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l 84 as noted by the european parliament taxation on digital market could bring about 415bn euros to the eu economy and be considered as an incentive to further deepen the eu integration ep opinion s 2014 mechanisms of control edit the eu controls ex post in the case of abuse of dominance for example and seems to be very cautious in term of concurrence exclusive competence the eu sanctions cartels behavior and examines mergers in order to preserve competition and protect small and medium enterprises smes entering the market within the digital market mergers often create digital firm dominance thus possibly preventing european equivalents moreover regulation could in theory protect people working in the digital sector or for the digital sector such as uber drivers a case recently in france which could present opportunity however the eu may need to be cautious with regulation in order to create barriers at the market entry 81 european commission versus google edit in 2017 the ec fined google 2 42 billion for abusing its dominant position as a search engine by giving an illegal advantage to google shopping 85 the ec aimed to pave the way to relieve firms suffering from its abuse of dominant position 86 moreover it sought to prove that the ec s strategy does works and companies may be fined at high rates juncker commission edit the digital economy has been a concern for the juncker commission concern since the 1st barroso commission yet it is only under the juncker commission that the strategy of the dsm was adopted on 6 may 2015 as it was ranked as the second priority out of the 10 priorities for the new commission s mandate throughout this document the dsm emphasized 3 policy pillars improving access to digital goods and services an environment where digital networks and services can prosper digital as a driver of growth 87 as a key priority for the newly president elect juncker he made andrus ansip the vice president of the commission in charge of the dsm the decision to approach the dsm from a different point of view is also because the digital space is in constant evolution with the growing importance of online platform and the change of market share 78 the dsm was a priority because of its economic importance the total of eu e commerce reached 240 billion in 2011 and out of that 44 billion were cross border trade between member states 88 impacts edit economy edit according to a 2016 estimate the digital economy represented 11 5 trillion or 15 5 of global gdp 18 4 of gdp in developed economies and 10 per cent in developing economies on average it found that the digital economy had grown two and a half times faster than global gdp over the previous 15 years almost doubling in size since 2000 most of the value in the digital economy was produced in only a few economies the united states 35 china 13 and japan 8 the eu together with iceland liechtenstein and norway accounted for another 25 89 some scholars have argued that the digital economy entails unequal economic exchanges where users and consumers provide value to digital firms in the form of data but are not compensated for doing so 90 energy edit the digital economy uses a tenth of the world s electricity 91 the move to the cloud has also caused the rise in electricity use and carbon emissions a server room at a data center can use on average enough electricity to power 180 000 homes 91 the digital economy can be used for mining bitcoin which according to digiconomist uses an average of 70 69 twh of electricity per year 92 the number of households that can be powered using the amount of power that bitcoin mining uses is around 6 5 million in the us 92 privacy rights edit data gathering and tracking of individual behaviors by digital firms has implications for privacy rights 93 94 data collected on individuals can be analyzed and monetized by technology firms without compensation to users the data is not only used to predict behaviors but influence behavior the data collected is at risk of breaches where personal information can be intentionally or inadvertently exposed 8 taxation edit the digital economy has implications for international tax rules digital technology companies produce goods that are not necessarily tied to specific geographical locations which complicates taxation of those companies digital technology can therefore enable tax evasion and tax avoidance 8 competition and antitrust edit the digital economy is characterized by network effects rapid development of economies of scale first mover advantages and winner takes all dynamics which make it possible for a small number of firms to gain a dominant market position and impede entry by potential competitors 8 95 these dynamics create concerns about market power which could enable firms to charge higher prices and pay lower wages than if they experienced competition 8 market power could also lead to outsized political influence by dominant technology firms leading to deregulation 8 in some cases digital platform companies can pit their users against governments thus discouraging stringent regulations 96 97 8 98 job displacement and offshoring edit by increasing automation of tasks previously performed by human workers the digital economy has the potential to cause job displacement whether automation causes net job displacement depends on whether the gains from automation lead to greater consumer demand by lowering prices for goods and services and increasing household incomes and whether the introduction of new labor intensive tasks will create new jobs 8 digital technology has facilitated the spread of global value chains and made it easier for capital in developed countries to access labor in the developing world which can lead to greater offshoring and potentially harm low skilled workers in developed countries 95 99 labor rights edit the rise of digital platform companies has implications for the nature of work in particular in the gig economy and labor rights 100 101 gig workers are generally classified as independent workers with temporary off site autonomous contracts which challenges the application of labor and occupational health and safety law as a result online platforms encourage the flexibilization of jobs and a higher volatility of the labor market as opposed to traditional companies 102 gig economy companies such as deliveroo and uber hire self employed drivers who sign a contract with the digital platform while the way they work is similar to a regular employee statute yet for the first time in march 2020 france s top court cour de cassation ruling acknowledged that an uber driver could not qualify as a self employed contractor because he could not build his clientele or set his prices establishing a relation of a subordinate of the company 103 see also edit digital culture digital currency e commerce online shopping gross domestic product research and development about the relation between gdp and use of gdp and reality 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