The EU Re-elects Its President for Five More Years: Implications for the Tech Industry Explained

Ursula von der Leyen Re-elected: Implications for EU Tech Policy through 2029

On Thursday, Ursula von der Leyen was reaffirmed as President of the European Union for another five years after receiving decisive support from parliamentarians. The voting results—401 in favor, 284 against, and 15 abstentions—indicate greater backing than her previous term, likely fueled more by concerns over geopolitical instability, such as the ongoing conflict in Ukraine and the potential return of Donald Trump in the upcoming U.S. election, rather than overwhelming enthusiasm for her leadership. Nevertheless, her composed demeanor during crises has garnered her a measure of respect.

What Does Continuity in EU Leadership Mean for Tech Policy?

Von der Leyen’s first term was marked by significant digital policy reforms. The EU established the Digital Markets Act (DMA) and the Digital Services Act (DSA), innovative regulations targeting exploitative practices of Big Tech and pushing for a transformation in platform operations. New legislative initiatives also promoted greater data accessibility for businesses, researchers, and consumers. Additionally, her emphasis on risk-based regulations for artificial intelligence came at a pivotal moment, especially amid rising concerns regarding generative AI, deepfakes, and other potential threats. In light of these discussions, her quick action to develop a regulatory framework for AI appears well-timed.

Looking forward, von der Leyen’s second term aims to enhance these digital initiatives, particularly through a commitment to “ramp up and intensify” the enforcement of the DMA and DSA, as highlighted in her political manifesto.

Strengthening Digital Enforcement

Enhanced enforcement is anticipated, especially in e-commerce, targeting platforms such as AliExpress, Amazon, Booking, Google Shopping, Meta Marketplace, Shein, Temu, and Zalando. Furthermore, a potential tightening of regulations concerning minors' usage of social media is on the horizon. Von der Leyen has pledged a comprehensive investigation into “the broader impacts of social media on well-being” during her upcoming term.

The focus might also shift towards addressing deceptive design practices. She emphasizes, “We will tackle unethical techniques used by online platforms, such as infinite scroll and default autoplay,” alongside a robust plan against cyberbullying. While additional legislative measures may arise, these concerns can potentially be managed by enhanced DSA enforcement.

Combatting Online Disinformation

Another area of focus during von der Leyen’s second term is “protecting our democracy” by tackling the pressing issue of online disinformation. This could lead to intensified enforcement of the DSA, mandating larger platforms to identify and address systemic risks related to misinformation. The EU holds strong authority to hold tech giants accountable for non-compliance. Her manifesto also mentions the need to address the “realistic deepfakes” that have influenced elections across Europe, ensuring that transparency measures from the EU AI Act are effectively implemented while also strengthening the approach to AI-generated misleading content.

Fostering AI Innovation and Competitiveness

In addition to reinforcing previous policies, von der Leyen signals a desire to refine her strategies in select sectors, particularly in enhancing Europe’s competitiveness by fostering local AI innovations. Early indications include plans to reconfigure the EU’s network of supercomputers for AI model development, with more initiatives anticipated to support AI startups through the establishment of a new European AI Research Council.

Her manifesto stresses the urgency of unlocking greater data access to enhance competitiveness and promote digital services, calling for a “data revolution” and advocating for a “European Data Union Strategy.” This strategy aims to simplify data sharing across businesses while maintaining the EU's robust privacy and security standards.

Streamlining Competition Policy

The manifesto also highlights a move towards a revamped competition policy to stimulate innovation, particularly regarding mergers and acquisitions, with a focus on supporting startups vying against established giants. Von der Leyen advocates for better protection of firms from potentially harmful acquisitions and outlines plans to refine the single market, which often resembles a fragmented landscape, especially for online services. This approach aims to empower homegrown startups to expand.

Additionally, her administration is expected to prioritize reducing bureaucratic hurdles to encourage business growth. Notably, she proposes a “new EU-wide legal status to assist innovative companies,” which aims to create a simplified regulatory environment—akin to a pan-European regulatory sandbox to aid startups, complementing the AI-specific frameworks introduced by the AI Act.

Biotech startups may also benefit, as her next Commission plans to unveil a European Biotech Act in 2025 aimed at facilitating commercialization for researchers and startups. This initiative is part of a broader strategy for European Life Sciences, focusing on supporting both green and digital transitions while fostering the development of advanced technologies.

Conclusion

In summary, von der Leyen's forthcoming term promises to be characterized by focused efforts on key elements of her policy agenda, emphasizing the urgency of maintaining Europe’s competitive edge in a rapidly evolving global landscape. “The world is in a race that will dictate who will be the first to climate neutrality and the first to develop the technologies that will shape the global economy for decades to come. Europe cannot afford to fall behind,” she asserts.

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