Ambition 4: Create a thriving, vibrant, and competitive data and innovation economy

Data is the key driver of the digital economy and drives innovation, particularly in AI. As AI-based services grow, European regulation faces new challenges in mitigating data concentration, addressing fragmentation, and protecting personal data. The goal is to create policies that ensure Europeans benefit from these digital innovations.

Harmonise data regulation

The European Commission has launched multiple data regulations, including the Data Act (DA), Data Governance Act (DGA), and others like the Digital Markets Act (DMA) and Digital Services Act (DSA). While these initiatives place Europe at the regulatory forefront, their simultaneous development by different Directorates has resulted in legal inconsistencies. These inconsistencies cause uncertainty and raise compliance costs, especially for SMEs. Harmonising these regulations is crucial to remove barriers to data flow and unlock the potential of the European economy. CERRE’s research supports the need for a coherent approach to EU data laws, addressing fragmentation and enhancing cross-border data flows.

Make the General Data Protection Regulation fit for the age of AI and the Internet of Things

The General Data Protection Regulation (GDPR) plays a pivotal role in EU data laws but may not fully align with the evolving digital landscape, particularly with AI and the Internet of Things (IoT). Challenges such as consent fatigue, the blurring line between personal and non-personal data, and collective harms from data processing highlight the need for a GDPR 2.0. This new framework should focus on automating consent, enhancing explainability of AI, and ensuring that data protection adapts to the realities of ubiquitous data collection.

Promote institutions and technologies that facilitate data sharing, data transaction, and data value creation

Data sharing and transaction mechanisms remain underdeveloped, despite regulatory efforts. Public sector data, in particular, holds untapped potential. The Commission should focus on resolving legal and technological barriers to data sharing, promoting privacy-preserving technologies like homomorphic encryption, and fostering data marketplaces. Such efforts would enable better utilisation of both public and private sector data.

AI Neutrality: Protect competition and innovation

AI, as a general-purpose technology, has transformative potential, but it also risks amplifying market concentration. Monitoring the coupling of AI with cloud services, operating systems, or devices is essential to prevent anti-competitive practices. Open-source models can help balance innovation and safety concerns. Global coordination on AI regulations is crucial to ensure a fair digital marketplace. The AI Act sets the foundation, but more work is needed to operationalise its rules and address emerging challenges in generative AI.