European Commission Online Platform Recommendations reflect welcome consensus on key issues

Today (26 May) the European Commission adopted a number of legislative and non-legislative initiatives as part of the Digital Single Market strategy.

In response to the European Commission’s policy position on online platforms, the Center for Data Innovation, a think tank studying data and public policy, released the following statement from Director Daniel Castro: "The Commission correctly recognizes that online platforms underpin today’s digital economy. How successfully European businesses and startups can leverage these online platforms will be inextricably linked to whether the EU can establish fair, efficient, and harmonized rules across its member states.

"The Commission endorsed important principles such as ensuring a level playing field, safe guarding a fair and innovation-friendly business environment, and encouraging coordinated EU-wide self-regulatory efforts by online platforms. Notably, the Commission agreed that achieving a level playing field does not necessarily require increasing regulations, but instead, simplifying, modernizing, and lightening existing regulations.

"In addition, the Commission recognized the value of keeping markets open and non-discriminatory to foster a data-driven economy and supporting the free flow of data. In particular, the Commission endorsed its commitment to ensuring open platforms are developed for key emerging technologies, such as smart cities and the Internet of Things, and using public funds to support the development of these platforms.   However, there were some concerning ideas proposed by the Commission. For example, the Commission leveled an unfair critique on the widespread practice of allowing consumers to use private-sector online authentication systems and suggested that online service providers should have to accept credentials issued by the government. While the public sector should continue to develop secure tools to allow consumers to legally identify or authenticate themselves online, this should not come at the expense of private sector innovation.

"Overall, it is encouraging to see an emerging consensus on the need to modernize the EU’s regulatory environment to allow digital innovation to flourish and unlock the potential of the data economy. Hopefully, this forward-looking vision will help guide European policymakers’ efforts as they review other important policies including the e-Privacy Directive, and shape the EU’s implementation of the General Data Protection Regulation to lessen some of the more burdensome requirements.

The Center for Data Innovation is the leading global think tank studying the intersection of data, technology, and public policy. With staff in Washington, DC, and Brussels, the Center formulates and promotes pragmatic public policies designed to maximize the benefits of data-driven innovation in the public and private sectors. It educates policymakers and the public about the opportunities and challenges associated with data, as well as technology trends such as predictive analytics, open data, cloud computing, and the Internet of Things. The Center is a nonprofit, nonpartisan research institute proudly affiliated with the Information Technology and Innovation Foundation. For more about the Center, visit datainnovation.org.

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