Welcome to Euractiv’s Tech Brief, your weekly update on all things digital in the EU. You can subscribe to the newsletter here.
“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store. They did so by restricting developers from informing consumers about alternative, cheaper music services outside the Apple ecosystem.”
– said Margrethe Vestager, the Commission’s executive vice president in charge of competition policy, on Monday
Story of the week: The European Commission announced on Monday a €1.8 billion fine for Apple, saying the tech giant abused its dominant market position for music streaming providers. According to the European Commission, Apple exploited its position by distributing music streaming applications to iPhone and iPad users via its App Store. With €1.8 billion, this is the third-biggest fine imposed against a company for breaching the EU rules. The first two went to Google, which was hit with a €4.34 billion fine by the EU in 2018 and a €2.42 billion fine in 2017. The Commission found that due to Apple’s restrictions, app developers were prohibited from informing iOS users about alternative and more affordable music subscription services outside the app, called ‘anti-steering provisions’, violating EU antitrust rules. Read more.
Don’t miss: The three pornography websites included on the Digital Services Act’s very large online platforms list are suing the EU over their new obligations, Euractiv learned on Thursday. “We believe the European Commission erred in its calculation of our user numbers”, said Aylo. However, a Commission spokesperson told Euractiv that “the Commission stands fully behind its calculations of the user numbers of Pornhub and Stripchat,” Aylo, formerly known as MindGeek, the parent company of several pornography sites, including Pornhub, told Euractiv. Another thing Aylo considers illegal is “the requirement under Article 39 DSA under which a VLOP’s advertising repository must be made publicly accessible.” Read more.
Also this week:
- Top EU court finds widely employed consent system violates EU privacy regulation
- Gig work file set to become key campaign fight for the French left
- Council of Europe report: European Commission must step up action to preserve media freedom, protect journalists
Before we start: If you just can’t get enough tech analysis, tune in on our weekly podcast.
Artificial Intelligence
AI and misleading election images. According to an article by Reuters, published on Wednesday, researchers warn that AI-powered image creation tools from companies like OpenAI and Microsoft could be used to spread election-related disinformation, despite company policies against misleading content. “The potential for such AI-generated images to serve as ‘photo evidence’ could exacerbate the spread of false claims, posing a significant challenge to preserving the integrity of elections,” researchers from the Center for Countering Digital Hate said.
OpenAI vs Musk. On Tuesday, OpenAI responded to Elon Musk’s lawsuit against the ChatGPT company last week, revealing emails from its early days in which Musk acknowledged the necessity for OpenAI to generate substantial profits to fund its ambitious AI endeavours. According to the emails, Musk argued that solely raising cash would not suffice for a successful generative AI platform, and the company needed alternative revenue sources to thrive, CNN reported on Wednesday.
Competition
Spotify responds. Following the European Commission’s announcement on Monday about its €1.8 billion fine for Apple, CEO and Founder of Spotify, Daniel Ek, responded in a video posted on X, saying that he remains sceptical because “Apple has a history of skirting these rules”. He also pointed out the important question is how Apple will comply with the EU’s Digital Markets Act.
Europeans only. The European Union is taking precautions to prevent another hiring setback after facing criticism for previously selecting an American candidate, Fiona Scott Morton, for the position of chief competition economist. The Commission now restricts job applications for the chief competition economist and chief technology officer to EU citizens only.
Cybersecurity
Consent system violates GDPR. Interactive Advertising Bureau Europe (IAB Europe), a trade association for digital advertising established in Belgium, has developed a solution that it claims can make the system of auctioning personal data for advertising purposes compliant with the EU’s General Data Protection Regulation (GDPR).Google, Amazon, Microsoft, TikTok, and numerous other tracking-based online advertising companies depend on IAB Europe’s consent system, which other European data protection authorities have previously already determined breaches the GDPR. On Thursday, the European Court of Justice also found that IAB Europe violates the GDPR. Read more.
Cyber Solidarity Act agreement. On Wednesday, the European Commission welcomed the agreement between the European Parliament and the Council on the Cyber Solidarity Act. The Act includes establishing a European Cybersecurity Alert System, a Cybersecurity Emergency Mechanism, and a European Cybersecurity Incident Review Mechanism. Pending formal approval by the European Parliament and the Council, the Act will take effect 20 days after publication in the Official Journal and will increase funding for Cybersecurity actions under the Digital Europe Programme for 2025-2027.
Data & Privacy
Electricity lobby urges EV data sharing despite privacy concerns. Pro-electric vehicle organisations are calling for data sharing between car manufacturers, electricity grid operators, electric vehicle charge point operators and consumers to facilitate wider adoption of electric vehicles, but concerns over data privacy and protection remain. Read more.
Digital Markets Act
DMA enforced. Since Thursday, the six gatekeepers designated by the Commission in September 2023, Apple, Alphabet, Meta, Amazon, Microsoft and ByteDance, must fully comply with all Digital Markets Act (DMA) obligations. According to Thierry Breton, Commissioner for Internal Market, Thursday was “a turning point for our European digital space,” while Margrethe Vestager, executive vice-president in charge of competition policy, said that the DMA “will deeply change how online markets work and open up the digital marketplace, for the benefit of all European players, and users.”
What to expect. Gatekeepers informed the public on what is next after the DMA’s enforcement, with TikTok mentioning enhanced data portability, Google writing about changes to search results, choice screens, additional consents for linking Google services, and tools for researchers, or Microsoft focusing on design changes to Windows, changes in data handling, as well as updates to LinkedIn.
We’re watching you, Google. According to a joint industry statement published on Wednesday, industry groups in the airline, hospitality, and retail sectors are watching Google’s changes in line with DMA to ensure that the tech giant’s updates will not harm the visibility of direct suppliers’ websites. HOTREC and the other organisations stress the need for fair digital markets and better communication from Google about changes and urge the Commission to monitor and correct any negative impacts on businesses.
Concerns about Booking.com. HOTREC, an association representing the European hospitality sector, has expressed concerns about the dominance of Booking.com and similar platforms in the industry, according to a post published on Monday. They argue that such platforms act as gatekeepers, controlling access to customers and imposing unfair conditions on businesses. HOTREC calls for regulatory action to address these concerns and ensure fair competition in the hospitality sector.
All about the DMA. An event by the Center for European Policy Analysis (CEPA) took place on Wednesday, also on the DMA, focusing on its implications and next steps. Key topics included the criteria for gatekeeper platforms, the need for fair competition in digital markets, and the challenges and opportunities for businesses and policymakers in implementing the DMA.
No more silence. Thierry Breton emphasised that under the DMA, threats by gatekeepers to silence developers are unacceptable and has instructed his team to prioritise investigating Apple’s termination of Epic Games’ developer account. Breton also encouraged developers in Europe and worldwide to voice their opinions on gatekeepers’ compliance solutions in his post on X on Thursday. Breton’s statement follows Apple’s decision on Wednesday to terminate Epic’s new developer account in Sweden, as Epic attempted to reintroduce Fortnite and other games onto iPhones in Europe through its own game store on Apple’s devices. Apple cited Epic’s previous breaches of contract in their ongoing legal dispute as the reason for terminating the developer account. Bloomberg reported on Thursday that Apple is expected to face questioning from the European Union regarding its decision to block Epic Games.
Digital Services Act
DSA and elections event. An event titled ‘Protecting the 2024 Elections: Tackling Disinformation and Polarisation’ by the Greens/EFA took place in the European Parliament on Wednesday, focusing on the 2024 European Parliament elections and the EU’s Digital Services Act (DSA). Speakers highlighted the limitations of content moderation against microtargeted ads, stressing that people don’t have a tool to deal with unwanted content today. They emphasised the need for transparency to safeguard elections and discussed how algorithms can be used to promote and demote content. Moreover, they discussed the DSA’s systemic approach to regulating platforms, emphasising the importance of tools to identify risks, particularly concerning generative AI and deepfakes.
VLOPs’, VLOSEs’, and electoral processes. According to a joint submission published on Thursday on the Commission’s guidelines for providers of Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) on the mitigation of systemic risks for electoral processes to protect electoral integrity, VLOPs should turn off profiling-based recommender systems and prioritise values beyond engagement. The Commission should also encourage developing rights-respecting alternative recommender systems, including user choice and third-party services, and eliminating addictive features.
eGovernance
Looking up to Africa. According to its post on Tuesday, the Irish Council for Civil Liberties has written to Thierry Breton, urging Europe to follow the example of Africa to safeguard elections from digital threats. The African Union has implemented regulations for digital media, preventing platforms like TikTok, Facebook, and YouTube from collecting and using sensitive user data, including sexual preferences, political and religious views, health information, and ethnicity, to curate content. Additionally, Africa prohibits the dissemination of voter data through online advertising technologies like real-time bidding.
Gig economy
Gig work file, a key campaign issue for French Left. The adoption of the platform work directive by EU countries in the next few days is highly uncertain, with Paris refusing to agree to the current text draft. The French left, from the more radical La France Insoumise side of the aisle to the social democrats, may not see eye to eye on several issues, but there is one EU file they all agree is worth fighting for: the platform work directive. All left-wing movements in France “are broadly aligned regarding social issues at the EU level,” LFI MEP Leïla Chaibi, a shadow rapporteur for the directive who spearheaded the fight for an ambitious text at the European Parliament, told Euractiv. Read more.
Law enforcement
CSAM updates. Following the extension of the interim regulation aiming to detect and remove online child sexual abuse material (CSAM) on 15 February, this Monday, the deal was adopted against the Greens and the Left. Euractiv also learned this week that a plenary vote can be foreseen for 11 April.
Media
Press freedom report. In a Council of Europe report, the European Commission has been asked to step up press freedom measures, including appointing a Commission vice president with a media portfolio after the June elections and taking a tougher stance on member states that fail to protect journalists. The report, Press Freedom in Europe: Time to Turn the Tide, released on Tuesday, is an annual assessment by the partner organisations of the Safety of Journalists Platform and the CoE, an international body dedicated to safeguarding human rights, promoting democracy, and upholding the rule of law. Read more.
Defunding disinformation. Prominent Italian parliamentarians committed last Thursday to “strengthening the immunity system” of their society by ensuring that global brands stop advertising with media outlets that spread disinformation. The announcements were made during a conference on “Defunding Disinformation” organised in the Italian Chamber of Deputies by the Balkan Free Media Initiative, a group of media experts concerned about the decline of media freedom in Southeastern Europe. Read more.
NYT accused of racial targeting. According to an article by the Washington Post, published on Saturday, the union representing New York Times employees accused the company of singling out employees with Middle Eastern or North African backgrounds in an investigation into leaks about the paper’s coverage of Hamas attacks in Israel. The union president stated that these employees were targeted based on their national origin, ethnicity, and race and subjected to hostile questioning by managers.
BBC’s new technology. According to an article published on Monday, BBC is introducing ‘content credentials’ to verify image and video authenticity, aiding transparency in journalism. This feature showcases verification methods, including source checks and metadata analysis, to combat disinformation. Moreover, it encodes media origin and edits for traceability. While plans include wider implementation to promote trust in news consumption, the tool will be first implemented on BBC platforms.
Platforms
TikTok API announced. On Monday, TikTok announced its Data Portability application programming interface (API), a tool designed for developers to facilitate data transfer and interoperability with TikTok. This enables users to move their TikTok data to other platforms or applications, promoting data portability and user control over their information.
Facebook and Instagram down. On Tuesday, users of the Meta-owned platforms Facebook and Instagram experienced difficulty accessing their accounts. After a more than two-hour outage caused by a technical issue, the platforms were working again. According to Reuters, the White House National Security Council was monitoring the incident, but a spokesperson said that there was no indication of any specific malicious cyber activity at the time.
Taking a break. Streaming platform Roku is temporarily disabling its streaming devices until users agree to forced arbitration, TechCrunch reported on Tuesday. This move is part of Roku’s updated terms of service, which require users to consent to resolve disputes through arbitration rather than pursue legal action. The decision has prompted concerns among users and advocates regarding consumer rights and access to legal recourse.
Safe by default. People vs. Big Tech and the Panoptykon Foundation released a joint policy brief and a sign-on letter on Thursday urging the European Commission to implement reforms to recommender systems on social media platforms. They advocate for a “safe by default” approach, disabling profiling-based recommender systems and prioritising values other than engagement to safeguard the integrity of the 2024 EU Elections and ensure long-term user safety.
What do you think about “consent or pay”? The UK’s Information Commissioner’s Office (ICO) seeks feedback on the “consent or pay” model used by online businesses, it was announced on Wednesday. Feedback is invited via survey or email until 17 April to inform ICO’s regulatory positions and guidance updates on cookies and similar technologies.
Meanwhile, in the US. According to an article by Forbes, published on Thursday, lawmakers of the US Congress were flooded with calls following the appearance of pop-up messages on TikTok, urging users to contact Congress to advocate against banning TikTok across the country. This comes after news of a bill about the Select Committee on the Chinese Communist Party (CPP), announcing bipartisan legislation introduced by Representative Mike Gallagher and others, aiming to protect Americans from CCP influence and espionage activities, addressing growing national security concerns. While some state that there is no real ban happening, according to TikTok, the “bill is an outright ban of TikTok, no matter how much the authors try to disguise it.”
Standards
Harmonised Standards’ copyright acknowledged. On Tuesday, the European Court of Justice (ECJ) ruled regarding public access to four Harmonised Standards. The judgment reaffirms that Harmonised Standards are protected by copyright. Nevertheless, the ECJ determined an overriding public interest in disclosing these standards, so the European Commission’s decision to deny access to the four requested standards has been annulled. The European Committee for Standardisation (CEN) and the European Committee for Electrotechnical Standardisation (CENELEC), recognised as official European Standardisation Organisations, appreciate the Court’s decision, according to a post by the CENELEC, published on Tuesday. The post also notes that the Court’s stance contrasts with the arguments put forth by the applicants and the Advocate General, who had suggested excluding copyright protection for Harmonised Standards overall.
Telecom
Red Sea data cables cut. According to an article in the Associated Press, published on Tuesday, recent attacks by Houthi rebels in Yemen have disrupted undersea internet cables in the Red Sea, causing widespread internet outages in multiple countries. The attacks highlight the vulnerability of vital infrastructure and have impacted communication and internet access for millions of people in Yemen, Saudi Arabia, Sudan, and neighbouring regions.
Chips, a bright spot for the Dutch. Semiconductors have emerged as a bright spot in the Netherlands’ technology and innovation field, Reuters reported in an article published on Wednesday. The article refers to a report that emphasises the significant growth potential of semiconductor startups in the country, a trend that reflects a broader global interest in semiconductor technology and its applications across various industries.
You can switch for free. Amazon has decided to waive fees for customers transitioning to competing cloud services, according to a Bloomberg article published on Tuesday. This move reflects intensifying competition in the cloud computing industry, where Amazon Web Services (AWS) faces challenges from rivals such as Microsoft and Google. The decision aims to ease the migration process for customers considering alternative cloud providers.
What else we’re reading this week:
Europe Is Breaking Open the Empires of Big Tech (Wired)
How Microsoft’s Bing Helps Maintain Beijing’s Great Firewall (Bloomberg)
How the Bromance Between Elon Musk and Sam Altman Turned Toxic (The Wall Street Journal)
[Edited by Alice Taylor]
