Kiri

DIGITAL RESILIENCE AMCHAM ESTONIA DIGITAL SOCIETY COMMITTEE POSITION PAPER Intro Digital technologies have the potential to solve free trade, digital innovation and transatlantic re- some of society’s most difficult challenges, such lations and that avoids protectionism and harmful as climate change and healthcare, and foster the regulation. birth, development and growth of new ventures that will create and finance the future of Estonia.   We urge Estonia to continue to use its role as a digital leader and soft power to push for a positive As a Digital Frontrunner, Estonia has a good EU agenda following elections this year, including chance to reap the benefits of digitization, how- by working closely with partners and like-minded ever it requires that Estonia continues to drive an countries. This could be done via initiatives such as ambitious national agenda on digitization, innova- the declaration that Prime Minister Kallas signed tion and entrepreneurship. But since Estonia is a and initiatives that seek to deepen the positive small and export driven country, its success largely outlook in a more digital context for example led also depends on the EU’s ability to develop a pos- by Minister Riisalo. itive policy agenda that promotes open economy, Europe’s Place as a Leader in Technology and Innovation Europe is at a critical juncture. In the early 2000s, makers should view the tech sector as a key the GDP per capita of the US and the EU were on partner in achieving its goal of building an Open par. However, by 2023, the GDP per capita in the Strategic Autonomy, and leverage available tech- US had doubled that of the EU ($80k vs $40k). nology assets (computing power, e-commerce The EU has been progressively losing its global platforms, open-source AI models) to build its competitiveness and falling behind in innovation. own autonomy. This requires a change in pers- Thirty years after its formal establishment, the pective: from ‘what new technologies need to be EU’s Single Market remains largely incomplete. A regulated in the next five years’ to ‘how can we business in Tallinn still faces significant barriers to stimulate/make sure that these new technologies offering services in Amsterdam, Vilnius, or Athens. come from Europe and European citizens benefit The EU is no longer a fertile ground for innova- from it’. tion, technology development, and the growth of world-class companies. The private sector, particularly tech companies, have made significant investments in data centres, One of the main drivers of the EU’s loss of global leading to the development of cloud computing, competitiveness is the slow adoption of techno- cloud-based AI applications, and edge services, logy and innovation. Europe lags behind in all which are crucial for driving innovation in Europe. major technological developments, whether it’s It’s estimated that US firms alone have invested cloud computing, Artificial Intelligence, or quan- a substantial USD 597 billion towards ICT infra- tum computing. structure and cloud solutions in Europe. The relationship between tech companies and the EU is First, a mindset shift is needed in Europe. Policy- 1 marked by mutual dependencies. Tech companies the importance of adopting a pro-innovation ap- make long-term investments in the EU because it proach. An example could be embracing AI and is a competitive market and offers political stabil- adopting an open approach to AI, which would ity. In return, the investments of tech companies allow Europe to reap the benefits of AI applica- can support the EU’s strategic autonomy agenda tions. and help it regain its leadership in innovation and technology. Europe has all the necessary resources to reclaim its position as a global leader in technology and Secondly, a robust and complete Digital Single innovation. The EU is home to some of the world’s Market with truly harmonized regulation is crucial best universities, top scientists and engineers, and to addressing Europe’s problems and reversing the world’s most innovative companies, including its loss of competitiveness. Companies looking to from Estonia. A mindset shift is necessary to lever- scale up in Europe often cite a lack of regulatory age the EU’s potential and turn it into a force to be harmonization and regulatory inefficiency as sig- reckoned with. It’s crucial that Estonia advocates nificant barriers to growth. for a strong framework for innovative reforms, and that the next European Commission acts on In addition to reforms on regulatory enforcement it to ensure the EU doesn’t fall behind in the race across the EU and increased investments in R&D for innovation. to support EU businesses to take risks and inno- vate, we believe it’s necessary for Estonia to stress Artificial Intelligence (AI) AI presents an immense economic opportunity, Commission’s objective to ensure a proportionate, but we also recognise that the use of AI raises risk-based approach to AI regulation, and hope certain concerns. AI is not itself inherently good this can be a helpful start for a global discussion or bad; the key is developing and deploying it re- around AI governance. As we move to intense sponsibly and ensuring regulation is risk-based work on the code of practice with the AI industry, and use case specific while allowing for contin- we urge Estonia to advocate for solutions that will ued innovation and practical application of this benefit European AI providers and will increase transformative technology. The EU approved the the number of national champions in the AI space. first law on how to regulate AI. We support the Payment Services Regulation Valued at €240 trillion in Europe in 2021, electronic viders (PSP) for impersonation scams is akin to payments are essential to Europe’s economy. As putting a band aid over a gaping wound: it will not the legislative framework governing electronic fix the underlying problem long-term. The focus payments, the Payment Services Regulation (PSR) must instead be on raising consumer awareness must deliver logical and common-sense rules and detecting criminals through public-private that make EU citizens’ lives simpler. As part of collaboration. achieving this, we call to advocate for removing Art. 59 from the text, as it unjustifiably makes in- The PSR can play a key role tackling frauds and dustry accountable for fraudsters’ impersonation scams and mitigate the harm suffered by consum- scams. It also poses privacy challenges for users ers when engaging in fraudulent transactions. To of both end-to-end encrypted messaging services make the law effective, policymakers should focus and SMS, as it is also not technically possible to on understanding the role each actor plays along monitor and remove them for an E2EE messaging the value chain, from PSPs to platforms and other service. intermediaries, and identify the actions that each entity is best suited to take to to mitigate these A pure shift of liability to the Payment Service Pro- harms.   2 Any liability extension to online including plat- takedown of illegal content in the EU which the forms or hosts, would run counter to the core PSR should fully complement and not replace. principles established by the eCommerce Direc- tive and reinforced in the Digital Services Act, Instead of undermining the well-balanced frame- namely that: (1) hosts are not liable for illegal con- work drafted by the European Commission with tent on their services absent actual knowledge , broad, far-reaching and unjustified liability exten- and (2) the prohibition against requiring hosting sions, policymakers should focus on fostering the services, including platforms and private messag- cooperation between PSPs and other entities that ing services, to generally monitor their services for can collaborate to prevent fraud. These measures illegal content. should include knowledge and information sharing that can help financial institutions build adequate All measures should align with the recently preemptive measures. Similarly, shifting the liabil- adopted Digital Services Act, its intermediary lia- ity entirely to the PSP discourages consumers from bility principles which provide the relevant liability being diligent themselves. Systems and campaigns framework for hosting services, including plat- should be put in place to help them to better rec- forms and messaging services, with regard to the ognise, avoid and report scams. EU Cloud Security Services The EU Cloud Services Certification for Cyber- protections at a time when these institutions security (“EUCS”) has the potential to drive a continue to be negatively impacted by malware, step-change in baseline European enterprise and ransomware and DDOS attacks. We therefore public sector cybersecurity for cloud deployments, appreciate that the Commission has taken the particularly in light of the increased risks posed to concerns of industry, Member States and trading European security in 2022. The EUCS has raised partners (like Japan, US) on EUCS seriously and is concerns among industry, EU Member States but seeking to move forward with the scheme in a way also EU trading partners (e.g. US, Japan, Australia, that does not discriminate against non-EU cloud Canada), as in its earlier drafts it was discriminat- providers. We encourage Member States to keep ing against CSPs based on country of HQ, risking engaging in this process and to vote in favor of a to cut off European businesses and governments solution that would maintain EUCS as a technical from the most secure cloud services and cyber cybersecurity scheme open to all providers. Stimulate Digital Transformation Through Cloud Adoption We recommend that you stimulate digital transfor- We welcome the progress of the cloud bill in Es- mation and growth by increasing cloud adoption tonia clarifying the requirements for the public by introducing a Cloud First policy, e.g. inspired by sector to adopt cloud services. However, as the the UK, Iceland and the NL, and a strategy based wording is not encouraging the adoption of cloud on a flexible multi-cloud strategy and solid foun- services it risks that the Public Sector in Estonia dations for portability and interoperability. falls behind others in adopting and utilizing cloud services. This in turn will have a negative impact Cloud first means that public organizations need to on the security of public services and on innova- provide a clear explanation if they decide against tion in general. the option. 3 International Tax Reform The OECD is negotiating a global tax reform with atic in that they narrowly target certain activities the aim to reallocate taxing rights targeted at and companies and are designed to operate out- the world’s largest companies (Pillar 1) and new side the principled framework of business taxation. standards around global minimum taxation (Pillar They create concerns around tax and legal cer- 2). We are supportive of the OECD process and we tainty and the legitimacy of an international tax are hopeful that Estonia will continue to support system that has been built around multilateral a robust, multilateral framework that doesn’t dis- coordination. This is the system that underpins all criminate against products and services, and we global trade and cross-border investment and the hope that harmful targeted taxes such as Digital reason why it’s important that Estonia supports Services Taxes (DSTs) will no longer be considered the OECD framework. at national or European levels. DSTs are problem- Estonia’s Cybersecurity Landscape: Capitalizing on Digital Legacy In an age where digital technologies play an in- Heading deeper into the digital era, Estonia al- creasingly significant role in steering the progress ready understands that the decisions made today of nations, Estonia stands as a beacon of inno- will shape its digital future. It is imperative that Es- vation and dexterity in the cyber arena. With a tonia continues leveraging its stature as a digital proven track record as a digital frontrunner, Es- powerhouse to further amplify its influence and tonia embodies the epitome of a nation that has contribute constructively to the EU’s policy frame- seamlessly blended tradition with technology, work, fostering an environment that nurtures carving a niche for itself in the global digital land- innovation, entrepreneurship, and responsible scape. digitization. Recommendations: Legislation and Regulation age of AI and sustainable digitalisation. This could Advocate for balanced and foresighted regula- pave the way for the development of state-of-the- tions at the EU level that foster innovation without art cybersecurity solutions, give a further boost compromising security and privacy. Estonia should to the start-up industry and putting Estonia at the be at the helm, guiding discussions around har- forefront of cyber-technology advancements. monious legislation that accommodates the rapid advancements in the digital sphere without im- International Collaboration and posing undue restrictions. Similarly, on a national Diplomacy level, Estonia should aim to harmonize regulators Utilize Estonia’s standing as a digital leader to fos- in the digital sphere. ter collaborations and alliances with like-minded nations, focusing on sharing knowledge, and facil- Cybersecurity Expertise and Innovation itating dialogues on important issues such as data Hub privacy, cybercrimes, and digital trade policies. Es- Establish Estonia as a hub for cybersecurity re- tonia should further enhance its leading positions search and innovation, inviting collaborations with by championing forums and summits that focus universities, industries, and governments globally. on crafting cohesive international cyber policies Innovation topics should focus beyond cyber se- that promote free trade and digital innovation. curing and defending, it should include space Empowering the next generation of cyber profes- sector, tackling digital divide, data privacy in the sionals 4 Become the leader in the development of ed- Developing Cyber Crisis Management ucational programs and initiatives to nurture a Centre workforce adept in cybersecurity and techno- Developing an Estonian Cyber Crisis Coordina- logical transformation. By fostering a culture of tion Management Centre could serve as a hub learning and expertise in this field, Estonia can for collaborative crisis management efforts en- contribute significantly more to the global demand compassing various sectors within Estonia and for cyber professionals, enhancing its competitive extending to cooperative platforms in the EU and edge in the international arena. globally. This centre should be mandated to con- duct regular cyber crisis simulation drills, foster Developing a Resilient Cyber public awareness, and facilitate knowledge shar- Infrastructure ing and research development in the field of cyber Estonia should continue its trajectory of building a resilience. Furthermore, the centre should actively robust and resilient cyber infrastructure that not collaborate with international partners, promote only protects its digital assets but also serves as a innovation, and nurture a proactive and resilient blueprint for other nations to emulate. Innovation cyber ecosystem capable of foreseeing and miti- hubs and simulation environment enabled collab- gating future challenges effectively. orative initiatives with private sector enterprises could be a pivotal move in this direction, driving innovation and securing digital platforms. 5 Saatja: "MKM info" <[email protected]> Saaja: [email protected] Teema: FW: AmCham Estonia Digital Resilience Position Paper Kuupäev: 2024-07-22 12:57 From: Sandra Särav - MKM <[email protected]> Sent: Monday, July 22, 2024 2:54 PM To: info - MKM <[email protected]> Subject: FW: AmCham Estonia Digital Resilience Position Paper From: Daria Sivovol <[email protected]> Sent: Tuesday, July 2, 2024 4:25 PM To: Erik Janson - MKM <[email protected]>; Tiit Riisalo - MKM <[email protected]>; Sandra Särav - MKM <[email protected]> Cc: Tiina Rüütel <[email protected]> Subject: AmCham Estonia Digital Resilience Position Paper Tähelepanu! Tegemist on välisvõrgust saabunud kirjaga. Tundmatu saatja korral palume linke ja faile mitte avada. Dear Minister Riisalo, Sandra and Erik: Greetings from AmCham Estonia! Hereby, I am sending you the latest position paper that has been published by the AmCham Digital Society Committee. <https://amcham.ee/committees/digital-society-committee/> Please find the document attached to this message. Our committee strongly believes that digital technologies have the potential to solve some of society’s most difficult challenges, such as climate change and healthcare, and foster the birth, development and growth of new ventures that will create and finance the future of Estonia. As a Digital Frontrunner, Estonia has a good chance to reap the benefits of digitization, however, it requires that Estonia continues to drive an ambitious national agenda on digitization, innovation and entrepreneurship. But since Estonia is a small and export driven country, its success largely also depends on the EU’s ability to develop a positive policy agenda that promotes open economy, We urge Estonia to continue to use its role as a digital leader and soft power to push for a positive EU agenda following elections this year, including by working closely with partners and like-minded countries. This could be done via initiatives such as the declaration that Prime Minister Kallas signed and initiatives that seek to deepen the positive outlook in a more digital context for example led by Minister Riisalo. We stand ready to discuss this further this coming fall season and welcome any questions or comments. With best regards, Daria Daria Sivovol CEO --------------------------------------------------- American Chamber of Commerce Estonia Tallinn Business Center, Harju 6, 10130 Tallinn, Estonia Tel.: +372 6 310 522 Mob. +372 5341 5576 Fax.: + 372 6 310 521 www.amcham.ee <http://www.amcham.ee>