Enforcement of the DMA and DSA, the promise of a Digital Networks Act, cloud and AI legislation as well as merger reform all featured in the proposed EVPs’ final round interviews
Virkkunen urges Europe to embrace technology where this does not undermine the security of critical infrastructure
Ahead of their confirmation hearings, Henna Virkkunen (EVP-designate for Tech Sovereignty, Security and Democracy) and Teresa Ribera Rodrídguez (EVP-designate for Clean, Just and Competitive Transition) responded to written questions prepared by relevant committees within the European Parliament. With many references to AI, quantum and cloud, Virkkunen’s answers stressed the need for the EU to embrace new technologies or risk falling behind, and remaining dependent on, other regions. She promised a Cloud and AI Development Act to boost data processing and computing capacity for developers and deployers of AI, which would be complemented by a European Data Union Strategy to further unlock the potential of data. During her hearing on 12 November 2024, the prospect of a future Cloud and AI Development Act was again raised, while Virkkunen also underlined a commitment to presenting an AI Factories Initiative within the first 100 days in office as she seeks to make Europe an “AI continent” – potential reflecting a shift in the EU’s approach towards being an enabler of the technology rather than just a regulator of it. Seeing the region at a crossroads in terms of security, Virkkunen’s written responses indicated she would redouble efforts to de-risk supply chains and work to establish global leadership in cybersecurity standards. Her hearing emphasised these aims, insisting that Member States fully apply existing cybersecurity rules and do more to secure critical infrastructure. In particular, she admitted to not being “satisfied at all” with countries’ implementation of the 5G toolbox, with 42% of network equipment still supplied by high-risk vendors.
Tech Commissioner-designate underlines her commitment to enforcing key digital regulation and protecting children online
Delivering fast and reliable connectivity across the bloc was referenced in both Virkkunen’s responses and hearing. At the in-person meeting, she committed to preparing a Digital Networks Act (DNA) to reduce bureaucracy around the rollout of high-speed broadband as part of wider efforts to meet the 2030 Digital Decade targets. The written responses added that the DNA would take into account feedback on the EC’s White Paper as well as the recent Draghi and Letta Reports to incentivise investment and reform regulation. Focus will be on completing the telecoms single market and spectrum harmonisation, but also on protecting consumers and creating a level playing field for all players, which Virkkunen wrote should not boil down to a discussion on network fees (i.e. fair share) – although it appears she remains open to all proposals at this stage. In terms of existing legislation, Virkkunen fielded questions from several MEPs on the enforcement of the Digital Services Act (DSA) and Digital Markets Act (DMA), with some probing the implications of Donald Trump’s re-election as US President and his support from X owner Elon Musk. On the DMA, Virkkunen highlighted the importance of avoiding monopolies in the digital world, including preventing closed ecosystems that may inhibit innovation. She reminded the room that all companies operating in the EU must comply with its rules (noting ongoing procedures against some online platforms) and reiterating her ambition to enhance the region’s tech sovereignty and competitiveness. In terms of the DSA, Virkkunen said that protecting children online and investigating the impact of addictive algorithms would be two priorities, while working to counter mis- and disinformation and foreign interference in elections. Effective and “evidence-based” enforcement of the legislation will see the EC double the total headcount of its DSA team to 200 by the end of next year.
Ribera criticised on multiple fronts, backing the Green Deal while giving little away on a possible role for nuclear energy
At Ribera’s hearing (which ran parallel to Virkkunen’s), the EU’s green transition and the recent floods in Spain were the target of many questions and comments from MEPs, creating a tense atmosphere at times. Ribera, accused along with domestic colleagues of being to blame for the events in Valencia, paid tribute to the victims before stating her commitment to the European Green Deal and reiterating her written pledge to deliver a new European Climate Adaptation Plan to enhance the bloc’s resilience to extreme weather. Certain MEPs questioned Ribera about her stance on nuclear energy. On this issue, she offered more than her pre-hearing responses, stating (in line with EU law) that she would respect each Member State’s decision on how to organise its energy mix. Ribera refused to be drawn on whether she would support further state aid for additional nuclear power plants, simply stating that any proposal should be assessed on a case-by-case basis. Despite Ribera’s likely brief, the hearing seemed relatively light on competition policy, although there was some criticism of her experience in this space. To tackle the entrenched power of gatekeeper platforms, Ribera – in her responses and at the hearing – promised a vigorous application of the DMA and collaboration with Virkkunen to fulfil that. However, she stated to MEPs her belief in the need to find other means to “structurally strengthen” the EC’s capacity to enforce the rules, indicating support for the “new competition tool” proposed by Draghi if it can be shown to address specific market failures.
The likely next Competition Commissioner seeks a different approach to merger control compared to her predecessor
More broadly, and as already discussed with the media, Ribera committed to working on a reform of EU competition policy that is more supportive of companies achieving scale in global markets and allows European businesses and consumers to share-in the benefits of effective competition. A more detailed outline of this new approach was offered by her written answers, which proposed:
Simplifying and speeding up antitrust investigations;
Strengthening and better targeting competition enforcement; and
Ensuring effective alignment of competition policy with the EU’s priorities, including establishing the single market.
Ribera also spoke specifically on the need to update some of the tools “that have been used for years”, such as the Merger Regulation and guidelines, to better target deals that may have distortive effects on the European economy. Her written responses further advocate an evolution of the rules governing M&A to capture “contemporary needs and dynamics” like globalisation, digitisation and sustainability, and to account for the importance of scale in investment-intense activities or geographic markets – encouraging to those telecoms operators looking to consolidate. While it is currently unclear how Ribera would prevent killer acquisitions of firms considered to have high innovation potential, her appetite for reform generally demonstrates the potential direction of travel for competition policy in the post-Vestager era. However, with a mixed reaction to Ribera’s hearing, it seems that some political negotiation will likely take place before her appointment is secured. In contrast, the feeling is more positive around Virkkunen, with formal confirmation of the new EVP expected within a matter of days.
