ERU, Alm.del - 2016-17 - Bilag 182: Orientering om regeringens svar på EU-Kommissionens høring om en europæisk dataøkonomi, fra erhvervsministeren

Erhvervs-, Vækst- og Eksportudvalget 2016-17
ERU Alm.del Bilag 182
Offentligt

NOTE

21. april 2017

Response from the Danish Government to the Consultation on build-

ing the European data economy.

The Danish Government is grateful for the opportunity to provide input to

the public consultation on building the European data economy. This po-

sition paper supports and particularise the response to the questionnaire

provided by the Danish Government.

The Danish Government supports the Commission’s objective to improve

the general framework providing for an efficient European data economy

and promote data-driven business models. It is also important to ensure

that societies, consumers and traditional businesses make use of new digi-

tal technologies and services. This can contribute significantly to growth

and the creation of new jobs in Europe.

To achieve a European data economy, we need a Digital Single Market

that is open to competition, innovation and new business models. We

should strive to make the regulatory framework better by reducing unjus-

tified barriers, removing unnecessary burdens and making all our legisla-

tion fit for the digital age. However, we are not convinced that new legis-

lation is the right way forward. We believe that the need for new regula-

tion should be based on a thorough analysis and that it should be applying

the principles of better regulation.

It is with this perspective that the Danish Government replies to the con-

sultation.

1. Localisation of data

The Danish Government places great emphasis on ensuring responsible

treatment of data and considers data protection to be a fundamental right.

At the same time, in order to fully realise free flows of data in the digital

single market there is a need for removing all restrictions on the location

of data that cannot be justified on the overriding reasons of national secu-

rity.

The free flow of data is an essential element in a well-functioning digital

economy, and tackling national restrictions on the localisation of data is

necessary to allow European businesses to realise the potential of the data

economy both within the EU as well as internationally.

Firstly, the Danish Government notes as documented in the Commission

Staff Working Document that data localisation requirements are on the

rise both within the EU as well as globally. There is a need to curb this

development with effective measures.

ERU, Alm.del - 2016-17 - Bilag 182: Orientering om regeringens svar på EU-Kommissionens høring om en europæisk dataøkonomi, fra erhvervsministeren

Secondly, it is also noted that it is not only the number of restrictions in

itself that compose a problem, but the aggregate negative effect of re-

strictions on business and competitiveness which is relevant.

Thirdly, the Danish government recognises the Commission’s efforts to

address localisation restriction used as a proxy for assurances in terms of

privacy and security of data. Specifying a need to justify data localisation

requirements would encourage member states to adequately perform risk

assessments and minimise situations where localisation requirements are

based on a perceived sense of security.

And finally, removing obsolete data localisation restrictions would have a

positive environmental effect if businesses could move data storage from

local servers to the cloud and benefitting from more energy efficient data

centres.

For these reasons, strict methods to separate justified from unjustified

localisation requirements are needed.

Geographic restrictions should be replaced with functional requirements

that provide access to data for relevant authorities and is supplemented by

better cybersecurity. Justified localisation requirements will still be war-

ranted, but should be limited and substantiated on grounds of national

security.

2. Access to and re-use of data, liability of data and portability of data

The Danish Government places great emphasis on the need to ensure fu-

ture-proof regulation of the emerging issues in the data economy: access

to data, liability of data and portability of data. Regulation in these areas

should support digitalisation and not hinder the use of new, innovative

data driven business models.

It is in this respect essential that any new legislation is based on a thor-

ough analysis in order to avoid that legislation leads to unintended conse-

quences for innovation, investment and competition. Unnecessary bur-

dens for companies should be avoided, and the principles of better regula-

tion, including the once-only principle and the use of alternative forms of

regulation, should be applied.

When it comes to access and reuse of data, it is the experience in Den-

mark that the legislative framework is complex. One possible way for-

ward is to explore the possibilities of providing further guidance to com-

panies on e.g. contract rules and standard contractual terms on rights to

data. Furthermore, the Danish Government welcomes an analysis and

mapping of relevant regulation in relation to data already publicly availa-

ble. In this context, it is an objective that the potential to analyse and re-

use non-personal data on the open internet for new innovative business

models should not be unreasonable restricted. Moreover, the Danish

Government sees great economic potential in giving consumers easy ac-

cess to their own data (including consumption data) in a format that

ERU, Alm.del - 2016-17 - Bilag 182: Orientering om regeringens svar på EU-Kommissionens høring om en europæisk dataøkonomi, fra erhvervsministeren

makes it easy for them to release such data to a third party (e.g. a broker).

The limited ability of consumers to understand and to act rational in

complex markets is a significant barrier to competition and growth. Thus,

if it is made easy and cheap for the consumer to get independent third

parties (e.g. digital services) to analyse their consumption data and find

the product that best fits their needs, it could have a significant effect on

these markets that often lack competition.

As a general remark regarding competitive effects of imposing re-

strictions or new legislation on access to data, it is important to stress two

important effects. Increased access to data will most likely lead to more

competition between market players and possibly lower prices. However,

increased access to data may also limit the incentives to innovate and

invest in new technology since the investors’ competitors may benefit

from these investments.

In relation to portability of data, the Danish Government supports the

development of standards which aims to promote interoperability and

portability.

Interoperability, i.e. ensuring effective communication between

digital components such as devices, networks or data repositories, is an es-

sential prerequisite for a competitive well-functioning digital economy.

Furthermore, it is important that the need for developing new standards is

assessed

in close dialogue with stakeholders. Standardisation only adds

value if stakeholders participate in the development and if there is a spe-

cific demand from market players.

In conclusion, the Danish Government is still not convinced that new

legislation is the right way forward. We are committed to entering into a

dialogue on solving possible issues, but believe the need for any possible

legislative proposals should be further analysed (e.g. behaviourally test-

ed) and documented before proceeding.