P1: Digital Single Market
Too many barriers still block the free flow of online services and entertainment across national borders. The DA will update EU Single Market rules for the digital era: to boost the music download business, establish a single area for online payments, and further protect EU consumers in cyberspace.

A vibrant digital single market

It is time for a new single market to deliver the benefits of the digital era.

The internet is borderless, but online markets, both globally and in the EU, are still separated by multiple barriers affecting not only access to pan-European telecom services but also to what should be global internet services and content. This is untenable.

First, the creation of attractive online content and services and its free circulation inside the EU and across its borders are fundamental to stimulate the virtuous cycle of demand. However, persistent fragmentation is stifling Europe's competitiveness in the digital economy. It is therefore not surprising that the EU is falling behind in markets such as media services, both in terms of what consumers can access, and in terms of business models that can create jobs in Europe. Most of the recent successful internet businesses (such as Google, eBay, Amazon and Facebook) originate outside of Europe.

Second, despite the body of key single market legislation on eCommerce, eInvoicing and eSignatures, transactions in the digital environment are still too complex, with inconsistent implementation of the rules across Member States.

Third, consumers and businesses are still faced with considerable uncertainty about their rights and legal protection when doing business on line.

Fourth, Europe is far from having a single market for telecom services.

The single market therefore needs a fundamental update to bring it into the internet era.

Opening up access to content

Consumers expect, rightly, that they can access content online at least as effectively as in the offline world. Europe lacks a unified market in the content sector. For instance, to set-up a pan-European service an online music store would have to negotiate with numerous rights management societies based in 27 countries. Consumers can buy CDs in every shop but are often unable to buy music from online platforms across the EU because rights are licensed on a national basis. This contrasts with the relatively simple business environment and distribution channels in other regions, notably the US, and reflects other fragmented markets such as those in Asia.

To maintain the trust of right-holders and users and facilitate cross-border licensing, the governance and transparency of collective rights management needs to improve and adapt to technological progress. Easier, more uniform and technologically neutral solutions for cross-border and pan-European licensing in the audiovisual sector will stimulate creativity and help the content producers and broadcasters, to the benefit of European citizens. Such solutions should preserve the contractual freedom of right holders. Right holders would not be obliged to license for all European territories, but would remain free to restrict their licenses to certain territories and to contractually set the level of licence fees.

If need be, additional measures will be examined which take into account the specificities of all the different forms of online content. In this regard, the Commission does not exclude or favour at this stage any particular option or legal instrument. These issues have also been addressed by Professor Monti in his report "A new strategy for the Single Market", presented to the President of the European Commission on 9 May 2010, on which the Commission will follow up with a Communication before the summer 2010.
 
Digital distribution of cultural, journalistic and creative content, being cheaper and quicker, enables authors and content providers to reach new and larger audiences. Europe needs to push ahead with the creation, production and distribution (on all platforms) of digital content. For instance, Europe has strong publishers but more competitive online platforms are needed. This requires innovative business models, through which content would be accessed and paid for in many different ways, that achieve a fair balance between right-holders' revenues and the general public's access to content and knowledge. Legislation may not be necessary to enable such new business models to prosper if all stakeholders cooperate on a contractual basis. The availability of a wide and attractive legal online legal offer would also be an effective response to piracy.

Public authorities should play their part in promoting markets for online content. The challenges of convergence should be addressed in all reviews of public policy, including tax matters. For example, governments can stimulate content markets by making public sector information available on transparent, effective, non-discriminatory terms. This is an important source of potential growth of innovative online services. The re-use of these information resources has been partly harmonised , but additionally public bodies must be obliged to open up data resources for cross-border applications and services.

Making online and cross border transactions straightforward

European consumers are still not getting the gains of price and choice that the single market should offer because online transactions are too complicated. Fragmentation also limits demand for cross-border eCommerce transactions. Less than one in ten eCommerce transactions are cross-border, and Europeans often find it easier to conduct a cross-border transaction with a US business than with one from another European country. As many as 92% of individuals who order goods or services over the internet do so from national sellers, rather than cross-border. Technical or legal reasons, such as refusal of non-domestic credit cards, cause as many as 60% of attempted cross-border internet shopping orders to fail. This highlights the urgency of tackling the regulatory barriers holding back European businesses from trading cross-border. The Commission identified these barriers in the Communication on Cross-Border Business to Consumer e-Commerce in the EU.

Europe has a common currency but the market for electronic payments and eInvoicing is still fragmented along national borders. Only in an integrated payment market will it be possible for enterprises and consumers to rely on safe and efficient payment methods . This is why the Single Euro Payment Area (SEPA) should be completed without delay. SEPA will also provide a launch platform for value added services linked to payments, such as the development of a European eInvoicing framework.

The e-money Directive should be swiftly implemented so as to open the way for new market entrants to offer innovative e-money solutions – such as mobile wallets - without a loss of protection of consumer funds. This new market could be as large as € 10 billion by 2012.

Electronic identity (eID) technologies and authentication services are essential for transactions on the internet both in the private and public sectors. Today the most common way to authenticate is the use of passwords. For many applications this may be sufficient, but more secure solutions are increasingly needed . As there will be many solutions, industry, supported by policy actions – in particular eGovernment services - should ensure interoperability based on standards and open development platforms.

Building digital confidence
 
Today, under EU law, citizens in the EU enjoy a series of rights that are relevant to the digital environment, such as freedom of expression and information, protection of personal data and privacy, requirements for transparency and universal telephone and functional internet services and a minimum quality of service.
However, these rights are scattered across various laws and are not always easy to grasp. Users must be able to find simple, codified explanations of their rights and obligations, set out in a transparent and understandable way, e.g. via online platforms, building on the prototype of the eYou Guide.

A lack of trust in the online environment is meanwhile seriously hampering the development of Europe's online economy. Among people who did not order online in 2009, the top reasons were: payment security concerns, privacy concerns, and trust concerns. The ongoing general review of the data protection regulatory framework aims to modernise all relevant legal instruments to meet the challenges of globalisation and to create technology neutral ways of enhancing trust and confidence by strengthening citizens' rights.

Consumers will not shop online if they do not feel their rights are clear and protected. Although the E-Commerce Directive imposes transparency and information requirements on information society services providers and establishes minimum information requirements on commercial communications, close monitoring is needed to make sure the information requirements are respected.

The Unfair Commercial Practices Directive and the Distance Marketing of Financial Services Directive will remedy the situation to a certain degree. The proposed Directive on Consumer Rights needs to be adopted swiftly, building confidence for consumers and traders in cross-border purchases online. But the Commission will also investigate how to improve rights of consumers buying digital products. Cross-border transactions online can also be made easier by increasing the coherence of European contract law, based on a high level of consumer protection. The Commission will also launch an EU-wide strategy to improve Alternative Dispute Resolution systems and propose an EU-wide online redress tool for eCommerce and improve the access to justice online. In addition, the comparability of consumer prices, e.g. through benchmarking, product testing or price comparison websites, could be improved to drive competition and to enhance consumer protection.

There is scope to build confidence by creating EU online trustmarks for retail websites. The Commission envisages pursuing this idea, in consultation with all stakeholders.

Reinforcing the single market for telecommunications services

Today, Europe's telecom markets are partitioned on a Member State basis, with purely national, rather than Europe-wide, numbering, licensing and spectrum assignment schemes. These national structures are increasingly challenged by global competition and the internet.

The Commission's first priority will be the swift and consistent implementation of the amended regulatory framework, together with greater co-ordination of spectrum use and, where necessary, harmonisation of spectrum bands, to create economies of scale in equipment and service markets. Since the single market demands that similar regulatory issues be given correspondingly similar treatment, the Commission will prioritise the provision of guidance on key regulatory concepts under the electronic communications rules, in particular costing methodologies and non-discrimination, and will also look for durable solutions for voice and data roaming by 2012.

The Commission will also leverage the expertise of the newly-created Body of European Regulators for Electronic Communications in tackling obstacles that prevent European businesses and citizens from making the fullest possible use of cross-border electronic communications services. For example, improved harmonisation of national numbering regimes on the basis of the current framework could help European manufacturers and retailers by enabling sales, after-sales and customer enquiry services over a single Europe-wide number, while the better functioning of socially useful numbers (e.g. 116 numbers used for hotlines for missing children) will benefit citizens. Similarly, improved comparability (e.g. through benchmarking) of user and consumer prices will drive competition and enhance consumer protection.

Finally, the Commission will assess, on the basis inter alia of practical input from stakeholders, the socio-economic cost of non-Europe in telecoms markets, outline the benefits of a better-integrated market, and propose appropriate steps to reduce this cost .

Λεπτομέρειες πλοηγού
(Βοήθεια)
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Digital Agenda for Europe »Digital Agenda for Europe
Pillars & Actions »Pillars & Actions
P1: Digital Single Market
A04: Debate on European online content market measures »A04: Debate on European online content market measures
A06: Protecting intellectual property rights online »A06: Protecting intellectual property rights online
A10: Laws to support the digital single market »A10: Laws to support the digital single market
A101: Durable solutions for voice and data roaming by 2012 »A101: Durable solutions for voice and data roaming by 2012
A11: Member States to transpose the VAT Directive »A11: Member States to transpose the VAT Directive
A15: Consult the stakeholders on collective redress »A15: Consult the stakeholders on collective redress
A16: Code of EU online rights »A16: Code of EU online rights
A17: Stakeholder platform for EU online trustmarks »A17: Stakeholder platform for EU online trustmarks
A01: Simplifying pan-European licensing for online works »A01: Simplifying pan-European licensing for online works
A05: Simplifying the distribution of creative content »A05: Simplifying the distribution of creative content
A03: Open up public data resources for re-use »A03: Open up public data resources for re-use
A02: Preserving orphan works and out of print works »A02: Preserving orphan works and out of print works
A07: Fix a date for Single European Payment & eInvoicing »A07: Fix a date for Single European Payment & eInvoicing
A08: Revision of the eSignature directive »A08: Revision of the eSignature directive
A09: Updating the eCommerce Directive »A09: Updating the eCommerce Directive
A12: Review the EU data protection rules »A12: Review the EU data protection rules
A13: Complementing the Consumer Rights Directive »A13: Complementing the Consumer Rights Directive
A14: Alternative Dispute Resolution »A14: Alternative Dispute Resolution
A18: Harmonisation of numbering regimes »A18: Harmonisation of numbering regimes
A19: Spectrum Policy plan »A19: Spectrum Policy plan
A20: Investigate the cost of non-Europe in the telecoms market »A20: Investigate the cost of non-Europe in the telecoms market
O1: Fragmented digital markets »O1: Fragmented digital markets
A Digital Single Market by 2015 »A Digital Single Market by 2015
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