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Digital Single Market Challenges and opportunity

Europe Digital Single Market goal to generate digital opportunity for people and business and to enhance Europe digital economy. In order shape, the European digital industry such as Industry 4.0, Europe has been taking measure that would benefit with better access, healthy environment and improve economy and society. Hitechies analyzed the Digital Single Market Challenges and opportunity for European Digital Industries laid focus mainly on Industry 4.0 including geo-blocking, telecommunication, online platforms, European data economy, and Cybersecurity.



“ The Fourth Industrial Revolution is “a technological revolution that will fundamentally alter the way we live, work, and relate to one another” –

Klaus Schwab,
Founder and Executive Chairman of the World Economic;

The Fourth Industrial Revolution aims to influence distinction between the physical, digital, and biological sphere . The European Commission is setting a right track by implementing Industry 4.0 to digitize European industry. It is useful to study techno-economic paradigm to comprehend European Industry 4.0 rewards and risk.

According to Carlota Perez:

“ The new techno-economic paradigm gradually takes shape as a different ‘common sense’ for effective action in any area of endeavor. … It is this difference in the rhythm of change, between the techno-economic and the socio-institutional spheres, that would explain the turbulent period following each big-bang and therefore the lag in taking full social advantage of the new potential.” (2002,26)

(Cimoli, Hofman, & Mulder , 2010) clearly, express and support Carlota Perez by emphasizing that there be always a proximity between the technological revolution and societies because it was designed and driven by deep social, political, and ideological confrontations and compromises. (Perez, 2002) suggests that a set of best practice principle should accompany fourth industrial revolution that is in the form of techno-economic paradigm along with social responsibility and sustainability. Furthermore, she suggests avoiding bubble and capitalism is important, so we require a Green reform in our technology and tax be imperative at this stage industrial revolution (Perez, 2003). A multilevel governance is required as the central and east European are affected by the economic crisis (Guasti, 2016). Thus, very important for Europe to develop a sustainable and economically beneficial Industry 4.0. The political uncertainty is increasing, and European unity threatened because of the refugee crisis. For instance, United Kingdom exit from European Commission stuns the whole world (Brexit).
Digital Single Market in Europe will be the golden strategy to bring all twenty-eight national markets into a single digital market which would provide more access to the resource, and this could contribute 415 billion Euro to Europe GDP and a pathway to create thousands of new jobs. Alasdair Gilchrist summaries that, Industry 4.0 would integrate cyber-physical systems, Internet of things, big data, cloud computing and artificial intelligence along with the businesses that would create value, business model and economic development (2016, 195-215). It might be suggested that Industry 4.0 there is every hope that it is rewarding too for large companies, small and medium-sized enterprises as well as the public and private sectors. In a study by Christian Schröder, it was highlighted that for small and medium-sized enterprise the value is downstream and “dissemination of Industry 4.0 will be the development of secure, standardized interfaces”(2016, 19) that is challenge related with industry 4.0 can be small and medium-sized enterprise only to an extent and it is limited. It is very important to involve small and medium-sized enterprises from the beginning of ongoing standardization process so that it will interest and benefit them. European commission recognized three essentials budding challenges to ensure the digital environment impartial, open, and safe. Explicitly online platforms, European data economy and cybersecurity (Latham & Watkins, 2017).

Geo-blocking

Geo-blocking is a practice used by the online sellers for the commercial reason. That is by denying access to the website based in other member states (Maske, 2016). For instance, some consumer can access the website but cannot buy the product or service. Instead, the consumer will be re-routed to the local internet site. Eventually, the consumer does not have access to compare price and gain benefit. (Maske, 2016) also provides, for example, consumer challenges going through because of Geo-blocking such as differences in warranties, health and product safety, differences in VAT and consumer rights, as well as language requirements. Zheng, Yang, Shundong and Fengxiang also point out in E-commerce challenge that “cross-border e-commerce has not achieved great development because of the maturity of domestic e-commerce, the legal barriers, the size of the country and linguistic problems” (2014, 55). Both the studies emphasize the challenges in Europe. It might be highlighted that online geo-blocking is not justified and price discrimination persists, and competition policy is required so that all member states can benefit. European Parliament proposed a regulation consist inter alia to address unfair geo-blocking so that “EU consumers and businesses can take full advantage of the single market concerning choice and lower prices”(Duch-Brown, Martens, Duch-Brown, & Martens, 2016). There is every hope that the European Union focused on developing a single digital market and it is European Union’s major achievements.

Telecommunication

One of the important project in digital single market telecommunication roaming charges. Jacques and Andrea emphasized fundamental conflict in European telecom policy and telecoms liberalization with regards to customer satisfaction, new services and technologies have despaired (2011, 36-40). (Vogelsang, 2010) bring to light macroeconomics variable and policy set up are interdependent because they influence the market and business strategy. Evidently, European Union has considered all their flaw in telecommunication and implement a system that would be for the betterment of their citizen. “Roam like at Home” irrespective of anywhere in Europe; the customer can pay their domestic price (Marcus, Scott, And, & Petropoulos, 2016). It is rewarding for Europe by overcoming a decade of telecommunication flawed policy obstacles.

Online platforms

A study by Graef and Wahyuningtyas stated Online platforms play the vital and central role in Europe social and economic life and Online platforms consider as the enabler for radical and open innovation in the internet era (2015, 375-387). They are also the essential instrument in communication, and it brings the advertisers and users together. Thus, it creates business values. Furthermore, the study explores a policy that highlights about transparency, fairness, openness, and non-discriminatory online platforms that tailor data economy and highlight
“EU authorities are more likely to accept antitrust liability for data access refusals”(Graef et al., 2015).
Notwithstanding it is hard to conclude to current European policy for the online platform is secure, but at the same time, one cannot exclude the fact that the European Union is taking required measure to balance regulation that would be rewarding for Europe. Thomas and Albena research on Advances in web-based learning compliment Graef and Wahyuningtyas study. For example, online platform plays a significant role in the professional development of teachers because it results in skill development, better education reform and for the betterment of student achievement. From this study, it shares significant evident that skilled student can become a self-programmed labor rather being a genic labor and reflect increasing the countries literacy rate (Osburg & Todorova, 2009). More importantly, it expresses the technology and teacher training integration with increase the economic development for Europe. (Meier, 2012) discusses Knowledge society in the book eDemocracy and eGovernment. Meier summaries preparation of Europe by integrating technology and developing knowledge-based economy and society. Furthermore, he also explains the process of structural reform that increases the competitiveness and innovation in digital industry with the well-equipped policy to support the process. The focus of eGoverment is no citizen be left behind and maximize the efficiency and growth of the economy. There is every hope that Web-based technologies are stepping stone to accelerate the Europe economic growth and unity.

European data economy
One of the primary attributes of the digital single market is a data-driven economy that is using digital data in a functional technique to benefit the society and economy of Europe. José Cavanillas, Curry and Wahlster in the book New Horizons for a Data-Driven Economy, they have explored European big data ecosystem. The authors highlighted “Europe needs to foster the development and broad adoption of big data technologies, value-adding use cases, and sustainable business models through a Big Data Ecosystem” (2016, 9-11 ). They also cover the complete lifecycle of big data usage, opportunity, and risk. Additionally, they emphasized that all sector across Europe whether it is healthcare, media, energy, and retail the expected impact with potential use big data have a positive transformation in business value and model. European industries thrive in Industry 4.0 with innovation and competitiveness. It is fascinating because authors summarized an unbiased fact by clearly stating challenge free flow of data and opportunity of digital data economy. (Becker, 2016) explain traditionally European market is performing very well in trades of physical goods and they lack a harmonized policy that would remove the challenges in the digital economy. For instances, Privacy rights, free flow of data and Legal use of big data. Need for transparency in policy to gain the trust of the user is needed. According to Gonçalves in a study about the EU data protection reform and the challenges of big data, he stated that “the current EU data protection reform fails to cope with the dynamics of big data and to provide the appropriate caution that could be expected from a law designed to protect a fundamental human right” (Gonçalves, 2017) We cannot exclude the fact uncertainty is surrounding big data because currently, no sustainable policy can govern compliance with data protection but we must include the fact that, conscious policy in regulating data protection and it would thrive GDP of European Union as well as job creation in multisector. Another example, in the digital ecosystem in Europe, there is a necessity of seamless payment transaction system so that there will be the efficient, stable and trustworthy operation in the cross-border context in Europe. Gimigliano explains virtual currencies and traditional payment system comprise of the same essential prospect. Moreover, he also analyzed “blockchain technology has the potential to provide a secure, decentralized payment and settlement network operating in real time 24/7, which is important in the future dominant digital Internet- and cloud-based payment environment” (Giambelluca & Masi, 2016). Evidently, according to study in this digital era, it is highly rewarding for Europe. Furthermore, upon critical evaluating the challenges of digital currency. It is tough to identify the regulatory policies to maintain and control the process and infrastructure of blockchain technology. Moreover, it is also not clear in global context, regulatory coordination requires a real-time transformation, and it is a complicated process.

Cybersecurity
In the past two decades, the Internet has become the backbone of global information society and contribute primarily to the aspect of global political, social, and economic life. Though it is beneficial and rewarding, there is a downside cyberattack. Currently, the global cyber-attack by ransomware is an example. Cybersecurity is a mandatory necessary for all countries. Cybersecurity in the European Union book by Christou focused on deeper insight and analyzed about cybersecurity in European ecosystem. It also evaluates European Union emergency of the comprehensive and resilient process in cybersecurity and the current state of the cybersecurity policy and provides the recommendation for effective cybersecurity approaches. The author concludes by summarizing “no clear picture of what the optimal strategy for achieving resilience with the EU ecosystem is – but rather a dynamic debate on how trust-based relationships conducive to sustainable, collaborative platforms are best conceived”(Christou, 2016, 189) Thus, the study is very useful to understand the opportunity and challenge of cybersecurity in the European Union, but it also stated there no harmonized policy that the European Union has equipped to protect the citizen from the cyber threat. Futuristic assessment Europe Digital Single Market goal to generate digital opportunity for people and business and to enhance Europe digital economy. Digital Single Market in Europe will be the golden strategy to bring all twenty-eight national markets into a single digital market which would provide more access to the resource and create more jobs. There are more opportunities for Europe to become the global leader in the digital economy. However, it is imperative for the European Union to review their policies especially for

“European data economy, so that they can tackle the challenges and have a harmonized digital economy in Europe”.

 

References
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