Key digital takeaways from the hearings of incoming Commissioners
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Executive VP Virkkunen plans an ‘AI continent’ and is optimistic about Quantum
Finnish politician and former Member of the European Parliament, Ms Henna Virkkunen, has been confirmed as the European Commission’s new Executive Vice President in charge of tech policy, and is due to take her seat on 1 December along with the other members of the new College of Commissioners for 2024-2029. The Christian-democratic politician will be in charge of a high-profile portfolio that ranges from implementation of the recently adopted Artificial Intelligence (AI) Act and reform of the telecoms framework to defence and security plans in Europe. During her three-hour hearing, Ms Virkkunen was questioned by MEPs from the Industry and Internal Market Committees.
In her introductory statement during her parliamentary hearing on 12 November, Ms Virkkunen said she would work to strengthen the EU’s technological sovereignty, make critical digital infrastructure more secure and increase competitiveness. She presented her plans to promote frontier technologies, ensure security and fairness in the online environment, boost digital skills, reduce bureaucracy and increase investment in research.
Plans to become an ‘AI continent’
Ms Virkkunen committed to swiftly implementing the AI Act. With the aim of making Europe into an “AI continent” that can attract the best talent, she plans to launch an AI factories initiative in her first 100 days in office. She also plans to come forward with an EU Cloud and AI Development Act to promote energy efficient computing solutions, increase capacity for businesses and stimulate innovation. This initiative aligns with one of the recommendations in the recent report on the future of European competitiveness by Mario Draghi, the former European Central Bank President and former Italian Prime Minister.
In the coming five years, Ms Virkkunen intends to focus on speeding up the AI sector instead of regulating it. She said: “I want Europe to become an AI continent, the best place in the world to develop trustworthy [AI].” The AI Act should be an “enabler” of the technology, she added.
Ms Virkkunen said that Europe should be “without fear” in adopting AI. She pointed to the car industry and the pharmaceuticals as sectors ready to embrace the opportunities provided by this new technology.
Closing the technological gap
At the same time, the Finnish Executive Vice President acknowledged that Europe is lagging behind in the deployment of AI, fifth-generation cellular networks (5G), fibre rollout, production of microchips, cloud capabilities and digital skills. She warned that the EU even faced a “widening” gap with other regions of the world. In her view the forthcoming EU Cloud and AI Development Act and the forthcoming Digital Networks Act, which will review the existing telecoms framework with the aim of ensuring high-speed connectivity, will help to close this gap.
According to the Finnish politician, there is one sector in which the EU can take a global lead. Ms Virkkunen said: “Quantum is a technology of the future where Europe has many reasons for optimism.” She pledged to present a new strategy to boost the technology and hinted at the possibility of a future “Quantum Act.”
Overall, Ms Virkunnen stuck closely to the broad objectives laid out in her official letter from Commission President von der Leyen outlining her mission. She offered few additional details and managed to avoid controversy.
You can watch the video recording of the full hearing here.
Incoming Justice Commissioner prioritises digital fairness
Protection of consumers online and “digital fairness” were recurring themes during the European Parliament hearing of Michael McGrath, Ireland’s choice to be the new “Commissioner for Democracy, Justice and Rule of Law” in the incoming College of Commissioners. Mr McGrath is an experienced national lawmaker from the centrist Fianna Fáil party in Ireland (part of the Renew group at European level) and most recently served as Finance Minister in the country. He gave an assured performance during his hearing on 5 November, when he was questioned by three parliamentary committees (Civil Liberties, Internal Market and Legal Affairs Committees). His grasp of the technical issues in what is a very broad portfolio meant that his acceptance by the parliamentarians was never in any doubt.
Ensuring fairness for consumers online
In his new role, the Commissioner intends to develop a “Digital Fairness Act” ("DFA") aimed at addressing what he called “gaps” in relation to the protection of consumers in the digital space. He underlined that the DFA would complement the existing EU digital rulebook which includes the Digital Services Act, Digital Markets Act and AI Act, in addition to product safety legislation.
The DFA will include rules to ensure that social media influencers are not misleading consumers, measures to address “dark patterns” and additive design of digital products, as well as what he called “unfair personalisation practices” in the field of online marketing. In addition, he undertook to look at the issue of “dynamic pricing” of tickets for entertainment events.
Furthermore, Mr McGrath explained that the DFA will address issues around digital subscriptions, specifically cases where it is easy to take a subscription but very difficult to cancel it. With regards to children, the DFA is expected to include measures to protect minors when playing digital games, especially in relation to the sale of virtual items using in-app currencies and what the Commissioner-designated called “gambling simulating features” such as “loot boxes” in video games.
The Commissioner also intends to present next year the results of a scientific study on experimental marketing techniques that purposely affect the purchasing behaviour of children in video games. Tasked with developing a new consumer protection agenda over the next five years, Mr McGrath also undertook to protect consumers from “unsafe” products sold via e-commerce platforms.
Mr McGrath’s mission letter has also tasked him with tackling disinformation and stepping up the EU’s “fight against foreign information manipulation and interference” (FIMI). During his confirmation hearing, McGrath said that the 2022 Code of Practice on Disinformation will be converted into a “Code of Conduct on Disinformation”.
You can watch the video recording of the full hearing here.
Next steps
On 27 November, the European Parliament voted in plenary session to elect of the full College of Commissioners. The new College of Commissioners is now expected to take office on 1 December 2024.
For more information, please contact Francine Cunningham.
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