AIG Newsletter 18 December 2023

NEWS

EP CULT RECEIVES BRIEFING ON EUROPEAN MEDIA FREEDOM ACT NEGOTIATIONS

On 4 December, Rapporteur Sabine Verheyen briefed the EP CULT Committee on the outcomes of the EMFA’s second trilogue, which was held on 29 November. Verheyen acknowledged the constructive nature of the negotiations and said that major gaps between both co-legislators had been bridged, although there was still some room between them. She also questioned whether the proposed measures would be truly ambitious and sustainable for the media sector. Article 4 remained under gridlock and would be negotiated during the next trilogue (15 December). Verheyen also recalled earlier assurances from the Council about the independence of the European Board for Media Services, but expressed surprise at the volte-face in the trilogue, where the Commission put forward a proposal that was lacking, which was nevertheless supported by the Council. 

Shadow rapporteur Kammerevert’s (S&D, DE) expressed caution, acknowledging that the Council appeared to have secured its way on almost every point. While there were instances where the Parliament successfully defended its position, notably in Article 3, she acknowledged having to compromise on certain major points, such as Article 17, which she found completely unacceptable and insufficient. She raised concerns about the potential for platforms to continue deciding on content. 

CO-LEGISLATORS REACH A PROVISIONAL AGREEMENT ON THE AI ACT

On 8 December, co-legislators reached a provisional agreement on the AI Act after the last round of negotiations lasted 36 hours. Some additional technical work on the text is still needed, after which co-legislators will have to formally adopt the compromise text before its publication on the Official Journal. The AI Act will then have a two-year implementation period.

The EP and the Council introduced several new elements to the initial EC proposal, including rules on high-impact general-purpose AI models, revised governance, extension of the list of prohibitions and better protection of rights. The agreement includes a definition of AI aligned to the one proposed by the OECD and underlines that the rules will not apply to areas outside the scope of EU law. 

The text provides a classification of AI systems based on the risks they pose, systems that present only limited risk will have to comply only with transparency requirements. For high-risk systems there will be specific requirements and obligations for market access, with adjustments to enhance technical feasibility and reduce compliance burdens. The text also clarifies the allocation of responsibilities and roles of the various actors participating in the value chains. There are some cases in which the risks posed by AI are to be considered unacceptable; these systems will be banned. Banned applications include: biometric categorisation systems, untargeted scraping of facial images, emotion recognition in the workplace, AI systems that manipulate human behaviour, and the ones that exploit human vulnerabilities. 

After difficult negotiations, co-legislators included in the regulation exceptions related to law enforcement, considering the special nature of the activities conducted by the authorities in this field. Indeed, the rules allow narrow exceptions for the use of biometric identification systems for targeted searches of victims, prevention of a specific and present terrorist threat, and the localisation or identification of a person suspected of specific crimes. 

For general-purpose AI systems, the EP and the Council introduced specific transparency obligations for foundation models. High impact models that present systemic risk will have to comply with stricter rules. These models will have to conduct model evaluations, assess and mitigate systemic risks, conduct adversarial testing, report to the EC on serious incidents, ensure cybersecurity and report on their energy efficiency. The new governance structure includes the establishment of the AI Office, a scientific panel, the AI Board, and an advisory forum for stakeholders. In case of non-compliance, companies can be subject to fine ranging from 35 million euros or a different percentage of the turnover depending on the company size. 

EC OPENS PUBLIC CONSULTATIONS UNDER THE DSA FRAMEWORK

On 8 December, the Commission launched a public consultation concerning the Implementing Regulation on the templates for the future transparency reports under the DSA. The consultation will be open for feedback until 24 January 2024. Under the DSA, providers are required to publish periodic transparency reports on content moderation on their services. The Implementing regulation is set to be adopted at the beginning of 2024 and aims to harmonise the reports.

On the same day, the EC also opened a public consultation on the Implementing Act on an information sharing system under the DSA. Indeed, article 85 requires that the EC establish and maintain a reliable and secure information sharing system called AGORA. It is possible to send feedback until 5 January 2024. 

EP PLENARY ADOPTS RESOLUTION ON ADDICTIVE DESIGN OF ONLINE SERVICES AND CONSUMER PROTECTION

On 12 December, the Parliament called on the Commission to develop rules for ethical digital products that do not rely on dark patterns and addictive designs. The IMCO resolution warns of the addictive nature of online games, social media, streaming services, and online marketplaces, which exploit users’ vulnerabilities to capture their attention and monetise their data. The Parliament urged the Commission to address existing legal gaps and introduce new legislation against addictive design. If not addressed, MEPs say, Parliament should use its right of legislative initiative. 

The European Commission is currently evaluating the need to update certain consumer protection legislation to ensure a high level of protection in the digital environment, with results are expected in 2024. Parliament’s report will feed into this ongoing fitness check. 

EP PLENARY ADOPTS NON-COMMUNICABLE DISEASES REPORT

On 13 December, the EP Plenary convened to vote on the Report on non-communicable diseases. The Report was adopted, as amended, with 578 votes in favour.

EP PLENARY ADOPTS TEXT ON IMPLEMENTATION OF THE 2018 GEO-BLOCKING REGULATION

On Wednesday, MEPs underscored the need to re-assess the EU’s rules on geo-blocking, particularly considering the accelerated digital transformation and surge in online shopping in recent years. The existing rules allow consumers to shop online and access services across borders without restriction, however MEPs say they must be applied fully, and remaining barriers need to be removed. The text adopted by the European Parliament on the implementation of the 2018 Geo-blocking Regulation in the digital single market can be found here.

EU COMMISSION SEEKS THIRD WAY BETWEEN ‘PAY OR CONSENT’ IN VOLUNTARY PLEDGES (EURACTIV)

On 14 December, the EU’s consumer protection department presented draft pledging principles for the digital advertising industry as part of its initiative to phase out cookie banners that include the provision of a third, less intrusive alternative to the pay-or-consent model. The draft principles will be presented at an assembly of the initiative on 18 December, with signature expected early next year. 

IRELAND SAYS ITS DRAFT BINDING CODE COULD RESHAPE SOCIAL MEDIA’S RECOMMENDER SYSTEMS (EURACTIV)

The Irish Council for Civil Liberties sent a report to the European Commission on 14 December, asking it to follow the Irish media regulator’s steps to turn off big tech’s algorithmic recommender systems. 

Ireland’s new broadcasting and online regulator, Coimisiún na Meán, has published a draft binding code requiring video-sharing platforms like TikTok and YouTube to stop automatically using recommender systems based on extensive user profiling. 

DATES FOR YOUR DIARY

18 December: Artificial intelligence in science - emerging policies and practical use cases (European University Association (EUA))

21 February 24: Masters of Digital – Europe 2030: A Digital Powerhouse(Digital Europe)