Better Law-Making and Evaluation for the EU Digital Rulebook

In the past decade, the European Union has proactively developed a comprehensive regulatory framework addressing the profound changes brought about by the rise of digital technologies. The drivers behind many of these legislative initiatives are multifaceted. While the legal justification often lies in the harmonisation of the internal market, the protection of fundamental rights and digital sovereignty have been central political arguments supporting regulations such as the AI Act and the GDPR.

Following the wave of digital regulations approved during the last mandate, and as a new European Commission takes office, a debate is emerging about the extent to which the principles of Better Regulation—aimed at making regulation smarter and more effective—have been followed in EU digital policy-making. This new CERRE report by Marco Bassini, Mariateresa Maggiolino, and Alexandre de Streel examines whether the various approaches adopted by EU institutions align with the legal justifications provided for the regulations shaping the EU Digital Rulebook.

Scope of the Report

The report focuses on analysing the European Commission’s ex-ante impact assessments to determine whether and how the principles and methods of Better Regulation were applied in developing the EU Digital Rulebook. The analysis uses three landmark EU digital regulations as case studies: the General Data Protection Regulation (GDPR), the Digital Markets Act (DMA), and the Digital Services Act (DSA).

While the DMA and DSA have only recently entered into force, their impact assessments reveal a lack of substantiation for the anticipated economic impacts and a likely underestimation of compliance costs, particularly given the challenges posed by regulatory layering. The research ambitions to establish a blueprint for future digital laws, making them more resilient and future-proof.

Key Findings and Recommendations

The authors outline how future ex post impact assessments should be conducted and offer guidance to the European Commission on applying the principles of Better Regulation when revising EU digital laws. The report provides both general recommendations and use-case-specific insights.

Recommendations on Substance

• Identification of Causality Links and Policy Trade-Offs: Clearly identify causal relationships and trade-offs involved in policy choices.
• Identification of Indicators and Data: Once causal relationships and trade-offs are identified, the necessary indicators and data to measure their effects should be collected.
• Dynamic Regulatory Assessments: Transition from a ‘regulate-and-forget’ mindset to a dynamic ‘adapt-and-learn’ approach, as recommended by the OECD.
• Attention to Regulatory Consistency: Ensure coherence between new laws and existing or concurrently proposed laws.

Recommendations on Process

• Robust and Independent Assessment Process: Strengthen the independence and robustness of the assessment process within the European Commission.
• Stricter Adherence to Impact Assessments: Apply a ‘life cycle’ approach to Better Regulation, ensuring impact assessments are followed throughout the entire law-making process.

Additional recommendations are presented in the context of the specific laws analysed in the research. For further insights, download the full report.