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.
Telecom Italia approves network separation plan
On 6 March 2018, Telecom Italia (TIM)’s board approved a plan to move the company’s fixed network assets into a legally separated entity, which will still be part of the group and will be 100% controlled by TIM. According to the plan, access to the network will be granted through a ‘one-stop-shop’ access point for regulated and unregulated wholesale services for all operators including TIM, delivering a 'fully neutral and equivalent' model.
Stakeholders unhappy with spectrum deal as part of the EECC code
On March 1, 2018, the European Commission, the EU Parliament, and the EU Council reached a preliminary agreement on parts of the forthcoming European Electronic Communications Code, related to spectrum policy. The agreement includes the availability of spectrum for 5G in the EU by 2020; a 20-year period of ‘investment predictability’ for spectrum licences; and enhanced coordination and peer review of planned radio spectrum assignment procedures.
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.
UK: Ofcom finalises Wholesale Local Access Market review
Ofcom has finalised the Wholesale Local Access market review. The draft statement reinforces many messages from last year’s consultation and crucially maintains a new charge control for Openreach’s anchor fibre product. A greater emphasis is being put on access to BT’s duct and pole network in light of the strong momentum towards full-fibre from broadband companies other than Openreach.
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.
Regulators press ahead with plans for 5G amid wider uncertainties
The German regulator BNetzA is the latest in a line of European regulators preparing a 5G spectrum auction. Similar planning is taking place in France and in the UK. The European Radio Spectrum Policy Group has also set ambitious deadlines, with the view to see the first commercial launches by 2020. However, for 5G networks to become operational by such a tight deadline, progress needs to be made not only on the front of spectrum awards, but also on the finalisation of 5G standards and on building comprehensive 5G strategies to identify products and services 5G will support and enable.
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.
