The term digital single market refers to the policy objective of eliminating national or other jurisdictional barriers to online transactions, building on the common market concept designed to remove trade barriers in other commercial fields.
On 6 May 2015, the European Commission, led at the time by Jean-Claude Juncker, established the Digital Single Market Strategy, intended to remove virtual borders, boost digital connectivity, and make it easier for consumers to access cross-border online content across the European Union.European Economic and Social Committee, "The digital single market - trends and opportunities for SMEs (own-initiative opinion)", published on 18 September 2020, https://www.eesc.europa.eu/en/our-work/opinions-information-reports/opinions/digital-single-market-trends-and-opportunities-smes-own-initiative-opinion, accessed on 17 April 2021. The Digital Single Market, which is one of the Commission's 10 political priorities, aims to fit the EU's single market for the digital age, moving from 28 national digital markets to a single one,EUROSTAT, "What is the Digital Single Market About?", website of Eurostat, https://ec.europa.eu/eurostat/cache/infographs/ict/bloc-4.html, accessed on 18 April 2021. and then opening up digital services to all citizens and strengthen business competitiveness in the digital economy.EU Agenda, "Europe's Digital Single Market Strategy: One Year In", EU Agenda website, https://euagenda.eu/publications/europe-s-digital-single-market-strategy-one-year-in, accessed on 15 April 2021. In other words, the Digital Single Market is a market characterized by ensuring the free movement of people, services and capital and allowing individuals and businesses to seamlessly access and engage in online activities irrespective of their nationality or place of residence. Fair competition conditions and a high level of protection of personal and consumer data are applied.
Building a data economy, boosting competitiveness through interoperability and standardisation, and creating an inclusive e-society can realise the growth potential of the digital economy. According to the commission, investment, the acknowledgement of international dimension, and effective governance are required for the advancing of the Digital Single Market.European Savings Banks Group, "Digital Single Market", website of the ESBG, https://www.wsbi-esbg.org/Positions/Payments/Pages/DigitalMarketStrategy.aspx , accessed on 21 April 2021. A fully operational Digital Single Market could bring a contribution of 415 billion euros per year to the economy and it would also create hundreds of thousands of new jobs.SPF Economie, "Stratégie pour un marché unique européen", website of the SPF Economie, last update on 31 March 2021, https://economie.fgov.be/fr/themes/line/strategie-pour-un-marche, accessed on 22 April 2021. The Digital Single Market Strategy includes a series of targeted actions based on 3 pillars. From these 3 pillars will come 16 key actions that constitute the Digital Single Market Strategy.
The Three Pillars
The commission has decided to put in place a strategy for the period 2014 - 2019 called "The Digital Single Market Strategy" (DSMS). It aims to give citizens and businesses better access to the digital world.EUROPEAN COMMISSION, "A digital Single Market for Europe : commission sets out 16 initiatives to make it happen”, website of the Commission, published on the 6th May 2015, https://ec.europa.eu/commission/presscorner/detail/en/IP_15_4919, accessed on 24th April 2021. This strategy is based on 3 pillars, each with 3 actions, and with the objective of achieving 16 measures.BARREAU, Catherine. "Le marché unique numérique et la régulation des données personnelles", Annales des Mines - Réalités industrielles, vol. août 2016, n° 3, 2016, pp. 37-41, https://doi.org/10.3917/rindu1.163.0037.
The first pillar: access It will attempt to implement better access for consumers (individuals and businesses) to the digital world across Europe. The first objective of this first pillar will involve a number of legislative proposals. They will regulate cross-border markets in order to reduce the differences between Member StatesEuropean Commission, « Shaping Europe's digital future – News", on the European Commission website, https://ec.europa.eu/digital-single-market/en/news/first-briefresults-public-consultation-geo-blocking-and-other-geographicallybase, consulted on 4 May 2021 and also to allow for a "harmonisation of the different VAT regimes". Indeed, there is a difference in contract law and this hinders the smooth flow of trade in the single market. To address this, the commission has proposed two directivesEuropean commission, "Directives : document", on the European Commission website, http://ec.europa.eu/DocsRoom/documents/16742, consulted on 1 May 2021. (2015) to ensure that "consumers who seek to purchase goods or services in another EU country, whether online or by visiting a shop in person, are not discriminated against in terms of price, conditions of sale or payment arrangements, unless objectively justified on grounds such as VAT or certain legal provisions in the public interest".
A second objective will concern parcel delivery services throughout Europe. However, an exception to this proposal has been made in order not to impose a disproportionate burden on small businesses.Your Europe, "Businesses below certain national VAT thresholds", on Your Europe website, https://europa.eu/youreurope/business/taxation/vat/vat-exemptions/index_en.htm, consulted on 3 May 2021. They will not be obliged "to deliver throughout the European Union". The third objective will be to address problems of consumer discrimination. It is foreseen that national authorities will have the possibility to check whether sites use geographical blocking. It will therefore be ensured that no consumers can be discriminated against on any basis., published on 6 May 2015
The second pillar: environment It will attempt to provide a favourable environment for the development of fair competition for the digital network and all developing environments.EUROPEAN COMMISSION, "Shaping the Digital Single Market", website of the Commission, last update on 29 October 2020, https://ec.europa.eu/digital-single-market/en/shaping-digital-single-market, accessed on 21 April 2021. At the same time, the protection of personal data will be strengthened. The first objective of this pillar is to transform the market so that it becomes simpler and more sustainable. The environment of the European common market must be conducive to fair competition between traditional telecoms companies and new internet players.
The second objective will involve making access to networks and services more reliable but also affordable. Citizens and businesses must have confidence in these networks, especially in terms of preserving their fundamental right to privacy. To achieve this, it was necessary to reform a series of European regulations, especially in the field of telecommunications, but also in terms of cybersecurity and everything that concerns audiovisual media services. The third objective is to enable the market to adapt to changes in its environment. As the market is based on a sharing economy, it must adapt its functioning to this. The construction of this pillar is already well underway, particularly with regard to cybersecurity and telecommunications.European Council, "Le conseil adopte des règles en matière de cybersécurité pour l'ensemble de l'UE", website of the Council, published on 17 May 2016, http://www.consilium.europa.eu/fr/press/press-releases/2016/05/17-wide-cybersecurity-rule-adopted/, consulted on 3 May 2021. However, the most important measure concerning the revision of the directive on privacy and electronic communications is barely underway.European Commission, "Shaping Europe's digital future - Proposal for an updated Audiovisual Media Services Directive", website of the Commission, published on 25 May 2016, https://ec.europa.eu/digital-single-market/en/news/proposal-updated-audiovisual-media-services-directive, consulted on 15 April 2021.
The third and final pillar: maximising the growth potential of the European digital economy The first objective of this pillar is to foster the digital switchover of industry and services in all economic sectors in Europe. It will also be necessary to stimulate investment through strategic partnerships and networks. The second objective will be access to data and capital. This needs to be in place in order to achieve sustainable and inclusive growth. The third objective will be around data protection, free movement of data and the creation of a European cloud. In order for all these objectives to be achieved, it is essential that the first two pillars are in place.
Role of the European Parliament The Parliament has played a key roleEUROPEAN PARLIAMENT, "Interactive EU mapping: Digital Single Market and E-Commerce", https://www.europarl.europa.eu/RegData/etudes/ATAG/2015/542204/IPOL_ATA(2015)542204_EN.pdf, consulted on 5 April 2021. in the restarting of the internal market, and is an ardent advocate and agenda setter for the DSM. Before the launch of the Digital Single Market Strategy (DSMS) in May 2015, the Parliament had already been adopting resolutions on the Digital Single Market. For example, on 20 April 2012, took a resolution on a competitive digital single market and e-government. The Parliament also adopted a resolution in July 2013 to complete the Digital Single Market.
In January 2016, to respond to the DSM Strategy proposal, the European Parliament adopted a resolution named "Towards a Digital Single Market Act". The goals of this proposal were notably to ask the European Commission to suppress the geo-blocking practices, to enhance the access to goods and services for the European consumers and also to establish an equivalent consumer protection (equivalent if the goods are being bought offline or online).
Over the years, the EP have been building the DSM via thorough legislative enterprise. The legislation covers a wide range of digital concerns, from the elimination of roaming chargesEUROPEAN COMMISSION, "End of roaming charges in the EU: Joint statement by 3 EU institutions", website of the European Commission, https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_17_1590, consulted on 5 April 2021. and the prohibition of unjustified geo-blocking operations to the adoption of a directive on actions to "reduce the cost of deploying high-speed electronic communications networks" or a directive on "copyright and related rights in the Digital Single Market".
According to the EP, the legislative achievements of the institution in the DSM area are supplying 177 billionMARCUS, J. Scott, PETROPOULOS, Georgios, YEUNG, Timothy, "Contribution to Growth: The European Digital Single Market", Directorate-General for Internal Policies, Policy Department for Economic, Scientific and Quality of Life Policies, January 2019, https://www.europarl.europa.eu/RegData/etudes/STUD/2019/631044/IPOL_STU(2019)631044_EN.pdf euro every year to economic growth in the European Union. The areas where the principal incomes are from are the European electronic communications and services area with 86.1 billion euro, data flows and artificial intelligence area with 51.6 billion euro and the single digital gateway area with 20 billion euro.
Objectives and funding
Objectives The aim of the Digital Single Market is to modernize regulations and make them more homogeneous on subjects such as consumer protection, copyright, and online sales.European Commission. . Brussels, 2016. The European Commission specifies and says that five objectives are noted:Lexing (10 August 2018). Accessed 17 May 2021.
Boost e-commerce in the EU by tackling geo-blocking and making cross-border parcel delivery more affordable and efficient.