UK warns EU over excessive regulation of big data and online platforms

Joint letter from 11 EU countries urges light-touch regulation for Digital Single Market

The UK and 10 other European Union member states have written an open letter to Vice President for the Digital Single Market on the European Commission Andrus Ansip, warning that excessive regulation of online platforms risk harming the initiative.

"The development of new digital technologies, behavioural patterns and business models is challenging the status quo and raising questions about how platforms function within the Digital Single Market," warns the letter. It makes a series of requests to Ansip over the implementation of Commission's EU's Digital Single Market policies.

These include:

• "Platforms should be primarily seen as an opportunity, not a threat;
• Platforms are already subject to significant regulation;
• Platforms must not be hampered by cumbersome regulation; and,
• We can best support the development of European platforms in Europe by
• providing the right conditions for growth."

"Businesses use platforms to reach more customers and expand into new markets. They benefit from new funding models and reduced costs. Consumers benefit from increased information and convenience, choice and quality of services, and savings in money and time. It is thus important that platforms are allowed to continue to be the drivers of innovation and to meet customer demand," argues the letter.

The signatories continue that the EU should look to existing regulatory frameworks to govern new technology platforms, rather than inventing new laws, regulations and frameworks. Indeed, the letter suggests that industry self-regulation ought to be considered first, before formal EU-wide regulation.

"Platforms are hugely varied and cover a wide range of business models. Policy questions are therefore rarely applicable exclusively to platforms, and when they are, they are limited to a subset of platforms. Adoption of new ex-ante regulation targeting online platforms as a segment of the digital economy is not desirable unless there is clear and compelling evidence of need," it added.

It continued: "We should avoid introducing legislation that might act as a barrier to the development of new digital business models and create obstacles to entry and growth in the European digital market. Such legislation might have an unintentionally damaging effect on the innovation, competitiveness and economic growth of the European digital industries."

Other signatories to the open letter include the Czech Republic, Poland, Luxembourg, Finland, Sweden, Denmark, Estonia, Latvia, Lithuania and Bulgaria. Apart from the UK, the EU's biggest and most influential countries were conspicuous by their absence as signatories.