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Legal issues of digitalisation in Europe

  • Text
  • European
  • Digital
  • Liability
  • Digitalisation
  • Ownership
  • Businesseurope
  • Noerr
Europe needs better rules for the digital revolution of the economy. Businesses want a standardised, EU-wide legal framework and room for contractual solutions when dealing with data. This emerges from a cross-European survey carried out by Noerr LLP and BusinessEurope, the European umbrella association of national industrial and employers' associations. Business leaders from companies in 20 different countries were interviewed.

How this Survey was

How this Survey was executed BusinessEurope together with the European law firm Noerr LLP conducted research on the legal challenges of businesses face when digitalising their operations in Europe. Based on the answers provided by business experts across Europe, this report evaluates whether the existing national and European legal framework sufficiently supports and encourages the use of innovative technologies, applications and business models of the digital economy, with a special focus on emerging issues surrounding: Data ownership & Access Free flow of data Liability The Cloud We have consulted Board members, Executives, Vice Presidents and Directors of companies across the continent to receive a consolidated view of the European industry on how the European legal framework should be shaped to accompany the latest digital developments. Between March and April 2017 190 business leaders and managers from 20 different countries participated in our online survey. They expressed views and practical experience on current challenges companies face when implementing their digital strategies and the legal measures which would effectively help them to advance their digital strategy. Most of the responding companies (34%) were large, generating more than €1 billion in revenue during the past fiscal year. Further, 7% generated between €500 million and €1 billion, 13% between €50 million and €500 million, and 33% generated less than €50 million 1 . With respect to the sectors concerned, most participants belong to the manufacturing sector (39%). The Technology, Media & Telecommunications (TMT) sectors make another 26%, Financial Services 10%, and Professional Services 10%. Another 5% to Energy & Utilities, and Tourism, Transportation & Logistics, respectively. Sectors which are currently only at the starting point of digital transformation had a lower response rate. Despite the PropTech developments in Real Estate and the various concepts of how technology is influencing consumer buying habits, Construction & Real Estate make only 3%, Wholesale & Retail 2% and the Public Sector 1% of respondents 2 . 1 13% of respondents did not know their revenue class. ² Rounding errors @ 6 BUSINESSEUROPE Legal issues of digitalisation in Europe 2017

KEY FINDINGS 1 2 3 4 5 6 7 8 Businesses prefer contractual solutions to coordinate data ownership, access and liability. Where businesses feel regulation is necessary to coordinate data access, ownership, liability and the cloud, it should be on a European instead of national level basis. A right of production related to the data producer still needs further evaluation in relation to existing legal frameworks. Further development of the law through judicial decisions is not seen as a suitable solution for the fast-moving environment of digital technologies. Businesses are cautious with respect to the cloud and cloud location. They clearly want to be able to choose the country or region in which their data is stored. Businesses want their data to move freely across the EU and demand an end to na-tional data localisation. E-person liability plays an indirect role in the perception of businesses to regulate liability. Pragmatic solutions are required. Artificial Intelligence (AI), autonomous processes and robotics are technologies in their early practical beginnings. Liability issues relate to software defects and smart products. Legal issues of digitalisation in Europe 2017 7 BUSINESSEUROPE

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