For the first time, the EC sets out a proactive approach toward the use of data in the European economy.
Background: Building on the successes and failures of the previous European Commission, the new EC has been working on a Data Strategy. On 19 February 2020 it announced a Communication on Europe’s digital future, a Data Strategy, and a White Paper on AI, through which it sets a proactive approach and prepares to tighten the grip on big tech in the future.
Tapping into the potential of industrial data: Perhaps the most important part of the EC’s announcement is the intention to create a new European data space. This will create the conditions for researchers and businesses to harness the data coming from the EU industrial sector (“a Single Market for industrial B2B data”, Breton said). This will be obtained through a Data Act that unlocks the use of such data, as well as better infrastructure (a European industrial cloud-platform alliance is on the cards) and sector-specific initiatives.
High-risk AI should be tested before entering the market: The publication of a White Paper on Artificial Intelligence signals the EC’s intention to continue down the path of recent years: steer the conversation without regulating – just yet. The paper outlines the need for rules to ensure that “high-risk” AI is tested and certified before it enters the EU Single Market, and that biases in algorithms are minimised. The Paper also touches on one of the biggest recent talking points – the approach to facial recognition. To this end, the Commission wants to launch a debate about which circumstances might justify its use thereby signalling it will regulate the matter in more detail in the coming years.
Little detail on how antitrust will change to tackle big tech (for now): The EC’s Communication repeatedly touches on the imbalances caused by the market power of big tech. However, it provides little detail of how this will be addressed. The investigations around the high degree of market power of certain platforms, and also the Commission’s work on the upcoming Digital Services Act, will inform any future remedies, including by ex-ante regulation if appropriate.
Next steps: Today’s announcement sets the tone and direction of travel of the new European Commission, but the detail of the initiatives will come at a later stage. The EC is running consultations on the data strategy and on the AI White Paper until 19 May 2020.
