The European Digital Single Market Needs To Encourage Technology Startups And A Global Outlook

The European Digital Single Market Needs To Encourage Technology Startups And A Global Outlook

Europe has established its strategy to get a Digital Single Market throughout its member states. The achievement of this strategy depends on the ability of European lawmakers and politicians removing barriers to electronic commerce and creating an environment to foster the growth in digital platforms and skills necessary to support a fast growing digital economy.

It’s easy for others, particularly the US, to see that the Digital Single Market strategy as a pretext to govern and restrict the popularity and pervasiveness of foreign companies like Google, Amazon, Facebook and Netflix. Certainly, the European Commission will need to demonstrate that its focus is more on empowering rather than simply protecting a future industry.

However, among the central “pillars” of this strategy would be to Eliminate obstacles to global online trade. This usually means eliminating the custom of “geo-blocking” which limits content to certain nations, or places extra costs on people accessing these services from outside those bounds.

Setting aside the challenges of the Digital Single Market outlined From the agenda document, the biggest real obstacle is at the truth that 54 percent of e-commerce traffic in Europe is using solutions based in the US whereas only 4% of visitors in a single European country is for a service in another European country. Creating a Digital Single Economy is all well and good but if it mainly benefits US businesses it will be much less strategic for Europe.

At the light of this dominance of US services in Europe, the fear held by the US that Europe’s Digital Single Market will essentially attempt to restrict this dominance are possibly not unfounded. The easy truth is that those companies succeed because that is what European consumers want. Making it simpler for all those services to operate in Europe still has benefits to the EU since it enables companies like Amazon and Apple to operate more seamlessly across all of Europe, helping to keep costs down.

Digital Markets In Europe

To genuinely benefit from the efficiencies of starting up the digital Markets in Europe, what really needs to happen is to apply this strategy globally. Each one the points made inside the Digital Single Market strategy are legitimate steps to eliminating barriers to online trade. The constraint of the strategy is that it quits at Europe’s borders, when the Web that underpins the online world recognises no boundary.

To get a worldwide digital single market to be prosperous, additionally to the goals outlined in Europe’s strategy, there would need to be agreement on tax avoidance strategies that US firms particularly are carrying out when doing business internationally.

Paradoxically, these clinics operate in Europe by Implementing different transport pricing schemes involving elements of the firm set up in different nations. Allowing overseas multi-nationals to control in a local market is one thing but it adds insult to injury that tax revenue from business completed in one particular country could be lost to a different, or not collected at all.

Of course, the main aim of the European commission in suggesting the Digital Single Market agenda is to provide a platform that’s conducive to surfacing digital entrepreneurs and developing new businesses based in Europe. The entire world outside of Silicon Valley wants to emulate the success of that area by producing innovation facilities that foster startups and another Google or Uber. The problem is that despite cities around the world hoping to do this, they’ve so-far mostly neglected to bring together the ingredients that exist in California. At the heart of this however, it may just be a case of not enough money being invested in seeding startups.

From the standard tech firm life cycle, successful businesses produce a high number of wealthy people who not only have a specific set of abilities in creating technology startups but have the money to invest either in their own endeavors or others.

The conditions for that were driven by the opportunities created by stock markets and the insatiable desire for tech stocks. Reproducing this elsewhere, is going to take time, cash, an appetite for danger and the acceptance of collapse. Whilst the aims of the schedule could possibly be a good start, even if successful, it is still a very long way from really seeing any advantages result from it.