Digital Single Market

The Digital Single Market function within the Department of Enterprise, Trade and Employment (DETE) is to ensure a whole of government approach and cross-government coordination of the Digital Single Market (DSM) agenda.

Comments on the DSM agenda may be sent to the Department at: dsmunit@enterprise.gov.ie

Our role is to:

• ensure a whole of government approach and cross government coordination of the DSM agenda
• lead the Interdepartmental Group on the Digital Single Market
• play a leading role in the development of the New National Digital Strategy by furthering proposals on how to develop the optimal digital ecosystem for SMEs and increasing Ireland’s digital competitiveness
• develop stronger networks with other likeminded Member States, particularly the Digital 9+ countries (D9+). The D9+ is a loose affiliation of like-minded member states on Single Market issues, comprising the nine top-ranked European countries in the European Commission annual Digital Economy and Society Index (DESI), plus a small number of other countries who share similar ambitions for the Digital Single Market. The countries involved are Denmark, Finland, Sweden, Netherlands, Luxembourg, Belgium, Ireland and Estonia, who are joined in the group by the Czech Republic, Poland, Portugal and Spain
• support joint initiatives by the Taoiseach and relevant Ministers
• liaise closely with the Minister of State for Trade Promotion, Digital and Company Regulation
• strengthen engagement with the European Commission, the European Parliament, and Irish stakeholders
• provide regular progress reports to the Cabinet Committee on European Affairs and other Cabinet Committees, as appropriate

You can contact us by email at dsmunit@enterprise.gov.ie or by phone at + 353 1 631 2121.

Vision for the EU Digital Single Market

The EU vision for the Digital Single Market (DSM) set out in the DSM Strategy announced in May 2015, is to ensure the free movement of persons, services and capital and that individuals and businesses can seamlessly access and exercise online activities under conditions of fair competition, and a high level of consumer and personal data protection, irrespective of their nationality or place of residence.

DSM Strategy

The goals of the European Commission’s DSM Strategy are to ensure that Europe maintains its position as a world leader in the digital economy and to help European companies to grow globally. The strategy encompasses 30 Digital Single Market initiatives under three pillars. These are:

• access to online products and services for consumers and businesses
• shaping the environment for digital networks and services to grow and thrive
• maximising the growth potential of the European digital economy

The European Commission considers that the DSM can create opportunities for new startups and existing companies in a market of over 500 million people, potentially contributing hundreds of billions per year to Europe's economy, creating jobs and transforming public services.

The Commission also believes that an inclusive DSM offers opportunities for citizens, provided they are equipped with the right digital skills. Enhanced use of digital technologies can improve citizens' access to information and culture, improve their job opportunities and promote modern open government. A Mid-Term Review of the DSM Strategy was published in May 2017 and outlined further areas where the EU needs to act further to ensure a fair, open and secure digital environment.

Digital Services Regulation – EU developments

Online intermediary services that connect consumers to goods, services or content have undergone rapid and widespread development and have been central to many of the digital changes that impact our lives.

For example, online platforms have facilitated cross-border trading within and outside the EU and this has opened new opportunities to a variety of European businesses and traders by aiding their expansion and access to new markets.

However, there are also challenges arising from the evolution of online intermediary services, such as the trade and exchange of illegal goods, services, and content online and the misuse of algorithms to amplify the dissemination of disinformation. These new challenges and the way online intermediary service providers address them have a significant impact on fundamental rights online.

It has been recognised that European legislation needs to be evolved to ensure that online intermediary services foster an environment where EU business can thrive and that users are treated fairly and can use online intermediary services without fear of manipulative algorithms or illegal goods and content.

The Digital Services Act package is the EU response for the need to regulate this digital space. It defines measures to protect users of online intermediary services while supporting innovation. The Digital Services Act package is composed of two new EU regulations:

1. The Digital Services Act took effect in EU law on 16 November 2022

2. The Digital Markets Act took effect in EU law on 1 November 2022

The Digital Economy Regulation Unit of the Department of Enterprise, Trade and Employment has responsibility for the implementation of the Digital Services Act and Digital Markets Act into Irish law.

Artificial Intelligence – EU developments

The department has responsibility for working with the Directorate-General for Communications Networks, Content and Technology (DG Connect) on the development of EU policy on Artificial Intelligence (AI). The Commission have identified the cooperation of the Member States through a coordinated approach as the best way to achieve a significant position in the global AI market place.

The Commission issued a Communication entitled Artificial Intelligence for Europe (COM(2018) 237) on 25 April 2018 that set out a European initiative on AI, which aims to:

• boost the EU's technological and industrial capacity and AI uptake across the economy
• prepare for socio-economic changes by encouraging the modernisation of education and training systems, nurturing talent and supporting labour market transitions
• ensure an appropriate ethical and legal framework

Since then, the framework for the governance of EU AI policy was established and the Commission established a Member State Group to assist it in the development and agreement of an EU Coordinated Plan for Artificial Intelligence (COM(2018) 795 final). The Plan was published on 7 December 2018 along with an associated AI factsheet. The MS Group has responsibility for progressing, actioning and reviewing the Coordinated Plan and for the preparation of Member State Digitizing European Industry Country Reports.

The Commission also established a High-level Expert Group (HLEG) of 52 experts on AI from industry and academia, which published a set of [external-link https://ec.europa.eu/digital-single-market/en/news/draft-ethics-guidelines-trustworthy-ai draft | AI Ethics Guidelines ] that were launched at Digital Day on 9 April 2019 and a policy recommendations report on AI in June 2019 which indicate areas of priorities to take into account in order to boost AI in Europe, for instance, in terms of AI uptake by industry and the public sector, and in terms of AI investments.

Digital Services Act (DSA)

The digital economy policy, EU regulation and data access role in the Department of Enterprise, Trade and Employment (DETE) is to:

• ensure Ireland’s position as a digital leader at the heart of European and global digital developments
• drive the implementation of the Enterprise Pillar of the new National Digital Strategy to develop the optimal digital ecosystem for SMEs, increasing Ireland’s digital competitiveness
• implement the National AI Strategy
• ensure that Ireland is a strong voice in Europe for a balanced and optimal approach to digital regulation for society and the economy in areas such as data, digital markets, digital services, cyber security and AI
• develop stronger networks with other like-minded member states, particularly the Digital 9+ countries (D9+), that is, the top-ranked European countries in the European Commission annual Digital Economy and Society Index (DESI)
• support joint initiatives by the Taoiseach, Tánaiste and relevant ministers
• liaise closely with the Minister of State with responsibility for Trade Promotion, Digital and Company Regulation
• strengthen engagement with the European Commission, the European Parliament, the OECD and Irish stakeholders on the digital transformation agenda
• provide progress reports to the Cabinet Committee on Economic Recovery and Investment, and other Cabinet Committees, as appropriate
• manage the Enterprise Digital Advisory Forum
• assist Ireland’s AI Ambassador in her role

National Digital Strategy

The National Digital Strategy (NDS), Harnessing Digital: The Digital Ireland Framework, was published in February 2022 and presents a consolidated approach to maximising the economic and societal benefits from digitalisation and to ensure that all are in a position to enjoy those benefits.

The NDS is a high-level document providing an overarching long-term vision of the impacts of digitalisation on Ireland. It is set out across four core dimensions, which are aligned with the four cardinal points of the EU’s Digital Compass: Digital Transformation of Business, Digital Infrastructure, Skills, and Digitalisation of Public Services. These will be supported by a modern, cohesive, well-resourced regulatory framework.

The Digital Transformation of Business dimension aims to drive a step-change in the digitalisation of businesses, in particular SMEs; to sustain Ireland’s attractiveness as a location for leading digital enterprises; and to maximise the benefits of the digital transition for the wider ecosystem.

Ongoing initiatives relevant to the NDS include work on the digital transformation of business with a focus on SMEs and a study on Digital Skills.

National AI Strategy

The National AI Strategy, AI - Here for Good, was published in July 2021 and sets out a whole of government approach to putting the necessary enablers in place to underpin AI adoption in enterprise and public services, including a supportive innovation ecosystem, a secure data and connectivity infrastructure, and policies to ensure that the workforce is prepared for the impact of AI.

In line with this Strategy, the Department has established an Economic Digital Advisory Forum (EDAF) to advise and work with government to drive enterprise adoption of digital technologies, including AI. The EDAF brings together representatives of indigenous enterprise, multinational corporations, and experts with suitable knowledge of AI and digitalisation with regards to its adoption by enterprise. The first meeting of the EDAF took place in May 2022.

After a competitive process, Dr Patricia Scanlon has been appointed Ireland’s first AI Ambassador. As outlined in the AI Strategy, the role of the AI Ambassador includes promoting awareness and increasing understanding among the public and businesses of the potential that AI offers.

The AI Ambassador will lead a national conversation around the role of AI in our lives, specifically:

• building awareness and public trust in AI, emphasising an ethical and compliant approach
• promoting the use of AI by business and encouraging students to pursue careers in AI

Digital Economy and Society Index (DESI)

The Irish performance (and that of the other EU Member States) against the DSM initiatives set out in the Strategy is measured within the Digital Economy and Society Index (DESI). The DESI is a composite index that summarises five relevant indicators (Connectivity, Human Capital/Digital skills, Use of Internet by Citizens, Integration of Digital Technology by Businesses, Digital Public Services) on Europe’s digital performance and tracks the evolution of EU member states in digital competitiveness.

The DESI Index 2021 shows that Ireland is ranked as the fifth most advanced digital economy in the EU and Digital Transformation continues to be a core economic policy issue in Ireland.

Ireland’s overall score increased from 2020 to 2021, and maintains high scores in the use of e-commerce by SMEs. Ireland’s performance for connectivity improved significantly in 2020, with fixed very high capacity network coverage growing from 35% to 83%. Overall Ireland’s performance has steadily grown on the DESI since its inception in 2014.

Useful links

EU Commission DSM Priorities

EU Commission DSM Policies

EU Commission DSM Strategy

OECD Digital Economy Homepage

EU Artificial Intelligence Developments