Towards Digital Clearinghouse 2.0: championing a consistent supervisory approach for the digital economy

Today, my office publishes its concept note on a Digital Clearinghouse 2.0, which encapsulates the EDPS' proposal for a consistent, cooperative and coherent approach to enforcing EU laws regulating digital markets.

The digital regulatory landscape is no longer only about data protection, consumer protection and competition law. In response to the rapid pace of artificial intelligence's development, risks to fundamental rights on online platforms controlled by a handful of companies, the European Union has recently adopted several important pieces of legislation. Laws like the Digital Governance Act; the Digital Markets Act; the Digital Services Act; the Data Act; and the Artificial Intelligence Act illustrate the importance of personal data processing in today's economy, and that it is more necessary than ever to protect individuals and their fundamental rights. Whilst these pieces of legislation provide the EU, its Member States and relevant competent authorities new tools to promote a sustainable and rights-oriented digital economy, the EDPS observes room for improvement regarding cross-regulatory cooperation to avoid an inconsistent application of legal requirements in this complex landscape.

To this end, we have identified three key areas to work on, based on current initiatives rolled out in the EU and beyond and the feedback received from various stakeholders. This encompasses the need for a coherent and consistent application of EU law in the digital economy, in particular of the so-called 'EU Digital Rulebook'; the need for cross-regulatory cooperation between competent regulators; and the necessity to uphold data protection as the backbone of this digital regulatory framework.

How can we achieve these three goals?

The EDPS proposes the creation of the Digital Clearinghouse 2.0, a forum for interested regulators to identify areas of cross-regulatory concern to facilitate coordination and to exchange knowledge, experiences and resources. To be effective, this forum should have appropriate resources, including - ideally - a permanent secretariat.

In addition, the EDPS invites the European Commission to consider putting forward a new legislative proposal to facilitate cross-regulatory cooperation and exchange of information amongst competent authorities about ongoing investigations in their respective fields.

Whilst the Digital Clearinghouse 2.0 would increase the chances of consistent application of EU laws in the digital sphere, it is important that the European Commission closely monitors the application of the different pieces of EU legislation in the digital economy. This should inform the assessment of the interplay between the various legal frameworks and whether their governance structures should be clarified via legislative revisions.

With this vision laid out, the EDPS looks forward to working with the EU legislator, the EU Member States and their competent authorities to deliver a strong, coherent, consistent and collaborative approach to the digital regulatory sphere to the benefit of EU citizens.