The European Commission has unveiled its long-awaited Digital Single Market Strategy, a framework that paves the way for a major reform of EU telecoms regulation in 2016. The wide-ranging policy paper was presented by the EC’s digital single market vice president Andrus Ansip and sets out a total of 16 initiatives aimed at boosting economic growth in Europe by knocking down national barriers. "Our Strategy is an ambitious and necessary programme of initiatives that target areas where the EU can make a real difference. They prepare Europe to reap the benefits of a digital future," said Ansip.
The initiatives are divided into three main pillars, namely, giving consumers and businesses better access to online goods and services by removing barriers to cross-border digital activity, supporting the development of high-speed, secure and trustworthy infrastructure, and supporting the increased digitalisation of the EU economy.
The EC proposes tackling the first of the issues – better access for consumers – by clamping down on so-called "geo-blocking", the practice whereby businesses restrict access to websites based on location or redirect customers to their local website, which often has different prices. "These unjustified practices should be expressly prohibited so that EU customers and businesses can take full advantage of the single market in terms of choice and lower prices," states the strategy document before confirming that the EC will propose legislation in the first half of 2016 to end the practice.
As expected, the document states that the EC will launch “a comprehensive assessment of the role of platforms” such as Google, Facebook and Amazon by the end of the year. The probe will examine the transparency of paid-for links and advertisements in search results, how platforms use the information they collect, as well as the ability of individuals and businesses to move from platform to platform.
The strategy also confirms the launch of a separate antitrust inquiry into the e-commerce sector which will above all focus on “potential barriers erected by companies to cross-border online trade in goods and services where e-commerce is most widespread such as electronics, clothing and shoes, as well as digital content.” The EC said it expects to publish a preliminary report for consultation in mid-2016 with a final report due in the first quarter of 2017.
In the section on the audiovisual landscape, the document suggests that the EC will review whether OTT services such as Netflix should face the same rules as traditional TV broadcasters, given that “in some respects… on-demand services are subject to lower obligations” than traditional television services.
The strategy also mentions the voice telephony alternatives which are not subject to the same regulatory regime as incumbent telecoms operators. Although it does not specifically name them, the document appears to refer to OTT services such as WhatsApp and Skype that allow users to make calls through data. In this regard, the commission proposes an “ambitious overhaul of the telecoms regulatory framework” that addresses the increased competition with a view to ensuring “a level playing field for players and consistent applications of the rules.”
The overhaul will also include more effective spectrum coordination and a common EU-wide criteria for spectrum assignment at national level. In addition, the EC commits to creating as yet unspecified incentives for investment in high-speed broadband.
The official strategy proposal now goes to individual European parliaments for debate and amendment before the European parliament votes on a final draft. The EC said it will deliver on the various promises by the end of 2016 and complete the digital single market “as soon as possible.”
