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The Brave Digital World. Is the EU Ready to Compete?

About the report:

Analysis of new technologies in the European economy and the function of a data-based economy in the changing geopolitical reality. In the first part of the report, EU Techs, i.e. European companies from the new technologies industry, are defined and their impact on the economy and national markets estimated. The second part - the legislative one - presents solutions to increase the EU's competitiveness in the global technology market and regulatory recommendations for Europe to succeed in the digital age.

Key conclusions:

  • The EU needs to be clear about the necessary trade-offs in its approach to the digital era. The existing legislative landscape does not adequately address these broader strategic concerns.
  • Regarding consumer protection, decentralised law enforcement fails to ensure a level-playing field between EU-based platforms and companies operating from outside the EU.
  • There are over 4,500 EU Techs, i.e. companies from Europe that provide products or services online. In 2018 they generated revenues of EUR 414 billion.
  • EU Techy pays around EUR 7 billion in corporate income tax annually to the state.
  • Current EU regulations are not adapted to the contemporary challenges of the digital world. Moreover, they are not effectively and evenly enforced.
  • The EU policy towards the transfer sector is shaped by concerns related to the activities of global giants (GAFA and Chinese entities).

The report is also available in the Polish version.

Author: Adam Czerniak, Miłosz Wiatrowski
Translation: Aleksander Szojda-Pallado
Editorial office: Juliette Bretan
Graphics design: Anna Olczak
Year published: 2020
Ordering party: Allegro