Norway is pivoting toward renewable energy—including offshore wind and electric vehicle technologies—while broadening and deepening its national innovation ecosystem to encourage new firms in a range of industries to scale up and compete globally.
The new approach advocated by the European Commission for competition enforcement towards digital markets illustrates a preference for precaution.
Ursula von der Leyen, the European Commission president, called for a “new transatlantic agenda for global change.” Before such a needed partnership can be fruitful, the EU will need to make a number of changes.
Transatlantic data flows are essential to organizations of all sizes and industries—not just large technology firms. The EU and United States must establish clear, consistent legal mechanisms for data transfers so both sides can thrive in an increasingly digital global economy.
ITIF's Center for Data Innovation hosted a video webinar to discuss the transatlantic opportunities and challenges to promoting better cooperation in military use of AI.
ITIF's Center for Data Innovation hosted a discussion about what the digital sector needs to unlock the power of data while spurring competition and innovation.
Source: Philippe Aghion, Antoin Bergeaud, and John Van Reenen, “The Impact of Regulation on Innovation,” December, 2019.
Notably, the deal agreed on December 24th gives important exemptions that will allow the UK to continue to export electric vehicles without facing tariffs.
ITIF filed comments advising the Commission not to introduce such a tax. ITIF explained the many reasons why the planned digital levy is a misguided recommendation, and urged the Commission pursue a more reasonable path:
The DGA is a positive step forward in outlining a framework to enhance data sharing in the EU and promote data-driven innovation, however further clarification will be necessary to ensure data protection and competition laws do not prevent firms from sharing data, to safeguard trade with non-EU countries, and to prevent the public sector from charging excessive fees for data access.
The Center for Data Innovation welcomes the goals of the EHDS initiative and agrees that adopting measures to enable better data exchange will facilitate artificial intelligence (AI)-enabled healthcare applications in the EU and allow firms to pursue economies of scale across EU markets.
Organizational efficiencies should not be an opportunity to enforce precautionary measures in innovation markets.
The Commission’s inception impact assessment envisages the possibility of no longer enforcing competition laws with respect to independent platform workers in order to improve their working conditions. The four options identified by the European Commission are misguided and detrimental to consumers, platform workers, and innovation. ITIF articulates 10 better ways to improve the working conditions of economically vulnerable platform workers while preserving the proper enforcement of EU competition laws in a fast-changing and highly innovative digital platform economy.
WASHINGTON—Upon the European Court of Justice’s invalidation of the EU-U.S. Privacy Shield, Standard Contractual Clauses (SCCs) or “model contracts” have remained the only scalable and widely accessible legal tool available to organizations transferring personal data from the European Union to the United States and most of the rest of the world.
SCCs are a widely used legal tool to transfer personal data out of the EU, but courts and regulators are making them costlier and more complex. This is a sign of Europe’s march toward de facto data localization—a threat to transatlantic digital trade that policymakers must avoid.
The EU and the United States should come to an agreement: Both nations will agree that the EU can engage in protectionist digital industrial policies only when and if the ratio between the trade deficit in IT/services is at least 10 percent the trade deficit in goods.
The EU-U.S. Privacy Shield’s demise affects thousands of firms that relied on it to transfer data. Policymakers should realize the enormous trade and innovation stakes involved—both bilateral and global—and build an improved framework for data protection and digital trade.
ITIF’s Center for Data Innovation hosted a high-level forum to connect stakeholders working to promote AI in Europe, showcase advances in AI, and promote AI policies supporting its development to EU policymakers and thought leaders.
Research spending unfortunately is seen by many as an “add-on” rather than an essential economic driver, so it is not prioritized in times of crisis such as the pandemic, even though research is crucial to developing a COVID vaccine.
The principle of legal certainty states that the law must be sufficiently clear to provide those who are subject to it with the possibility of regulating their conduct accordingly. Unfortunately, the issue of legal certainty in the discussions and proceedings against big tech has mostly been overlooked despite its fundamental importance in preserving the optimal incentives for market players.
The European Commission has failed to allocate anywhere near the level of financial support that will be necessary to meaningfully accelerate clean energy innovation.
According to DuckDuckGo, Google’s auction method for determining which search engines appear in the preference menu is a “pay-to-play” system that prices some search engines, like itself, out of the market. There are several flaws in DuckDuckGo’s arguments.
The European Commission plans to propose a new Digital Services Act – the legislation that could revise or repeal the e-Commerce Directive and create a new set of regulations for Internet intermediaries. The goal of the legislation is to create clearer and more harmonised rules for digital services and address concerns about illegal and harmful online content, while protecting digital innovation and free expression.
Threatening to make it harder for the U.K. to engage in digital trade with the EU is a misguided move that will cause the EU to only fall further behind in the digital economy. To stay competitive post-Brexit and in the digital economy, the EU should ensure its data protection framework facilitates rather than obstructs data transfers with the U.K. and allow easier international transfers with more countries.
By disincentivizing the use of short-term rental platforms, European policymakers are hurting the competitiveness of the overall European economy, negatively impacting the goals of the economic recovery, consumer choice, and welfare.