EU Commission investigates Meta, Noyb files complaint against OpenAI

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“We suspect that Meta’s moderation is insufficient” and “lacks transparency of advertisements and content moderation procedures.”

– said European Commission Executive Vice-President Margrethe Vestager on Tuesday about the Commission initiating investigations to evaluate whether Meta might have violated the Digital Services Act.

Story of the week: The European Commission initiated investigations on Tuesday to evaluate whether Meta, the company behind Facebook and Instagram, might have violated the Digital Services Act (DSA). Facebook and Instagram were classified as Very Large Online Platforms (VLOPs) in April 2023 under the EU’s DSA, which designates platforms with over 45 million monthly active users in the EU as VLOPs. Meta has a “well-established process for identifying and mitigating risks” on its platforms and will cooperate with the Commission in the probe, a company spokesperson told Euractiv on Tuesday. The Commission also unveiled a whistleblower tool on Tuesday for information regarding potential breaches of the DSA and the Digital Markets Act (DMA), another landmark act addressing competition in the digital space. Read more.

Don’t miss: Noyb, the Austrian non-profit founded by activist Max Schrems, has filed a complaint with the local privacy authority, alleging that OpenAI has violated the EU’s General Data Protection Regulation (GDPR) and has not done enough to correct inaccurate personal information provided by ChatGPT. Schrems, an activist and lawyer, has filed some of the most consequential privacy complaints in the EU. The complaint against OpenAI, filed on Monday with Austria’s DSB, centres around “hallucinations”, wrong answers provided by artificial intelligence (AI) large language models. It asks for an investigation, a fine, corrective measures, and a declaratory decision. The company, OpenAI, is aware of the problem, but does not seem to care, Noyb said in a press release announcing the complaint. OpenAI did not respond to Euractiv’s request for comment at the time of publication. Read more.

Also this week:

• EU Commission names Apple gatekeeper for iPadOS under digital market regulation
• Europe ministers say more resources needed to combat Russian disinformation online
• Bolt lobbying revelations: Estonia official says human error behind missing correspondence
• Von der Leyen to avoid TikTok in very ‘personal’ campaign

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Artificial Intelligence

FT-OpenAI deal. The Financial Times reached a deal with OpenAI to use their content for training algorithms on Monday. Media have been at odds with AI companies due to what they see as unfair use of their work for training large language models, including a lawsuit from The New York Times against OpenAI. But the Financial Times will be receiving an undisclosed amount for their use of their work, as well as some promotion. ChatGPT users will receive summaries, quotes, and links from FT articles, in response to prompts, where appropriate.

Competition

Some iPhone users overslept. Apple is addressing user complaints about iPhone alarms not going off or being too quiet, The Guardian reported on Thursday. The company is aware of the issue and is working on a solution. The extent of the problem and the specific devices affected are unclear.

Digital diplomacy

Screen ban for children? According to Le Monde on Monday, a report advises banning screens for kids under three and mobile phones for those under 11 due to health and societal concerns, a stance supported by French President Emmanuel Macron’s administration. The report proposes limited screen access for young children and regulatory measures, including restricting mobile phone use until the age of 13. The French government aims to regulate screen usage, aligning with legislation setting the digital majority at 15 years. “We expect solutions and full cooperation to ensure that minors are no longer exposed to illegal content and to move towards digital majority,” Secretary of State for Digital Affairs Marina Ferrari posted on X, referring to a meeting on age verification.

Digital Markets Act

Apple designated as gatekeeper for iPadOS. The European Commission designated Apple’s iPadOS tablet operating system as a gatekeeper under the Digital Markets Act (DMA) on Monday. After a market investigation, the Commission concluded that “despite not meeting the thresholds, iPadOS constitutes an important gateway which many companies rely on to reach their customers,” said Margrethe Vestager, executive vice-president in charge of competition policy. The tech giant must comply with DMA obligations regarding iPadOS within six months. Read more.

Changes for Apple app developers. Apple is implementing changes for EU app developers, the tech giant announced on Thursday. They are exempting those with no revenue and small developers earning less than €10 million annually from the Core Technology Fee (CTF) for three years. These changes also apply to iPadOS later this year, with developers having the option to choose alternative terms. The CTF is based on first annual installs, with exemptions for nonprofits and government entities. Tools like a fee calculator and reports help understand the impact, while a Q&A section clarifies exemptions and eligibility criteria.

Digital Services Act

Shein designated as a VLOP. The European Commission announced that it had designated Chinese online fashion retailer Shein as a “very large online platform” (VLOP) under the Digital Services Act (DSA) last Friday. According to the Commission, after being labelled as a VLOP, Shein must adhere to the strictest regulations outlined in the DSA within four months of its notification. This includes implementing measures to support and safeguard online users, especially minors, and effectively evaluating and addressing any systemic risks associated with their services. “We share the Commission’s ambition to ensure consumers in the EU can shop online with peace of mind, and we are committed to playing our part, ” said Leonard Lin, Shein’s global head of public affairs. “We also share a commitment to the principles of transparency and accountability that are at the core of the DSA, as reflected in our supply chain governance standards and our engagements with our users,” he said, adding that they will keep collaborating with the Commission to guarantee “a safe and compliant environment.” Read more.

Gig economy

Bolt lobbying revelations. The omission of emails from the Estonian Ministry of Economic Affairs to Bolt and other mobility tech firms, demanded in a freedom of information (FOI) request, was due to human error, the Ministry’s Deputy Secretary General Sandra Särav told Estonian news agency ERR. Last Tuesday, Euractiv exclusively reported a series of email exchanges and confidential documents, secured by non-profit Corporate Europe Observatory (CEO) through a FOI request, which showed how intensely Estonia’s flagship mobility app and others were lobbying to limit the scope of the EU’s first directive on the gig economy. The emails included a letter written against the legislation by Bolt, which they hoped the Estonian government would sign as its own and get other countries to do so as well. The letter was initially addressed to Särav, who had previously worked for Bolt for two years. The Estonian Minister for Economic Affairs Tiit Riisalo denied any wrongdoing in an interview with ERR last Thursday and confirmed Särav will stay in her post. Read more.

Industrial strategy

Atos and criticism. The French government, after facing criticism for its silence on the difficulties of Atos, a multinational IT services company, has taken action, Le Monde reported on Monday. Minister of Economy Bruno Le Maire announced a letter of intent to acquire Atos’ sovereign activities, aiming to protect French strategic interests. This includes high-performance computers, critical systems used by the military, and cybersecurity products, representing about 10% of Atos’ revenue and employing around 4,000 people, mainly in France.

Law enforcement

EU Ombudsman’s new recommendation. On Monday, the European Ombudsman Emily O’Reilly recommended that the European Commission reassess its decision to limit public access to documents regarding the regulation aimed at preventing online child sexual abuse. The Commission’s refusal to grant broader access to these documents, citing exemptions under EU legislation, was deemed unjustified by the Ombudsman. The recommendation underscores the crucial role of transparency in the legislative process, enabling public scrutiny and participation. It also emphasises that disclosing these documents is essential for fostering informed public debate, ensuring accountability, and upholding the Commission’s independence.

CSAM law criticism. An open letter signed by 270 scientists and researchers from 33 countries criticises proposed changes to the EU’s child sexual abuse regulation, citing concerns over flawed detection technology, the undermining of encryption protection, and the potential for mass surveillance. The letter emphasises the need for proven approaches to combat child abuse while preserving communication security, urging policymakers to reconsider the proposed changes and engage in dialogue with experts to ensure a secure digital future.

Media

Russian disinformation. Ministers from France, Germany, and Poland revealed on Monday that the Russian disinformation network “Portal Kombat” has continued growing, with new websites targeting 19 member states and the Western Balkans, and called for more resources to tackle online disinformation ahead of June’s EU elections. Read more.

World Press Freedom Index. Politicians are the main threat to media freedom in Europe, with a third of member states being labelled as ‘problematic’ and even the ‘good’ and ‘satisfactory’ countries seeing their scores drop, according to Reporters Without Borders World Press Freedom Index 2024, published on Friday. Read more.

Platforms

Von der Leyel to avoid TikTok. European Commission President Ursula von der Leyen’s campaign for reelection won’t include TikTok due to security concerns, despite her efforts to connect with citizens innovatively. The European People’s Party (EPP) will also not use TikTok, while other parties like the European Green Party and the Party of European Socialists are active on the platform. Read more.

Russian media on TikTok. Russian state media are increasingly active on TikTok, posting in English and Spanish and doubling engagement from last year, The Washington Post reported on Thursday. While TikTok labels state-affiliated accounts, covert messaging efforts likely exist. The platform’s popularity among young demographics makes it a prime target for Russian influence.

Microsoft’s passkeys. Microsoft is introducing “passkeys” as an alternative to passwords for logging into Microsoft accounts, the tech company announced on Thursday. This means that users can use biometric authentication like thumbprints or face IDs to access services like Microsoft 365, Copilot, Xbox, and Skype. Passkeys are available on desktop and mobile browsers immediately, with support for mobile apps coming soon.

Spotify lyrics won’t be free? Spotify is quietly making lyrics available only to paying subscribers, possibly to boost subscriptions, TechCrunch reported on Thursday. It is unclear why Spotify has not formally announced this change, but the move comes amid Spotify’s growth in users and paid subscribers, though it missed revenue expectations. Whether this will drive more subscriptions is uncertain as lyrics are freely available through other platforms, the article pointed out.

Telecom

New broadband law. The EU passed a new broadband law on Monday, with the Gigabit Infrastructure Act unanimously adopted by the Agriculture and Fisheries Council, six days after the Parliament’s overwhelming vote.

Transatlantic ties

EU-Japan advance joint work. The EU and Japan held their second Digital Partnership Council on Tuesday, focusing on joint digital cooperation. They reaffirmed their commitment to a people-centric digital transformation and agreed on various initiatives, including cooperation on digital identities, semiconductors, high-performance computing, 6G technology, AI governance, cybersecurity, submarine cables, and online platform regulations. The next meeting is set for 2025 in Tokyo. 

What else we’re reading this week:

Google defends app store, fighting Epic Games’ bid for major reforms (Reuters)

Apple is behind in AI and killed its self-driving car project. What’s next? (The Washington Post)

The tech billionaires who helped ban TikTok want to write AI rules for Trump (The Washington Post)

[Edited by Zoran Radosavljevic]

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