Cantillon: Protecting consumer rights in the digital world

The update by the European Commission on Wednesday of its plans for a "single digital market" signals the latest stage in the great Brussels clampdown on US internet companies. Just barely a day after French officers raided the Paris offices of Google, the commission announced plans to tighten up EU rules on how online platforms operate in Europe, pledging to ensure consumer rights keep pace with a changing digital world.

For the US multinationals that dominate the online world (most of which have their European headquarters in Ireland) it was the latest indication of what many see as an over-assertive EU when it comes to regulation.

With the commission’s powerful anti-trust arm investigating the tax affairs of internet giants, and the recent European Court of Justice ruling deeming the Safe Harbour agreement on transatlantic data transfers illegal, Europe-US relations in the digital space have never been so strained.

Among the main proposals announced on Wednesday was a requirement that at least 20 per cent of the content carried by video-stream providers such as Netflix should be European. The commission also moved to stop "geo-blocking", the process of denying online shoppers access to sites due to their location in another country which leads to different charges for the same products across borders. The commission also said it would look into whether online platforms such as Google and Amazon were engaged in unfair practices, particularly in terms of copyright.

The proposals are at an early stage, and must go to the European Parliament and Council for approval.

And while the latest initiative may put further strain on transatlantic ties, the European Commission’s move to improve consumers’ choices by creating a common European online market is welcome news for the EU’s 500 million citizens.