Council of EU prepares implementation call for next mandate, Space Law postponed

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“The Council of the EU stresses the need to prioritise in the coming years the effective and efficient implementation [of digital EU legislative acts],”

– reads draft Council conclusions on the future of EU digital policy.

Story of the week: The Council of the EU is preparing a call to implement the plethora of digital regulations passed during the last mandate, and to promote them on the international scene, according to a document seen by Euractiv. The hundreds of pages of new regulations, assigning different responsibilities to multiple agencies, and various implementation and review timelines, are somewhat of a headache to lawyers tasked with making them a reality, both within the regulatory bodies and industry. The Council hinted at this, noting “the significant number of EU legislative acts” and stressed “the need to prioritise in the coming years their effective and efficient implementation,” in the draft document. This echoes statements made by stakeholders in recent weeks, who stress the importance of actually implementing the maze of regulations in the coming years. Read more.

Don’t miss: Perhaps the right time to space out on the Space Law. Internal Market Commissioner Thierry Breton told Members of the European Parliament on Tuesday that the Commission will need “extra time” to present the European Space Law legislative proposal, possibly after June’s EU elections. The legislative proposal was originally expected to be tabled by the Commission in April, a spokesperson previously told Euractiv. This timeline was reiterated by a second Commission spokesperson today. Read more.

Also this week: 

• Thierry Breton says European Space Law might be presented after the summer
• European industrial multinationals condemn the deletion of sovereign requirements in the cloud certification scheme
• EU telecom standards institute set for new leadership
• MEPs are eager to learn how the Commission is recruiting for the AI Office 
• The Council of Europe is calling for “policies and instruments,” replacing previous language calling for a “comprehensive and coordinated policy approach.”
• Cracking down on Big Tech: The drive behind the barrage of measures of EU’s digital acts

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Artificial Intelligence

AI Office recruitment strategy. Three members of the European Parliament have sent formal questions to the Commission about the recruitment process for the Artificial Intelligence (AI) Office, tasked with implementing the EU’s landmark law on technology, Euractiv understands. MEPs from three different parties have asked about the procedure for selecting a leader for the office — who still has not been announced — and how it will attract talent in a hyper-competitive international market. The three MEPs are Svenja Hahn from Renew Europe, Kim van Sparrentak from the Greens, and Axel Voss from the European People’s Party, who all acted as shadow rapporteurs for the file. Read more.

Elections Code of Conduct. On Tuesday, Vice-President Jourová convened a signing ceremony for a Code of Conduct on the 2024 European Parliament Elections. Among other things, the Code of Conduct emphasises the ethical and transparent use of technology in election campaigns, including artificial intelligence, to maintain the integrity of elections. It commits signatories to safeguard against cyber threats, ensuring transparency in online political advertising, and complying with data protection regulations, focusing on countering misleading content and promoting fair and inclusive electoral processes. This follows the Commission’s guidelines for addressing digital risks to elections, issued two weeks ago.

“Copyrights must be preserved against AI,” stated Culture Minister Rachida Dati on Friday in an interview with Les Echos. “I am very clear: technological innovation, such as AI, must not undermine copyright,” she continued. According to her, it was she, who convinced French President Emmanuel Macron to include a discussion on AI and copyrights during the next AI Safety Summit in Paris. 

Meta’s AI chip. Meta announced details on Wednesday about its latest in-house artificial intelligence accelerator chip, which has been deployed in data centres to support AI applications, Reuters reported. The company disclosed ongoing initiatives to broaden the capabilities of the chip, including support for generative AI workloads.

Competition

Industry giants’ open letter. Major European industry players including Airbus, OVHcloud, and Orange condemned a recent decision by the European cybersecurity agency (ENISA), that would no longer differentiate between cloud providers based on their origin, in a letter seen by Euractiv. “We believe the inclusion of sovereignty requirements is necessary to overcome market fragmentation” and “protect European organisations’ most sensitive data,” wrote the 18 signatories in the open letter. The letter calls on “Member States to reject any [EUCS] proposal” that does not include sovereignty provisions. Read more.

Initial investigation into Microsoft-OpenAI. The European Union’s antitrust authority is expediting an initial investigation into Microsoft’s collaboration with OpenAI, Bloomberg reported on Thursday. There are concerns regarding whether Microsoft’s $13 billion investment in OpenAI should undergo scrutiny under EU merger regulations but regulators are closely monitoring other AI investments made by major technology companies as well.

Alphabet-HubSpot acquisition on the horizon? Alphabet, Google’s parent company, is considering acquiring marketing software company HubSpot, a move that could face opposition from regulators despite experts believing it would not stifle competition, Reuters reported on Monday. However, such an acquisition would prompt Alphabet to engage in another battle with antitrust regulators, opening a new front in their ongoing scrutiny.

Cybersecurity

Apple warns of cyberattacks. Apple issued threat notifications to iPhone users in 92 countries, alerting them of potential targeting by mercenary spyware attacks, TechCrunch reported on Thursday. The alerts, sent on Wednesday, warned recipients of attempted remote compromises on their iPhones associated with their Apple IDs. While the company didn’t disclose the attackers’ identities or specific countries affected, it emphasized the seriousness of the threat, indicating that users might be targeted based on their identities or activities.

Post-Quantum Cryptography. The European Commission issued a Recommendation on Post-Quantum Cryptography on Thursday, urging member states to adopt a unified strategy for transitioning to post-quantum cryptography. This move aims to safeguard the security of digital infrastructures and services in the upcoming era of quantum computing.

Data & Privacy

GDPR enforcement: Members of the European Parliament voted on Wednesday on amendments to strengthen the enforcement of the EU’s General Data Protection Regulation (GDPR). But stakeholders urged for further improvements, particularly regarding complainants’ rights and cross-border matters. Among other things, the passed amendments to the EU’s landmark data protection regulation change the role of the supervisory authorities and remove some of their obligations to share preliminary findings. The new Parliament will follow up on the file after the European Elections on 6-9 June. Read more.

Meanwhile in the US. Democratic Senator Maria Cantwell and Republican Representative Cathy McMorris Rodgers, have reached a bipartisan agreement on draft data privacy legislation, which aims to limit the collection of consumer data by technology companies and empower Americans to prevent the selling of personal information or request its deletion, Reuters reported on Sunday. The legislation, which surprised most observers, would grant individuals control over the use of their personal data and mandate disclosure if data has been transferred to foreign adversaries.

French umbrella digital bill becomes law. On Wednesday (10 April), French MPs approved the SREN bill (134 votes in favour, 75 against), an umbrella law that adapts national legislation to the Digital Services Act and Digital Markets Act. National regulatory authorities are hence designated. MPs from Far-right (RN, ID), Ecologists (The Greens), Socialists (S&D) and radical left (LFI, The Left) voted against the bill. At the request of LFI, a censorship motion was put to vote and rejected by MPs. RN and LFI MPs attacked the bill, calling it liberticidal. Ségolène Amiot (LFI) criticised a bill that does not solve problems experienced online and called on treating the causes; media education, handling complaints of harassment, as well as sexual and affective education.

A long road. The EU Commission submitted two reasoned opinions on the French bill, arguing that it clashes with the DSA. The Commission will have to review the text a third time, partly over the constitutionality of regulation of online games with in-app purchases and penalties for online slander. A decision can be taken without a judge. Some MPs joined Senators in blaming the eight-month legislative delay on to the government. Moreover, Majority MP Philippe Latombe (MoDem, Renew) and member of the data privacy authority CNIL announced on Thursday (11 April) in a press release that although he supports some parts of the law that protect citizens data, he is mulling to table an external contribution to the Constitutional Council in order to support the opposition claim to the Council (LFI, The Left) that the regulation of online games with in-app purchases is unconstitutional. 

EDPS annual report. In 2023, the EDPS conducted investigations into various subjects, including the use of IT tools by EU institutions and the deployment of Microsoft 365, the European Data Protection Supervisor (EDPS) said in its annual report. They also provided policy advice to EU co-legislators and enhanced technological capabilities to anticipate future trends in data protection. 

Pornographic websites need your credit card. On Thursday, the French regulatory authority Arcom announced that it will allow pornographic websites to check the age of their users based on credit card identification. According to Arcom, 2.3 million minors access pornographic websites monthly. The temporary measure, scheduled to last six months, aims to impede underage people from accessing pornographic websites. This filtering system should not issue any payment by the users and is open to stakeholder feedback. The system is set to be enforced when the SREN bill, which includes an age verification obligation, is enacted.

Digital Markets Act

What’s behind the measures on the DMA and DSA? Driven by political motivations and the upcoming EU elections, European regulators have unleashed a storm of enforcement actions and investigations related to the Digital Services Act (DSA) and Digital Markets Act (DMA), experts told Euractiv. Since the start of the year, but especially in recent weeks, the European Commission has unleashed a flurry of actions zeroing in on big tech companies, implementing the two landmark tech laws. Euractiv looked into the drive behind the barrage of measures of the EU’s digital acts. Read more.

DMA effects. Independent browser companies in the EU are experiencing a surge in users following the implementation of the DMA. The legislation mandates Alphabet’s Google, Microsoft, and Apple to facilitate easier switching to rival browsers. Data from six companies reveal an uptick in users in the first month after the law’s enforcement, indicating a positive response to the mandated “choice screen” for mobile users, Reuters reported on Wednesday.

Digital Services Act

Arcom will be the French DSC. After the adoption of the SREN law (see Data & Privacy paragraph), the French telecom regulator will become the designated French Digital Services Coordinator, in charge of supporting the DSA implementation in France, advising the Commission and coordinating work with other French regulatory authorities implementing the act at a national level.

Temu and DSA. Online marketplace Temu announced that around 75 million users actively use their services in the EU per month, as of March 31, 2024. That’s way above the DSA’s threshold of 45 million EU users per month. Temu says it regularly updates and publishes this information every six months in line with DSA requirements.

eGovernance

Revising construction products. The Parliament granted final approval to the construction products regulation, which aims to enhance digitalisation, harmonisation, and sustainability in the sector. Rapporteur Christian Doleschal praised the regulation’s potential to revolutionise access to critical construction product information and streamline procedures. The Council is expected to give final approval in order for the regulation to come into effect.

Interoperable Europe Act in force. An Act to improve the digitalisation of Europe’s public sector entered into force on Thursday. The legislation aims to improve cross-border data exchange in the public sector to meet the EU’s Digital Decade goals, enhancing the Digital Single Market and digital public policy implementation. The next steps include implementing provisions within three months, starting interoperability assessments in January 2025, and member states designating competent authorities.

Industrial strategy

The US is putting all in on chips. The Biden administration announced it is investing $6.6 billion into Taiwan’s TSMC, the largest manufacturer of semiconductors, to develop factories on US soil. The funds are dispersed under the US Chips Act and are in addition to $5 billion in loans provided to the company. 

Atos looks for lifeline. French IT company Atos is pursuing over €1 billion in new funds and is looking to reduce its current debt by at least 50% in a new restructuring plan. The plan involves converting approximately half of its debt into equity and extending the maturity of its remaining obligations. However, details as to where the funds will come from and how the debt will be renegotiated are not clear, Bloomberg reported on Monday.

More European funds going to quantum. Quantonation Ventures, which runs one of the largest funds for quantum computing within Europe, has raised €70 million for its second fund, according to a Wednesday announcement. The target for the so-called Quantonation II fund, which invests in early-stage quantum startups, is €200 million

Law enforcement

CSAM extension. On Wednesday, Parliament voted to extend an exemption to EU privacy rules, enabling the detection of online child sexual abuse material (CSAM) until 3 April 2026. This extension of the e-Privacy derogation allows internet platforms to detect CSAM voluntarily. MEP and rapporteur Birgit Sippel of the Socialists and Democrats urged the Council to expedite the adoption of permanent regulations due to the urgency of preventing the spread of CSAM. The provisional agreement on the derogation will have to be formally adopted by the Council before it can become law.

Media

Campaign rulebook against disinformation. All European political parties signed on Tuesday  a code of conduct, brokered by the European Commission, as part of broader efforts to shield June’s EU elections campaign from foreign interference and disinformation. All parties have pledged to “proactively avoid amplification of narratives lead by entities and actors outside the EU other than member parties, especially when those seek to erode European values,” the document reads. Read more.

Platforms

Council’s final draft on influencers. A working party in the Council of the European Union agreed to change its language on suggested measures to address the behaviour of online influencers, according to draft conclusions seen by Euractiv. The latest and final draft conclusions of the Audiovisual and Media Working Party, dated April 5, invite the Commission and member states to develop “policies and instruments,” replacing previous language calling for a “comprehensive and coordinated policy approach.” The conclusions will move to a political debate in EU institutions, potentially later becoming the basis of concrete regulation. The latest working party document also slightly softened the language on influencers’ use of AI. Read more.

Facebook ads malfunctioning. Advertisers relying on Facebook and Instagram have experienced setbacks due to Meta’s malfunctioning automated ad systems. Costs have risen, returns have decreased, and Meta has not provided explanations for the issues, Bloomberg reported on Thursday.

DuckDuckGo launches VPN. Search engine DuckDuckGo introduced its Privacy Pro subscription, offering a bundle including a VPN service, personal information removal, and identity theft restoration, priced at $9.99 per month or $99 per year, currently only for American users, TechCrunch reported on Thursday. This marks the company’s initial step towards integrating a subscription service within the DuckDuckGo browser.

Instagram to blur nudes. Instagram plans to test a feature that blurs messages with nudity to protect teenagers and prevent potential scammers from contacting them, Reuters reported on Thursday. The company aims to use on-device machine learning to analyse direct messages for nudity, with the feature automatically enabled for users under 18 and adults encouraged to activate it.

TikTok Notes. TikTok is launching a photo-sharing app called “TikTok Notes” to rival Instagram, offering users a space for images and text, BBC reported on Tuesday. Users may automatically have their photo posts shared to this new app unless they opt-out.

Telecom

New ETSI leader. The European Telecommunications Standards Institute (ETSI), will elect a new leader later this month, who will be tasked with navigating the troubled relationship between the body and the EU Commission. On 16 April, ETSI is set to hold an election in its general assembly which will determine its director general for the next five years, starting in June. Amid a myriad of standards that need to be created under legislation passed by the previous mandate, one of the three candidates will have to steer ETSI’s relationship with the Commission. Read more.

BEUC and ECTA urge Telecom ministers to reject deregulation. Consumer organisation BEUC and telecommunications association ECTA addressed Telecom ministers gathering in an informal Council in Louvain-la-Neuve on 11-12 April in an open letter on Wednesday (10 April). The letter says that the Commission’s white paper released in February “opens the door for measures aimed at reducing competition” which would reduce competition in the market and clash with “the basic principles of EU Competition Law.” The two organisations are particularly concerned about scenario 5 of the white paper recommending no markets for presumptive ex-ante regulation. For the signatories, such a scenario would “former monopolists [companies] to raise their profitability without regard to the impact on consumers, businesses and public administration.” 

Alibaba prices changing. Alibaba is reducing prices for its cloud services in various regions by up to 59%, reflecting intense competition and internal restructuring efforts, Bloomberg reported on Monday. 

Protecting North Sea cables. On Tuesday, the UK and several other major European countries bordering the North Sea signed an agreement to collaborate on safeguarding underwater infrastructure, particularly from potential Russian threats. The signatories, including Belgium, Britain, Denmark, Germany, Norway, and the Netherlands, committed to sharing information through a joint declaration. The collaboration stems from security concerns heightened by the September 2022 explosions on the Nord Stream 1 and 2 pipelines, which transport gas from Russia to Germany through the Baltic Sea.

What else we’re reading this week:

Why the Chinese government is sparing AI from harsh regulations—for now (MIT Technology Review)

Teen Girls Confront an Epidemic of Deepfake Nudes in Schools (The New York Times)

The “Adequacy” Test: Canada’s Privacy Protection Regime Passes, but the Exam Is Still On (Centre for International Governance Innovation)

Eliza Gkritsi contributed to the reporting.

[Edited by Rajnish Singh]

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