Digital economy

The EU is enhancing the digital economy through comprehensive strategies designed to promote competition, ensure fair taxation, protect consumers and create a level playing field between digital and traditional businesses.

a hand holding a smartphone displaying graphs and financial data, cryptocurrency and a digital shopping cart

More equitable competition between digital companies

The EU aims to create a digital sector that promotes fair competition between digital companies, drives innovation and delivers benefits to consumers.

The EU's digital markets act (DMA) sets out rules for large online platforms to prevent them from abusing their position. In practice this includes behaviour such as favouring their own products or blocking users from installing external apps.

How companies and users benefit from the DMA

The digital markets act brings advantages for both businesses and users by promoting a more equitable environment within the digital economy.

Fairer competition between online platforms of all sizes.

More innovation in the internet economy.

Greater choice and better prices for consumers.

Fair taxation for the digital economy

Profits from digital activities are often not taxed in the country where users and consumers are located.

In response to the ongoing digital transformation, the EU is working to update the traditional rules of national taxation systems to ensure that all sectors of our economies, including digital businesses, pay their fair share of taxes and contribute to the functioning of our societies.

Digital taxation

VAT collection from online platforms

Many online service providers in passenger transport and short-term accommodation rentals do not pay VAT.

To address this, new EU rules require online platforms facilitating the sale of passenger transport and short-term accommodation rentals to collect and remit VAT on behalf of individual service providers.

This ensures that these service providers contribute their fair share of VAT, thereby promoting a more level playing field and a more competitive market environment.

A boost to the digital finance sector

Digital banking and payment technologies are transforming financial services. EU regulations ensure financial stability and consumer protection and improve the efficiency of the financial system.

Towards a digital euro

The EU is working to introduce a digital euro, a digital form of cash, to respond to changing consumer payment preferences and strengthen Europe’s open strategic autonomy.

New rules for crypto-assets

The EU has set requirements for crypto-asset issuers and providers to better protect consumers and investors, reduce the risk of financial crime and boost innovation.

Digital resilience in finance

To address the risks in the financial sector arising from digital dependence, the EU has set out uniform security standards for financial firms and their service providers to ensure that they can handle and recover from digital disruptions.