The European Commission has today launched a new proposal to adapt the taxation system of the digital economy, in which value is created in countries where a business does not have a physical presence. The EC proposes to introduce a taxable “digital presence”, fulfilling one of three criteria (at least €7m turnover per year in an EU country; more than 100,000 users in a member state in a year; or more than 3,000 business contracts in a state in a year). It also proposes an “interim tax”, which will apply to revenues created from online advertising.
Tech companies should take down illegal content in one hour
The European Commission issued today a set of “operational measures” to tackle illegal content online. This also includes terrorist content and hate speech. Tech companies are recommended to follow a “one-hour-rule” to take down terrorist content and to implement faster detection systems, including automated ones. Tools should also be shared with smaller companies. Businesses will have to submit information to the EC about their compliance with this Recommendation within three months.
European Commission still unclear on how to tackle fake news
On 27 February 2018, the European Commission held the second multi-stakeholder meeting on the problem of fake news. The meeting is part of a series of events, and of a comprehensive initiative the EC is taking to address the issue. During the event, it was clear that the EC’s position is still far from being defined. On the other hand, the advertising industry is advocating for light-touch regulation and is defending its own ability to enforce self-regulation.
Policymakers turn their attention to fake news, hate speech and addiction
Tomorrow, the European Commission will host a colloquium in Brussels on the issue of “fake news”, which will see the participation of experts and industry representatives. This is very likely another step toward legislative intervention, which could come in the form of a Recommendation from the EC.
Consumer protection rules get stronger for big tech across the EU
In February 2018, the European Commission issued a statement outlining the progress made by the three main social media platforms (Facebook, Twitter, and Google+) toward improving consumer protection, based on the requirements it made in March 2017. The EC found that Facebook and, to some extent, Twitter, still have work to do to fulfil the requirements. The EC’s strengthened approach to consumer protection in online platforms is a further example of the increased regulatory scrutiny on tech companies. It also shows how the rules of the countries where their users are will prevail over those of the company’s establishment, in line with the principles set out in the General Data Protection Regulation.
DCMS committee unhappy with social media’s approach to fake news
The hearing carried out by the UK’s Digital, Culture, Media, and Sport (DCMS) parliamentary committee on 8 February 2018 in Washington DC with executives of three of the main global social media platforms (Google, Twitter, Facebook) showed how much distance currently separates tech companies from regulators and policymakers with regard to tackling “fake news”, hate speech, and other related illegal activities.
The regulation of big tech draws closer
Statements made at the recent World Economic Forum by businessmen such as George Soros, and by CEOs of tech giants (Salesforce and Uber) show these companies are starting to recognise that stronger regulatory oversight of their industries is inevitable and, to some extent, beneficial. This should be seen as a significant change in direction compared to the time when big tech was warning against the risks of regulating too heavily.
ARCEP examines the role of devices in achieving an open internet
Regulation around net neutrality has so far focused almost exclusively on internet access services, leaving other links of the value chain unexplored. However the French regulator ARCEP became the first to consider whether devices and operating systems are a weak-link in achieving an open internet.
India moves closer to protect net neutrality
Indian authorities appear to have fully embraced the stance of a strong oversight towards net neutrality. This started in 2015, with the first public consultations on the issue; continued in 2016, with the explicit ban of zero-rating; and is even more apparent in the recommendations issued by the TRAI on November 28, 2017.
FCC’s net neutrality repeal will hand back regulatory powers to the FTC
The FCC announced on November 21, 2017 that it will vote on the repeal of its Open Internet Order of 2015, which enshrines the principles of net neutrality. The proposal has been expected since the change in US administration at the start of 2017, and will likely result in a return to the pre-2015 status quo, pulling back the reclassification of broadband as a telecommunications service.
