Grasping the opportunity in digital regulation

Europe stands on the cusp of a new era in the digital revolution. An ongoing wave of digital regulation – some already in place, some still in development – will shape how the European economy uses digital technology for decades to come.

With GDPR, the EU has shown that it can set new standards that shape global markets. But the current wave of regulation being implemented by the EU and other jurisdictions such as the UK goes deeper, creating a comprehensive new framework for the digital era. 

It is unfolding faster than any previous regulatory intervention. And while governments across the globe are building new regulatory platforms for the digital economy, the EU approach is the most ambitious, and will arguably set the agenda for the rest of the world. 

As a result, regulatory dynamics will completely redefine companies’ business models and operations – and those of their competitors. 

Crucially, business leaders must recognise that the current wave of digital regulation in Europe is more than a matter of compliance. Together, new regulations on non-personal data, AI, digital platforms and cyber safety will establish new commercial dynamics, new risks and opportunities and, in some cases, new markets, all of which demand a global strategic response. 

Adaptation is a necessary precondition of survival. Those that live up to the challenge will also be better placed to capture first mover advantages, to bolster their competitiveness in digital markets, to reduce their technology costs and to enhance the resilience of their digital systems. 

To explore the views of business leaders on this wave of digital regulation, we surveyed 450 senior in-house legal counsel from across the EU and UK. 

The survey revealed that, although regulation presents commercial threats and compliance challenges, European businesses also see opportunities in this wave of regulation to gain competitive advantage – and not just in Europe, but around the globe as well. 

This is encouraging. Regulation need not always be seen as a threat. In Europe, the comprehensive framework and the legal certainty provided by proactive regulation offers businesses an opportunity to get a head start in the next wave of digital innovation. Companies that recognise this opportunity, and act upon it, will be the ones that thrive in the coming decade. 

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