eIDAS Regulation review: A chance to increase SME innovation in trusted services

  • The review of the European Commission’s eIDAS regulation on electronic identification and trust services for electronic transactions has concluded earlier this month

  • In a new position paper responding to the public consultation, DIGITAL SME calls for provisions to increase SME innovation in trust services

  • DIGITAL SME experts call for provisions to keep eID technology-neutral, speed up the adoption of eID in eServices, and emphasise the role of ICT standards in trust services

The 2014 regulation on electronic identification and trust services for electronic transactions in the internal market (eIDAS) aimed to provide a predictable regulatory environment to enable secure and seamless electronic interactions between businesses, citizens, and public authorities. Although the COVID-19 pandemic has accelerated the need and demand for trusted services, only 15 out of 27 EU member states currently provide cross-border electronic identification under the eIDAS regulation.

In response to the public consultation about the EU law on e-identification, which concluded earlier this month, DIGITAL SME calls for measures to increase SME innovation in the market of trusted services and a strong emphasis on standards in the updated regulation.

Decoupling of eID issuance & verification and accelerated scaling-up of trust services

Efficient EU legislation is needed to scale up electronic identification technologies that can effectively support electronic transactions, including in the increasingly important sector of remote working. Privacy, transparency, and access to a trustworthy identification infrastructure should be guaranteed in the updated eIDAS regulation. The decoupling of the issuance of legal national IDs and the new EUid “anchored” to those IDs, thanks to a new specific trust service, should be guaranteed to prevent potential lock-ins and allow the private sector, especially SMEs, to offer trust services in a competitive environment.

A strong focus on ICT standards to enhance transparency and market access for SMEs

In a detailed position paper, DIGITAL SME stresses the pivotal role that standards play in allowing businesses to reap the benefits of the new e-identification framework and invest in trust services across the EU. The consistent use of standards is a key principle introduced with eIDAS. It has demonstrated to be an effective tool to avoid putting at risk investments made by many SMEs in creating innovative services based on trust services. The way to achieve this is through the so-called new legislative approach (NFL), whereby more eIDAS-related standards are made freely accessible to provide certainty and avoid risk. This could significantly lower the barriers for SMEs to access the trusted services market.

Read the full position paper and our recommendations here.