Tech sector urges EU action on single market issues hindering growth

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Matthew Schruers President & CEO at Computer & Communications Industry Association | Official website

Tech sector urges EU action on single market issues hindering growth

As the European Commission prepares its legislative and policy plans for 2025, the digital sector is calling for decisive action to address regulatory fragmentation that is affecting growth and innovation across the EU. The Computer & Communications Industry Association (CCIA Europe) has submitted a response to the Commission’s consultation on the Single Market Strategy, which is set to close tomorrow.

CCIA Europe emphasizes three priorities for the Commission in 2025: better implementation of existing rules rather than creating new laws, improving EU lawmaking processes, and recalibrating tech regulation to enhance competitiveness. The association points out that digital businesses are facing overlapping regulatory obligations within multiple frameworks, including seven conflicting cybersecurity incident-reporting requirements.

The complexity is compounded by growing legal uncertainty due to missing implementation guidance for major legislation like the Digital Services Act. New proposals such as the Financial Data Access Regulation risk introducing conflicting legal requirements, potentially forcing companies into compliance dilemmas.

Despite calls from various sectors for improvements in existing legislation to strengthen the Single Market, CCIA Europe notes that the Commission seems focused on advancing new proposals like a Digital Fairness Act and Digital Networks Act. CCIA Europe stresses that simplification and regulatory streamlining should be top priorities in upcoming plans.

Alexandre Roure, Head of Policy and Deputy Head of Office at CCIA Europe, stated: “The EU can no longer afford to continue creating tech policies based on theoretical aspirations that end up failing to reward innovation. Many concrete problems need fixing right now.”

He further added: “Only by focusing on real-world impact and prioritising the clear enforcement of current rules can Europe restore business confidence to invest and innovate in the Single Market.”

Roure also urged caution against rushing into more digital legislation without understanding its impact: “Instead of repeating the same mistake of rushing into more digital legislation without knowing the impact, going forward the Commission should always first identify whether European citizens and businesses actually experience a concrete problem in the first place.”

“If a genuine issue is identified, Europe must openly debate whether it can be addressed through existing laws or more effectively by non-legislative means,” he concluded.

The European Commission is expected to present its 2025 work programme on February 11. Additionally, they have been tasked with developing a new horizontal Single Market Strategy by June 2025. Stéphane Séjourné, newly appointed Executive Vice-President, has initiated a call for evidence open until January 31.