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Digital Single Market

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Digital Single Market

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. 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, and then opening up digital services to all citizens and strengthen business competitiveness in the digital economy. 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. 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. 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 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. This strategy is based on 3 pillars, each with 3 actions, and with the objective of achieving 16 measures.

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 States 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 directives (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. 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.

It will attempt to provide a favourable environment for the development of fair competition for the digital network and all developing environments. 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. However, the most important measure concerning the revision of the directive on privacy and electronic communications is barely underway.

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