Public Policy and Regulatory Issues

As small businesses increasingly benefit from partnerships with digital platforms and use of data-driven digital tools, government regulation of technology is often regulation of small business. 3C ensures that policymakers understand the essential intersection of technology and small business, and supports policies that respect the interests of digitally-empowered small businesses.

Today, fundamental small business technology policies are being reconsidered as part of the European Commission’s Digital Services Act (DSA) package. Additionally, several government investigations and enforcement proceedings that ostensibly focus on large technology companies will substantially (and perhaps detrimentally) impact small businesses. 3C will carefully review the DSA package as it develops and will engage with government policymakers and enforcement bodies, always focused on ensuring a transparent and smoothly functioning Digital Single Market that helps the smallest 3C member businesses.

Privacy

Privacy is a fundamental right and a practical concern for consumers, including small business owners and their families. But burdensome privacy laws and different rules in each market severely limit small business growth opportunities. The DSA package and other privacy laws should place strict information management obligations on society’s biggest privacy risks – the companies that manage vast quantities of personal financial and health data. Small businesses that handle modest amounts of data should not be overwhelmed by information liability and data security regulations that create more cost than benefit.

Trade

In today’s global digital economy, international data flows should be seamless while data should be secure and protected. This combination allows European companies – including the smallest and newest companies – to innovate responsibly, inexpensively and efficiently reach new customers, promote new and exciting products, and quickly share useful information across the globe.

Data Collection, Security, and Use

Data is the fuel that powers Europe’s fast-growing digital economy. Data helps companies understand how to identify and reach potential customers and potential employees, and also improves business efficiency and profitability.

Companies that collect your data must treat it responsibly, but proposals to restrict data collection must appreciate that anonymous data and large data sets are essential inputs for digital tools that power small business. Data-driven marketing, advertising and business services can be the difference between a small business that thrives and one that falters – and Government restrictions on data usage could make all of these services less effective and more expensive.

Competition

Particularly during the COVID-19 pandemic, small businesses increasingly rely on large technology platforms’ free and low-cost tools and services to support basic operations, including advertising and marketing at home and accessing new markets. If Europe’s “modern” digital framework restricts platforms’ scale, or ability to offer new and innovative services, small businesses will inevitably pay more for digital services or perhaps lose some services altogether. Competition oversight is important, but government must take a broad view of the entire economy in order to avoid unintended consequences that could devastate small businesses.