Belgium - Country Commercial Guide
Digital Economy
Last published date:

Overview  

Belgian follows the EU’s 2030 Digital Decade framework which aims to ensure a human-centric and sustainable digital society Belgium prioritizes its digital strategy through the development of new technologies, a functioning single digital market and open data management in accordance with the EU frameworks and regulations. Belgium also supports the promotion and development of a stable framework for data infrastructure, as well as securing and harmonizing the digital market. Belgium’s National Data Strategy outlines the framework for data governance, promoting data sharing while ensuring privacy and security. This strategy aims to leverage data as a key asset for economic growth and public service improvement. 

Belgium has made notable progress in digitalization, ranking 6th in the Digital Economy and Society Index (DESI) as of 2023. This ranking reflects Belgium’s strengths in connectivity, where it stands 3rd (in DESI?), and the integration of digital technologies by businesses, where it ranks 5th. 

Market Challenges

Most laws are set at the EU level. The Digital Economy Chapter of our Country Commercial Guide for the European Union provides a more comprehensive overview.  

The Directorate-General for Simplification and Digitalization plays a crucial role in coordinating digital initiatives across different government levels. Each region—Flanders, Wallonia, and Brussels-Capital—has its own ministerial responsibilities for digital transformation, ensuring that local needs are addressed.  

Digital Trade Barriers (including, but not limited to, those reported in the 2024 National Trade Estimates Report) examples:   

Due to the European Union’s General Data Protection Regulation (GDPR), Digital Markets Act, Digital Services Act, and Digital Services Taxes (DSTs), high digital trade barriers exist within Western Europe. These measures include numerous regulations that impose significant barriers including content moderation, restrictions on how and what type of data can cross borders, and taxes. Further, while Belgium does not have the highest digital trade barriers within the bloc, the government does impose ride hailing barriers, as well as digital services taxes (DST).

Market Regulations

Data protection  

The Data Protection Authority (DPA), established in 2018, oversees compliance with data protection laws. Data privacy regulation is covered by the following laws: 

  • General Data Protection Regulation (GDPR): The overarching data protection regulation set by the European Union. For more information, refer to the European Union Country Commercial Guide.  
  • The Act of 30 July 2018 (Privacy Act): The act provides guidance on the protection of natural persons regarding the processing of personal data and implementing decrees 
  • Belgian Data Protection Act: The Belgium government’s implementation of the GDPR, along with provisions on processing criminal data and processing by public authorities 

AI Regulation 

The European Commission proposed the AI Act in April 2021 which represents the first EU regulatory framework for artificial intelligence. The AI Act was approved by the European Council in May 2024, and will be fully applicable within 24 months. The Belgium Government has not yet released their implementation of the Act. For more information on the AI Act, https://eur-lex.europa.eu/eli/reg/2024/1689/oj   

Cybersecurity Regulation 

Introduced in January 2023, the EU Network Information Security II (NIS II) aims to address the weaknesses with NIS I by introducing more stringent supervisory measures for national authorities, stricter enforcement requirements, and harmonized sanctions regimes across Member States. In April 2024, the Belgian government transposed the EU regulation into federal law. Further information can be found on Belgium’s Centre for Cybersecurity website: https://ccb.belgium.be/en/nis 

The EU is considering a new certification system for cloud services known as the European Cybersecurity Certification Scheme for Cloud Services or EUCS. Once finalized, the EUCS is expected to be mandatory for certain public sector and possibly select private sector cloud services. The EU covers cloud services in their GPA schedule and is required to offer non-discriminatory access to U.S. and other GPA suppliers for covered procurements. 

Online Harms Regulation 

In February 2024, the EU passed the Digital Services Act (DSA) which aims to prevent illegal or harmful activities online and the spread of disinformation. In Belgium, a preliminary draft has been approved by the Council of Ministers and introduced in Parliament which designates BIPT as Belgium’s digital services coordinator. The Digital Service Coordinator is tasked with the enforcement of DSA and compliance with regional authorities.  

Standards development  

Subnational Market Regulation 

The EU’s Digital Markets Act (DMA1) aims to regulate large online platforms that are considered gatekeepers to ensure fair competition and protect consumers’ rights. In March 2024, the Belgian Chamber of Representatives agreed to the adoption of an act implementing the DMA by amending certain provisions of the Belgian Code on Economic Law (BCEL). The Belgian Act entered into force in May 2024.  

Digital Trade Opportunities

  • Cross-Sector Enabling Technologies, i.e., digital technologies that enhance productivity, efficiency, and functionality across different industries. Examples (including alignment with CETs): 
  • Communications and Networking Technologies 
  • Advanced Computing 
  • Advanced and Networked Sensing and Signature Management 
  • Human-Machine Interfaces 

Artificial Intelligence 

Belgium’s approach to artificial intelligence (AI) is structured around its national strategy, National Convergence Plan for the Development Of AI, aimed at fostering innovation, ensuring ethical standards, and promoting economic growth. The strategy emphasizes a multidisciplinary approach, integrating efforts from various sectors to harness the potential of AI. The strategy revolves around five pillars: research and innovation; education and skills; ethics and regulation; infrastructure and data; public sector and society.  

AI Research Institutions 

Belgium is home to numerous research institutions and innovation hubs that drive AI advancements:  

  • Imec: A leading R&D hub for nanoelectronics and digital technologies, Imec conducts pioneering research in AI and collaborates with global tech companies to develop innovative AI solutions. 
  • KU Leuven: The university is a leader in AI research, with dedicated centers such as the KU Leuven Institute for Artificial Intelligence. It focuses on areas like machine learning, robotics, and natural language processing. 
  • Université catholique de Louvain (UCLouvain): UCLouvain has strong expertise in AI ethics, data science, and computational intelligence. 
  • VUB AI Lab: The AI lab at Vrije Universiteit Brussel (VUB) is known for its interdisciplinary research, covering topics such as autonomous systems, AI ethics, and human-computer interaction. 

Key Players and initiatives:  

  • AI 4 Belgium: Community-driven organization that brings together stakeholders from academia, industry, and government. It aims to create a vibrant AI ecosystem by promoting collaboration, sharing best practices, and driving innovation. 
  • Flemish AI Plan: Launched by the government of Flanders, this plan focuses on investing in AI research, supporting startups, and integrating AI into public services. The Flemish government has committed substantial funding to AI projects and initiatives. 
  • Wallonia AI Strategy: The Walloon region has its own AI strategy, which emphasizes R&D, support for businesses, and the development of AI skills. The strategy also includes measures to ensure ethical AI development and deployment. 
  • Digital Wallonia: This initiative promotes digital transformation in Wallonia, with AI being a key focus area. It supports AI startups, fosters public-private partnerships, and encourages digital innovation. 
  • National Research Fund (FWO and FNRS): These organizations provide funding for AI research projects, supporting both fundamental and applied research across various disciplines. 

Broadband Network 

As part of the government’s Digital Belgium plan, broadband strategy is incorporated to eliminate areas without high-speed services by the end of 2024. This plan supports the European gigabit connectivity 2025 targets. The government aims to stimulate new 5G or fiber broadband roll-out by lowering roll-out costs for operators and reducing administrative burdens. 

5G Networks  

In September 2023, operators in the Brussels region received approval to launch commercial 5G services, after a multi-year delay that faced regulatory pressure due to concerns surrounding the new technology’s radiation levels. Proximus and Orange have announced that they will shut down their 3G networks by 2025 to make room for 5G networks.  

Ericsson has been selected by Telenet as their 5G radio access network (RAN) provider, bringing wide-reaching benefits of 5G to Belgium. As part of their expanded partnership, Telenet will use Ericsson’s technology leadership to modernize their existing network, with Ericsson Radio System products and solutions and the deployment of 5G technology nationwide. 

Expanding Internet Access 

To ensure affordable access to Internet, the 2024 Social Tariff Plan will cap internet connection at 19 euros a month to increase internet uptake to low-income households and to bridge the digital divide. The current uptake rate is 93% in Belgium, which is above the EU average of 89%. The new plan aims to simplify the process by proactively reaching out to eligible households, rather than leaving it to perhaps non technically savvy households take the necessary steps on their own initiative. 

Subsea Cables 

Due to its location on the North Sea, Belgium can position itself as a player in the submarine telecommunications cable field through its ports in Oostende and Zeebrugge. Belgium is a part of the SEA-ME-WE 3 telecommunications cable which links South-East Asia, Middle East and Western Europe. Additionally, Belgium has various subsea communications cables connecting to the United Kingdom.  

Digital Skills and Innovation 

Throughout its digital transformation, the Belgian government has emphasized the importance of digital skills education to ensure innovation. The Digital Skills Fund was created to promote skills training and education for target groups, such as students and job seekers. Additionally, STEM education has been integrated into curriculum to ensure students are equipped with necessary skills for the digital age. Belgium offers various financial incentives, such as R&D tax credits and innovation grants, to encourage investment in digital technologies and innovation.  After a 2022 survey expressed a shortage in students and workers with AI and computing skills within Belgium, the government has launched programs to reduce the gap.   

Digital Innovation Hubs 

Belgium currently has six active EDIHs (spell  out -what is that?): Flanders AI, SustAIn.brussels, Walhub, DIGITALIS, EDIH-CONNECT and EDIH-EBE. These hubs provide resources, mentorship, and funding opportunities for tech startups and SMEs, helping them develop and scale their digital solutions. Each hub has its own thematic specialization based on the needs of the region. For more information on the European Digital Innovation Hubs, refer to https://european-digital-innovation-hubs.ec.europa.eu/home.  

Quantum Technologies 

In December 2023, the European Declaration on Quantum Technology was signed by Belgium and 20 European countries. This landmark declaration sets the stage for cooperation and investment in the quantum field to make Europe the ‘quantum valley’ of the world.  

Quantum Communications 

Belgium has launched a 30-month project, BeQCI (is this the full name, if not spell out), to deploy quantum communication networks in Belgium. BeQCI will carry out several research lines that follow three main themes: ensuring the security of the whole communication chain, reducing the cost of Quantum key distribution ()-systems, increasing the length of links.  At the hardware side the goal is to develop and integrate components like receivers (for CV-QKD), chip-scale transmitters (for MDI-QKD) and frequency converters (for interfacing with solid spin qubit states in diamond). For software, the aim is to design novel QKD protocols and classical (post-quantum) cryptographic protocols for authentication; and to improve the security analysis. The project also aims to build future collaborations in the quantum communications field by seeking potential cooperation with companies and agencies involved in the field.  

Financial Technologies 

Home to several leading players in the financial field (SWIFT, Mastercard, Euroclear), Belgium has a successful history in the banking industry. The financial technology industry is supported by a robust pool of highly skilled engineers, mathematicians and economists coming from Belgian universities.  

Mobile Payments 

Belgium’s financial evolution is marked by a quick move to mobile payments, leaving behind traditional card transactions. The country supports a unique national scheme, encouraging the use of mobile payment apps like Google Pay, Apple Pay, and local services like Bancontact. Despite starting later than countries like France, and UK, Belgium aims for over 50% mobile payment adoption in the next three to four years.  

AI Powered Finance  

Al and machine learning are transforming banking in Belgium. KBC, a leading bank, is at the forefront, using its own Al agents like Kate, the virtual assistant in their mobile app. This adoption of innovative tech puts Belgium ahead in the world of Al-powered finance. KBC ranks within the top 5 for best mobile apps due to its personalization features, along with Belfius, an innovative and leading Belgian bank.  

FinTech Startup Support 

The leading players within the financial technology industry in Belgium offer various startup accelerators and programs to spur innovation. Some of these support programs include KBC StartIt program, Belfius Studio, or Mastercard Fintech Express program.  

Cybersecurity 

Cybersecurity offers tremendous prospects for U.S. companies. The Belgium cybersecurity market’s expected growth rate is 11.14% by 2027 as demand for digitalization and IT infrastructure increases due to new regulations. The Centre for Cybersecurity Belgium, as the national authority for cybersecurity, is actively involved in making Belgium one of the least vulnerable countries in Europe in terms of cybersecurity risks by 2025. They intend to accomplish this goal through projects and initiatives aimed at increasing the level of cybersecurity and resilience of public institutions, companies, academia and end users.  

Public-Private Partnerships 

Belgium fosters collaboration between the public and private sectors to address cybersecurity challenges. It engages with multinational corporations, industry associations, and research institutions to leverage their expertise and technological advancements. Public-private partnerships enable the sharing of cybersecurity knowledge, best practices, and innovative solutions, contributing to a more robust cybersecurity ecosystem. 

SMEs 

Financial Support for Third Parties (FSTP) is a project implemented by the Belgian National Coordination  

Centre (NCC-BE) within the CCB. This initiative focuses on leveraging EU investments, such as FSTP, to  

enable start-ups, SMEs and mid-cap companies to strengthen their cybersecurity capabilities, thus  

contributing to a safer digital environment. The initiative’s goal is to enhance information sharing and promote a cohesive approach to cybersecurity, benefiting the nation’s overall cyber resilience 

Key Players:  

  • Centre for Cyber Security Belgium (CCB): The CCB is the central authority for cybersecurity in Belgium. It coordinates national cybersecurity efforts, develops policies and strategies, and serves as the national point of contact for international cooperation. 
  • Federal Cyber Emergency Team (CERT.be): Operated by the CCB, CERT.be is responsible for monitoring, detecting, and responding to cybersecurity incidents. It provides support to both public and private sectors in handling cyber threats. 
  • Belgian Institute for Postal Services and Telecommunications (BIPT): BIPT regulates the telecommunications sector and ensures the security and integrity of communication networks and services. 
  • National Crisis Centre: The National Crisis Centre coordinates responses to large-scale cyber incidents that have a significant impact on national security and public safety. 

Smart City – Brussels 

Belgium has set a long-term goal to transform Brussels into a smart city through its Smart City Plan of the City of Brussels. The plan consists of five pillars to guide the transformation: strategy and governance; data; technological solutions; digital skills; funding. Some technologies highlighted as fundamental for Brussels smart city transformation are smart phones, IoT, AI, virtual and augmented reality, 3D printing and robotization. The long-term transformation of Brussels will require internal funding as well as public and private sector funding.  

Open Data Initiative 

The government promotes open data initiatives, making public sector data accessible to citizens and businesses. This fosters transparency, innovation, and the development of data-driven solutions. The main objectives of this initiative are to develop data awareness, harness data to deliver better services and share public data to foster innovation. For more information on the Open Data Initiative, refer to https://opendata.brussels.be/page/home/  

Internet of Things 

Belgium’s IoT market is growing, with a strong focus on smart cities and innovative solutions for energy management. By 2024, the projected revenue for the IoT market is estimated to reach US$4.23bn, and the IoT market is expected to exhibit a steady annual growth rate (CAGR 2024-2029) of 8.97%. 

Software and Digital Services, and Telecommunications.  

Trade Shows:  

  • Digital Finance Summit; December 6, 2024; Brussels, Belgium  
  • Mobile World Congress; March 3-6, 2025; Barcelona, Spain