In February 2020, the European Commission unveiled a series of strategies for the future of data and AI in Europe. The policy documents outline, among other things, the EU’s plan to encourage the sharing and pooling of data between companies operating in Europe. At present, tech giants such as Amazon, Facebook, and Google carefully protect the vast quantities of data they collect, ultimately using the data to create competitive advantages that give them nearly-monopolistic control of European data markets.
Europe-wide data sharing would, according to the Commission’s report, allow other companies to amass and pool similar quantities of data. In theory, this could ultimately give rise to a European competitor to rival Amazon or Google. It is for this reason that Margrethe Vestager, the digital and competition chief of the European Commission, has characterized the move as an “antitrust remedy.” That said, it is important to note that the proposal does not necessarily shut out existing tech giants, who may also benefit from data sharing so long as they comply with EU law, including by sharing their own data.
The proposals, if implemented as outlined, have the potential to decrease the European competitiveness of existing tech giants as well as to increase compliance costs, but also to create a wealth of new opportunities for smaller and emerging companies in the fields of data and AI.
