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02.12.24

Stimulate a new and fair digital economy through digital public infrastructure

Existing structural dependencies on Big Tech undermines the EU’s digital sovereignty, stifles innovation and new entrants in the digital economy

Written by People vs Big Tech and Open Future with contributions from experts at ARTICLE 19.

The global digital economy is dominated by a handful of powerful technology giants. Between them, Big Tech maintains concentrated power over key digital markets, as well as control over underlying internet infrastructure, including operating systems, computing power and data analytics capacity. As a result, Big Tech’s infrastructure underpins much of the wider economy and is relied upon by many other businesses and governments globally. 

These structural dependencies undermine the EU’s digital sovereignty, stifle innovation and new entrants in the digital economy.

 Beyond regulation: Digital industrial policy 

The EU has taken important steps towards regulating dominant digital firms, including through the Digital Services Act and Digital Markets Act. There is now an opportunity to move beyond restraining the abuses and dominance of the big players to proactively shaping the kind of technological progress and innovation that truly serves the interests of people and society.

Both Enrico Letta and Mario Draghi, in their reports on the EU single market and competitiveness, highlight the need for increased public investment in strategic sectors, including technological innovation. The EU's renewed focus on digital industrial policy offers a chance to scale up investment in public digital infrastructure. The ultimate goal is to foster a "people-first digital ecosystem," where data and infrastructure are designed to serve the public interest.

 What is public digital infrastructure?

A global movement to develop and fund ‘digital public infrastructure’ (DPI) is growing. It is supported by the UNDP. At the 2023 G20, President von der Leyen endorsed “public digital infrastructure that is interoperable, open to all and trusted”.

DPI refers to key technological "building blocks" which underpin digital services like digital ID, payment, and data exchange systems. However, there is debate over what counts as essential, with many arguing that services like browsers, social media, and chat are also infrastructural.

A broader concept, "public digital infrastructure," includes communication platforms, storage services, identity systems, and the software, protocols, and standards that support them. This approach aims to create alternative infrastructure that fosters innovation without relying solely on private investment or existing tech giants. It promotes open protocols, decentralised governance, and non-extractive economic models.

 Notable examples include: 

  • Launched by Barcelona City Council, Decidim is a free and open, digital infrastructure for participatory democracy that is now widely used around the world. 
  • Brazil’s “Pix payment system,” which has been adopted by over 70% of the population, has reduced reliance on e-payment giants Visa and Mastercard. 
  • Germany’s Nextcloud, is a content collaboration platform built on open standards and interoperability that allows users to freely switch providers, integrate with different tools and avoid vendor lock-in.
  • DHIS2 is a software component used by many governments to develop their health information management systems. It illustrates how public digital infrastructure can be managed and produced, at a global scale.

How do we achieve this?

Our three key recommendations are: 

  1. Commit significant investment towards public digital public infrastructure. 

The investment needed for public digital infrastructure must be ambitious. Former Taiwan Digital Minister Audrey Tang argues it should receive funding on par with major state projects like roads and railways. Additionally, over 40 civil society organisations have urged the creation of a European Public Digital Infrastructure Fund, financed by the EU and managed by an independent foundation.

  1. Use public procurement as a market lever to encourage the adoption and scaling of open and interoperable alternatives to Big Tech.  

Public bodies like the European Commission, along with institutions such as libraries, schools, and public service media, can play a key role in promoting public digital infrastructure over closed proprietary systems. For example, Germany’s openDesk software project demonstrates this shift. Updating procurement practices to require open standards and protocols in funded solutions and internal operations will help scale up these alternatives.

  1. Establish and enforce strong human rights safeguards and accountable governance frameworks over public digital infrastructure. 

Building alternative digital infrastructure involves risks if not managed properly. It requires strong governance frameworks that are open, transparent, accountable, and participatory. Community-governed "digital commons" are crucial for providing public digital infrastructure, ensuring greater public participation, freedom of expression, inclusivity, and accessibility.

     

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