Digital economy

The influence digital economy has got on industries is referred to as the fourth industrial revolution. In the Czech Republic, it will have major impact on the market because the industry, significantly influenced by digital economy, accounts for over 32 % of Czech GDP.

  • Digital economy accounts for ca. 4 % of the Czech gross value added and adds another ca. 9 % of value in other industries.
  • In the expenditures of the entrepreneurial sector on research and development in the Czech Republic, digital economy holds the first place with 18,86 % of the total expenditures of the entrepreneurial sector. That is 9,981 billion CZK (a figure from 2014).
  • This number doesn’t take into consideration that in the European average the information and communication technologies have a significant share on the total added value in industries such as the automotive (25 %), household appliances (41 %) or healthcare and medicine (33 %).
  • One of digital economy’s specifics is a significantly higher share of microenterprises. For example, in 2012, the number of enterprises in the IT sector was formed from 99,12 % by small enterprises (0-49 employees).
  • In the field of IT services in the Czech Republic in 2012, the were only 38 enterprises with more than 250 employees, which was 0,14 % of the entire count of subjects in that particular segment.

The state administration should create good conditions for the development of digital economy. The emerging industries are yet not entirely accepted by politicians and state institutions as independent industrial sectors and they don’t have their own policies (strategies), they are not listed in jurisdiction act. Moreover, they evolve and transform quickly and therefore their observation, understanding and possible meaningful regulation is very difficult and demands a perfect knowledge of this sector. That’s why IDE occupies itself with the digital economy as an industrial sector, publishes analyses and studies, initiates expert discussions between enterprises on one side and state institutions on the other. The institute raises public awareness about the needs and development potential of this young and for the future of the Czech Republic very important industry.

Study – Potential of digital economy and cultural and creative industries for further development and competitiveness of the Czech Republic.

Digital Single Market Initiatives

The Czech digital sector will be dramatically influenced by 16 Digital Single Market initiatives presented by European Commission in May 2015. The Commission aims to introduce these initiatives to other European institutions by the end of 2016.

Pillar I.

1. Rules to make cross-border e-commerce easier

This includes harmonised EU rules on contracts and consumer protection when you buy online: whether it is physical goods like shoes or furniture; or digital content like e-books or apps. Consumers are set to benefit from a wider range of rights and offers, while businesses will more easily sell to other EU countries. This will boost confidence to shop and sell across borders.

2. Review of the Regulation on Consumer Protection Cooperation

The goal here is to enforce consumer rules more rapidly and consistently.

3. Parcel delivery

More efficient and affordable parcel delivery. Currently 62% of companies trying to sell online say that too-high parcel delivery costs are a barrier.

4. Geo-blocking

Goal of this regulation is to end discriminatory practice used for commercial reasons, when online sellers either deny consumers access to a website based on their location, or re-route them to a local store with different prices. Such blocking means that, for example, car rental customers in one particular Member State may end up paying more for an identical car rental in the same destination.

5. Antitrust competition inquiry into the e-commerce sector

The goal of this initiative is to identify potential competition concerns affecting European e-commerce markets.

6. A modern, more European copyright law

Legislative proposals to reduce the differences between national copyright regimes and allow for wider online access to works across the EU, including through further harmonisation measures. The aim is to improve people's access to cultural content online – thereby nurturing cultural diversity – while opening new opportunities for creators and the content industry. In particular, the Commission wants to ensure that users who buy films, music or articles at home can also enjoy them while travelling across Europe. The Commission will also look at the role of online intermediaries in relation to copyright-protected work. It will step up enforcement against commercial-scale infringements of intellectual property rights.

7. A review of the Satellite and Cable Directive

The goal of this directive review is to assess if its scope needs to be enlarged to broadcasters' online transmissions and to explore how to boost cross-border access to broadcasters' services in Europe.

8. VAT regime adjusment

Reduction of administrative burden businesses face from different VAT regimes: so that sellers of physical goods to other countries also benefit from single electronic registration and payment; and with a common VAT threshold to help smaller start-ups selling online.

Pillar II.

9. EU telecoms rules

This includes more effective spectrum coordination, and common EU-wide criteria for spectrum assignment at national level; creating incentives for investment in high-speed broadband; ensuring a level playing field for all market players, traditional and new; and creating an effective institutional framework.

10. Review of the audiovisual media framework

Review of the audiovisual media framework is to make it fit for the 21st century, focusing on the roles of the different market players in the promotion of European works (TV broadcasters, on-demand audiovisual service providers, etc.). It will as well look at how to adapt existing rules (the Audiovisual Media Services Directive) to new business models for content distribution.

Další materiály

Working paper k síťové neutralitě
11. Online platforms

Commission aims to comprehensively analyse the role of online platforms (search engines, social media, app stores, etc.) in the market. This will cover issues such as the non-transparency of search results and of pricing policies, how they use the information they acquire, relationships between platforms and suppliers and the promotion of their own services to the disadvantage of competitors – to the extent these are not already covered by competition law. It will also look into how to best tackle illegal content on the Internet.

Další materiály

Working paper k soutěži na internetu
12. Personal data protection

Reinforce trust and security in digital services, notably concerning the handling of personal data. Building on the new EU data protection rules, the Commission will review the e-Privacy Directive.

Další materiály

Working paper k ochraně osobních údajů
13. Cybersecurity

Propose a partnership with the industry on cybersecurity in the area of technologies and solutions for online network security.

Pillar III.

14. European Cloud

Propose a 'European free flow of data initiative' to promote the free movement of data in the European Union.

15. Interoperability

Commission wants to define priorities for standards and interoperability in areas critical to the Digital Single Market, such as e-health, transport planning or energy (smart metering).

16. Skills and e-Government

Support an inclusive digital society where citizens have the right skills to seize the opportunities of the Internet and boost their chances of getting a job. A new e-government action plan will also connect business registers across Europe, ensure different national systems can work with each other, and ensure businesses and citizens only have to communicate their data once to public administrations, that means governments no longer making multiple requests for the same information when they can use the information they already have.

NEWS