EU DIGITAL SINGLE MARKET FORMATION: LEGAL AND ECONOMIC ASPECTS

Abstract

The formation of the European Union's Digital Single Market (DSM) as one of the EU's main strategic initiatives in the field of digital transformation, legal regulation and economic integration is examined. The legal framework for the DSM functioning is studied, in particular, such key regulatory acts as the General Data Protection Regulation (GDPR), the Digital Services Act (DSA) and the Digital Markets Act (DMA), the eIDAS Regulation and the Artificial Intelligence Act (AI Act). These instruments aim to ensure the protection of personal data, fair competition, algorithmic transparency, reliable identification and the safe implementation of new technologies.

The economic impact of the DSM on productivity growth, support for small and medium-sized businesses, reduction of transaction costs, strengthening of innovation potential, development of digital infrastructure and stimulation of investment is revealed. The challenges and prospects of Ukraine's digital integration into the DSM are analyzed, in particular using SWOT analysis. The strengths of the IT sector, shortcomings of the regulatory framework, as well as opportunities for participation in the EU programs and cybersecurity- and digital inequality-related threats are identified.

A detailed "roadmap" for harmonizing Ukrainian digital legislation with the EU acquis covering seven areas from data protection to AI regulation is proposed. It is emphasized that Ukraine's digital integration is of strategic importance for economic modernization, strengthening cyber resilience and forming a competitive digital state. It is substantiated that the successful implementation of this strategy is possible under the condition of political stability, institutional capacity, personnel training and active involvement of the public and international partners in digital reforms.