1. Consumer Summit, 1-2 April 2014 NEW DEALS Consumer driven innovation enabled by the digital technologies Werner Stengg 1 A.Seven online trends/statements 1.An online/internet strategy is needed 2.Online is offline 3.Online is a revolution (not a trend) 4.Online is an opportunity for the single market 5.Online is a threat to the single market 6.The consumer is the new superpower 7.Faust: I give you power, in return for your soul B.Policy implications/options SETTING THE SCENE

2. 1.An online/internet strategy is needed IN THE SHORT TERM: How to adapt historically grown offline policies and structures to the online world? IN THE MEDIUM TO LONG TERM: What is our policy vision for the digital age? Should we have an online/ internet strategy for the SM? 2

3. 3 2. Online is offline

4. 4 3. Online is a revolution, not a trend Shares a video with friends Journalist, writing a review Buys or sells ticket for next concert Googles for next concert date Praises or criticises concert on Facebook (Enjoy the concert)

5. And our "old" narrative still works: The Single Market is good (overall). (WELFARE) Online is good (overall). (GROWTH, OPPORTUNITIES) Online makes the Single Market a reality. (INFORMATION, POWER) Online renders single market obstacles more visible.(PARTICIPATION, TRANSPARENCY) 5 4. Online is an opportunity for the single market

6. So let us address remaining obstacles: Regulatory fragmentation (consumer, data, taxation, labelling, etc.). Payment. Delivery. VAT. Article 20(2). Territorial supply constraints. Platform bans. New forms of differentiation/discrimination in the online environment (e.g. IP tracking). Copyright. Infrastructure (broadband, radio spectrum, cloud, net neutrality,…). Information (SMEs, consumers) Fair search. Inter-operability for business (e.g. internet of things) and consumers (e.g. e- books, apps,…). 6 4. Online is an opportunity for the single market Compare: 2012 Communication/Action Plan for e-commerce & online services!

7. Online threatens traditional business models: o Bricks-and-mortar retailers. o Content industries (music, books, film, TV,…). o Brands. o Intermediaries (travel agents,…). o Postal operators (e-substitution). o Etc. etc. etc. 7 5. Online is a threat to single market policy

8. 8 Online may also have adverse social and societal effects: o Public debate about vulnerable jobs in large warehouses. o Some parcel operators paying lousy "wages". o Threats to local jobs, local supply, city centres,… Consequence: Increasing calls for "protection": o Create "level-playing field" o Treat online and offline in the "same" way ("equivalent" way) o Risk for single market? (Mutual recognition?)

9. 9 UPERCONSUMER 6. The consumer is the new superpower

10. 10 THE EMPOWERED CONSUMER… ….OBTAINS, CREATES AND SHARES INFORMATION. S/he: COMPARES offers (even if not offered to him/her). BUYS where s/he wants. (Ok, there is also Article 20(2)) COMMUNICATES (e.g. views on products/companies). SHARES what s/he owns (e.g. music, cars, houses,…). CONSUMES - even if not allowed to (e.g. gambling, content,…) Caveat: Fair search. Gatekeepers to information. Possible abuse of information about consumer.

11. 11 WHO "SUFFERS" FROM THE EMPOWERED CONSUMER…? COMPANIES find it more and more difficult : o to satisfy constantly rising consumer needs and expectations (e.g. "free delivery") – especially if they are small o to CONTROL where and how their products/services are sold and consumed (e.g. IPR, Article 20, vertical restraints) GOVERNMENTS find it increasingly hard to protect their companies (from competition), their citizens (from gambling),…

12. 12 7. The Faustian Pact: "I give you power, if you give me your data"

13. 13 POLICY OPTIONS?

14. 14 1.DO NOTHING The online revolution cannot be reversed Whatever we do (promote or protect), online will grow. Main drivers:  CONSUMERS. (Because they WANT it.)  BIG (ONLINE) COMPANIES. (Because they can DO it.)  TECHNOLOGY. (Because what CAN be done, WILL be done.) 2.DO MORE OF THE SAME Eliminate remaining obstacles.

15. 15 3.SUBSTANTIAL OVERHAUL OF REGULATORY FRAMEWORK Licensing for Europe New data protection regime [Adapt postal USO to new communication needs] More harmonisation? 4.FLANKING AND/OR PROTECTIVE MEASURES Protect: Traditional business models (e.g. book stores) Small business (SME) Competition (against abuse of dominant positions/monopolies) Employment and workers Consumers o from sellers (consumers protect one another) o from oligopolistic/monopolistic structures o from data abuses o from each other (peer-to-peer selling, renting, borrowing,…)

16. "New deals" Key discussion themes: Key trends. Added value for consumers. Main challenges (for business and consumers) Best options to address challenges. Panels: Digital technologies as enabler for consumers. Consumers driving innovation & creating new and better deals themselves. 16