Europe, European Commission, Government, Politics, Society, Technology, United States

The EU must lay down the law on big tech

DIGITAL MARKETS

Intro: Donald Trump’s administration is seeking to bully its way to the deregulation of US digital giants. In the interests of EU citizens, these attempts must be resisted

HENNA VIRKKUNEN, the European Union’s most senior official on digital policy, has fired a broadside when she said: “We are very committed to our rules when it comes to the digital world”. Such sentiments bring with it the near certainty of a future confrontation with Elon Musk. Ms Virkkunen , who is the EU vice-president responsible for tech sovereignty, also added that: “We want to make sure that our digital environment … is fair and it’s safe and it’s also democratic.”

In recent days, these words were followed by deeds. In the first sanctions handed down since the establishment of the EU’s Digital Markets Act, the European Commission fined Apple Euros500m and Meta Euros200m, after finding them guilty of unfair business practices that exploited their entrenched online “gatekeeper” position. Apple, for example, was judged to have unfairly restricted developers from distributing apps outside its own App Store, where it takes a cut from sales.

Are we to perceive these fines as being a form of tough action or nothing more than tokenism? It is safe to say these fines will not overly concern either company’s accountants. Apple’s revenue last year was Euros344bn. There are also indications that, in other areas, Brussels may be seeking to dial down tensions with the US tech giants as it seeks to avoid a full-on trade war with Washington.

A separate investigation into X (formerly Twitter) under the auspices of the Digital Services Act – which deals with content moderation – found it in preliminary breach of EU rules, following Mr Musk’s takeover in 2022. No fine has yet been issued. Meanwhile there are growing fears that EU regulations on artificial intelligence, intended to reduce the risk of disinformation and political manipulation, are in danger of being diluted under pressure from the Trump administration.

Given the current volatility of transatlantic relations, it is understandable that a degree of cautious restraint is needed. But US bullying of Brussels over its regulation of big tech on behalf of EU citizens must be robustly resisted. Trump’s senior adviser for trade and manufacturing, Peter Navarro, has mischaracterised European digital regulation as a non-tariff barrier and form of “lawfare” against American companies. The reality, though, is more mundane: US market dominance means its tech giants will inevitably be the most affected by efforts to govern a space that is now part of the architecture of everyday life.

That task, vital to maintaining a healthy public sphere, should be kept distinct from fraught trade negotiations with the White House. Easier said than done perhaps, given the US President’s all-embracing mercantilism. Nonetheless, EU politicians – and British ones – must not be intimidated into an ill-judged deregulatory path with potentially damaging implications for democracy.

These fines might have been financially small given the size of the revenues they generate but they do at least represent a necessary statement of intent. Alongside its investigation into X, the commission has inquiries ongoing into TikTok and Meta, also relating to content moderation. MEPs are now calling for those too to be pushed to a conclusion.

This may be the acid test. The US vice-president, JD Vance, has made it clear that the White House intends to act as the political wing of US big tech, and has compared European attempts to combat online disinformation and illegal content to Soviet-era censorship. Ms Verkkunen should remain adamant and stick to her guns – and ignore the flak flying from Washington.

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Britain, Government, Intelligence, National Security, United States

US spying programmes are being used by British spies to snoop on UK email accounts…

COVERT INTELLIGENCE GATHERING ON UK CITIZENS

British spies and intelligence agents have had access to a US government programme that monitors the web activity of millions of Britons.

Secret documents published suggest the US National Security Agency (NSA) has direct access to data held by internet giants including Microsoft, Google, Yahoo, Facebook, YouTube, Skype and Apple.

The documents – which appear to be slides from a training presentation for intelligence agents – suggest the agency can access email, photographs, social network information, chat records and other ‘stored data’ held by the companies, as part of its ‘Prism’ project.

They also suggest that the British government’s listening centre, GCHQ, has had access to the system since at least June 2010. During this period the project generated nearly 200 intelligence reports. It is unclear whether other agencies, such as MI5 and MI6, were also involved, meaning the true extent of the snooping could be higher.

A spokesperson for GCHQ said:

… We do not comment on intelligence matters… (but) our work is carried out in accordance with strict legal and policy framework.

Privacy campaigners warned that the revelations suggested the creation of a ‘Snooper’s Charter by the back door’. They come after a proposed plan to pay internet companies to collate user data from UK computers was dropped only last month in face of opposition from Conservative backbenchers and Liberal Democrats.

Labour has called on David Cameron to come clean to MPs on the extent of Britain’s role. Yvette Cooper MP, Shadow Home Secretary, said:

… In light of these reports, the Prime Minster should brief the Intelligence and Security Committee (ISC) on what ministers know and should ask the ISC to report on the UK’s relationship with the Prism programme, the nature of intelligence being gathered, the extent of UK oversight by ministers and others, and the level of safeguards and compliance with the law.

The Guardian, a London based newspaper, said it has obtained slides from a whistleblowing intelligence officer worried about invasions of privacy.

Reports by the newspaper and The Washington Post suggested the FBI and the NSA can tap directly into the central servers of nine leading internet companies.

But a number of them, including Google, Apple, Yahoo and Facebook denied that the government had “direct access” to their servers.

Microsoft said it does not voluntarily participate in any government data collection and only complies ‘with orders for requests about specific accounts or identifiers’.

Yet one slide appears to be a timeline of when the companies began to participate in Prism, starting with Microsoft in September 2007 and ending with Apple in October 2012.

According to the reports, Prism was established under President George W Bush in 2007 and has grown ‘exponentially’ under President Obama.

The Director of US National Intelligence said that the law ensures that only ‘non-US persons outside the US are targeted’, raising the likelihood that Britons are among those captured in its net.

Revelations about the snooping programme follow separate reports about the NSA being allowed to collect all telephone user data from Verizon, one of the largest telephone firms in the US, for three months.

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