THE COMING REVOLUTION: EUROPE'S DIGITAL TRANSITION IN A POST-COVID WORLD - SPECIAL REPORT
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
THE COMING
REVOLUTION:
EUROPE’S DIGITAL
TRANSITION IN A
POST-COVID WORLD
SPECIAL REPORT
https://eurac.tv/9RA7
With the support of
THE COMING
REVOLUTION:
EUROPE’S DIGITAL
TRANSITION IN A
POST-COVID WORLD
Policymakers and legislators in Brussels and across
SPECIAL REPORT
https://eurac.tv/9RA7
the bloc have been mapping out Europe’s emergence
out of the coronavirus pandemic with a series of
commitments for how tomorrow’s digital world should
function for citizens across the continent.
From a bolstered programme for digital skills and
education to increased cybersecurity standards for
critical infrastructure, from a push to next-generation
telecommunications infrastructure to building up
the bloc’s regulatory landscape for digital services
and introducing competition reforms to foster the
bloc’s SME landscape, over the coming years, Europe’s
technology sector will be subjected to a profound
transformation.
This special report, produced in partnership with
Vodafone, analyses the current state of play for
Europe’s digital vision of the future in a radically
transformed post-coronavirus world. It draws on the
expertise of high-level politicians and policymakers,
industry experts and business leaders, in order to
chart the coming revolution in Europe’s technological
landscape.
Contents
Ministers to chart Europe’s digital future
with post-COVID19 commitments 4
Connecting Europe’s
forgotten regions 7
MEP: Europe’s digital education
strategy is key to future recovery 10
Commission charts new competition
tool ‘fit for the digital age’ 13
How a truly digital approach can accelerate
the post-Covid economic recovery 15
4 SPECIAL REPORT | THE COMING REVOLUTION: EUROPE’S DIGITAL TRANSITION IN A POST-COVID WORLD | EURACTIV
Ministers to chart Europe’s digital
future with post-COVID19 commitments
B y S a m u e l S t o l t o n | E U R A C T I V. c o m
[ Shutterstock / mixmagic ]
O
n Tuesday (9 June), EU member As part of the commitments The text, which has gone through
states are set to sign off on a outlined in the final version of a text a series of iterations, was discussed
series of broad commitments seen by EURACTIV, entitled Shaping by EU Telecoms Ministers on Friday (5
to transform the bloc’s digital agenda, Europe’s Digital Future, nations on the June).
in the aftermath of Europe’s battle bloc will back plans to accelerate the The aim is to adopt it by written
with the coronavirus that has once digital transformation as an “essential procedure on Tuesday, when member
again highlighted the vital importance component of the EU’s response to states will formally call on the EU to
of digital technology. the economic crisis generated by the
COVID-19 pandemic.” Continued on Page 5
SPECIAL REPORT | THE COMING REVOLUTION: EUROPE’S DIGITAL TRANSITION IN A POST-COVID WORLD | EURACTIV 5
Continued from Page 4 worked from home. EU’s digital transition across many
This percentage is almost certain different sectors having a sweeping
analyse the experiences gained from to increase in the long-term future, impact on the future skills required in
the coronavirus pandemic, “in order according to Eurofound, the EU the workplace.
to draw conclusions for the future that agency for the Improvement of Living “We should therefore focus to re-
will inform the implementation of and Working Conditions, who say skill workers in the economic sectors
current and future Union policies in that due to the changes imposed on that will mostly suffer from the
the digital domain.” working customs as a result of the incoming technological changes so
Revisions have been made to the pandemic, “it is likely that rates of that they will be able to shift towards
text throughout Europe’s quarantine telework in Europe, and as a result the expanding digital sectors,” he said.
period, during which time the employer/employee relationships, will
increased reliance on technology has be changed permanently.” RECOVERY AND
brought to light the importance of RESILIENCE
developing several key initiatives in LEAVE NO-ONE BEHIND
the digital world. On this point, member states will
Those include the broader However, in order for such adopt an unambiguous stance on
availability of online public services, predictions to become a reality, Europe Tuesday, calling on the EU to “put in
the creation of a common EU digital should take note of the areas across place all the necessary measures to
identity, the digital transformation of the bloc which were exposed for a lack re-skill and up-skill the workforce for
health and care, the up-skilling and of digital infrastructure during the the digital age, diversify the workforce
re-skilling of EU citizens in digital coronavirus outbreak, believes S&D and attract highly skilled ICT and
capacities, and deploying high- MEP Brando Benifei. technology specialists, including
capacity connectivity across rural “I believe that these months Europeans who have migrated, while
areas. of lockdown will play out as an also adapting digital workplaces for
accelerator to the transition to a more workers and providing reliable and
MAKE THE GAINS digital European economy,” Benifei fast internet connections to schools
‘PERMANENT’ told EURACTIV. in order to promote the use of digital
“Nevertheless, we are witnessing educational resources.”
“A major share of the economy and first-hand how the lack of digital Along this axis, the Commission
society has shifted to digital during the infrastructures excludes many plans to present a revised Digital
pandemic,” Oleg Butković, Croatian European citizens from accessing Education Action Plan in the autumn
Minister for the Sea, Transport services, education and job and updated skills agenda in Q3,
and Infrastructure, said on Friday opportunities, deepening the social which could well benefit from the
following the meeting between EU and economic inequalities that Commission’s recently revised long-
telecoms ministers chaired by Croatia. already existed.” term budget, as well as a recovery
“We agreed today that we should “This highlights the need to package designed to ensure Europe’s
not let this opportunity pass but rebuild an economy that is not only stable emergence from the economic
make these gains permanent through made future-proof with a consistent setback imposed by the coronavirus
increased efforts on the digitalisation digitalisation but that also doesn’t crisis.
of businesses and public services as leave anyone behind in the process.” Indeed, Digital Europe, the
well as the security and capacity of our For Benifei, the up-skilling of EU EU’s funding framework for digital
networks,” he said. citizens in the fundamentals of digital capacity building, is set to be in for an
Ministers also highlighted the literacy also serves a public purpose in outlay of €8.2 billion as part of the new
“necessity of further investment, extending the access to key services budget proposal, an increase of €1.5
especially in order to overcome the across communities more broadly. billion after the European Council had
digital gap that still exists, which can “Nowadays a minimum level of marked it down in February.
have a limiting effect on access to digital literacy is becoming essential During a recent online event with
e-health and long-distance learning to function as an active member of our Brussels legislators, Anthony Whelan,
and working.” societies,” he said. the digital adviser to President Ursula
On the last point, recent figures Moreover, the mobility of workers von der Leyen, noted that the intention
published by Eurostat revealed that in in the EU’s single market requires behind this increase in resources was
2019, approximately 5.4% of employed more and more dependence on such
persons in the EU, aged 15-64, usually digital skills, Benefei believes, the Continued on Page 6
6 SPECIAL REPORT | THE COMING REVOLUTION: EUROPE’S DIGITAL TRANSITION IN A POST-COVID WORLD | EURACTIV
Continued from Page 5 with a series of political commitments “Amid this crisis, we have had
concerning the digitisation of public a full-scale crash test of everything
to “reverse the cuts in the draft MFF services and health care, the up- digital,” she said. “Digital learning,
that were being discussed in February, skilling of citizens, and bridging digital working, digital socialising,
to which we then added a whole range Europe’s connectivity divides. everything, and obviously e-commerce
of draft budgetary instruments, one of In this regard, the digital policy has increased substantially.”
which is advanced skills.” agenda of the EU has no doubt been “Now we have a new baseline. Now,
“The whole idea is to learn from bolstered as a result of the public let’s make the most of that. Because
the crisis how we can improve our health crisis. now we all know much more about
approach to the development of In its wake, it leaves a new how different tools work.”
various digital skills,” Whelan added, benchmark for the future growth and
noting also that the €750 billion acceleration of key technologies that
recovery fund put forward by the have become so useful to those who
Commission could also go towards have had access to them, while also
areas including connectivity and up- exposing the nations who have not
skilling, although this will ultimately had the means to employ these tools
be determined by member states of resilience.
themselves. In a recent interview with
If the conclusions to be adopted by EURACTIV, the Commission’s Vice-
EU member states are anything to go President for Digital, Margarethe
by, Europe’s digital infrastructure over Vestager, noted how the crisis has
the next few years will be in for a far- given the bloc new digital standards to
reaching transformation, in parallel aim for in the future.
SPECIAL REPORT | THE COMING REVOLUTION: EUROPE’S DIGITAL TRANSITION IN A POST-COVID WORLD | EURACTIV 7
Connecting Europe’s
forgotten regions
B y S a m u e l S t o l t o n | E U R A C T I V. c o m
[ Shutterstock / Cienpies Design ]
E
U member states will renew their However, previous EU attempts to This led the EU’s digital czar,
commitment to bridging the bridge such connectivity gaps have Margrethe Vestager to put pressure on
gap across Europe’s connectivity hit a series of obstacles as part of the EU telecoms ministers in May, telling
divides on Tuesday (9 June), as certain coronavirus crisis in Europe, including them to “limit as much as possible”
territories on the continent continue delays to 5G spectrum auctions in any delays to their 5G spectrum
to be isolated from more developed countries including Spain, Austria,
parts of the bloc. Portugal, and the Czech Republic. Continued on Page 88 SPECIAL REPORT | THE COMING REVOLUTION: EUROPE’S DIGITAL TRANSITION IN A POST-COVID WORLD | EURACTIV
Continued from Page 7 is likely to reveal widening gaps in Europe, the lowest ranking country
Europe’s connectivity, as some of overall was Bulgaria. 25% of the
assignments. the more advanced nations begin country’s workforce has no digital
On Tuesday, as part of an agreement to pull away from those unable skills whatsoever, while 51% of the
on new Council conclusions on the to build up their next-generation population have no software-related
bloc’s digital future, the “need for fast telecommunications infrastructure. skills and 47% of internet users
and ubiquitous connectivity” will be This week, Finland, with its used computers or computerised
cited as an area which has provided reputable standing in technological equipment at work.
resilience to more modernised areas development, has made gains on And for some in Brussels, ensuring
of Europe, while at the same time lesser developed member states, after that such lesser developed regions of
exposing the digital shortfalls in less the country’s Ministry of Transport Europe do not miss out on the digital
developed areas. and Communications announced the transition is vital.
In order to gain a broader picture granting of 5G licences, while Nokia Prominent Bulgarian EPP MEP Eva
of the issue at hand here, the European announced a surge in demand for their Maydell believes this needs to change.
Commission aims to analyse the broadband services amid the uptake She is co-founder of Education
technological clout of member states in digital tools during the coronavirus Bulgaria 2030, a platform that aims to
with the publication of its 2020 Digital lockdown period. analyse and respond to the challenges
Economy and Society Index, due for While some EU member states the education system faces in the
publication before the end of June. storm ahead with the deployment country.
The ‘Connectivity’ banner of the of next-generation connectivity, it is “The latest project we are involved
2019 edition analysed the demand and Europe’s rural areas that are likely to in is with the Ministry of Education,
the supply side of fixed and mobile suffer the most. The 2019 DESI index on developing Science, technology,
broadband – assessing the availability revealed that 13% of rural homes are engineering, and mathematics (STEM)
as well as the take-up of basic, fast, not covered by any fixed network environment at schools,” she told
and ultrafast broadband. Mobile and 48% by any ‘fast’ broadband EURACTIV.
broadband examination included the connections. And while mobile “We see a great interest from
availability of 4G in member states, as broadband has slightly increased teachers and headmasters to get on
well as a 5G ‘readiness index.’ across rural areas, it is still widely board and be active, because they
As part of the assessment on fixed regarded as a ‘complementary’ saw just how easy it is to implement
broadband, the Netherlands and technology rather than a like-for-like remote online learning.”
Luxembourg are the best performing substitute. Maydell also believes that the
EU member states, while Greece, This is a political issue; a lack wider benefits of the EU single market,
Poland and Croatia all fall towards of connectivity across such areas such as the freedom to live and work
the bottom. For mobile broadband, results in a lack of jobs, industrial in any member state, are dependent
meanwhile, Finland, Denmark, Latvia development, less advanced public on the uptake of digital solutions at an
and Italy all perform well, while services, and lower importance of equal rate across the continent.
Romania and Hungary came in with digital skills and education. “Bridging the digital divide for
the lowest scores. As part of the 2019 DESI report
The 2020 edition of the index on digital inclusion and skills in Continued on Page 9SPECIAL REPORT | THE COMING REVOLUTION: EUROPE’S DIGITAL TRANSITION IN A POST-COVID WORLD | EURACTIV 9
Continued from Page 8 digital strategy communication, “supported with adequate financing
adopted in February this year, also measures, based on funds both
me means making sure that every notes the importance of updating the from the Multi-annual Financial
company or organisation has access to Broadband Cost Reduction Directive, Framework and the EU recovery fund,”
digital solutions and can participate in which aims to make broadband which will take into account the delays
the digital economy,” she said. network deployment more cost- in deployment across certain member
“The broader benefit of this efficient. states.
would be to empower Europeans to And in the European Council’s The €750 billion recovery
work and live wherever they want Shaping Europe’s Digital Future fund recently put forward by the
and that citizens will not have to paper set to be adopted this week, Commission will ultimately be at
leave their hometowns due to lack EU member states renew calls for the the behest of EU member states
of opportunities,” she continued, EU “to reduce the costs of network themselves, but the Commission has
adding that the coronavirus lockdown deployment and facilitate the roll-out previously suggested ‘connectivity’
period has demonstrated that many of very high capacity infrastructures,” could be a ‘major winner’ in the new
businesses are agile enough to run as well as support “emerging network outlay.
their firms remotely, “if they have the deployment needs by the end of So, while the bloc continues to
right infrastructure, processes and 2021, including the Broadband Cost wrestle with how best to chart its path
skills.” Reduction Directive.” out from the coronavirus outbreak,
In order to make these gains and On the revision of the broadband ‘connectivity’ is widely being touted
ensure a more digitally connected guidelines, member states want as an area that could bring multiple
Europe, EURACTIV has recently the Commission to introduce more benefits to many of Europe’s less
learnt that the executive aims to flexibility “as soon as possible, in developed regions, and could be
launch a review of its state aid policy order to facilitate the necessary an opportunity for them to finally
with regards to the public financing public financing, including for the mobilise resources to accelerate
of broadband networks across EU deployment of very high capacity themselves into Europe’s digital
member states, resulting in a relaxing connectivity in rural and remote transition.
of the 2013 Broadband Guidelines, areas.” “This is empowerment and
which could allow for more pubic On 5G, EU member states continue an advantage,” MEP Maydell told
investment into high capacity to follow divergent paths towards EURACTIV. “Now, it is our chance to
networks. Commission objectives of launching bridge the digital divide and avoid
The 2013 guidelines currently 5G services in all EU member states intensifying further the division lines
apply strict conditions to the public by the end of 2020 and a ‘rapid build- between front runners and laggers
funding of broadband networks, in up’ that will ensure “uninterrupted or core members and the periphery
order to foster a competition-friendly 5G coverage in urban areas and along across Europe.”
environment. The Commission is main transport paths by 2025,” as
currently preparing the groundwork outlined in the 2016 5G Action Plan
for a public consultation and a study for Europe.
on the guidelines. In this context, EU ministers want
Moreover, the Commission’s a new Action Plan for 5G and 6G,10 SPECIAL REPORT | THE COMING REVOLUTION: EUROPE’S DIGITAL TRANSITION IN A POST-COVID WORLD | EURACTIV
IN TERVIEW
MEP: Europe’s digital
education strategy is key
to future recovery
B y S a m u e l S t o l t o n | E U R A C T I V. c o m
S&D MEP Victor Negrescu. [CC BY 2.0]
A
s part of the European Com- Victor Negrescu is a Romanian For many of us, digital tools have
mission’s recently revised MEP affiliated to the Socialists and allowed to maintain a sense of
long-term budget proposal, Democrats (S&D) group in the European normality during the lockdown
an increased outlay could go towards Parliament. He has recently been by allowing to keep contact with
the digital up-skilling and re-skilling appointed rapporteur for the Culture colleagues and loved ones. How do you
of citizens. EURACTIV caught up with Committee’s report on the EU digital reflect on Europe’s resilience during the
MEP Victor Negrescu to talk about education strategy. outbreak?
why this issue has risen to the top of
the EU agenda. Continued on Page 11SPECIAL REPORT | THE COMING REVOLUTION: EUROPE’S DIGITAL TRANSITION IN A POST-COVID WORLD | EURACTIV 11
Continued from Page 10 We in the S&D Group have very market needs. The current Skills
clear priorities in this area. Agenda mentions a concept which
Luckily, Europe has had access to a • Firstly, we believe we must work sounds pretentious, but describes a
certain level of digital infrastructure more together, in creating a true real necessity – “skills intelligence”,
which has enabled societies not only common European Education that is understanding the current
to continue many work activities, but Area, which would allow for trends in demands for jobs and skills.
also to maintain a significant degree more equal development across There are skills shortages in many
of social interaction, compensating, at countries and regions, sharing economic sectors, both traditional
least partially, the effects of mandatory resources and best practices, (like construction) and new, and we
social isolation. but also very concrete benefits, need to build cooperation networks to
Unfortunately, this infrastructure such as faster EU-wide diploma address them – including education
is not available equally across recognition. institutions, companies, trade unions.
Europe, so we need to invest • Secondly, we support the creation These networks are currently not
more in access to broadband, 5G of instruments to develop developed or functional enough, and
connections, robotization but also digital competencies across I hope the adjusted agenda proposes
in the digitalization of our public generations. solutions for that. The documents
administrations. • And thirdly, we firmly believe released by the Commission on their
This same period has highlighted in supporting the educational proposal for a recovery plan show
several prominent problems that process through more that the needs for investments in
our societies will continue to face, resources, by increasing the social infrastructure at EU level have
irrespective of the digital transition. funding of education both at raised by 60% while in education
First of all, not all jobs and activities EU and at national level. We and livelong learning alone we speak
can be performed online. Additionally, consider that education should additionally about more than 15 billion
in many instances, these jobs are be mainstreamed across all euro per year.
precarious, and staff are overworked EU policy fields, and digital Of course, an obvious skills-
and underpaid. Also, some sectors of education plays a special role in related necessity, emphasised by the
our societies, such as education and this. COVID-19 crisis, is developing digital
healthcare, can undoubtedly benefit My report will ask for clear funding competencies widely and across
from a better digital infrastructure, for the digitalisation of education all age groups, as there are huge
while some activities will not be able at the EU level and will emphasise discrepancies between EU regions in
to move online entirely – at least for the concept of parents, students and this respect.
the foreseeable future. And these teachers as co-creators of the digital We are asking for support from the
are the sectors that have suffered, in educational process, which must be EU budget to national initiatives on
many countries, from staff reductions, harmonised and coordinated with the digital education, training, up-skilling
budget cuts and austerity over the past classic education process. and re-skilling of workers, as well
decades. as for enshrining media and digital
We’re also expecting the Commission to literacy on all educational levels –
You’ve recently been appointed present an update to the skills agenda this is a problem for all generations
Parliament Rapporteur on the EU in Q3. Do you think the coronavirus and, especially in times of crises, it
digital education strategy, which the pandemic has taught us anything about becomes critical. Digital skills are
Commission will be presenting in Q3. the specific skills that the executive needed in many fields and occupations
What are your priorities for the report? should prioritise in terms of Europe’s now, in farming as well as in business
future growth? start-ups, in healthcare as well as in
The European Union’s digital e-government or cultural heritage
education strategy is one of our most Half of the current workforce will protection.
prominent instruments in addressing need to update their skills within the
many of the challenges brought next five years – this was highlighted How does the landscape vary across
forward by this intense period. The in a recent Commission document. Europe in terms of the digital skills of
digital transition risks exacerbating Needless to say, the digital and citizens? Do we see large variances
inequalities already present in green transition will pose additional across member states?
our systems, but at the same time challenges from this point of view.
digital education is a huge tool for The big challenge is matching
modernisation. qualifications with actual labour Continued on Page 1212 SPECIAL REPORT | THE COMING REVOLUTION: EUROPE’S DIGITAL TRANSITION IN A POST-COVID WORLD | EURACTIV
Continued from Page 11 All in all, if we are looking to ensuring full access to all European
boost up Europe’s ICT capabilities children to education and healthcare,
The level of individuals’ digital and development, we need to do that but again in the Commission proposal
skills varies greatly across the EU. The in a manner that does not enhance for the future we do not see any clear
latest average for EU-27, according to or reproduce the inequality and commitments, just a possibility to
Eurostat data from 2019, is 56%, but exclusion patterns our societies try to have it somewhere starting 2021.
in the Netherlands it’s 79%, while in overcome. If we remain behind the pay wall,
Bulgaria it’s 29%. And it’s not only then we are in fact institutionalising
about skills, but also the access to You’ve also recently developed an inequality.
digital equipment and infrastructure educational tablet for use in schools. It is for this reason that I called
which can help greatly with the What was the motivation behind this, for the creation of EU-wide digital
acquisition of skills: in Sweden, almost and what are the broader objectives for education instruments, such as a
all students have access to highly this technology? truly European educational digital
digitally equipped and connected platform, created by pooling together
schools, while in Romania their The idea behind setting-up this resources, capable of supporting the
percentage is below 20. campaign starts from this reality, that national education systems. I believe
moving education in the digital sphere that allocating more resources for
How bad is Europe’s digital divide? Are enhances systemic inequalities. Quite education is one of the main paths
the differences seen not only across simply put, a high proportion of towards preparing the next EU
member states but also across genders, children in my country do not have the Generation for the future.
ages, social classes and ethnicities? devices or internet access needed to
attend school online – many teachers
We know for example that digital are also in the same situation, which
skills are lower for EU citizens living in meant that during the school closures,
rural areas (48%), compared to people they were (and still are) cut off from
living in cities (where the figure rises the educational process.
to 62%) – according to 2019 data. This Alongside several partners from
is an average, but in certain countries the tech and NGO sphere, we tried
the gap between these categories is to help, and developed the first
much wider. Romanian educational tablet, which is
We do need more data regarding being made available, through a social
the main variables influencing the program, to children coming from
digital divide, and a closer look at underprivileged backgrounds.
its relation with income levels. We However, the systemic problems
do have a somewhat clearer picture need a strong Europeans response. We
regarding gender. The Commission’s cannot talk about developing digital
“Women in the digital age” 2018 study skills when a large part of European
emphasised that only 24 out of every children does not have access to
1000 female tertiary graduates had an digital education. One of the solutions
ICT related subject and only six went resides in implementing faster
on to work in the digital sector. the European Children Guarantee,SPECIAL REPORT | THE COMING REVOLUTION: EUROPE’S DIGITAL TRANSITION IN A POST-COVID WORLD | EURACTIV 13
Commission charts new competition
tool ‘fit for the digital age’
B y S a m u e l S t o l t o n | E U R A C T I V. c o m
Google, Intel, Qualcomm and
Microsoft.
Nevertheless, at the start of her
mandate in November 2019, Vice-
President Margrethe Vestager was
tasked by President Ursula von der
Leyen with reevaluating the EU’s
competition policy framework,
making it “fit for the digital age”.
A ‘MARKET OPTIMISATION
TOOL’
In this regard, the Commission now
recognises that there are gaps within
the current framework and a new
tool is required to facilitate “timely
and effective intervention against
structural competition problems
across markets”, as stated by an
inception impact assessment recently
published by the EU executive.
In this vein, Nicolas Petit, Joint
Chair in Competition Law at the
Margrethe Vestager, Executive Vice-President of the European Commission.
[EPA-EFE/STEPHANIE LECOCQ] European University Institute and the
A
Robert Schuman Center for Advanced
new competition tool ‘fit for Article 101 prohibits agreements Studies, recognises the plans as
the digital age’ is set to be between firms which stifle improving the conditions of markets,
unveiled by the European competition in the EU. Article 102 rather than penalising specific
Commission before the end of this year, is designed to address the abuse of anticompetitive practice.
which has prompted stakeholders to dominant market position within “The point is to create a market
begin analysing the wider impact that the internal market, honing in on optimisation tool, to solve competition
it could have on fostering competition practices such as unfair trading problems that currently fall through
across the EU’s market economies. terms, limits to production at the the cracks of Treaty provisions.
disadvantage of consumers, and Existing rules catch bad conduct,
The move would see an extension inconsistent conditions applied by understood as business behaviour
of the Commission’s competition certain firms for different clients. with anticompetitive purpose or
capacities defined within the current The current rules have led to effects,” he told EURACTIV.
antitrust framework, the legal basis billions in antitrust fines being “The Commission seems to believe
for which is Articles 101 and 102 of the slapped on some of the world’s largest
treaty of the EU. companies in recent years, including Continued on Page 1414 SPECIAL REPORT | THE COMING REVOLUTION: EUROPE’S DIGITAL TRANSITION IN A POST-COVID WORLD | EURACTIV
Continued from Page 13 search results are still non-resolved Vice-President Vestager noted
issues with many competitors that in May that the tool would feature
that some markets display structural doesn’t exit any longer.” prominently in the EU’s package of
problems, short of bad business The first task at hand for policy reforms which will attempt to regulate
conduct. The point is to allow the experts within DG COMP will be to the online ecosystem.
Commission to intervene in order to define the criteria for what constitutes “We should focus on the digital
improve market competition, not to a ‘tipping market,’ a specific area sector and the new competition
remove bad business behaviour,” Petit in which bureaucrats are currently rule should be directly linked to the
said. investing a lot of time, EURACTIV Digital Services Act (DSA) ex-ante
He added that the goal of the understands. general ground rules where basic
executive in this regard is to act “below Nicolas Petit said it would be principles are given to the platforms,”
the threshold required for standard “very hard to say” what would entail Avram, who has regularly pressed the
competition infringements, and below a fair definition of a tipping market, Commission for answers on dominant
the radar of of strict judicial review.” adding that “for instance, is the platform abuse, told EURACTIV.
videoconferencing market prone to “In particular the systemic
‘MARKET TIPPING’ ‘market tipping’? No one can really say platforms in instances where
today.” you cannot self-preference your
Along this axis, the new tool will “We forget that we often talk own services over the services of
be designed to mitigate structural of market tipping with the benefit competitors and where you cannot
risks in markets as well as intervene in of hindsight. That’s why a more prevent the consumer from switching
situations whereby a market is close to promising target for the tool is to or choosing another service or
‘tipping.’ focus the tool towards markets that competing app.”
In competition terminology, have tipped to one or a small firms, “Greater transparency and control
market tipping refers to the situation like perhaps app stores,” Petit, who is should also be given to the consumers
where one company obtains high soon publishing a book entitled Big over their choice over their data and
monopoly profits and market Tech and the Digital Economy, added. data portability,” she added.
share, creating an anti-competitive “In this sense, a tipped market can Consultations on the tool were
environment for other firms. be defined as one in which a product, launched at the beginning of June, and
The Commission envisages that firm or standard has won the game, are open until 8 September.
the tool would impose structural uncertainty has disappeared, and Competition policy is an area of
remedies to competition imbalances, there is a lot of inertia meaning little the Commission’s DSA initiatives in
but will not rule on infringements or entrepreneurial effort, investment which tech giants are said to be most
establish fines. and innovation,” he said. concerned about the EU’s future
Furthermore, ‘speed’ in responding direction.
to markets nearing such conditions DIGITAL SECTOR While President von der Leyen
would be another function of the tool, made it a priority at the beginning of
and such an aspect would be a welcome While publicly DG COMP is her term to achieve European digital
addition to the EU’s competition pitching the new tool as a general sovereignty, the functioning of the
policy framework, believes S&D MEP purpose instrument, its application new competition tool could go a long
Carmen Avram, shadow rapporteur on is likely to be most evident across the way toward rebalancing markets that
the Parliament’s annual competition platform economy – digital markets are currently dominated by firms
report. harbouring many of the characteristics that suppress the growth of European
“The main objective for the new such as ‘extreme economies of scale players in the digital ecosystem.
competition tool is to be able to deal and scope, strong network effects, zero
more effectively and faster with pricing and data dependency’ that the
digital antitrust and merger cases in Commission would like to address.
particular,” she told EURACTIV. For MEP Carmen Avram, minds
“As we have seen with the Google should be focused on the structural
shopping antitrust case, the case problems to the digital sector in
started over 10 years ago and we are particular, and she would like to seek
still waiting for the end of the case, in complementarity between the new
the meantime fair competition, self- competition tool and the upcoming
referencing or non-discrimination in Digital Services Act.SPECIAL REPORT | THE COMING REVOLUTION: EUROPE’S DIGITAL TRANSITION IN A POST-COVID WORLD | EURACTIV 15
PROMOTED CONTENT / OPINION
DISCLAIMER: All opinions in this column reflect the views of the author(s), not of EURACTIV Media network.
How a truly digital approach
can accelerate the post-Covid
economic recovery
B y N i c k R e a d | Vo d a f o n e
In a matter of days and weeks, we
implemented significant changes
which, in other circumstances, would
likely have taken months. We also
made donations and provided benefits
in kind valued at €100m.
We all hope that the pandemic’s
worst is now behind us. But even if
this is the case, the crisis is far from
over. The European Commission’s
economic forecast augurs significant
challenges ahead, with real GDP
declining 7.4% in the EU this year and
unemployment approaching 10%. The
everyday struggles to make ends meet
for European families and businesses
must be a concern to us all. In Africa,
another key region for Vodafone, over
20 million people will be pushed into
Nick Read, CEO of Vodafone.
[Vodafone] extreme poverty.
The shadow of COVID is likely to be
W
long, and, along the way, it has exposed
hen I presented our annual To care for our employees, we vulnerabilities in society, business,
results last month, I spoke moved 95% of Vodafone’s workforce and governments that are imperative
about the speed of our from the office to home. For our to tackle.
business continuity planning amid customers, eHealth, eLearning, Bold action is required, drawing
the Covid pandemic. This allowed us and remote working were deployed upon the hard-earned learnings from
to focus on a comprehensive 5-point at scale. We helped governments this crisis.
plan to support our customers and and health authorities reach out to The EU recovery plan announced
society in this crisis. citizens with essential information recently is a good start. When the
and services. To respond to a near 50% Commission President Ursula von der
Nick Read is the Chief Executive spike in traffic, we expedited network
Officer of the Vodafone Group. investments. Continued on Page 1616 SPECIAL REPORT | THE COMING REVOLUTION: EUROPE’S DIGITAL TRANSITION IN A POST-COVID WORLD | EURACTIV
Continued from Page 15 hardware costs. game-changer will only happen
The task ahead is clear: No matter by governments adopting a new
Leyen launched the plan, she said: where they live and their income comprehensive approach. There is
levels, citizens must have the digital a need to address scale: the 640m
“The recovery plan turns the immense access and tools, as well as literacy, to European mobile connections are
challenge we face into an opportunity, be successful in a digital world. dispersed among approximately 40
not only by supporting the recovery Second, businesses must or more operators; in China there are
but also by investing in our future: the recognise a new reality: diminished three operators for 1.3bn connections,
European Green Deal and digitalisation physical interaction with customers whereas in the U.S. there are 400m
will boost jobs and growth, the resilience or employees. E-commerce will be connections across the four – and soon
of our societies and the health of our even more virtual. Small and Medium to be three – main operators.
environment.” Sized Enterprises (SMEs) are the EU’s It is high time to face up to policy
economic growth engine, yet these choices driving the poor returns
These are sentiments I fully businesses, which employ about two- on digital investments in Europe.
embrace. Our collective ability thirds of the EU workforce, must be Governments must put an end to
to recover from challenges and able to function digitally to be able to extractive spectrum auctions, promote
difficulties—resilience—will also flourish in the future. sustainable competition without
require strong leadership by the Poor levels of digitisation means artificial interventions in the market,
EU institutions and governments. limited ability to adapt and, especially as well as leverage subsidies and in
We must rebuild our societies and for SMEs, this can jeopardise their other ways actively support more
economies to be more resilient, more survival. In Italy, there are early efficient ways of deploying networks.
sustainable, more digital, and more examples of attempts to overcome With the pandemic hopefully
inclusive. this, for example a proposed SME nearing its end, the European Union
Accelerated digitisation must play digitalisation voucher scheme. We will need to get serious on charting
a central role, recognising the essential now look to the EU’s recovery plan to a new course to enhance its digital
lifeline that digital infrastructure, codify and expand such schemes for infrastructure and accelerate the
services and tools have played for the companies of all sizes throughout the digitisation of all citizens, businesses
vast majority of European citizens EU. and key government services —for the
and businesses during the health Third, we need to accelerate the benefit of society, its resilience and its
crisis. Also, when the U.S. and China provisioning of critical government future competitiveness.
are increasing their investments in services through digital means. We must act fast and be bold. We
digitisation, it is essential that Europe While e-government have been on did so during the peak of the health
does the same. We need the strength the agenda for a long time, COVID19 crisis. We are able to do it again to
of a modern, competitive Europe on has revealed both its potential and the overcome the economic crisis. As
the global stage. Specifically, based on remaining gaps. Vodafone, a European company
the scars Covid19 has left on the face of Governments also need to deepen operating networks in 24 countries
society, I believe that there are four key their ability to understand and make around the world with 75% of our
elements we must focus on now: use of mobility data insights— revenue in Europe, we are ready to
First, we must acknowledge anonymised and aggregated—to steer play our part.
that this crisis touches us all very policy interventions, finding new and
differently. Far too many of our fellow better ways to partner with businesses
citizens are left behind, and their that already have the relevant big data
low—or sometimes non-existent— capabilities. Our own experience of
level of digitisation is an unseen closely collaborating with authorities
dividing line. Resilience is important in Spain and Italy shows that it is
but it must benefit everyone. During possible to forge such partnerships.
the lockdowns, many EU children have Finally, it is long overdue to bridge
endured without education for lack of the perpetual digital infrastructure
basic Internet. Approximately 10% of investment gap which, in its recovery
the 8.2m students forced to do their plan, the Commission has estimated to
classwork from home in Spain do not be €42bn annually.
have access to the right technology, Mobilising private investment
El Pais reported, often due to high remains important. But the realFor information on
EURACTIV Special Reports...
Contact us
Teresa Dominguez
EU Affairs Manager
teresa.dominguez@euractiv.com
tel. +32 (0)2 788 36 93
Samuel Stolton
Digital Affairs Editor
samuel.stolton@euractiv.com
tel. +32 (0)2 226 58 26You can also read
