Prioritizing implementation and engaging with stakeholders
The European Commission’s 2019-2024 mandate has seen a remarkable surge in legislation aimed at enhancing digital technologies. This comprehensive approach has resulted in updating EU cybersecurity rules, establishing the world’s first AI regulation, reworking liability rules, creating rules for digital markets, updating the Digital Services Act, and overhauling the data services market through the Data Act.
As these new rules are implemented, businesses will need significant support to enable compliance and better ascertain how the rules applying to the Digital Single Market interact and overlap.
BSA has outlined several recommendations for the European Commission to ensure a smooth transition and maximize the benefits of these new regulations:
Recommendation #1: Prepare an EU Digital Single Market Impact Assessment
In its upcoming term, the European Commission, in cooperation with Member States and other EU bodies, should prioritize preparing an in-depth analysis of how new digital legislation will interact with existing EU laws.
For example, recent proposals may overlap in compliance requirements, such as updated cybersecurity laws and the AI Act, which both include reporting and documentation mandates. Similarly, AI Act disclosure requirements must align with the Digital Services Act’s content moderation rules, and the updated Product Liability Directive will affect the AI Liability Directive.
A holistic EU Digital Single Market Impact Assessment will guide future legislation and provide a roadmap for compliance with new obligations. This approach is in line with the European Council’s conclusions from May 21, 2024 calling the European Commission “to assess the impact of any new legislative initiative, in particular with a view to (…) guaranteeing a coherent regulatory framework” and “to prioritize in the coming years the effective and efficient implementation.”
Recommendation #2: Focus on Supporting Companies in Navigating the New Digital Framework
To ensure that Europe can fully benefit from the digital transformation and the significant updates in legislation, EU institutions and national authorities must actively engage with businesses to support their efforts to comply with new obligations. This is especially important in the B2B digital economy, where many companies will need to adjust their compliance strategies and contractual relations with customers and providers.
The European institutions should leverage the new mandate and incoming rules to build a Digital Single Market that supports growth and innovation through cooperation between the public and private sectors. Additionally, secondary legislation and guidelines will be key to providing companies with the necessary tools for compliance. During this development period, businesses will also need additional support and flexibility to manage the new obligations effectively.
From an implementation and enforcement perspective, European and national enforcement bodies will need to significantly increase resources, both in terms of staff and infrastructure, to ensure they can effectively enforce the new legislation. Because companies will now interact with an increasing number of enforcement and governance bodies, the establishment of new processes will help to ensure a cohesive and efficient flow of information.
This will be particularly impactful in the case of horizontal legislation, such as the AI Act, the Data Act, the EU Cyber Resilience Act, and the Product Liability Directive, which will affect existing enforcement structures across various sectors.
Recommendation #3: Continue Engaging Stakeholders Throughout the Legislative Process
As digital technologies become increasingly integral to European life and economic growth, the European Commission must ensure that new legislation is informed not only by an in-depth sector analysis, but also by expert input from governments, the private sector, academia, and civil society. This approach is especially critical in the B2B sector, where diverse business models and technologies require tailored considerations.
BSA encourages the EU institutions to enhance the involvement of B2B companies in preparing both primary and secondary legislation. This will help Europe leverage its strong industrial sector, ensuring that digital legislation benefits a broad spectrum of companies. Our members, for example, provide enterprise B2B software that supports the operations of other companies and improves safety, efficiency, product development, and innovation. Careful calibration of legislation is fundamental to avoid unintended consequences.
The AI Act stands out as a successful example thanks to its inclusive stakeholder engagement and the creation of a High-Level Expert Group. This approach provided valuable insights and fostered transparency from the start. In contrast, other proposals, such as the Data Act, followed a more traditional and less inclusive process, leading to complexities and gaps in stakeholder involvement.
BSA recommends that the European Commission allocate sufficient time for expert discussions and stakeholder involvement, which would result in more effective and transparent legislation.
