Call for Asymmetric Digital Regulation to Exempt SMEs from Complex EU Laws
Germany’s new Federal Data Protection Commissioner, Louisa Specht-Riemenschneider, has urged for the exemption of small and medium-sized enterprises (SMEs) from large swaths of European digital regulation. In a guest article for the news service "Tagesspiegel Background," she expressed concern that the growing complexity of EU laws, such as the AI Regulation, Data Act, and NIS 2 Directive, is having adverse effects on small businesses, start-ups, and academia.
Paralyzing Effects of Regulatory Overload
Specht-Riemenschneider highlighted the sheer volume of laws and directives, which creates legal uncertainty and consumes valuable resources. She argued that the proliferation of uncoordinated digital legislation, both technical and sector-specific, fails to enhance legal clarity.
Asymmetrical Digital Regulation
Instead of advocating for a blanket reduction in EU digital laws, Specht-Riemenschneider proposed a differentiated approach based on the size of companies. Known as "asymmetrical digital regulation," this approach would exempt SMEs from specific regulations, particularly when acting in the public interest.
Under this regulatory framework, large corporations would bear a greater burden of compliance than their smaller counterparts, while simultaneously aligning with the original intent of digital legislation.
A Distinctive European Approach
Specht-Riemenschneider believes this approach can foster success in the global competition:
"While the USA focuses on commercialization at all costs and China emphasizes surveillance, we have the opportunity to establish a third economic order that upholds European values and realizes them in a digital future worth living in."
Rebuttal of Censorship Allegations
The Data Protection Commissioner also dismissed accusations by US Vice President J.D. Vance that EU regulations threaten freedom of expression. She expressed concern over the tone of the US rhetoric, emphasizing that the Digital Services Act (DSA) does not overregulate US and Chinese services.
"To suggest, as US Vice President Vance did in his speech, that it concerns the absurd accusation of censorship is absurd. We stand by our convictions for a peaceful digital coexistence," Specht-Riemenschneider stated.
Conclusion
Specht-Riemenschneider’s call for asymmetrical digital regulation aims to balance the need for effective regulation with the protection of SMEs, start-ups, and research institutions. By exempting these entities from certain regulatory burdens, the EU can foster innovation, protect the public interest, and maintain its distinctive approach to digital governance.
