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New Frontiers in Cyberspace – Recent European Initiatives to Regulate Digital Finance

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Advances in the Human Side of Service Engineering (AHFE 2021)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 266))

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Abstract

On 24 September 2020, the European Commission presented its Digital Finance Strategy for the EU, a programmatic roadmap accompanied by a package of legislative proposals. This initiative forms part of the Commission’s broader strategy for ‘Shaping Europe’s Digital Future’, as announced by President von der Leyen in her speech on 19 February 2020, and aims at creating a legal framework for the adoption of recent technologies, such as online platforms, distributed ledger technology (DLT), cloud computing, in the field of financial services. In conjunction with other relevant regulatory initiatives, most notably the Digital Services and Digital Markets Acts (DSA and DMA), it also seeks to address the impact of digital technologies on the structure and competitive dynamics of a variety of markets including, but not limited to financial services, and to provide safeguards against potential risks to financial stability and the welfare of citizens and retail customers. This contribution looks at the regulatory approach that informs the proposed legislation, in particular from an international perspective, and examines its potential impact on the development of digital financial services in the EU.

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Notes

  1. 1.

    Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Region on Shaping Europe’s Digital Future, COM(2020) 67 final, 19 February 2020.

  2. 2.

    Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on a Digital Finance Strategy for the EU, COM (2020) 591 final, 24 September 2020.

  3. 3.

    Proposal for a Regulation of the European Parliament and of the Council on markets in crypto-assets, COM (2020) 593 final, 24 September 2020.

  4. 4.

    Proposal for a Regulation of the European Parliament and of the Council on digital operational resilience for the financial sector, COM (2020) 595 final, 24 September 2020.

  5. 5.

    Proposal for a Regulation of the European Parliament and of the Council on a pilot regime for market infrastructures based on Distributed Ledger Technology, COM (2020) 594 final, 24 September 2020.

  6. 6.

    Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on a Retail Payments Strategy for the EU, COM (2020) 592 final, 24 September 2020.

  7. 7.

    Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (MiFID 2); OJ L 173, 12 June 2014, pp. 349–496.

  8. 8.

    Directive (EU) 2016/1148 of the European Parliament and of the Council of 06 July 2016 concerning measures for a high common level of security of network and information systems across the Union (NIS Directive), OJ L 194, 19 July.2016, pp. 1–30.

  9. 9.

    Proposal for a Regulation of the European Parliament and of the Council on a Single Market in Digital Services (Digital Services Act), COM (2020) 825 final, 15 December 2020.

  10. 10.

    Proposal for a Regulation of the European Parliament and of the Council on contestable and fair markets in the digital sector (Digital Markets Act), COM (2020) 842 final, 15 December 2020.

  11. 11.

    European Court of Justice: Judgment of 11 September 2014, MasterCard Inc. and Others vs. European Commission; C-382/12 P, EU:C:2014:2201.

  12. 12.

    Directive 2015/2366/EU of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market; OJ L 337, 23 December 2015, pp. 35–127.

  13. 13.

    e.g. Microsoft (Interoperability) (Case COMP/37.792) Commission Decision C(2004) 900, OJ L 32, 06 February.2007, pp. 23–28; Microsoft (Tying) (Case COMP/39.530) Commission Decision C(2009) 10033, OJ C 36, 13 February2010, pp. 7–8.

  14. 14.

    e.g. Google Search (Shopping) (Case AT.39740) Commission Decision C(2017) 4444, OJ C 09, 12 January 2018, pp. 11–14; Google Android (Case AT.40099) Commission Decision C(2018) 4761, OJ C 402, 28 November 2019, pp. 19–22; Google Search (AdSense), (Case AT.40411) Commission Decision C(2019) 2173, OJ C 369, 03 November 2020, pp. 6–10.

  15. 15.

    e.g. Apple (iTunes) (Case 39154) Commission Announcement IP/08/22, 09 January 2008; Apple (Mobile payments) (Case AT. 40452) (ongoing).

  16. 16.

    Treaty on the Functioning of the European Union (TFEU), OJ C 326, 26 October 2012, pp. 47–390.

  17. 17.

    Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (EC Merger Regulation), OJ L 24, 29 January 2004, pp. 1–22; and Commission Regulation (EC) No 802/2004 of 07 April 2004, OJ L 133, 30 April 2004, pp. 1–39 (Implementing Regulation).

  18. 18.

    Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data (General Data Protection Regulation; GDPR); OJ L 119, 04 May 2016, pp. 1–88.

  19. 19.

    European Court of Justice, Judgment of the Court (Grand Chamber) of 13 May 2014, Google Spain SL and Google Inc. v Agencia Española de Protección de Datos (AEPD) and Mario Costeja González, Case C‑131/12, ECLI: EU:C:2014:317.

  20. 20.

    European Court of Justice, Judgment of the Court (Grand Chamber) of 06 October 2015, Maximillian Schrems vs. Data Protection Commissioner, C-362/14, ECLI: EU:C:2015:650.

  21. 21.

    European Court of Justice, Judgment of the Court (Grand Chamber) of 16 July 2020, Data Protection Commissioner vs Facebook Ireland Ltd. and Maximillian Schrems, C-311/18, ECLI: EU:C:2020:559.

  22. 22.

    People’s Republic of China, Provisional Regulations on the Management of International Networking of Computer Information Networks. State Council Decree No. 195 of 01 February 1996 (as amended by Decision of the State Council on 20 May 1997).

  23. 23.

    Russian Federation, Federal Law No. 90-FZ of 01 May 2019 ‘on Amendments to the Federal Law on Communications and the Federal Law on Information, Information Technologies and Information Protection’.

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  1. CEPA | Centre for Economics and Public Administration Limited, 111 Buckingham Palace Road, London, SW1W 0SR, UK

    Christian M. Stiefmueller

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  1. Christian M. Stiefmueller
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Correspondence to Christian M. Stiefmueller .

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Editors and Affiliations

  1. Centre for Economics and Public Administration, London, UK

    Christine Leitner

  2. Fraunhofer IAO, Stuttgart, Baden-Württemberg, Germany

    Walter Ganz

  3. California State University, Orange, CA, USA

    Debra Satterfield

  4. University of Naples Parthenope, Avellino, Italy

    Clara Bassano

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Stiefmueller, C.M. (2021). New Frontiers in Cyberspace – Recent European Initiatives to Regulate Digital Finance. In: Leitner, C., Ganz, W., Satterfield, D., Bassano, C. (eds) Advances in the Human Side of Service Engineering. AHFE 2021. Lecture Notes in Networks and Systems, vol 266. Springer, Cham. https://doi.org/10.1007/978-3-030-80840-2_3

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  • DOI: https://doi.org/10.1007/978-3-030-80840-2_3

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