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This study confirms that new and forward-looking common EU rules are needed to unleash the full potential of the Digital Single Market. Europe has acted in this field as early as 1995 with the Data Protection Directive and many of these first generation directives have proven to be beneficial to fostering the information society in Europe. But the findings of the study support the conclusions of the Digital Agenda for Europe on the need to modernise and harmonise further the legislative framework applicable to information society services in the Digital Single Market. According to the study, a series of gaps and inconsistencies appeared due to the rapid technological evolution and urgent EU action is necessary to allow the next generation of Europeans to turn their creativity into new services, growth and jobs.