AIG Newsletter 4 November 2024

NEWS

In this week's edition: The EC introduces mandatory digital identity verification for energy product registrations, and launches a public consultation on data access provisions within the DSA. The EC pledges €16 million to support journalism and media literacy across the EU, while expressing concerns about overlapping rules potentially creating loopholes for big tech platforms. The EU Audiovisual Observatory publishes its report examining AI's impact on the audiovisual sector, and the EU Digital Media Observatory releases new media literacy guidelines. MEPs debate reducing regulatory bureaucracy and its impact on SMEs during an EP Plenary. Henna Virkkunen's written answers reveal her vision for an innovative and efficiently regulated EU. The EP gets ready to begin confirmation hearings, notably those of Olivér Várhelyi and Wopke Hoekstra.

EC INTRODUCES NEW ENERGY LABELLING RULES

On 22 October, the EC introduced mandatory digital identity verification for suppliers registering product models in the European Product Registry for Energy Labelling, a requirement established in an implementing regulation from April 2024. This new rule aims to ensure the quality and reliability of information for energy-labelled products placed on the EU market, with suppliers now required to undergo verification before registration. 

EC CONSULTS ON DSA DATA ACCESS DELEGATED REGULATION

The EC launched a public consultation regarding a draft delegated regulation concerning data access provisions within the DSA. The proposed regulation outlines the framework for researchers to access online platform data, specifically focusing on very large platforms (VLOPs) and very large online search engines (VLOSEs), with the aim of studying systemic risks and enhancing platform transparency and accountability. The draft text outlines procedures for data access, including requirements for data formats, necessary documentation, and the creation of a dedicated DSA data access portal. The public consultation remains open until 26 November.

EC PLEDGES €16 MILLION TO SUPPORT JOURNALISM AND MEDIA LITERACY

The EC released three calls for proposals under the Creative Europe programme. The initiative comprises three distinct funding streams: €10.5 million to support pluralism and journalism partnerships, €3 million to establish a comprehensive rapid response system for monitoring press and media freedom violations across the EU, and €2.5 million dedicated to innovative cross-border projects aimed at strengthening European media literacy skills and combating disinformation's harmful effects.

EC WARNS OVERLAPPING RULES LEAD TO LOOPHOLES FOR BIG TECH

The EC has expressed concern over the practice of incorporating elements of the DSA into other legislation. Since the DSA's implementation in August 2024, approximately 24 EU and national rules have referenced its platform regulations, potentially creating enforcement complications and loopholes for VLOPs. With 25 platforms now designated as VLOPs and eight ongoing investigations for non-compliance, the Commission is actively addressing implementation challenges. If confirmed, Finland's Henna Virkkunen will oversee DSA implementation in the incoming Commission, whilst several member states have already received formal notices for failing to properly implement the regulations or appoint necessary authorities. 

AV OBSERVATORY PUBLISHES "AI IN THE AUDIOVISUAL SECTOR" REPORT

On 22 October, the EU Audiovisual Observatory published a report entitled "AI in the Audiovisual Sector: Navigating the Current Legal Landscape", which examines the increasing significance of AI in the audiovisual industry and its complex ramifications. The comprehensive analysis explores several crucial aspects, including data protection under the GDPR and AI Act, copyright concerns related to AI technology, authorship questions surrounding AI-generated content, AI's impact on audiovisual employment, and the challenge of disinformation. The report concludes with an assessment of future regulatory developments and emerging ethical and societal challenges within the sector.

DIGITAL MEDIA OBSERVATORY PUBLISHES MEDIA LITERACY GUIDELINES

On 21 October, the EU Digital Media Observatory (EDMO) introduced new guidelines for media literacy initiatives. These comprehensive guidelines aim to enhance the effectiveness of media literacy programmes across Europe by establishing key principles: initiatives should have clearly defined objectives, foster critical understanding of the media landscape, maintain transparency and inclusivity, utilise evidence-based approaches, and commit to ongoing evaluation and knowledge sharing.

EP DEBATES REDUCING REGULATORY BUREAUCRACY

The debate highlighted several key positions regarding regulatory burdens and reporting requirements. Jörgen Warbon MEP acknowledged the Commission's 'one in, two out' approach, with the EPP pledging to veto proposals lacking proper impact assessments. The discussion emphasised concerns about excessive regulations, with 13,000 new legal acts implemented in five years - more than double the US figure. Speakers, including Svenja Hahn, Aura Salla, and Lidia Pereira, stressed the challenges faced by SMEs and start-ups due to bureaucratic requirements, advocating for simplified legislation, modernisation and streamlined administrative processes to enhance European competitiveness and economic growth. 

VIRKKUNEN'S WRITTEN ANSWERS REVEAL EU PLANS

As Executive VP designate for Tech, Sovereignty, Security and Democracy, Henna Virkkunen outlined her vision for a more innovative, productive and efficiently regulated EU. Her priorities include rigorous enforcement of DSA and DMA, with emphasis on opening closed ecosystems, enhancing consumer choice, and ensuring proper data ownership. She committed to reducing administrative burdens, particularly for SMEs, whilst promising thorough impact assessments for new legislation and better implementation of existing rules. Virkkunen pledged to maintain close dialogue with the EP, enforce audiovisual media regulations effectively, and address emerging digital challenges including cyberbullying and dark patterns, all whilst promoting the EU's human-centric approach to digital governance and maintaining global leadership in technological standards.

CONFIRMATION HEARINGS OF EU COMMISSIONER DESIGNATES BEGIN

The EP is set to begin holding confirmation hearings for its Commissioner-designates on 4 November. Olivér Várhelyi (Hungary), nominated for the Health and Animal Welfare portfolio, will face questions on 6 November from both ENVI and AGRI Committees, focusing on pharmaceutical reform, food safety, and animal welfare issues. The following day, Wopke Hoekstra (Netherlands), nominated as Commissioner for Climate, Net-Zero and Clean Growth, will be questioned by the ENVI, ITRE and ECON Committees about climate change adaptation, EU climate diplomacy, fossil fuel subsidies phase-out, and the 2040 climate target.     

DATES FOR YOUR DIARY

4 November: The EP hearings of the Commissioners-designate begin
5 November: AI Models Stakeholder Event (EDPB)
6 November: Lisbon AI Conference 2024 (Start-up Network Europe)
7 November: Connectivity as the backbone of innovation: Can Europe reclaim global leadership? (Digital Europe)
11 November: Web Summit (Lisbon)
12 November: Building a safer digital environment - Protecting consumers in the EU (Euractiv)
18 November: Stakeholder event on upcoming guidelines on 'Consent or Pay' (EDPB)
18 November: The threat to media freedom in Europe - How can it be protected?  (Euractiv)
18 November: Data Protection Congress 2024 (IAPP Europe)
20 November: Series of webinars: The Data Act in Contracts (European Commission)
20 November: Techno-politics forum 2024 (European Liberal Forum)

Stand: 04.11.2024