Take stock and take action on better digital regulation for SMEs in the EU
The new EU digital rulebook touches all dimensions of the digital economy. It aims to significantly improve competition and consumer protection in areas such as digital platforms, AI, product safety and data. However, this extensive regulatory framework might hinder unnecessarily SMEs due to overlaps and inconsistencies. Today, Minister Dirk Beljaarts of Economic Affairs of the Netherlands called on the European Commission to address better digital regulation together with Belgium, Germany, Estonia, Finland, Greece, Ireland, Slovakia and Sweden at the EU Telecommunications Council (TTE) in Brussels.
In the most recent Competitiveness Council the EU ministers agreed that a 25% reduction in regulatory burden should indeed be a common target for the new European Commission. The Netherlands therefore endorses the initiative of new EU Commissioner Virkkunen to analyze whether the digital rulebook is fit for purpose and identify whether the digital acquis reflects the needs of SMEs. As far as the Netherlands is concerned, preferably within the first 100 days of the new Commission.
Minister Dirk Beljaarts (Economic Affairs): “A comprehensive rulebook regarding the EU digital internal market is important to all entrepreneurs. To achieve growth opportunities, to promote fair digital competition and to improve and enhance consumer protection. Now that the regulatory framework touches all dimensions of the digital economy, the coming period should be used to take stock and take action.”
The minister continues: “SMEs that do digital business, for example, often do not know where to start and have no legal capacity either. So how do you know which digital rulebook applies to you and what that means for your business? We need to determine if it’s fit for purpose and tackle regulatory burden. And if there are inconsistencies or overlaps in the digital acquis, the removal of these can be addressed at EU level.”
The nine EU member states, including the Netherlands, are calling on the European Commission to invest in targeted panel discussions with digital SMEs to identify disproportionate burdens. But also to gather examples of legal definitions of often used terms in the digital acquis such as: ‘platform’, ‘data’ and ‘systemic risk’. And to consider using AI through large language models to identify areas for consolidation and simplification in the digital rulebook.
Example: a cybersecurity company
An EU cybersecurity entrepreneur is increasingly applying artificial intelligence (AI) technology – which they develop themselves – in their product and selling it to telecom companies, banks and governments within the EU. As a result, within a few years, they will have to comply for example with the regulatory framework for privacy protection (GDPR), AI Act, cybersecurity directives, the Data Act but also the sectoral rules that apply to their customer.
Originally published at https://www.government.nl/latest/news/2024/12/06/take-stock-and-take-action-on-better-digital-regulation-for-smes-in-the-eu
