On June 6, 2025, the AmCham Intellectual Property and Digital Regulation Committee held a meeting. The guest speaker, Associate Professor Rok Spruk, PhD, from the School of Economics and Business at the University of Ljubljana, presented his views on the impact of digital regulation on competitiveness, innovation, and economic growth in Slovenia and the European Union.

The discussion focused on the Digital Services Act (DSA) and the Digital Markets Act (DMA) – two key European legislative acts that are shaping new frameworks for the operation of digital services and platforms. Using empirical data and simulations, Rok Spruk, PhD, demonstrated how strict regulations, especially for small and medium-sized enterprises (SMEs), can hinder innovation. Some estimates suggest that the DMA contributes to an 11–12% decrease in innovations by SMEs, mainly due to higher compliance costs and the complexity of the rules.

On the other hand, he also highlighted the potential opportunities digital regulation can offer to smaller countries like Slovenia – provided they leverage their flexibility in implementation and communicate their competitive advantages, such as low legal service costs, high-quality expertise, and fast patent validation. Slovenia has risen to 4th place in the EU in terms of the number of valid patents per capita.

The meeting also touched on a broader context – from the importance of an efficient judiciary in strengthening the innovation environment, to issues of economic diplomacy, tax burdens on employers, and the position of Slovenian regulators in comparison to strong institutions like Ireland’s digital market regulator. A particularly resonant idea was that Slovenia could turn its regulatory pragmatism into a market advantage – if it manages to communicate this effectively to investors.

Closing thoughts were delivered by Jaka Repanšek, Co-Chair of the Committee: Digital regulation in itself does not hinder innovation. The key challenge remains how to implement it wisely, without excessive bureaucratization, and how to simultaneously protect the interests of innovators, companies, and users.