Key Points
Last week, the European Union (EU) witnessed a surge in digital policy activity that could impact trade ties with India..
Also, on 21 February, the EU brought out a white-paper on How to master Europes digital infrastructure needs advocating economic protection for its communication industry..
Expansive legislation like the DSA, which seeks to further extend the EUs digital sovereignty over digital businesses, will likely trigger more judicial intervention in cyberspace, thus creating uncertainty for trade and investment..
Also, the European consensus on pre-emptive regulation of digital markets is beginning to fray, as recently seen in Germany and France delaying an EU law to govern artificial intelligence (AI) over concerns of over-regulation stifling innovation..
Given these considerations, India should aim to inspire the EUs digital policymaking by designing more innovation-friendly regulations and pushing Europe to liberalize its digital markets..
