The European Network and Information Security Directive – a Cornerstone of the Digital Single Market

Abstract

Digital markets strongly depend on a sufficient level of network and information security. As the digitization of all business processes leads to a complex landscape of digital networks, systems, and services, overarching security standards become crucial for the economic development. Thus, state actors worldwide aim to build regulatory frameworks to somehow guarantee network and information security. Right now, with regard to the digital economy, Europe is not at the forefront of the global economic regions. By passing a new regulation on network and information security, the Union aims to present a modern regulatory approach to a key issue of the digital economy. The EU directive, set into force in August 2016, is a major step to a stable regulatory environment, that might be a raw model for regulators worldwide. However, from a technology perspective, the legislation will predominantly lead to compliance efforts of market operators, not to technological innovations. To some extent, this can be bridged by the development of market standards under the regulation. Nevertheless, further regulatory action is suggested.