In the final of our three part series on the progress of the European Commission’s 2015 Work Programme, we take a look at developments in the key areas of the Internal Market and the Digital Single Market.

Digital Single Market
In January the Commission’s Work Programme for the digital single market set out 16 initiatives which were to be built on three pillars. These are:

• To provide better access for consumers and businesses to digital goods and services
• To create the right conditions for digital networks and innovative services
• To maximise the growth potential of the digital economy

Providing better access for consumers and businesses
Under the first pillar, the Commission plans to remove barriers between online cross-border commerce. In May, the Commission launched an antitrust inquiry into the EU e-commerce sector. The inquiry will allow the Commission to identify possible competition concerns affecting European e-commerce markets. The final report is expected in the first quarter of 2017.

Building a framework for digital services and networks
Under the second pillar the Commission wants to establish the right framework for future digital services and networks. In June, Ministers in the Justice Council agreed an approach to the Commission’s proposal on data protection regulation. The new regulations will create a single set of rules on data protection to be valid across the entire EU. This will mean that companies will only have to contend with one law; not 28. According to the Commission, this will save businesses around €2.3 billion a year. Additionally, almost two years after the European Commission put forward its proposal for a telecoms single market, an agreement was found with the European Parliament and the Council to end roaming charges on June 15, 2017. When travelling in the EU, mobile phone users will pay the same price as at home, with no extra charges.

Maximising growth potential
Under the third pillar the Commission aimed to maximise growth by highlighting the benefits of e-services and advancing digital skills. The Commission vowed to end geo-blocking, where online sellers either prevent consumers access to their website based on their location, or re-route them to a local store with different prices. This is highlighted by the Commission’s recent decision to launch an antitrust investigation against Sky UK and six major US movie studios for banning broadcasters from showing content outside their country. During the July plenary MEPs also set out their position on copyright reform. They called for improved access to online content across borders while recognising the importance of territorial licences, especially for TV and film productions.

The Digital Single Market aims to realise these different strategies by the end of 2016 in conjunction with the backing of the European Parliament and the European Council. The completion of the Digital Single Market is estimated to generate up to EUR 250 billion of additional growth in Europe by the end of 2019.

Internal market for products and services
Originally set out in the Commission’s Work Programme for 2015 was a completed internal market in products and services that aimed to bring industry’s share in its GDP back to 20% by 2020 – from less than 16%.

Tax reform
In June the European Commission presented an action plan to fundamentally reform corporate taxation in the EU. The plan set out initiatives to tackle tax avoidance, secure sustainable revenues and strengthen the Single Market for businesses. This is to be achieved by re-introducing of the Common Consolidated Corporate Tax Base (CCCTB) alongside a new framework to ensure effective taxation where profits are generated. The Commission is also publishing a first pan-EU list of third-country non-cooperative tax jurisdictions and launching a public consultation to assess whether companies should have to publicly disclose certain information about taxation.

Capital Markets Union
The Capital Markets Union (CMU) is part of the European Commission’s plans to establish more integrated capital markets in the EU. Under Juncker’s Commission it was set up to find ways of diversifying financing sources, strengthening cross border capital flows and improving access to finance for businesses. The Commission hosted a public hearing on the “Next steps to build a Capital Markets Union” in June. This included a commitment to create a new prospectus directive to benefit capital markets. This would provide investors with greater information before making an investment decision. The ultimate goal is to promote simpler and more transparent securitisations, create better opportunities for investors, and increase access to finance. The Commission also aims to dismantle horizontal obstacles to cross border investment. The Commission’s comprehensive action plan for CMU is due to be published in September 2015.

No new legislative initiatives have been set by the Commission this month but next month two public consultations will take place. On September 3rd there will be a discussion on contract rules for online purchases of digital content and tangible goods; on September 30th there will be another consultation on the review of the Audiovisual Media Services Directive.

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Read part 1.