  longer  available  or  is 
unusable,  or  they  make  it  difficult  to  terminate  the  contract.  This  means  that  the  data  is 
effectively  not  portable.  In  the  field  of  data  protection,  both  the  current  and  the  future 
legislative frameworks prevent restrictions to the free movement of personal data within the 
Union.  Restrictions  to  free  movement  of  data  on  other  grounds  are  not  addressed.  Member 

16   As referred as in the Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate 

Change Policy [COM(2015) 80 final] 

14 

 
                                                 
States  are  therefore  not  able  to  inhibit  the  free  movement  of  personal  data  on  grounds  of 
privacy  and  personal  data  protection,  but  may  do  so  for  other  reasons.  Any  unnecessary 
restrictions  regarding  the  location  of  data  within  the  EU  should  both  be  removed  and 
prevented.   

The Commission will propose in 2016 a European ‘Free flow of data’ initiative that tackles 
restrictions  on  the  free  movement  of  data  for  reasons  other  than  the  protection  of  personal 
data  within  the  EU  and  unjustified  restrictions  on  the  location  of  data  for  storage  or 
processing  purposes.  It  will  address  the  emerging  issues  of  ownership,  interoperability, 
usability and access to data in situations such as business-to-business, business to consumer, 
machine generated and machine-to-machine data. It will encourage access to public data to 
help  drive  innovation.  The  Commission  will  launch  a  European  Cloud  initiative  including 
cloud services  certification, contracts, switching of  cloud services providers  and a research 
open science cloud.  

4.2. 

Boosting competitiveness through interoperability and standardisation 

In  the  digital  economy,  interoperability  means  ensuring  effective  communication  between 
digital components like devices, networks or data repositories. It also means connecting better 
along  the  supply  chain  or  between  industry  and  services  sectors.  It  means  more  efficient 
connections  across  borders,  between  communities  and  between  public  services  and 
authorities.  E-government  services  that  are  being  developed  in  different  Member  States 
should be able to communicate with each other and not develop in isolation. Today, there is a 
common  understanding  among  Member  States  on  the  basic  requirements  to  achieve 
interoperability,  based  on  the  "European  Interoperability  Framework"  put  forward  by  the 
Commission in 2010. This framework should now be updated and extended. 

Standardisation has an essential role to play in increasing interoperability of new technologies 
within the Digital Single Market. It can help steer the development of new technologies such 
as 5G wireless communications, digitisation of manufacturing (Industry 4.0) and construction 
processes, data driven services, cloud services, cybersecurity, e-health, e-transport and mobile 
payments.  The  EU  Rolling  Plan  for  ICT  Standardisation  is  an  essential  instrument  in  this 
regard.  However,  an  increased  effort  is  needed  to  ensure  that  standardisation  output  keeps 
pace  with  changes  in  technologies.  Currently,  industry  stakeholders  decide  'bottom-up'  in 
which  areas  to  develop  standards  and  this  is  increasingly  taking  place  outside  of  Europe, 
undermining  our  long-term  competitiveness.  We  need  to  define  missing  technological 
standards that are essential for supporting the digitisation of our industrial and services sectors 
(e.g.  Internet  of  Things,  cybersecurity,  big  data  and  cloud  computing)  and  mandating 
standardisation bodies for fast delivery.  

In  the  digital  economy,  standard  essential  patents  (standards  that  are  based  on  patents  as 
proprietary  rights)  are  an  increasingly  important  feature  in  standardisation  and  an  important 
element of the business model for many industries in terms of monetising their investment in 
research and innovation. The Commission advocates the need for a balanced framework for 
negotiations between right holders and implementers of standard essential patents in order to 
ensure fair licensing conditions. 

Moreover, availability of standards is often not sufficient to ensure interoperability, if existing 
standards  are  not  integrated  by  suppliers  in  their  solutions.  Public  procurement  plays  an 
important role in promoting standards and Member States have created national catalogues of 
ICT-standards  and  interoperability  specifications  to  guide  public  procurers  and  accelerate 

15 

 
standards adoption on national markets. Integrating these catalogues into European catalogues 
would avoid market fragmentation at EU level. 

The  Commission  will  launch  an  integrated  standardisation  plan  to  identify  and  define  key 
priorities for standardisation with a focus on the technologies and domains that are deemed 
to  be  critical  to  the  Digital  Single  Market,  including  essential  sectoral  interoperability  and 
standards  in  areas  such  as  health  (telemedicine,  m-health),  transport  (travel  planning,  e-
freight),  environment,  and  energy.  The  Commission  will  revise  and  extend  the  European 
Interoperability Framework. 

4.3. 

An inclusive e-society 

The  Commission  aims  to  support  an  inclusive  Digital  Single  Market  in  which  citizens  and 
businesses  have  the  necessary  skills  and  can  benefit  from  interlinked  and  multi-lingual  e-
services, from e-government, e-justice, e-health, e-energy or e-transport.  

4.3.1.  Digital skills and expertise 

Demand  for  digitally  skilled  employees  is  growing  by  around  4%  a  year.  Shortages  of  ICT 
professionals in the EU could reach 825,000 unfilled vacancies by 2020 if no decisive action 
is taken. The EU has seen improvements in the basic digital skills of its citizens (increasing 
from 55% to 59% of the population), but still has a long way to go. Digital skill levels need 
also to be raised among employees in all economic sectors and among job seekers to improve 
their employability. Change is needed in the way education and training systems adapt to the 
digital  revolution.  These  changes  can  draw  on  EU-level  initiatives  such  as  the  "Grand 
Coalition for digital jobs", "EU Code Week" and "Opening up Education".  

The responsibility for curricula lies with the Member States which need urgently to address 
the lack of essential digital skills. The Commission will support their efforts and will play its 
role in enhancing the recognition of digital skills and qualifications and increasing the level of 
ICT professionalism in Europe.  

The  Commission  will  address  digital  skills  and  expertise  as  a  key  component  of  its  future 
initiatives on skills and training.  

4.3.2.  E-government  

Public services in Europe have embraced new technologies to varying degrees but more can 
be  done  to  modernise  public  administration,  achieve  cross-border  interoperability  and 
facilitate easy interaction with citizens.   

Online public services are crucial to increasing the cost-efficiency and quality of the services 
provided to citizens and companies. One example of increased efficiency is the 'Once Only' 
principle – only in 48% of cases do public administrations reuse information about the citizen 
or  companies  that  is  already  in  their possession without  asking  again.  The  extension  of  this 
principle, in compliance with data protection legislation, would generate an annual net saving 
at the EU level of around EUR 5 billion per year by 2017. The Commission will launch a pilot 
project for the 'Once-Only' principle for businesses and citizens and explore the possibility of 
an EU wide e-safe solution (a secure online repository for documents). Extending 'Once-Only' 
across borders would further contribute to the efficiency of the Digital Single Market. 

16 

 
Public procurement represents approximately 19% of EU GDP and EU wide e-procurement is 
expected  to  save  EUR  50  billion  annually.  The  2014  public  procurement  reform  package 
foresees a transition to full e-procurement by October 2018.17 Increased efforts are needed to 
meet this target given that in many Member States the transition has started at a slow pace.  

Contact  points  between  public  authorities  and  citizens/businesses  are  currently  fragmented 
and incomplete. The needs of businesses and citizens in their cross-border activities could be 
better  met  by  building  on  the  Digital  Services  Infrastructures  of  the  Connecting  Europe 
Facility  and  extending  and  integrating  existing  European  portals,  networks,  services  and 
systems  (such  as  Your  Europe,  Single  Points  of  Contact,  Product  Contact  Points,  Contact 
Points for Construction Products) and linking them to the "Single Digital Gateway". Further, 
the  use  of  electronic  documents  should  be  promoted  across  the  EU  to  reduce  costs  and 
administrative burden for business and individuals.  

Businesses are held back by regulatory fragmentation and barriers which makes it harder for 
them to scale-up and operate across borders within the Internal Market. Many Member States 
have  called for action including  helping  companies to  be  formed quickly  (e.g. in  24 hours). 
The  Commission  considers  that  any  established  company  should  be  able  to  expand  its 
operations  cross-border  online  and  be  pan-European  within  a  month  building  on  the 
interconnection of business registers and the 'Once-Only' principle18. 

The Commission will present a new e-Government Action Plan 2016-2020 which will include 
(i) making the interconnection of business registers a reality by 2017, (ii) launching in 2016 
an  initiative  with  the  Member  States  to  pilot  the  'Once-Only'  principle;  (iii)  extending  and 
integrating  European  and  national  portals  to  work  towards  a  'Single  Digital  Gateway'  to 
create  a  user  friendly  information  system  for  citizens  and  business  and  (iv)  accelerating 
Member States' transition towards full e-procurement and interoperable e-signatures.  

5. 

DELIVERING THE DIGITAL SINGLE MARKET 

Building  a  Digital  Single  Market  is  a  key  part  of  the  EU's  strategy  to  prepare  itself  for  the 
future and to continue to deliver high living standards for its population. It requires political 
will  and  means  delivering  on  the  actions  set  out  in  this  Strategy.  It  requires  mobilising  the 
necessary funds and resources and establishing a governance structure among the key actors 
to  ensure  effective  delivery  by  the EU  institutions,  Member  States  and  stakeholders.  Where 
there is already sufficient evidence of barriers that need to be removed the Commission will 
table  legislative  proposals  and  take  initiatives  to  put  the  scale  of  the  single  market  at  the 
service of the consumer  and business.  Where  further  consultation and  evidence gathering is 
needed in order to identify the right course of action the Commission will engage stakeholders 
in  discussing  the  options  available.  This  agenda  calls  for  the  Commission,  Parliament  and 
Member States to work together and to take ambitious steps. 

5.1. 

Investing in the Digital Single Market  

A  key  aim  of  the  Digital  Single  Market  Strategy  is  to  establish  a  supportive  investment 
climate  for  digital  networks,  research  and  innovative  business.  Setting  the  right  framework 
conditions  will  help  to  mobilise  private  investment  and  generate  investor  confidence. 

17   Directive 2014/24/EU, Directive 2014/25/EU 
18   The Commission will further elaborate the steps necessary to reach these goals in its Single Market Strategy 

17 

 
                                                 
Achieving  our  digital  ambitions  will  require  significant  investment.  EU  funding  is  already 
earmarked for Digital Single Market infrastructures and services as well as for research and 
innovative  SMEs  (including  start-ups).  The  European  Structural  and  Investment  Funds  are 
expected to programme around EUR 21.4 billion in this area. Particular efforts are needed to 
close the digital gap between urban and rural areas. Complementing current EU programmes, 
the European Fund for Strategic Investment19 is designed to support a wide range of digital 
projects, in particular due to their high innovation and research component (and thus higher 
risk).  Significant  additional  funding  possibilities  are  provided  by  the  European  Investment 
Bank and the European Investment Fund.  

Innovative entrepreneurs are central to the digital economy. To succeed they need increased 
access  to  finance  including  equity  and  venture  capital.  The  EU  has  put  in  place  a  range  of 
initiatives to support equity based finance, including regulatory vehicles such as the European 
Venture  Capital  Funds  Regulation.  However,  further  work  is  needed  to  make  appropriate 
financing  available  as  the  current  diversity  of  company  statutes  and  related  legal  risks  and 
costs across Europe tend to inhibit investment in EU start-up ventures and to further scaling 
up of their business20.  

Taking  into  account  the  experience  of  past  under-absorption  of  EU  funds  programmed  for 
investment  in  ICT,  the  Commission  will  work  with  the  European  Investment  Bank,  project 
promoters  and  Member  States  to  ensure  that  available  investment  funds  are  fully  used, 
including technical assistance and the full use of synergies between funding instruments.  

5.2. 

International dimension 

The scale provided by a completed Digital Single Market will help companies to grow beyond 
the  EU  internal  market  and  make  the  EU  an  even  more  attractive  location  for  global 
companies. The openness of the European market should be maintained and developed further 
in  the  digital  sphere.  The  EU  should  continue  to  press  for  the  same  openness  and  effective 
enforcement of intellectual property rights from our trading partners. Barriers to global digital 
trade  particularly  affect  European  companies  since  the  EU  is  the  world’s  first  exporter  of 
digital services. To that end an ambitious digital trade and investment policy should be further 
developed  including  by  means  of  the  EU’s  free  trade  agreements.21  A  completed  Digital 
Single  Market  can  also  contribute  to  delivering  the  post-2015  development  agenda.  The 
Commission will work to develop a sustainable approach to Internet Governance through the 
multi-stakeholder model with the aim of keeping the Internet free and open.  

5.3. 

Effective Digital Single Market governance 

Reflecting  the  shared  responsibility  for  timely  delivery  of  the  actions  in  the  strategy,  the 
Commission  will  engage  with  the  European  Parliament  and  the  Council  and  deepen  its 
cooperation with both institutions. The Commission will engage in an ongoing dialogue with 
stakeholders  to  inform  on  policy-making  and  to  ensure  effective  implementation  of  the 
Strategy.  Given  the  cross-cutting  nature  of  the  Digital  Single  Market  Strategy,  its 
implementation  will  require  the  support  of  dedicated  advisory  and  support  groups.  The 

19   COM(2014) 903 final 
20   The Commission will explore avenues to attract more venture capital in the context of its work on the Single 

Market Strategy and the Capital Markets Union [COM(2015) 63] 

21   The Commission will present a new Trade and Investment Strategy in the autumn 2015 which will address 

key issues for the digital trade agenda 

18 

 
                                                 
Commission encourages the European Council to provide the necessary impetus and review 
progress  regularly.  The  Commission  will  also  seek  to  improve  the  quality  of  the  data  and 
analysis needed to underpin the Digital Single Market by pooling the relevant knowledge and 
making  it  easily  accessible  to  the  public.  It  will  further  develop  its  Digital  Economy  and 
Society Index indicator. The Commission will report regularly on progress for the Strategy.  

6. 

CONCLUSION 

The strategy for a Digital Single Market is about transforming European society and ensuring 
that it can face the future with confidence. The Commission invites the European Parliament 
and  the  Council  to  endorse  this  Strategy  to  complete  the  Digital  Single  Market  as  soon  as 
possible and to actively engage in its implementation, in close cooperation with all relevant 
stakeholders. 

19 

 
 
 
Annex: Roadmap for completing the Digital Single Market 

Actions22 

Timetable 

Better access for consumers and businesses to digital goods and services across Europe 

Legislative  proposals  for  simple  and  effective  cross-border  contract  rules  for 
consumers and businesses   

Review the Regulation on Consumer Protection Cooperation 

Measures in the area of parcel delivery 

A  wide  ranging  review  to  prepare  legislative  proposals  to  tackle  unjustified 
Geo-blocking 

Competition  sector  inquiry  into  e-commerce,  relating  to  the  online  trade  of 
goods and the online provision of services  

Legislative proposals for a reform of the copyright regime 

Review of the Satellite and Cable Directive 

Legislative proposals to reduce the administrative burden on businesses arising 
from different VAT regimes  

2015 

2016 

2016 

2015 

2015 

2015 

2015/2016 

2016 

Creating the right conditions for digital networks and services to flourish 

Legislative proposals to reform the current telecoms rules  

Review the Audiovisual Media Services Directive 

Comprehensive analysis of the role of platforms in the market including illegal 
content on the Internet 

Review the e-Privacy Directive  

Establishment of a Cybersecurity contractual Public-Private Partnership 

Maximising the growth potential of the Digital Economy 

Initiatives  on data ownership, free flow of data (e.g. between cloud providers) 
and on a European Cloud 

Adoption of a Priority ICT Standards Plan and extending the European 
Interoperability Framework for public services 

New  e-Government  Action  Plan  including  an  initiative  on  the  'Once-Only' 
principle  and  an  initiative  on  building  up  the  interconnection  of  business 
registers 

2016 

2016 

2015 

2016 

2016 

2016 

2015 

2016 

22   To the extent that the listed measures are likely to have significant impacts they will be accompanied by a 

separate impact assessment in line with the Commission's Better Regulation principles 

20