EU Struggles to Balance Digital Regulation and External Pressure
The European Commission faces challenges in balancing digital regulation and external pressure. Critics argue that protectionism hinders competitiveness and strategic autonomy, while impartial rules boost reliability and merit-based competition.
The Commission can shield itself from US pressure by rigorously monitoring US data protection adequacy. It should adapt or suspend decisions if necessary, maintain independent oversight, and continually evaluate US standards against EU requirements.
However, the Commission risks over-enforcing EU digital regulations, unfairly penalising foreign competitors or diverting resources towards big tech investigations. An independent European Digital Authority could prevent this, ensuring the Commission doesn't exchange softer enforcement for better trade deals.
Delegating digital enforcement to an independent body could strengthen the EU's bargaining position against external pressures, a strategy known as 'burning the bridge' in game theory. Yet, designing regulatory agencies is complex, with trade-offs between autonomy and accountability, and influence in the legislative process.
The Commission's digital enforcement powers have exposed it to blackmail from other countries, as seen in the 2012 emissions trading system extension case. Current and future EU regulatory enforcement, including assessments of Apple, Meta, and X's compliance, may be vulnerable to external pressure. Establishing independent European agencies without amending EU Treaties, following the Meroni doctrine, could provide a solution. However, the Commission, now a political entity, may not be an effective market watchdog due to its strategic ambitions and political decision-making role.
To navigate digital regulation and external pressure, the EU must consider establishing an independent European Digital Authority. This could enhance regulatory reliability, prevent undue penalisation of foreign competitors, and strengthen the EU's bargaining position. However, careful design and clear definition of powers are crucial to ensure effectiveness and accountability.
