As the COVID health crisis19 is forcing a large proportion of Europeans to remain at home, Social Economy, Digital inclusion, Democracy defense are more than ever accurate. On such matters, European activity is not slowing down. Here is a panorama on EU Public Affairs news on our subject (Tech x Social) : Digital Service Act, digital ambitions of the German Presidency of the EU, Data Governance Act, European Action Plan for Democracy and ambitions for the ‘next world’.

Digital Service Act : imposing a Tech European model

From Brussels, Thierry Breton, European Commissioner for the Internal Market is fully mobilised on the Digital Services Act: “As part of the European Digital Strategy, the European Commission has announced a Digital Services Act package to strengthen the Single Market for digital services and foster innovation and competitiveness of the European online environment”. The main aim is to reform the Directive on electronic commerce dating from 2000 with regard to the obligations and responsibilities of platforms and to develop the competition rules. It also provides for the regulation of online content, reinforcing the responsibility of intermediaries in the “fight against illegal content and its amplification”. It thus includes the inclusion of online hate in criminal offences at European level. “Platforms must be more responsible and accountable, they must become more transparent. It is time to go beyond self-regulatory measures” says Vera Jourova, European Commissioner for Values and Transparency.

Very clearly, the European Commission’s ambition is to tackle the ‘too big to care’ monopoly, which the Commission believes crushes competition and distorts the smooth functioning of the internal market. The arm wrestling, as we suspected, promises to be tough. Thierry Breton, who wants to take the digital economy out of the “Far West” era, does not hesitate to directly question the bosses of Silicon Valey: “Don’t try to play the smartest game. Pay your taxes if you have to pay them. Don’t resort to tax havens. Pay your taxes,” he told Facebook’s CEO last May, before Google CEO Sundar Pichai apologised in October for his more than aggressive internal lobbying practices. 

The German rotating presidency of the Council of Europe, which ends in December 2020, also makes digital technology one of its major subjects, along with the ecological transition. “In order to stand out internationally as a community of values, we must therefore position ourselves even better on strategic future issues such as climate change, refugees and migration, the rule of law and digital transformation”, said the German Foreign Minister when presenting an ambitious agenda. This also includes the development of a European data and 5G infrastructure and support for research, particularly in the field of artificial intelligence. The Data Governance Act, a regulation on data governance proposed by the European Commission, should thus inflate the pool of data that will feed AI systems and start-ups, and in fine should encourage the emergence of these large sectoral data spaces. 

European Democracy : inclusion of people, social economy and civil society are key

The other major topic of this new school year is Democracy. It is the common thread of the digital regulation carried by Europe. And it is a matter of urgency. On the one hand because the breeding ground for mistrust is becoming more and more fertile, particularly because of social networks. According to a survey carried out by the Jean Jaurès Foundation in February 2019, “one Frenchman in five agreed with at least one conspiracy theory” and “43% of those polled agreed that the government would be in cahoots with the pharmaceutical laboratories to hide the reality of the harmfulness of vaccines”. European politicians are also singing the praises of this questioning of our democratic values. While the European recovery plan was painfully voted through, Hungary and Poland decided to apply their veto refusing “that the payment of Community funds should henceforth be conditional on respect for the rule of law”. One point of consensus, whatever our values: they cannot be bought with billions of euros of aid.

The European action plan for democracy, which has been under the media radar, was the subject of an online consultation this summer. Through the accumulation of new constraints and recommendations for all actors in the democratic game, it must both strengthen the integrity of elections, guarantee media freedom and provide solid strategies against disinformation. It is scheduled for December. 

After the first containment, calls for the “next  world” had bloomed like flowers in the spring. Despite this regulatory activism, the European project is taking a beating. One would have dreamed that European news coverage would be as dense as it was during the American elections. Wishful thinking that fades like leaves in autumn. Yet there are some calls that resonate more than others, such as that of the first European democratic institution: David Sassoli, President of the European Parliament. “We must ensure that the European policies supported by the resources we pool will encourage a transformation of our economies in the years to come, in the service of respect for the environment, social cohesion – which has been particularly affected in the current health context – and the fight against all forms of inequality,” David Sassoli declared last September. He also recognised that “Europe needs more than ever to support the voluntary sector” and that “the harmonisation of the single market should not be limited to companies but should also concern the voluntary sector“. In the meantime, a European regulation on participatory financing to protect investors from financial losses will have to be sufficient. 

But those who have the most to lose are ultimately the most precarious among us. What appears to be self-evident takes on even greater prominence in the DESI ranking, which reveals that the digital and economic divides overlap.  In that prospect, Cedric O, French Secretary of state for Digital affairs, just  announced a budget of €250 million (40% EU funding) on inclusive digital on the NEC 2020. 4,000 digital advisers will be recruited by local authorities and associations.

For all these mentioned prospect and because Social Economy and Civil society are both a motor for a more sustainable and prosperous economy for all in Europe, they have to be fully involved in all public policies making. This is also what the European Platform for Philanthropy is calling for. 

By Nils Pedersen, President of La Fonda Asso and Vice-President of SOGA EU for Public and Academic Affairs


Paris, november 2020

As every trimester, our EU Tech expert Arnaud Castaignet delivers his analysis on the last EU Tech data and policies. From the Digital part of the State of European Union Speech to the last editions of the European Digital Society Index, including the debates on Digital Service Act in Brussels, here is Arnaud’s sum up of what Social Good organisations must retain of the last EU tech news. 

Ursula von der Leyen, President of the European Commission, presented on September, 16th to the European Parliament her vision in her first State of the European Union address. Since she got appointed, a strong focus has been made on the EU Green Deal. This speech was the opportunity to highlight the Commission’s other top priority: “Europe’s Digital Decade”. 

Tech and digital will have a great importance in the Next Generation EU fund and will be backed up by 20% investment in digital from it, meaning €150bn of the EU’s €750bn recovery fund will be spent on digital projects. Three focus areas have been identified: industrial data, AI and infrastructure.

Talking about industrial data (as opposed to consumer data) shows that the EC will focus on the development of a data economy, hoping to reap the benefits of the fact the amount of industrial data in the world will quadruple in the next five years. The EC is pushing forward with plans to develop common data spaces hosted on a new cloud platform, GaiaX, in energy and health sectors for instance, and is looking forward to support cooperation between start-ups, companies, SMEs, researchers. When it comes to consumer data, Von der Leyen considers that Europe “has been too slow and is now dependent on others”.

On AI, the President of the European Commission actually pushed new AI governance laws back. When she was elected last November, she promised to introduce AI legislation within the first hundred days of her presidency. During her speech, she mentioned that it would be proposed next year, with “a human-centric approach” to rules and regulation. It is worth noting that she also propose a secure European e-identity, that will allow citizens to use it anywhere in Europe to do anything from paying taxes to renting a bicycle, and will guarantee control over personal data, which may sound similar to principles of Estonia’s e-identity.

Infrastructure investments should also be a strong focus in the road to “Europe’s digital decade”. It is more than needed given that digital divide remains very important in Europe as highlighted in the Digital Economy and Society Index (DESI), a composite index that summarises relevant indicators on Europe’s digital performance and tracks the evolution of EU Member States in digital competitiveness. Finland, Sweden, Denmark and the Netherlands scored the highest ratings in DESI 2020 and are among the global leaders in digitalisation. These countries are followed by Malta, Ireland and Estonia. Some other countries however still have a long way to go, in terms of infrastructure but also human capital and ability to use Internet services and technologies. Most of them are among the countries with the lowest GDP in the EU (Bulgaria, Romania and Greece, for instance) or strongly affected by Covid19 and its economic consequences (Italy). Therefore, there is a high risk that both digital divide and economic inequalities may deepen. It is worth noting that the biggest countries are not necessarily the most digitally advanced: France is only ranked 15th overall and even 18th when we focus on connectivity, according to DESI index.

The pandemic has exposed the stark reality of Europe’s digital divide. While countries and regions with good internet connections have been able to continue living life with at least a semblance of normality, others have not been so lucky. Of those living in rural areas, 40 per cent still lack access to fast broadband. The investment boost through NextGenerationEU will look to drive expansion to these areas. The investments will be focused on secure connectivity, on the expansion of 5G, 6G and fiber.

This State of the Union speech shows that digital and environmental transitions will be the key priorities of the EU in the coming years and that these transitions are deeply connected. Digitalisation is clearly considered as critical to achieve environmental transition, particularly in urbanism (smart cities), mobility and decarbonisation of the economy and the industry. Again, the main risk is that the same countries might be the winners. Denmark, for instance, is both among the leaders in digitalisation and one of the countries whose smart cities initiatives will help decrease the most carbon emissions. 

Meanwhile, in Brussels, the Digital Services Act Package is the most important text for the EU digital economy that will shake up discussions between the Commission and the Parliament until the end of the year. It is an ambitious arsenal to tackle both the dominance of the digital giants and their policies on moderation. It is being led by Thierry Breton, European Commissioner for the Internal Market. In a recent interview with the newspaper Le Monde, he explains that the regulation of social networks “is intended to be dealt with at the European level”. Many of the measures are based on the French law on confidence in the digital economy (LCEN), which in France governs the same sector. The Digital Services Act also provides that the platforms can identify and locate Internet users posting under a pseudonym “if necessary”. In case of breach, the sites could be financially sanctioned or “be prohibited from accessing the internal market of the European Union”. For the platforms concerned, the calculations would be made according to a threshold of audience “yet to be determined”. The discourse is quite clear, however, and targets sites with “much larger audiences than traditional media, which gives them responsibilities similar to those of an editorial director or content editor”. Apple, Google and Facebook could be put on a “black list” established by the European Union (EU). As reported in the Financial Times, the EU institutions would be developing stricter rules to regulate the digital services market and impose new rules on the biggest players in the market, both in terms of business practices and data sharing and transparency on data collection. large companies to change their business practices. This would include forcing America’s mastodons to share their data and to be more transparent about how they collect it, according to specific criteria.
Discussed in Parliament in week 43, the own-initiative reports by Alex Agius Saliba (S&D) in the Internal Market Committee (Imco), Tiemo Wolken (S&D) for Legal Affairs (Juri) and Kris Peeters (EPP) for Civil Liberties (Libe) were adopted, almost without amendments.

For More Information

The Digital Economy and Society Index – DESI 2020

DESI 2020: Questions and Answers

Country performance in digital

Data Visualisation Tool

DESI 2020 methodology

Digital technologies – actions in response to coronavirus pandemic

Communication on Shaping Europe’s Digital Future