Digital Economy in the EU

Teacher(s)

Defacqz Samuel; Nouveau Patricia (compensates Defacqz Samuel);

Language

English

Main themes

The digital transformation of the EU economy is a major evolution that raises challenges such as the EU risking to fall behind the US and China. The functioning of the digital markets and their underpinnings, such as the microprocessors industry, raise geopolitical issues and are thus at the core of the debates on the strategic autonomy of Europe. Analysing those markets from a multidisciplinary point of view requires not only to identify the main actors, their strategies, the complex supply chains, etc., but also to understand the sovereignty and governance issues, as well as the EU legal framework.
The course aims to do this by reviewing the main EU policies and laws for the digital markets. This, among others, includes a review of the international competition around the manufacturing of chips, the state of competition on the digital markets and the remedies in case of abuse, the governance of data (in particular personal data) and artificial intelligence, the fight against online disinformation, the liability and (social) responsibility of digital platforms, the cybersecurity and resilience issues, the protection of consumers online, and in general digital sovereignty issues.

Learning outcomes

At the end of this learning unit, the student is able to :

understand the specificities of the digital markets and the challenges that the digital transformation of the EU economy raises highlight the geopolitical dimensions resulting from the international competition around digital technologies analyse the main EU policies regarding the digital economy from an interdisciplinary perspective critically reflect upon the values and objectives underpinning those policies propose alternative measures and policies that take into account the various dimensions of the digital economy and the stakes (including the protection of fundamental rights and democracy)

Content

The course content will be structured around the following themes and axes:
1°Analysing the reasons why the digital transformation of the European economy poses increasing challenges to the European Union and some key Member-States, through the study of:

• The EU technological gap 
• The general-purpose transformation of digital technologies including in military affairs 
• The specificities of digital technologies in terms of market power
• The changing geopolitical environment and the technological confrontation between the US and China as well as the underlying weaponisation of dependencies

2° Analysing the momentum of digital sovereignty and strategic autonomy at the EU level:

• The objectives and associated uncertainties;
• Convergences and divergences among the various stakeholders involved

3° Analysing the main policies being implemented, debated and envisaged, including:

• Industrial and innovation policies
• The development and functioning of the digital and data single market
• Competition and fiscal policies 
• Trade policies 

4° EU Transatlantic and transpacific relations with regard to digital matters:

• EU de-risking versus US decoupling with regard to China 
• Transatlantic cooperation versus confrontation 
• European digital governance model versus US and Chinese models, including with regard to data privacy, democratic issues and ethics.

Teaching methods

The course combines a balanced mix of ex cathedra learning sessions and interactive training sessions based on preliminary readings, active debates and case studies. 

Evaluation methods

In this course, emphasis is placed on individual assessment, unless the number of students is such that implementing this approach becomes impracticable.
1. 50 per cent of the final mark is based on continuous assessment and requires students’ attendance and participation in class. As such:

• Reading assignments will be set regularly in preparation for the course and will form the basis of two quizzes scheduled during the term, which will account for 20 per cent of the final mark. Attendance at classes is therefore essential.
• Students will also be required to submit a briefing paper, which will account for 30 per cent of the mark.

Marks obtained for continuous assessment are carried over to the second sitting. Only students who were absent from continuous assessment sessions and were able to justify their absence with a medical certificate will be eligible to have their continuous assessment rescheduled for the second sitting. This does not apply to unauthorised absences.
2. 50 per cent of the final mark is based on the written examination held during the June and August exam periods.
3. AI regulations for this course: 

• As part of the assessment for this teaching unit, the use of artificial intelligence is prohibited, whether for exploration and conceptualisation or for writing.
• If students use AI systems as language assistants during assessments (e.g. for proofreading in English), they are required to provide a screenshot or transcript of their interaction with the chosen AI system(s).

Online resources

Compulsory readings, will be made available on the Moodle page for this course at least one week before each class. Students are expected to review these materials in advance of the lectures and seminars.
Any lecture slides used will be posted online after each session. 
Additional readings and documents may be provided after lectures, depending on the topics addressed in class.

Bibliography

Key Readings and references will be proposed among the following (non-exhaustive) bibliography: 
Foundational information and official documents from the European institutions and Member-States
Bergsten C.F. (2022). The United States vs. China: The quest for global economic leadership, Polity press.
Miller C. (2022). Chip War: The Fight for the World's Most Critical Technology, Scribner.
Defraigne J-C, Wouters J., Traversa E., Zurstrassen D.(Ed.). (2022). EU Industrial Policy in the Multipolar Economy, Cheltenham, Edward Elgar Publishing.
Bradford A. (2024). Digital empires : the global battle to regulate technology, Oxford University Press.
Draghi, M. (2024). The future of European competitiveness: A competitiveness strategy for Europe, European Commission.
Eckert, D. (2024). 40 Years of European Digital Policies: Forgotten Lessons, Springer.
Werner S. (2024). Digital policy in the EU : towards a human-centred digital transformation. Cheltenham, UK : Edward Elgar Publishing.
Gul, M. (2026). The new geography of innovation: The global contest for breakthrough technologies. Avid Reader Press.

Faculty or entity

> IEEB