From Market Liberalism to Public Intervention: Digital Sovereignty and Changing European Union Digital Single Market Governance

Abstract Against the backdrop of the ever‐increasing importance of digital services, the European Union (EU) is promoting deepening of its digital single market (DSM). Whilst the single market has often been portrayed as the Trojan horse of neoliberalism, recent rhetoric on digital sovereignty indicates a desire for more control over the digital sphere. A historical case study of key elements of the DSM, namely digital services regulation and data protection, shows that EU governance has become less market‐liberal and more public‐interventionist. In response to challenges associated with the digital economy, policy goals have been broadened to include further objectives in addition to competitiveness. Stakeholders and public authorities rather than business actors have become more important in governance processes, and more market‐correcting instruments have been introduced. These reforms have been made by adding more interventionist elements and also by redirecting the role of the European Commission to overseeing very large online platforms.