Invitation

D9+ Ministerial Meeting in Copenhagen, 27 th of September 2024 Ministerial Declaration The Digital Single Market has undergone a rapid d evelopment over the last years – especially on the regulatory front with landmark regulation such as the AI Act, the Data Act and the Cyber Resilience Act . While implementation of the new initiatives is an important task, the digital domain is one of constant change where we need to remain vigilant to new technological developments . Therefore, we, the D9+ , remain commit ted to exchange experiences and identify best practices to help inspire the further development of responsible, fair and secure digitalization in a stronger and more coherent Digital Single Market. We, the D9+ , remain firm supporters of the risk-based and evidence-based approach to regulation. New regulation should only address issues demonstrated by solid evidence and tackle obvious barriers in the market – either to exploit the full potential of digitalization or to address new risks . When creating or amending legislation , it is essential to always consider measures that can reduce burdens on businesses as well as promote innovation – allowing new business models to arise. With this approach in mind, the D9+ continue the discussions on how to create a more competitive and resilient digital EU while ensuring a more sustainable digital transition to the benefit of all . We call on the next Commission to address concrete gaps in the Digital Single Market’s regulatory framework with a focus on connecting a responsible digital transit i on with innovative-friendly initiatives . Furthermore, we, the D9+ , have identified two specific areas , which we find it particularly important to address during the next Commission mandate. We see a need for a strengthened framework on cookies and online tracking as well as for realizing the EUDI Wallet’s potential to make the S ingle M arket a reality. A s trengthened framework on cookies and online tracking , especially for children and youth Recalling the Louvain-la- Neuve declaration , it is a shared ambition to promote a safe, responsible and trustworthy online environment – especially for children and youth . We , t he D9+ , find that this should be on top of the digital agenda with a focus on delivering on the call for further discu ssions on the rising challenges and the possible need for additional joint efforts . One important area is cookies and other tracking technologies . In the digital sphere, u sers often provide vast amounts of data without fully understanding how their data is used and the implications thereof . With an outdated regulatory framework, the area is characterized by numer ous issues such as ‘ consent fatigue ’, systematic information overload and asymmetry , dark patterns , poor protection of children and youth and a general lack of legal clarity and clear guidance – ultimately hindering users from fully exercising th eir rights. Furthermore, new players have entered the market, introducing new businesses models and technologies, coupled with an even more extensive use of online tracking technologies . R ecalling the Council Conclusions on the Future of EU Digital Policy , w e, the D9+, therefore reiterate the importance of considering the need for measures, legislative as well as non - legislative ones , to address issues related to excessive online tracking , especially of children and youth . With a view to provide impetus to the Commission ’ s ongoing examination of the gaps in the ePrivacy Directive, the D9+ find it important to give special attention to the issue of tracking technologies and for the Commission to examine the following : The most pertinent issues of u sers not being able to fully exercis e their rights and businesses experiencing burdens , looking at where to put the efforts in order to bring about the most val ue . C on sider the feasibility of the ‘consent-based approach” versus establishing a more differentiated approach, where tracking for harmless purposes are exempt from consent, while tracking of a problematic nature such as tracking children and youth are restricted . T he potential and possibilities of stronger coordination in the enforcement of the rules, considering elements such as sanctions, technical enforcement tools , knowledge sharing and limitations of national enforcement and potential of EU level enforcement in cross-border cases. The potential of the EUDI Wallet to make the Single Market a reality We, the D9+, are dedicated to create a digital single market that benefits all citizens and businesses. The EUDI Wallet holds a tremendous potential to make life easier for citizen and businesses in the single market . By facilitating identification, verification, compliance and control, the EUDI Wallet holds great potential to reduce administrative burdens by making cumbersome procedures easier to overcome. While several use cases for the EUDI Wallet have been identified and are already being tested , we still have work ahead of us to identify the use-cases with the most value-added for businesses and citizens. The D9+ is ready to share best practices, improve our services through the EUDI W allet and collaboratively refine use cases by leveraging o ur collective expertise to address new challenges and opportunities . To make full use of the EUDI Wallet, we, the D9+, calls upon the Commission to develop an ambitious and strategic use-case strategy in close cooperation with Member States. A use-case strategy could support Member States in preparing for the integration of new use cases as well as establish mechanisms for continuous monitoring and evaluation to promptly identify and address issues – ensuring a streamlined approach to the rollout of the EUDI-Wallet . This process should involve key stakeholders including Member States, private sector partners, and civil society . When identifying new use cases for the EUDI Wallet, we should consider several factors and criteria such as feasibility, potential impact, alignment with political goals, and stakeholder support , including the possibility of improving the quality and accessibility of public services for both citizens and businesses . F ollowing a strategic, needs-based approach, we can ensure that the EUDI Wallet becomes a versatile tool that enhances the digital lives of EU citizens and businesses . A particularly urgent area where action is needed and the EUDI Wallet can be the solution is effectively p revent ing children and youths exposure to age-inappropriate content , while protecting privacy. We , the D9+ aim to: Prioritiz e the effective and efficient implementation of the EUDI Wallet for citizens and businesses across the EU . Support joint efforts to develop an age verification solution based on the EUDI Wallet to address the urgent need for robust and privacy enhancing age verification. Collaborat e with the Commission to identify strategic use cases and sectors for the EUDI Wallet to strengthen the digital single market and meet user needs. Session I – A strengthened framework on cookies and online tracking, particularly for children and youth The primary regulatory framework for the use of cookies and other tracking technologies is the ePrivacy Directive. The Directive requires providers of digital services, such as websites or apps, to obtain explicit consent from end-users before using cookies and trackers beyond those that are technically necessary. The rules are implemented and enforced at national level with limited EU level harmonisation and coordination taking place. In 2017, the European Commission published its proposal for a new ePrivacy Regulation to re- place the Directive. Among other things, it intended to update the rules in light of technologi- cal and market developments that had taken place since the Directive was last revised in 2009. 7 years later, however, inter-institutional negotiations have not lead to an agreement on the proposal. In the meantime, the legislative landscape has undergone fundamental changes. In 2018, the GDPR entered into application and with the Electronic Communications Code, the scope of what constitutes an ‘electronic communication service’ in the ePrivacy Directive was broad- ened. In addition, milestone legislation such as the NIS2 Directive, the Digital Services Act, the Digital Market Acts, the Data Act, the Cyber Resilience Act and the AI Act came into place. Beyond legislative changes, transformative technological and market developments have taken place. New players have entered the market, introducing new businesses models and technologies, coupled with an even more extensive use of tracking technologies. At the same time, well-known issues persists and have only increased in magnitude. These include the so- called ‘consent fatigue’, the prevalence of information overload and asymmetry, users experi- encing dark patterns and non-transparent cookie banners, poor protection of children and youth, and a general lack of legal clarity and clear guidance. Also, the use of third-party services, where data is collected and shared with a third-party for various purposes such as marketing or user profiling, have become pivotal on websites and apps. Recently, the Danish Agency for Digitalisation conducted two reports on third-party ser- vices on websites and in gaming apps, respectively:  Report on websites: Analysing more than 11,000 Danish websites, 9 out of 10 uses third-party services from Alphabet (Google and Youtube), while around a third uses services from Meta (Facebook and Instagram). Importantly, these results reflect the use of third-party services even before the user has considered whether to consent or has navigated around the website.   Report on gaming apps: The most popular free gaming apps in Denmark were ana- lysed. For these apps, children and youth are considered the primary target group. In the analysis, all tracking, data collection, cookies, etc. were rejected if possible. How- ever, in all of the analysed apps, third-party services collected data for marketing purposes. Facebook from all the analysed apps, Google and AppLovin from almost all, and Tiktok from nearly half. The latter report highlights the importance of having a dedicated focus on children and youth, as they increasingly engage in the online sphere. More needs to be done in safeguarding their data and protecting their privacy as essential elements of their online safety. The issues with minors’ consent is well known, where well-functioning and privacy respecting age verification could play a key role in protecting children from excessive data collection. Furthermore, it could be explored to restrict the use of tracking technologies for services that are primarily targeted at children and youth, such as certain games. In terms of the way forward, addressing the issues at hand would require new legislation that updates the existing regulatory framework on cookies and tracking technologies outlined in the ePrivacy Directive. Considering the long-lasting deadlock on the proposed ePrivacy Regu- lation, a first step would be for the new Commission to withdraw the proposal. A way forward could then be for the new Commission to prepare separate legislation to address the particu- lar issue of cookies and tracking technologies. With this in mind, we pose three questions for debate at the D9+: 1. Do you agree that issues persists in the area of cookies and tracking technologies? If so, which are the most pertinent and problematic issues in your view? 2. Which specific measures, instruments, rules etc. could help address the issues at hand? 3. Do you agree that a separate proposal addressing this issue is the most effective way forward? If not, what could be an alternative way forward? 2 Session III – A more competitive and resilient digital EU A key dimension to ensure European competitiveness is to improve the conditions for new digital solutions to arise. Emerging technologies such as AI and quantum are at the same time essential to our competitiveness and our security. We have set an ambitious course for the European digital transition via the 2030-goals of the Digital Policy Programme - by creating goals for the use of digital technologies in European businesses, doubling the amount of uni- corns in the EU via increased opportunities for upscaling and financing and much more. Many efforts have been put in place to reap the potential of digitalisation to strengthen Eu- rope’s innovation and competitiveness. A vast array of innovation-supporting initiatives have been set in place during the last Commission mandate. For the last three years, the Digital Eu- rope Programme has supported efforts to boost the uptake of digital solutions in both our economy and society. The AI Act has laid out a platform for testing AI-systems before roll out on the market in the form of regulatory sandboxes. Furthermore, the Commission’s AI Innova- tion Communication will enhance the development and deployment of generative AI in Eu- rope – for instance by dedicating the strong computing resources in the EuroHPC-network. However, over the last years, the geopolitical concerns and crisis have impacted the stability of Europe’s value chains and high-lighted risks of critical dependencies. Open strategic auton- omy has become an increasingly important topic. Many have pointed this out - for instance, in Enrico Letta’s report “Much more than a market” from April. It is evident that there is a deli- cate balance to strike between the openness that has allowed European businesses to trade and grow and the need to reduce dependencies, ensure resilient supply chains, and prevent technology leakage. The Commission addresses this in its Communication on a European Eco- nomic Security Strategy from June 2023 – with a focus on promoting EU’s economic base and competitiveness, protecting against risks, and partnering with the broadest possible range of countries to address shared concerns and protect our joint interests. The Communication was supplemented by a list of critical technologies in October 2023. Since then, the Commission and Member States have been working together to perform more gran- ular risk-assessment within the four technology areas identified as particularly sensitive. With this in mind, we would like to discuss the following at the D9+: 1. What are concrete measures that can contribute to Europe’s competitiveness in the digital sector? 2. How do we ensure that the next Commission continues to focus on promoting digital capabilities that are critical to Europe’s competitiveness? Which technologies should be prioritized and what are the best and most urgent measures to be taken? 3. How do you view the need for investments in strategically important technologies reflected in the current and coming European investment programmes? 2 Session II - The potential of the EUDI Wallet as a tool to make the Single Market a reality As of May 2024, the European Digital Identity Framework has come into force. The framework aims to create a more digitally integrated Union by reducing barriers between Member States and empowering Union citizens to benefit from digitalization. To fully realize these benefits and meet the political ambitions, the Commission and Member States are currently focusing on developing their national EUDI Wallets. Over the next few years, every EU Member State will provide its own wallet app, to all citizens and businesses. Essentially, the EUDI Wallet is a versatile tool that holds great potential for alleviating adminis- trative burdens for citizens and businesses, making it easier to navigate across EU and make use of the single market. The EUDI Wallet could therefore be a central tool to deliver on the Commission’s ambition of reducing burdens by 25 percent. However, the success of the EUDI Wallet is determined on the ease with which it is integrated into public services as well as its use in the private sector. Ensuring a broad uptake of the EUDI Wallet requires a dedicated use case strategy that meets the needs of both citizens and businesses. Considering the broader EU legislative landscape, relevant policy measure and the evolution of digital services and their business models, it is crucial to initiate a discussion among the D9+ to leverage the expertise of its members. We need to explore and identify the use cases with most potential for collective action to ensure a high uptake of the EUDI Wallet and ensure streamlining of the Wallet’s employment. This could be achieved with a dedicated use case strategy from the Commission. Therefore, we would like to initiate a discussion in the D9+ on ensuring ambitious uptake by exploring and identifying potential use-cases regarding both citizens and businesses for promo- tion alongside the rollout of the Wallet.  Potential use-cases for the EUDI-wallet  Verification in a broad range of sectors (e.g. age-verification in the sale of prod- ucts with a certain age-limit and for accessing Social Media).  A “common EU corporate certificate” as well as digital powers of attorney for rep- resentation of a company across the EU.  Easier access to documentation (e.g. education records).  Digital issuing for e.g. tickets or discount cards – i.e. combatting the presence of false ticketing in cultural events. With this in mind, we would like to pose three questions for debate at the D9+: 1. Looking forward, do you agree with the need to develop a dedicated use case strat- egy? And in which areas do you see use-cases with the most potential for alleviating burdens for citizens and businesses which should be part of such a strategy? 2. How do we ensure the broadest possible uptake of the Wallet across the EU? Any na- tional consideration in the development of the EUDI Wallet in terms of supporting the rollout? 3. How can we create a sustainable business model around the business wallet, and what considerations should be taken into account when developing a business wallet? 2 Session IV – A More Sustainable Digital Transition The link between the digital transition and our efforts to halt the climate changes has been acknowledged for a while. Data-driven solutions, high-performance computing, artificial intel- ligence etc. hold a tremendous potential for optimizing production or city planning processes while minimizing the waste of resources and reusing generated heat from data centres in our cities. However, it is evident that the rise of digital technologies constitutes a considerable carbon emitter in itself. Handling energy consumption has become a common issue for Large Language Models and data centres, as the use of AI and cloud services is expected to rise significantly in the coming years. The issue becomes all the more pertinent to solve when virtual worlds and other energy-intensive new technologies become mainstream. The Dublin Declaration initiated this discussion in the D9+ with its emphasis on the potential of digital technologies in climate efforts, but also the need to gain greater understanding of the technology sector’s own climate impact. The Council Conclusions from May 2024 (“The Future of EU Digital Policy”) also stress the need for reducing the environmental footprint of the ICT sector and underline the need to promote awareness and develop solutions to reduce the dig- ital environmental footprint and e-waste of businesses, the public sector and consumers. Nationally, Denmark has undertaken initiatives to address the digital environmental footprint and realize our ambitious climate targets. For instance, the Agency for Digital Government has assessed how to roll out the EU’s criteria for Green Public Procurement in the ICT-sector. This with the ambition of employing procurement as a tool to move the market towards more en- vironmental and climate friendly digital solutions. Our first impressions in this endeavour are positive. With this in mind, we wish to further discuss how to ensure that digitization becomes an ena- bler and not an obstacle to the green transition. We pose the following for debate at the D9+: 1. Building on the Dublin Declaration from the D9+, how do we ensure that digital tech- nologies and systems are developed with a greater focus on sustainability? 2. To what extent could a Commission strategy on sustainable digitization aid this pur- pose and what could it contain? 3. Should a green target be included in the review of the Digital Decade Policy Pro- gramme? If so, what should the focus of this target be? Mr. Tiit Riisalo Stormgade 2-6 1470 Copenhagen K Minister for Economic Affairs and Information Technology Telephone 72 28 24 00 [email protected] Republic of Estonia Dear minister Tiit Riisalo, I am delighted to invite you to the D9+ ministerial meeting in Copenhagen scheduled to be held on Friday 27th September 2024 in the historic Danish Parliament building, Christiansborg Palace. I would like to use this opportunity to allow us to dive deeper into our discussions on two topics of particular interest and importance to me: how to protect our children online and how we can ensure a streamlined and coordinated approach and usage of the EUDI Wallet. Furthermore, building on the declaration of the D9+ Ministerial Meeting in Dublin, we will continue to exchange views on how to foster a competitive and resilient digital single market while also enabling a more sustainable digital transition of the European continent. With this in mind, I would be honored to host you in Copenhagen for the D9+ meeting this fall. A detailed programme will be sent to you accordingly. For now, we envision the meeting to take place from 09.00 to 17.00 on 27th of September, including a tour of the Danish Parliament. In addition, I would like to inform you of an event co-organized by B9+ and S9+-stakeholders in between 16.00 and 19.00 on the 26th of September, followed by an informal dinner for heads of delegations to which you are also invited. There will be opportunity for you to participate as panelists under theme “A Competitive and Resilient Digital EU” – do not hesitate to reach out to us if you have an interest in participating. You will receive an invitation to the event directly from the organizers, the Federation of Danish Industries and Danish Entrepreneurs. I look forward to welcoming you in Copenhagen. Kind regards, Marie Bjerre