Nummer: 166

Innovation and digitalisation driven by Better Regulation

The von der Leyen Commission has taken great steps in the effort to make Europe fit for the Digital Age under the purvey of executive vice president Vestager. The ambition to set global standards and ambitious agenda on digital regulation has been felt by businesses and users alike.  

The legal framework is of great importance for protection of users/consumers, the development of innovation and digitalisation in the EU. Regulation can be a driving force for innovation and digitisation in Europe if the legislation is well drafted, flexible, and continuously updated. Ensuring consumer trust in the digital arena is a prerequisite for there being any market at all. But regulation can also be a barrier if the legislation contains too detailed or rigid requirements (use of specific technologies or detailed requirements) or if the legislation is outdated and out of touch with market developments.

Business-friendly legislation is therefore a competitive parameter for European companies. It is necessary to create regulation that achieves policy goals in a balanced way so that companies can comply with new rules in a manner that does not put excessive or needless burdens on the companies. 

Additionally, use of new technology is an area with great impact on employees in the majority of companies, which makes it even more important that the legislation is fit-for- purpose. 

Hence, we welcome and encourage the coming Commission to continue efforts in setting an ambitious digital agenda – and acknowledge the need to create stronger and clearer regulatory framework conditions in order to ensure adequate protection for users, consumers, citizens and employees, more ‘digital sovereignty’ as well as free and fair competition and a level playing field. At the same time, it is critical to ensure that regulation doesn’t happen at the expense of European companies’ ability to innovate. We do see an increasing risk for this and encourage the Commission to take active measures to systematically ensure that the legislation serves its purpose whilst at the same time ensuring a more innovation-friendly regulation.

Responsible digitalisation can become a European trademark and a competitive advantage globally – but only if regulation is crafted with care.

Dato:
13. september 2023
Type af anbefaling:
Tidlig interessevaretagelse i EU
Tema:
Tidlig interessevaretagelse
Ansvarlig ministerium:
Erhvervsministeriet
Status på anbefaling:
Følges

The affected EU-Regulation

Any regulation that concerns the digital area or any area in which digitalisation is a considerable component.
According to the Better Regulation Toolbox, impact on research and innovation must be considered when drafting and revising legislation in all policy areas. In addition, examples are outlined of how consultations, impact assessments and policies should be prepared to take innovation into account.
 

The affected Danish regulation

The current Danish government has appointed the first Minister for Digitalisation and pooled responsibility here. The new ministry is expected to present a new digital strategy for Denmark, which will likely have one or more initiatives aimed at Denmark’s role in the EU and digital EU regulation. The new minister has highlighted the EU regulatory digital agenda as a top priority – as well as the need to ensure more balanced and innovation friendly regulation. We strongly support this. As mentioned above it is vital to ensure a proper level of protection of consumers (particularly children and youth), citizens and business users to build trust in the digital arena.
 

Affected businesses

All industries have undergone significant changes and some have been revolutionised by new technology, business models and digital solutions.

Products and services are increasingly making use of digital solutions. These play an important role in resolving major societal challenges such as climate change, energy, and resource shortage.

As stated above, we believe responsible digitalisation can become a European trademark and a competitive advantage globally if regulation is crafted with care. 

Moreover, a responsible approach to implementation of technology and use of data will benefit consumers, users, citizens, and employees alike.
 

Reasoning behind the recommendation

Around 70% of business regulation in Denmark originates from commonly decided EU legislation. Much of this regulation is focused on the digital agenda. If Danish and European companies are to remain strong in the fierce global competition, a unified EU approach is needed. It is essential that balanced regulation becomes a high priority for a new Commission and that new regulation is developed in concert with all relevant stakeholders.
 

Expected consequences for industry and commerce

Innovation and digitisation are some of the key prerequisites for growth in Europe. That increases our global competitiveness, creates jobs and is ultimately the basis of our welfare.

The EU has fallen far behind in the global competition when it comes to innovation. The EU is up against other fast-moving markets such as China and the USA. If the EU is to continue setting standards for responsible use of technology, it requires EU regulation that supports innovation and digitalisation.
 

Current Danish efforts 

As stated above, the new minister has highlighted the EU regulatory digital agenda as a top priority to build trust with consumers – as well as the need to ensure more balanced and innovation friendly regulation, whilst ensuring that the policy goals are achieved. We strongly support this. 

 

The digital regulation packages and proposals put forth by the von der Leyen Commission have tackled numerous areas e.g., privacy and personal data protection, cyber security, data sharing, AI etc. 

This means that legislation has affected virtually all EU businesses one way or another. Especially for firms with activities across borders, the need for harmonisation has never been greater. 

We therefore propose that the importance of harmonised implementation between Member States is stressed – especially for directives. Meanwhile better regulation principles such as use of regulatory sandboxes, thorough impact assessments, adequate implementation time etc. are more consistently used across regulatory proposals. 

We encourage the Commission to take active measures to systematically ensure that the legislation serves its purpose whilst at the same time ensuring a more innovation-friendly regulation.

At the same time, we would encourage to continue the path of stronger transatlantic coordination and harmonisation, including via the TTC. Priority should – both for the sake of our joint economic competitiveness as well as for geopolitical reasons – be given to e.g., areas such as AI standards and increased regulatory collaboration on cyber security.

Regeringen tiltræder anbefalingen. Regeringen vil arbejde for, at EU Kommissionen fokuserer mere på at skabe innovations- og digitaliseringsvenlig regulering uden unødige barrierer og byrder for virksomheder. Formålsbestemt regulering vil ligeledes effektivisere medlemsstaternes implementeringsindsatser og skabe mindre fragmentering på det indre marked. Regeringen vil arbejde for at optimere virksomheders mulighed for digital og automatisk udveksling af virksomhedsdata på tværs af grænser i EU (f.eks. i forbindelse med handel og rapportering) gennem fx standardisering og automatiseringsvenlig lovgivning.