After measuring connectivity (how accessible and affordable broadband is), internet skills, how frequently Europeans use the internet for key activities such as online shopping and accessing news and how well developed digital technologies and digital public services were in each member state, Denmark was given a score of 0.68 (with 1.0 being the maximum score possible), in the EU's report on digital services in Europe.
Behind Denmark was neighbouring Sweden, followed by the Netherlands, Finland and Belgium. Romania came in last, with a score of 0.31.
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Denmark was especially praised for its advanced use of digital public services, with the report noting that 69 percent of all Danish internet users file forms with public authorities online.
Danes ranked second in terms of overall internet use and the study suggested that Danes were more actively engaged in online activities than those from other European nations.
“Danes are among the most intensive users of Video on Demand and on-line shopping,” the report read.
Danish businesses were also ranked the best in the EU at “exploit[ing] the possibilities offered by digital technologies”.
The report revealed that across Europe, 75 percent of people now use the internet on a regular basis in 2014, up from 72 percent the previous year.
The European Commission is currently preparing its Digital Single Market strategy, which will be presented in May.
"Data shows that the picture of how digital countries are varies across the EU and that borders remain an obstacle to a fully-fledged Digital Single Market," it said in a media release on Tuesday.
"There are plenty of digital opportunities waiting to be unlocked to benefit European citizens and companies. From shopping or studying online, to paying bills or using public services over the internet – the web is the answer, if the right conditions are in place," the statement added.
Denmark's top ranking among European nations hardly comes as a surprise. In November 2014 a report by the International Telecommunication Union ranked Denmark the best in the world when it comes to access to information and communication technology.