The digital market: EU institutions are working hard to maintain fair competition
On 11 November 2013, Joaquín Almunia, Vice-President of the European Commission and European Commissioner for Competition, stated that the EU is working hard to make the most of the European digital market. In the unique milieu of The London School of Economics and Politics, a numerous audience welcomed the speech of the Spanish commissioner who provided an interesting overview of the current work of EU institutions in the sector. In this regard, Almunia remarked the importance of the completion of the European digital market as a way of enhancing innovation, creating jobs and pushing the overall economy of the European Union.
The commissioner started his speech by detailing some characteristics and developments in the digital market over the last few years. The use of search engines and social media were claimed to be of paramount importance to the majority of digital companies. They are both top features in the advertisement revolution which over the last decade years have promoted many stories of success. However, one must bear in mind that in the digital world, winners emerge as quickly as they disappear. For this reason, EU policy makers do not ignore the development of such a constantly changing environment in order to ensure the fairness of the game and promote the potential of European companies.
In regard to the completion of the single market in the digital field, Almunia highlighted that European companies are being affected by the fact that many member states are reluctant to lose their national regulations. As a consequence of this fragmentation, it is extremely complicated for them to compete at a global level. Despite this disadvantage, there are also cases in which companies are pushing their national governments in order to maintain these regulations and in this manner avoiding foreign competition. The commissioner concluded that a harmonization of national regulations is essential for a better functioning of the digital market and safeguarding the positioning of European companies.
The commissioner also dedicated a part of his speech to explain some of the cases in which EU institutions are currently working. In this manner, it appeared names as Google, Samsung or Telefonica that quickly attracted the whole attention of the audience. From his position as DG Comp, Joaquin Almunia explained that these companies are being investigated for manipulating the access that users have to the products offered in each others’ sectors. Although similar cases in the past have led to millionaire fines, the commissioner also explained that sometimes commitments are also of great value for both parties.
The question and answer session demonstrated the relevance of the matter. Both professionals and students did not hesitate to ask the commissioner questions on a large number of issues. Although the time given expired and many questions were left unanswered, it was clear the commitment of the Commission to enhance the regulative framework of the digital market, a sector with the potential to bring prosperity to many European citizens.
More information about Joaquín Almunia’s lecture at the LSE on 11 November 2013, including a transcript and podcast, can be found on the LSE events website.
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Written by Carlos Oliva-Quintana
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