EU ‘should not target US tech firms’ in digital single market plan

The European Union should not use its Digital Single Market proposal to target large US tech firms for "political means", Fine Gael MEP Brian Hayes said.

Mr Hayes noted the European Commission's recent decision to open a formal investigation against Google for allegedly abusing its dominant position for online searches.

“I think there does need to be a full and frank investigation into allegations of market abuse since we need a level playing field for all search engine providers,” Mr Hayes said.

But he said the priority should be to make communication and technology services work better for consumers.

The commission will publish its Digital Single Market strategy on May 6th. It will aim to provide better access for businesses and consumers to online goods and services across Europe, proposing reforms in areas such as copyright, contract law, parcel delivery services, IT infrastructure, corporation tax, VAT, broadband services and telecoms services.

The dominance of companies such as Google is a major driver behind the proposals and the commission is seeking to create conditions under which European firms can better compete with the US giants.

Many of the US firms, including Google, Apple, LinkedIn and Facebook are major investors in Ireland, with thousands of employees between them at their official European headquarters here.

“We need a Digital Single Market as it will break down barriers for the efficient delivery of e-services to all European consumers. But this should not be about the commission going after large tech companies because of their dominance in the market,” Mr Hayes said.

He did not believe the investigation into Google should dictate plans for the EU’s Digital Single Market.

“There has been a propensity from the commission in recent months to go after some of the large US tech multinationals,” the Dublin MEP said.

"While all anti-competitive practices should be investigated, there needs to be some balance. Companies like Facebook, Amazon, Google and Apple play an important role in the European economy and they should not be targeted for political purposes."

Mr Hayes said the Digital Single Market should be about giving better access to consumers and businesses for digital goods and services.

A leaked draft of the commission’s strategy claims that bringing down barriers within the single market would contribute an additional €340 billion to Europe’s GDP.

It says completing the Digital Single Market could create some 3.8 million jobs and reduce the cost of public administration by between 15 and 20 per cent.

“It is estimated that EU consumers could save €11.7 billion per year if they could choose from a full range of EU goods and services when shopping online,” Mr Hayes said.

He added that to make the Digital Single Market strategy work, the EU needed to quickly conclude ongoing negotiations on new EU data protection rules.

Those discussions on a universally applicable regulation to replace a 20-year-old EU data protection directive have been going on for three years, however.

It is hoped that the Council on Justice and Home Affairs can reach an agreed position on the draft regulation at its meeting in June. After this, it will enter a negotiation process between the commission, the European Council and the European Parliament.

Mr Hayes said a Digital Single Market also needed to provide better support for tech entrepreneurs to drive innovation in Europe and it needed to improve access for consumers and businesses to digital goods and services.