This is the position taken in response to a parliamentary question by the FDP (German liberal democrats) parliamentary group. One of the disadvantages European providers face is that they have to contend with comparably small domestic markets. Due to language barriers, expanding their business to neighboring countries often costs a great deal of time and money. Providers in the US and China, on the other hand, are able to reach several hundred million people at once. The German Federal Government believes that making life easier for domestic platform companies – in particular during the start-up and early growth phases – is vital. “Difficult access” to venture capital is a further obstacle. The recent establishment of KfW Capital has at least made the situation a bit easier here.
The response also states that the completion of a digital single market is imperative. The European Commission has already submitted all individual measures relating to its strategy, though some are currently still being negotiated, such as the ePrivacy- and Platform-to-Business regulations.
In terms of the global market, however, is it all too late? According to netzoekonom.de , in the analog world, the US, Asia, and Europe have more or less equal shares in global GDP; but when it comes to platform businesses, the US dominates with a 66% share, while Europe has a share of just 3%.