Netherlands Leads Effort to Simplify EU Digital Economy Laws
Brussels, Friday, 6 December 2024.
The Netherlands, with eight other countries, aims to streamline EU digital economy regulations to boost competitiveness and consumer protection, minimizing unnecessary regulatory burdens.
Coalition Formation and Immediate Goals
On December 6, 2024, Dutch Minister of Economic Affairs Dirk Beljaarts, together with representatives from Belgium, Germany, Estonia, Finland, Greece, Ireland, Slovakia, and Sweden, called upon the European Commission in Brussels to address regulatory complexity [1]. This initiative aligns with the EU ministers’ November agreement to reduce regulatory burden by 25% under the incoming European Commission [1]. The coalition is particularly focused on supporting small and medium-sized enterprises (SMEs) that are struggling to navigate the complex web of digital regulations [1].
Current Regulatory Landscape
The EU currently has more than ten digital economy laws either in effect or pending implementation [1]. Recent developments include the Network and Information Security 2 (NIS2) directive, which as of December 1, 2024, has only been fully transposed by four member states - Belgium, Croatia, Italy, and Lithuania [3]. This complex regulatory environment spans various domains including artificial intelligence, digital platforms, product safety, and data protection [1].
Proposed Solutions and Timeline
The nine-country coalition has proposed several concrete actions, including organizing targeted panel discussions with digital SMEs and collecting legal examples of conflicting definitions in EU digital legislation [1]. A particular focus will be placed on standardizing terminology for commonly used terms such as ‘platform,’ ‘data,’ and ‘systemic risk’ [1]. The initiative supports new EU Commissioner Henna Virkkunen’s proposal to analyze how digital legislation impacts SMEs, with the Netherlands advocating for completion within the first 100 days of the new Commission’s term [1].
Broader Context and Impact
This initiative comes at a crucial time as the new European Commission, which took office on December 1, 2024 [5], faces the challenge of balancing robust digital regulation with business-friendly policies. The effort is particularly relevant given the ongoing implementation of major digital initiatives, including cybersecurity regulations and digital fairness measures [3]. For businesses, especially those working across multiple digital domains, the simplification could significantly reduce compliance complexity [1].