SOU, Alm.del - 2019-20 - Bilag 168: Kopi af breve til nyudnævnte kommissærer, fra finansministeren

Social- og Indenrigsudvalget 2019-20
SOU Alm.del Bilag 168
Offentligt

Margrethe Vestager

Executive Vice-President for a Europe fit for the Digital Age

European Commission

MINISTER FOR INDUSTRY,

BUSINESS AND FINANCIAL

AFFAIRS

Dear Executive Vice-President Margrethe Vestager,

Please accept my warmest congratulations on your appointment as Exec-

utive Vice-President for a Europe fit for the Digital Age and Commis-

sioner for Competition.

A timely response to the challenges and seizing the opportunities posed

by climate change and rapid digitalization is of critical importance to

ensure a more sustainable and prosperous EU. I would like to present you

with the Danish agenda in your area of responsibility, which I hope you

will read with interest.

Maintain the core principles of competition

I have positively noticed that you have been tasked with the continued

strengthening of competition enforcement. Effective enforcement should

be a priority in all sectors and especially in the digital economy, where

technological developments challenge our market structures.

A fair and effective competition policy is a cornerstone of the Single

Market and a prerequisite to bolster EU’s global competitiveness in the

future. Thus, it is important to maintain and

not

relax the existing compe-

tition framework and the EU Merger Regulation.

However, I recognize the tendency towards increased unfair competition

and the need to react and safeguard European interests. The best way to

preserve fair global competition and a level playing field is through

common rules applicable to all, rooted in the WTO. Thus, it is encourag-

ing that the incoming Commission aims to make reform of the multilat-

eral trading system a top priority. This must include an update of the rules

so they address unfair market-distorting trade practices and reflect to-

day’s digital economy.

Therefore, we can agree that it should be assessed

whether EU’s competition framework is fit for purpose to address anti-

competitive practices. For instance, we do see potential in making it easi-

er for national and European competition authorities to respond more

swiftly to anti-competitive behaviour from platforms. We may also need

instruments to handle distortive behaviour from companies from third

countries operating within the Single Market without relaxing the princi-

ples of independent enforcement, free and fair competition.

Towards a competitive and climate-friendly European industry

European industry is a key player in restoring the

EU’s

global competi-

tiveness as well as fulfilling the Paris Agreement. The upcoming action-

plan for industry should set a clear political direction with an emphasis

MINISTRY OF INDUSTRY, BUSI-

NESS AND FINANCIAL AFFAIRS

Slotsholmsgade 10-12

DK-1216 Copenhagen K

Tlf.

Fax

+45 33 92 33 50

+45 33 12 37 78

CVR-nr. 10 09 24 85

EAN nr. 5798000026001

[email protected]

www.em.dk

SOU, Alm.del - 2019-20 - Bilag 168: Kopi af breve til nyudnævnte kommissærer, fra finansministeren

on cost-effective and market-based measures that encourage businesses

to make necessary investments needed for the transition to a competitive,

circular and climate-neutral European industry.

Furthermore, I would encourage you to make sure that the work on Im-

portant Projects of Common European Interest (IPCEIs) related to strate-

gic value chains contribute to achieve our climate and environmental

objectives. Moreover, we should improve the transparency of IPCEIs by

introducing ex-ante consultation. This will allow all Member States to

easily participate and contribute.

There is also a need to re-think the future set-up for identifying strategic

value chains. To this end, we need a new procedure for identifying,

amending or phasing out strategic value chains. The procedure should

maintain the original bottom-up approach characterizing the current Stra-

tegic Forum while ensuring political legitimacy and governance and di-

recting initiatives towards major challenges such as climate change.

Moreover, I encourage you to lay down the pillars for a robust frame-

work for secure, interoperable and trustworthy data sharing that can sus-

tain public trust in data usage and contribute to the green transition of

industry. We should openly discuss how best to encourage and ensure

more data sharing through an ethical and coherent European framework

as the use of data is vital for European businesses if they are to be global

frontrunners of the data economy.

The external dimension of EU’s

industrial competitiveness should be

pursued through a free, fair and sustainable trade policy based on updated

multilateral rules. To this end, we fully support the need to secure a level

playing field at global level and fight

protectionist and unilateral

measures. However, the Danish Government is

still not convinced that

the current proposal for an International Procurement Instrument (IPI) is

the right way forward. When resuming discussions on the IPI, we would

like to see further clarification and revision in order to avoid negative

effects.

Finally, a strong European industrial sector depends critically on a com-

petitive and innovative Single Market. Effective implementation and en-

forcement are key components towards making the Single Market both

fairer and smoother for law-abiding businesses, consumers and workers.

We need a firm and ambitious long-term action plan containing concrete

initiatives on how to improve the uniform implementation, application

and enforcement of our common rules.

SOU, Alm.del - 2019-20 - Bilag 168: Kopi af breve til nyudnævnte kommissærer, fra finansministeren

Digital trust as an enabler of Artificial Intelligence

I have positively noticed the aim of the new Commission to deliver a

European approach to artificial intelligence within your first 100 days in

office. In this regard, the aim should be to make data ethics a competitive

advantage for European businesses going hand-in-hand with innovation.

A European approach could make us a frontrunner in the responsible use

of artificial intelligence and data. By introducing a European Data Ethics

Seal we would enable consumers to easily identify companies who take

data ethics seriously. Together with a requirement for the largest Europe-

an companies to publish their data ethics policies, the digital economy

would become more transparent for consumers. Attached you will find a

non-paper explaining our suggestions to this agenda.

European legislation fit for the digital age

I encourage you to ensure that European legislation is digital-by-default

and future-proof as this it is a precondition for a well-functioning Digital

Single Market. In Denmark, we have introduced a set of principles on

digital-by-default and future-proof regulation. I would be happy to share

our experience on the use of these principles in lawmaking and further

discuss how such principles could be implemented at the European level.

Attached you will find a non-paper explaining the Danish principles and

priorities on this agenda.

Cross-border digital services is a vital tool to make life easier for citizens

and businesses within the Single Market. In this context, I would urge

you to take into account the special situation of the public sector as a

guarantor of maintaining public confidence in digital infrastructure sys-

tems and public digital procedures for instance regarding data trans-

parency and interoperability, and trustworthy electronic identification.

A modern and responsible framework for the platform economy

It is time to modernize the regulatory framework of the platform econo-

my in order to ensure digital responsibility, better cross-border enforce-

ment and to address emerging issues that are not dealt with under the

current rules. In doing so, we should also tackle the increasing fragmen-

tation of the regulatory framework for digital services that constitute bar-

riers to scaling up within the Digital Single Market. A modernized

framework for the European platform economy should maintain the es-

sence of the e-Commerce Directive, namely the country of origin princi-

ple, which the European platform economy has benefitted immensely

from. At the same time, we face an important and necessary discussion

with regards to liability regimes and the responsibilities of especially

large and influential companies in handling data versus the possibilities

for smaller companies to develop new business models and scale up

across the Single Market. We should modernize the regulatory frame-

work to find horizontal solutions that address the emerging issues in the

platform economy, eradicates regulatory fragmentation through uniform

SOU, Alm.del - 2019-20 - Bilag 168: Kopi af breve til nyudnævnte kommissærer, fra finansministeren

application and enforcement of the notice and take down of illegal con-

tent across the EU while strengthening the competitiveness of the Euro-

pean platform economy.

I hope these ideas will be useful for you in laying out the agenda for your

important portfolio for the coming years and I look forward to work to-

gether with you to strengthen European competitiveness to the benefit of

all Europeans.

Finally, I look forward to continuing the fruitful cooperation with DG

Competition on enforcing the competition rules and ensuring well-

functioning markets in the EU.

Yours sincerely,

Simon Kollerup

SOU, Alm.del - 2019-20 - Bilag 168: Kopi af breve til nyudnævnte kommissærer, fra finansministeren

Data and Ethics - The New European Competitive Advantage

Proposal

Data Ethics as Corporate Social Responsibility

The Commission should consider a revision of the directive as regards

disclosure of non-financial

and diversity information by certain large undertakings and groups.

The revision should include

provisions for certain large undertakings - to prepare a non-financial statement containing in-

formation relating to their data ethics policies as part of their annual management reports.

European Data Ethics Seal

The Commission should encourage the development of a European Data Ethics Seal by the rele-

vant industry and standardization bodies. The seal should be awarded to companies, products

and services that meet a pre-defined list of data ethical requirements e.g. companies or products

that meet high standards for data security, companies or products that do not collect unneces-

sary data on the user, or companies or products that have been tested for bias etc. The European

Data Ethi s Seal ould e a ay to operatio alize the Co

issio ’s idea of ethi s y desig a d

make it visible for consumers which companies, products and services to trust - and thus creating

a market incentive for producers to become more data ethical.

Standards on AI Trustworthiness

The Commission should investigate the possibilities for promoting the use of technical standards

on AI Trustworthiness in the European legislation. ISO/IEC and CEN/CENELEC as well as the IEEE

are currently working on different aspects of standardization of AI and ethics/trust. The inherent

agility of technical standards could create the necessary balance between long-term durability

and short-term efficiency.

Challenge

Trust is the most important component in ensuring wide uptake of digital technology and solu-

tions. It is thus of the utmost importance that the European Union succeeds in creating a legal

a d ethi al fra e ork that a e sure itize s’ trust i the e te h ologies. Moreo er,

the

responsible use of data has the potential to become a competitive advantage for European busi-

nesses in the competition with American and Chinese companies. In order to give EU businesses

a first mover advantage, the EU should take concrete steps to strengthen data and AI ethics

through transparency, and thus empowering consumers and businesses to choose products and

solutions that are based on a responsible use of AI and data.

Background

Our ambition as a European community should be to break down national silos to ensure that

the leading digital companies of the future will be European. EU has a very important global role

in terms of promoting the responsible and ethical approach to data use. We are convinced that

Europe not only could, but should lead the way for responsible use of data - and thereby poten-

tially gain an invaluable competitive advantage on the global marketplace.

SOU, Alm.del - 2019-20 - Bilag 168: Kopi af breve til nyudnævnte kommissærer, fra finansministeren

Digital-by-default and future-proof regulation

Proposal

To ensure that EU regulation is digital-by-default and future-proof, the Commission should introduce a set

of principles on digital-by-default and future-proof regulation and initiate targeted measures at all stages of

the legislative cycle to enforce these principles. These measures should have a two-fold purpose:

1. Enable digital administration to promote more user-friendly and efficient public services to

businesses and citizens as well as to improve enforcement and prevent errors and fraud.

2. Provide a future-oriented regulatory framework to accommodate and enable businesses to

innovate and apply new technologies and business models.

The set of principles could be the following six: 1) Simple and clear rules, 2) Accommodate new business

models and technology-neutrality, 3) Digital communication, 4) Automated digital case processing, 5)

Coherence and consistency across regulation and authorities - uniform concepts and reuse of data, 6)

Improving enforcement and preventing errors and fraud. Needless to say, safe and secure data handling is

a fundamental precondition that should accompany these efforts. See annex 1 for a description of the

principles.

It is vital to ensure that the principles on digital-by-default and future-proof regulation are considered by

the relevant Directorate-General in the early drafting stages of a proposal and in relation to the impact

assessments. The implementation of the following procedures will ensure proper enforcement of the

principles. An early screening could determine whether the principles are relevant and, if that is the case,

whether they have been followed. The existing better regulation structure within the Secretariat-General

could carry out the screening drawing on the expertise from relevant units in DG CONNECT and DG DIGIT.

Measures later in the legislative process can also be considered - such as ex-ante digital-by-default and

future-proof checks by the Regulatory Scrutiny Board. Finally, ex-ante and ex-post evaluations such as user

journeys, user-friendliness tests and REFIT-activities can evaluate whether regulation has been

meaningfully translated into user-friendly digital solutions and identify ways of making regulation more

future-oriented and fit for the digital age.

Challenge

The accelerating digital transformation of businesses and society poses both new opportunities and

challenges for EU regulation. EU regulation needs to be fit for the digital reality of businesses and citizens,

enable user-friendly digital solutions and promote innovation, including new technologies and business

models. Digital-by-default and future-proof regulation is a precondition for a well-functioning Digital Single

Market, which is both genuinely

digital

by promoting innovation, new technologies and business models

and

single

by enabling more seamless, efficient and user-friendly national and European digital public

services that reduce burdens for businesses and citizens operating across the EU. This is an opportunity to

improve public services and provide European businesses with the competitive edge which is crucial for

succeeding in the fast-moving global digital economy.

Background

Existing and new regulation is often not designed to accommodate the way in which new technologies and

business models can create new value for businesses and society. We still see proposals that are not suited

SOU, Alm.del - 2019-20 - Bilag 168: Kopi af breve til nyudnævnte kommissærer, fra finansministeren

to the current digital reality of businesses or are difficult to digitalise and automatise by public authorities.

The Commission has already included

a Research a d Innovation

Tool

a d a Digital Check i its Better

Regulation Toolbox. These are steps in the right direction, but there is a need to step up these efforts by

placing principles on digital-by-default and future-proof regulation at the heart of the

issio ’s

better

regulation machinery. This will ensure that EU regulation is suited to the digital reality, reduces

unnecessary burdens and enhances well-functioning national and European digital public services for the

benefit of businesses, citizens and the authorities themselves. We stand ready to engage in dialogue with

the Commission to develop such measures as we have introduced similar measures at national level.

SOU, Alm.del - 2019-20 - Bilag 168: Kopi af breve til nyudnævnte kommissærer, fra finansministeren

Annex 1: Principles for digital-by-default and future-proof regulation

To ensure that EU regulation is digital-by-default and future-proof, the Commission should introduce a set

of principles on digital-by-default and future-proof regulation and initiate targeted measures at all stages of

the legislative cycle to enforce these principles. These measures should have a two-fold purpose:

Enable digital administration to promote more user-friendly and efficient public services to

businesses and citizens as well as to improve enforcement and prevent errors and fraud.

II.

Provide a future-oriented regulatory framework to accommodate and enable businesses to

innovate and apply new technologies and business models.

Needless to say, safe and secure data handling is a fundamental precondition that should accompany these

efforts.

Principles

The following principles should be promoted at EU-level:

1. Simple and clear rules

Simple and clear rules are easy to administer and contribute to more uniform administration and digital

support. If the legislation is unclear or complex with many exceptions, requirements, schemes or discretion it

can be difficult to administer - also digitally. Legislation should focus on the main objectives while detailed

specifications should be handled in delegated or implementing acts which will enable easier and continuous

updating of the legislation.

2. Accommodate new business models and technology-neutrality

The legislation should foster innovation by accommodating emerging and new business models and

promoting the use of experiments and sandboxing. It must also be technology-neutral to ensure that it does

not regulate the use of technology which will subsequently become obsolete

3. Digital communication

The legislation must support user-friendly digital communication between citizens and businesses and the

public sector. For citizens who cannot use digital solutions, other solutions must still be offered.

4. Automated digital case processing

The legislation should underpin fully or partly automated digital case processing. As a general rule, the

legislation should apply objective criteria, clear and unambiguous definitions and common concepts rather

than special concepts. The goal is to enable automation by using objective criteria when it makes sense and to

ensure that it is still possible to exercise discretion in cases where it is professionally relevant.

5. Coherence and consistency across regulation and authorities - uniform concepts and reuse of

data

Legislation should be coherent across policy silos in order to prevent fragmentation and regulatory

uncertainty. Concepts and data must be reused across regulation and authorities to promote efficiency and

coherence to thereby reduce burdens for both authorities, citizens and businesses. If data already exists that

supports the concepts of the legislation, the legislation should reuse these or consider whether other similar

concepts may be used for data that is already available.

6. Improving enforcement and preventing errors and fraud

The legislation must be worded to permit effective IT application and data-driven solutions and tools to ensure

better compliance and enforcement through risk-based control. Such solutions can improve the combatting of

fraud or reduce errors considerably.