Edition: International | Greek
MENU

Home » World

Ireland draws a red line on country of origin principle in DSA

Following a French initiative against the country of origin principle, Ireland is leading a counter-offensive of ten countries that consider the move would disrupt the digital single market

By: EBR - Posted: Monday, September 27, 2021

“Any changes to this fundamental Single Market approach would inherently undermine the development of digital services in Europe, allowing only the very large players to scale across the Single Market.”
“Any changes to this fundamental Single Market approach would inherently undermine the development of digital services in Europe, allowing only the very large players to scale across the Single Market.”

by Luca Bertuzzi

Following a French initiative against the country of origin principle, Ireland is leading a counter-offensive of ten countries that consider the move would disrupt the digital single market.

France has been in the driving seat for a push against the country of origin, one of the core principles of the e-Commerce Directive. The principle is reiterated in the Digital Services Act (DSA), a flagship legislative proposal currently being discussed among EU member states in the EU Council.

Under the “home country supervision”, the service providers are subject to the jurisdiction of their country of establishment, which the French government is trying to change to the country of destination.

The proposal was not well received by several member states, particularly Ireland, which considers “any erosion of this principle is a red line.” This is according to an EU diplomatic source who spoke to EURACTIV.

With Irish coordination, a coalition of countries comprised of Croatia, Czechia, Estonia, Finland, Latvia, Lithuania, Luxembourg, Slovakia and Sweden signed a non-paper “on the effective supervision under the Digital Services Act.”

“The country-of-origin principle is fundamental in providing businesses with the necessary legal certainty and understanding when engaging in cross-border trade as to the rules and regulations to which they must adhere and the competent authorities they need to deal with,” reads the non-paper seen by EURACTIV.

The ten countries point to the fact that the country of origin principle is significant for digital services as they are by nature cross-border. The argument says that turning the principle upside down would burden SMEs with regulatory costs for complying with 27 different jurisdictions.

“Any changes to this fundamental Single Market approach would inherently undermine the development of digital services in Europe, allowing only the very large players to scale across the Single Market,” the Irish-led non-paper adds.

The current governance system entails that only the country where the service provider has legal residence is entitled to impose corrective measures, with cooperation and assistance from the other member states as required.

The ten countries consider this the optimal solution, arguing that any alternative would create legal uncertainty and fragment the single market. They conclude by calling for closer cooperation among EU countries, as already included in the implementation measures of the DSA.

*first published in: www.euractiv.com

READ ALSO

EU Actually

Rising energy prices expose EU’s dependence

N. Peter KramerBy: N. Peter Kramer

Rising energy prices are mercilessly exposing dependence of the EU. The EU must import 90 percent of its gas, 43 percent of which came through Gazprom last year

View 03/2021 2021 Digital edition

Magazine

Current Issue

03/2021 2021

View past issues
Subscribe
Advertise
Digital edition

Europe

Emerging renewable energy markets require well-designed auctions

Emerging renewable energy markets require well-designed auctions

Auctions are an essential part of the policy toolkit for promoting cost-efficient renewable energy development. Still, policymakers must be prepared to tailor their design to local conditions and adjust for market-specific challenges

Business

An ethical, open and transparent office culture can be designed. Here’s how

An ethical, open and transparent office culture can be designed. Here’s how

In recent years, increasing numbers of consumers and employees have been calling on businesses to lead in new, more ethical ways, but organisations still have a lot of work to do on this front

MARKET INDICES

Powered by Investing.com
All contents © Copyright EMG Strategic Consulting Ltd. 1997-2021. All Rights Reserved   |   Home Page  |   Disclaimer  |   Website by Theratron