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The future EU Digital Single Market (DSM) has started to take shape this week, after the College of Commissioners set out the main areas to be included in the DSM Strategy, due to be released in May 2015. The development of the DSM is one of the key political priorities of the Juncker Commission, as it is seen as a strategic element for boosting economic growth in the EU.

By taking on this topic the Commission has set itself a tough assignment with myriads of issues needing to be confronted. The key challenges are improving access for consumers and businesses to digital products and services across Europe, developing the necessary environment/infrastructure and creating the basis for long-term growth in corresponding sectors. It remains to be seen how the Commission will lead the process and negotiate on some very controversial issues, some of them already being in the agendas for a while.

Important for a successful DSM is the successful management of the data economy. An important element of this is data protection legislation, where a legislative proposal has been discussed for more than three years already. There are still substantial disagreements between the Council and the Parliament and there is a danger of these negotiations downright stalling or even collapsing.

Likewise, releasing the potential of e-commerce within the EU requires companies to be given the tools to replicate the success of US start-ups. Even before Wednesday many in the start-up industry have voiced their concerns on the strategy, fearing that it will simply lead to different bureaucratic barriers and have little impact. Well-meant initiatives such as recent changes to VAT regulation have already made it more difficult for start-ups to provide services across the EU.

Notably one topic, geo-blocking, has already sparked open confrontation. Streaming services are a prime example, where users cannot access services depending on their location. Initially this sounds like an ideal issue for the Commission to tackle with a blanket-ban. Initial remarks from the industry have however already pointed out the complexity of business decisions behind such schemes and the repercussion for contract and copyright issues.

Commission Vice-President Andrus Ansip and the Commission in general however seem keen to push this issue despite the backlash. The Commission believes it has public support as well as backing from the European Parliament. With the debate on roaming charges still ongoing between Member States and the industry on one and the Commission and MEPs on the other side, the Commission seems to think that it can use this coalition to its advantage in the DSM discussions.

There are many challenges and the concrete strategy will involve tough decisions, with the Commission facing an uphill battle. Tech start-ups have substantially different demands to big business and in turn both have different demands to consumers on sensitive issues. The Digital Single Market is shaping up to be one of the Commission’s toughest, though interesting tasks.