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Johnny Ryan

Monitor

Creating the Space for Competitive & Resilient Digital Europe

by Dr Pencho Kuzev, Dr Johnny Ryan, Felix Kartte

Streamline Enforcement or Risk Prosperity and Safety

Europe has developed a powerful regulatory toolbox to address digital challenges. For Europe’s SMEs and startups to scale up, it is not enough to invest in our infrastructure and innovation. We must clear space in the market. The effective enforcement of EU law against large, non-European companies is crucial. A taskforce of Chief Enforcement Officers with an overarching commission approach could deploy enforcement instruments strategically and coherently – without the need to further legislate.

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A handful of giant Chinese and U.S. tech firms dominate Europe’s digital infrastructure, platforms, and media. This undermines the EU’s ability to safeguard children, protect elections and national security, and support business growth. These problems will be exacerbated by extreme political volatility in Washington.

Europe faces four major digital problems: competitiveness and digital sovereignty; harm to future generations; foreign interference; and threats to democracy. The publication summarises the major challenges and the tools to solve them. Then, it proposes a ‘whole-of-Commission’ mechanism to coherently deploy those tools.

President von der Leyen needs a unifying mechanism that marshals Europe’s diverse powers to create space in the market for Europe’s SMEs and startups, to reduce market fragmentation, and to enable innovation and growth. The paper proposes how to do this. 

Early in the new mandate, the Commission should establish a Taskforce. The Taskforce does not manage joint cases. Rather, it enables early interservice coordination, and the coordinated pursuit of objectives set by the political leadership, giving the commission a powerful lever to achieve its strategic objectives. The Taskforce should not deprive any DG of currently held powers and competences. Rather, it should enable early interservice consultation and the coordinated pursuit of objectives set by the political leadership.

This unified enforcement structure will reduce fragmentation in the Single Market. It will also allow the multiple legal instruments to be deployed coherently against a single target firm. This will reduce opportunities for malicious compliance and vexatious appeals, and increase the odds of rapid settlement and remedy. Political leadership of the Taskforce also gives the Commission a powerful tool to exert pressure on the giant US and Chinese companies for its strategic objectives.

Read the entire Monitor: “Creating the Space for Competitive & Resilient Digital Europe – Streamline Enforcement or Risk Prosperity and Safety” here as a PDF.

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Dr Pencho Kuzev

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Data and the Competition Policy

pencho.kuzev@kas.de +49 30 26996-3247 +49 30 26996-3551
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