Current Challenges Digital economy 2020 new commission

Challenges Digital economy 2020

Refers to an economy that is based on digital computing technologies, although we increasingly perceive this as conducting business through markets based on the internet.

 

The World Wide Web. The digital economy is also referred to as the Internet Economy or Web Economy.
The Internet is also often referred to as the Net, as a short form of network. Historically, as early as 1849, the word internetted was used uncapitalized as an adjective, meaning interconnected or interwoven. The designers of early computer networks used internet both as a noun and as a verb in shorthand form of internetwork or internetworking, meaning interconnecting computer networks.The terms Internet and World Wide Web are often used interchangeably in everyday speech; it is common to speak of “going on the Internet” when using a web browser to view web pages. However, the World Wide Web or the Web is only one of a large number of Internet services. The Web is a collection of interconnected documents (web pages) and other web resources, linked by hyperlinks and URLs.

The Internet Messenger

The Internet Messenger by Buky Schwartz. Image file from the (Wikimedia)

Digital economy continues

2020, the digital economy continues to be a top priority for the EC, and belongs once again to the agenda of the Commission president. Frans Timmermans has been designed to be the vice president in charge of one of the six priorities of the EC, called “A Europe fit for digital age”. The priority is elaborated as follow, EC is working on a digital transformation that will benefit to everyone.

The strategy of digital economy is included in a wider strategy for the future of Europe. However, as explained on the EC’s website, the aim to become a global role model for the digital economy fit within the EU’s goals for decades, as it is the aim in the environmental field. However, the EU had to review its aim in this field, and becomes a ‘Leadiator’. It’s possible that in the Digital Economy, the EU has to behave and evolves in the same way, because the champions of the digital sector aren’t European, which creates a handicap in the way the EU refrain from legislating…source(wikipedia)
The Digital Economy represents today 15% of the global world GDP. It’s relying on personal data, which has been regulated by the EU’s directive of 1995, which had the goal to integrate EU within the Digital market. Digital Single Market has been for long a priority for the EU and has beneficiated of the 2007 crisis as a window of opportunity to act. However, we see how the mandate of the EC is thin, to the heterogeneity of the market, and the fact that the EU has to act ex-post. As a result, Member States lack of coordination.

Digital economy 2020

These practices have raised concerns concerning the low-income revenue and health-related issues of these independent workers. For instance, digital companies such as Facebook or Youtube use ‘content monitor’-contractors who work as outside monitors hired by a professional services company subcontractor- to monitor social media to remove any inappropriate content. Thus, the job consists of watching and listening to disturbing posts that can be violent or sexual. In January 2020, through its subcontractor services society, Facebook and Youtube have asked the ‘content moderators’ to sign a PTSD (Posttraumatic Stress Disorder) disclosure after alleged cases of mental disorders witnessed on workers…source(wikipedia)

image file from the Wikimedia Commons. Information

image file from the Wikimedia Commons. Information

Challenge compete

Yet, within the Digital Market, the competition seems to be distorted. The more network effects are exerted, the higher the barriers to entry (difficulty for a new entrant to enter the market and compete) in the hub market. Vertical or horizontal mergers and acquisitions take place in closed ecosystems. In order to limit this digital ecosystem to absorb all the market are the tools, the EU aims to qualify them either as an “abuse of dominant position” or a “cartel” which are against the competition prosperity within the Single Market. Digital companies such as the GAFA prosper thanks to their various free services that they make available to consumers, which seems to be beneficial for consumers, but less for other firms to compete in a fairway. Communication Technologies (ICT) across all business sectors to enhance its productivity. Digital transformation of the economy is undermining conventional notions about how businesses are structured, how consumers obtain services, informations and goods and how states need to adapt to these new regulatory challenges.

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