Tuesday, November 26, 2024

The EU wants to depart no corner of the digital sphere untouched, warning: X and AI might be next

If 2024 already looks like an “annus horribilis” for the EU’s big tech corporations, the approaching months could change into a “winter of discontent” because the bloc tries to bring the web giants to their knees with a strengthened latest legal tool.

Since August 2023, the world’s largest digital platforms have faced the strictest tech regulations within the history of the European Union – and the Union shows no signs of slowing down in enforcing these rules.

Brussels scored its first major victory after forcing TikTok to permanently remove an “addictive” feature from a spin-off app in Europe in August, a 12 months after content moderation rules under the bloc’s Digital Services Act (DSA) got here into force.

Previously, Brussels had issued decisions against Apple, Meta and Microsoft for seven days in a row in the summertime.

And more will occur by the tip of 2024, officials say.

The EU’s actions stem from two laws: the DSA, which requires corporations to observe their online content, and its accompanying competition law, the Digital Markets Act (DMA), which provides big tech corporations a listing of what they’ll and can’t do in business.

Since the DMA restrictions got here into force in March, the EU has notably pressured Apple to present in to a dispute with Fortnite maker Epic over a gaming app store.

“The European Commission is doing its job: it is implementing the DMA with limited resources and within a short timeframe compared to lengthy competition cases,” said Stephanie Yon-Courtin, MEP specialising in digital issues.

According to Jan Penfrat, senior policy adviser at online rights group EDRi, the changes are already visible: the DSA gives users the “right to complain” when content is removed or accounts are blocked, or the DMA allows them to decide on browsers and serps via alternative screens.

“This is just the beginning,” said Penfrat.

He points out, for instance, that EDRi and other groups compiled a listing of areas in July where Apple will not be complying with the DMA. “We expect the Commission to address these areas in due course,” Penfrat told AFP.

Sensational tests

As the major critic of the DMA, Apple is a thorn within the side of the EU. The DMA allegedly endangers the safety of users.

The iPhone maker was the primary company to be officially accused of violating DMA rules in June and faces heavy fines if it doesn’t reply to the allegations.

Apple announced changes to the App Store on August 8 to comply with the DMA, despite smaller tech corporations within the Coalition for App Fairness criticizing them as “confusing.” The EU is currently reviewing Apple’s plans.

It is just too early to say whether Apple will give in without the EU’s heavy hand, but one thing is obvious: Brussels is prepared for a fight.

Another much-watched test of the bloc’s latest powers can be “X”: As early as September, regulators are expected to come to a decision whether the previous Twitter ought to be forced to comply with the DMA.

The DSA’s rules aimed toward curbing disinformation and hate speech have already sparked a spectacular clash between X’s billionaire owner Elon Musk and the bloc’s digital chief Thierry Breton. If violations proceed, the web site could face fines and even an outright EU ban.

Full speed ahead

EU Competition Commissioner Margrethe Vestager said Brussels was working “at full speed”.

The aim has at all times been to cut back the duration of competition investigations, which lasted for years, to a maximum of 12 months under the DMA.

However, corporations can challenge fines or decisions in EU courts, which lawyers say could end in years of legal battles.

And difficulties can come from elsewhere too: Apple announced in June that it might delay the launch of latest AI features in Europe attributable to “regulatory uncertainties.”

EDRi’s Penfrat accused Apple of scaremongering by blaming the EU for not including certain features within the bloc with the intention to “put pressure on the Commission not to be too strict in enforcement.”

Pressure build-up

Apart from Apple, the most important technology corporations should not satisfied with the DMA motion up to now.

“Instead of announcing possible punitive measures with political posturing, these investigations under the DMA should focus on promoting an open dialogue between the European Commission and the companies concerned,” Daniel Friedlaender, head of the tech lobby group CCIA Europe, told AFP.

Brussels continues to extend the pressure.

In addition to possible latest DMA restrictions on X, the EU may soon add Telegram to its list of “very large” platforms like WhatsApp which might be subject to the DSA’s strictest rules.

Brussels wants no corner of the digital sphere to stay untouched.

This includes the essential area of ​​artificial intelligence. The EU is currently examining deals between large corporations and developers of generative AI, resembling Microsoft and its $13 billion merger with ChatGPT maker OpenAI.

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