AIG Newsletter 16 December 2024

News

Please note that this is the last AIG newsletter for 2024. We will be resuming the newsletter in January. Meanwhile, we would like to wish you a Merry Christmas and a Happy New Year!

In this week's edition: ITRE exchanges views on emerging technology, and IMCO receives progress update on AI Act and discusses EU's global AI competitiveness. Green Claims Directive is sent to trilogue stage and ENVI debates on gaps in the EU food labelling rules. The EDPB adopts statement emphasising coherence between digital legislation and the GDPR. It also writes to the Commission to suggest additional measures for adequacy reviews and adopts an EU-wide Data Protection Seal. The new Presidency trio commences and Poland outlines its priorities. CERRE releases a report on the Digital Fairness Act and Interface publishes a report analysing the merits of a DSA Code of Conduct for online advertising.

EP ITRE EXCHANGES VIEWS ON EMERGING TECHNOLOGY

ITRE's meeting with the Body of European Regulators for Electronic Communications' (BEREC) focussed on the adaptation to emerging technologies such as 5G, AI, and cloud services, whilst addressing cybersecurity challenges. The discussion also covered BEREC's organisational structure, its achievements and 2025 work programme. MEPs raised concerns about Starlink, foreign platform competition, and staffing issues. BEREC emphasised the importance of flexibility, collaboration, and investment in digital infrastructure to achieve EU Digital Decade objectives. 

IMCO BRIEFED ON AI ACT ENFORCEMENT AND IMPLEMENTATION

On 12 December, Brando Benifei, Co-Chair of the AI Act Working Group, briefed the IMCO Committee on the discussions concerning the draft AI Code of Practice. Key issues included transparency, data bias, ensuring compliance with GDPR, data protection, and support for SMEs. He noted that stakeholders required more time to review the second draft, due this week, and that measures for banned use cases would take effect in February. The next meeting scheduled in January will address the second draft and finalise banned use cases.

IMCO DISCUSSES EU GLOBAL AI COMPETITIVENESS

On 3 December, the IMCO Committee met with the European Court of Auditors (ECA) to discuss the EU's global AI competitiveness, following the presentation of a special report by ECA member Mihails Kozlovs. The discussion highlighted the need for increased strategic EU investment in priority AI sectors, better performance monitoring, and improved governance structures. The meeting also examined how the new Commission structure would affect AI policy implementation, particularly regarding monitoring and governance resources.

IMCO & ENVI VOTE SENDS THE GREEN CLAIMS DIRECTIVE TO TRILOGUE

On 4 December, ENVI and IMCO voted decisively to begin trilogue negotiations on the Green Claims Directive, with 94 MEPs supporting the motion, 10 opposing it, and 12 abstaining. The first trilogue meeting between the EP, Council, and EC is set to take place in January.

ENVI DEBATES FOOD LABELLING IN THE EU

The ENVI Committee discussed the European Court of Auditors' (ECA)'s Special Report on EU Food Labelling, which revealed that only 4 out of 11 planned updates to the EU legal framework had been completed, leading to inconsistencies and confusion in food labelling practices. Key issues included the lack of harmonised rules for front-of-pack labelling, no clear definitions for vegan and vegetarian food, and inadequate monitoring of voluntary labelling schemes. The ECA made five recommendations, including addressing legal framework gaps and improving the analysis of labelling practices, which the EC accepted. MEPs raised concerns about obesity rates, origin labelling, sustainability claims, and called for scientific evidence-based labelling systems. 

EDPB CALLS FOR COHERENCE OF DIGITAL LEGISLATION WITH THE GDPR

On 4 December, the EDPB adopted a statement responding to the EC's second GDPR application report (July 2024) and the Fundamental Rights Agency's June 2024 report. The EDPB emphasised the need for legal certainty and coherence between digital legislation and the GDPR. It highlighted its work on coordinating GDPR enforcement with the AI Act, EU Data Strategy, and Digital Services Package. The statement also stressed the importance of providing Data Protection Authorities with additional financial and human resources.

EDPB ADVISES ON FUTURE ADEQUACY REVIEWS

On 15 January 2024, the EC completed its review of 11 existing adequacy decisions for personal data transfers. The EDPB's December letteracknowledged the Commission's extensive work but suggested improvements for future reviews, such as a more detailed description of legal frameworks, better transparency regarding assessment methodology, and closer monitoring of government access to personal data for law enforcement and national security purposes. 

EDPB RELEASES GUIDELINES ON DATA SHARING WITH THIRD COUNTRIES

On 3 December, the EDPB released guidelines  on Article 48 GDPR concerning data transfers to third countries, and approved the new European Data Protection Seal. The guidelines clarified how organisations should assess requests for data transfers from third countries, emphasising the GDPR's perennial applicability, and that alternative transfer grounds may only be considered on a case-by-case basis when no suitable international agreement existed. The EDPB launched a public consultation on these guidelines, running until 27 January 2025. 

NEW PRESIDENCY TRIO PROGRAMME IS RELEASED

The Presidency trio (Poland, Denmark, and Cyprus) outlined its 18-month programme aiming for a Strong and Secure Europe, a Prosperous and Competitive Europe, and a Free and Democratic Europe. The Polish presidency aims to enhance security across multiple dimensions, including external, internal, information, economic, energy, food, and health sectors. Importantly, Poland will continue work on the Green Claims Directive, highlighting its importance to combat greenwashing.

CERRE RELEASES REPORT ON THE DIGITAL FAIRNESS ACT

The CERRE report, "Shaping the Future of European Consumer Protection: Towards a Digital Fairness Act," outlined the need for updated regulatory frameworks to adapt to emerging digital challenges such as deceptive online practices and ensuring consumer trust. Key proposals included aligning consumer protections with AI and Big Data, fostering cross-sector collaboration among regulatory bodies, and streamlining rules for digital services to improve clarity and consistency. 

EXPLORING THE POTENTIAL OF THE DSA CODES OF CONDUCT

A report published by Interface analysed the potential of the DSA Codes of Conduct for online advertising and highlighted the voluntary nature of these codes, noting that they lacked enforceable sanctions, potentially limiting their impact. The document emphasised that while transparency measures could support consumers and regulators, they may be insufficient to counteract systemic issues like data exploitation, fraud, or market power imbalances without complementary legislation.

DATES FOR YOUR DIARY

17 December: The architecture of the AI Act (The AI Office)

18 December: How can generative AI boost productivity in all places? The role of local policies (OECD) 

14 January: Towards Inclusive AI (CERRE)

16 January: A New Industrial Ambition for Europe: Connectivity, Sovereignty and the Competitiveness Agenda (Forum Europe)

Stand: 16.12.2024