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Tag: european union law

  • Large US tech companies face new EU rules | CNN Business

    Large US tech companies face new EU rules | CNN Business

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    CNN
     — 

    The world’s largest tech companies must comply with a sweeping new European law starting Friday that affects everything from social media moderation to targeted advertising and counterfeit goods in e-commerce — with possible ripple effects for the rest of the world.

    The unprecedented EU measures for online platforms will apply to companies including Amazon, Apple, Google, Meta, Microsoft, Snapchat and TikTok, among many others, reflecting one of the most comprehensive and ambitious efforts by policymakers anywhere to regulate tech giants through legislation. It could lead to fines for some companies and to changes in software affecting consumers.

    The rules seek to address some of the most serious concerns that critics of large tech platforms have raised in recent years, including the spread of misinformation and disinformation; possible harms to mental health, particularly for young people; rabbit holes of algorithmically recommended content and a lack of transparency; and the spread of illegal or fake products on virtual marketplaces.

    Although the European Union’s Digital Services Act (DSA) passed last year, companies have had until now to prepare for its enforcement. Friday marks the arrival of a key compliance deadline — after which tech platforms with more than 45 million EU users will have to meet the obligations laid out in the law.

    The EU also says the law intends “to establish a level playing field to foster innovation, growth and competitiveness both in the European Single Market and globally.” The action reinforces Europe’s position as a leader in checking the power of large US tech companies.

    For all platforms, not just the largest ones, the DSA bans data-driven targeted advertising aimed at children, as well as targeted ads to all internet users based on protected characteristics such as political affiliation, sexual orientation and ethnicity. The restrictions apply to all kinds of online ads, including commercial advertising, political advertising and issue advertising. (Some platforms had already in recent years rolled out restrictions on targeted advertising based on protected characteristics.)

    The law bans so-called “dark patterns,” or the use of subtle design cues that may be intended to nudge consumers toward giving up their personal data or making other decisions that a company might prefer. An example of a dark pattern commonly cited by consumer groups is when a company tries to persuade a user to opt into tracking by highlighting an acceptance button with bright colors, while simultaneously downplaying the option to opt out by minimizing that choice’s font size or placement.

    The law also requires all online platforms to offer ways for users to report illegal content and products and for them to appeal content moderation decisions. And it requires companies to spell out their terms of service in an accessible manner.

    For the largest platforms, the law goes further. Companies designated as Very Large Online Platforms or Very Large Online Search Engines will be required to undertake independent risk assessments focused on, for example, how bad actors might try to manipulate their platforms, or use them to interfere with elections or to violate human rights — and companies must act to mitigate those risks. And they will have to set up repositories of the ads they’ve run and allow the public to inspect them.

    Just a handful of companies are considered very large platforms under the law. But the list finalized in April includes the most powerful tech companies in the world, and, for those firms, violations can be expensive. The DSA permits EU officials to issue fines worth up to 6% of a very large platform’s global annual revenue. That could mean billions in fines for a company as large as Meta, which last year reported more than $116 billion in revenue.

    Companies have spent months preparing for the deadline. As recently as this month, TikTok rolled out a tool for reporting illegal content and said it would give EU users specific explanations when their content is removed. It also said it would stop showing ads to teens in Europe based on the data the company has collected on them, all to comply with the DSA rules.

    “We’ve been supportive of the objectives of the DSA and the creation of a regulatory regime in Europe that minimizes harm,” said Nick Clegg, Meta’s president of global affairs and a former deputy prime minister of the UK, in a statement Tuesday. He said Meta assembled a 1,000-person team to prepare for DSA requirements. He outlined several efforts by the company including limits on what data advertisers can see on teens ages 13 to 17 who use Facebook and Instagram. He said advertisers can no longer target the teens based on their activity on those platforms. “Age and location is now the only information about teens that advertisers can use to show them ads,” he said.

    In a statement, a Microsoft spokesperson told CNN the DSA deadline “is an important milestone in the fight against illegal content online. We are mindful of our heightened responsibilities in the EU as a major technology company and continue to work with the European Commission on meeting the requirements of the DSA.”

    Snapchat parent Snap told CNN that it is working closely with the European Commission to ensure the company is compliant with the new law. Snap has appointed several dedicated compliance employees to monitor whether it is living up to its obligations, the company said, and has already implemented several safeguards.

    And Apple said in a statement that the DSA’s goals “align with Apple’s goals to protect consumers from illegal and harmful content. We are working to implement the requirements of the DSA with user privacy and security as our continued North Star.”

    Google and Pinterest told CNN they have also been working closely with the European Commission.

    “We share the DSA’s goals of making the internet even more safe, transparent and accountable, while making sure that European users, creators and businesses continue to enjoy the benefits of the web,” a Google spokesperson said.

    A Pinterest spokesperson said the company would “continue to engage with the European Commission on the implementation of the DSA to ensure a smooth transition into the new legal framework.” The spokesperson added: “The wellbeing, safety and privacy of our users is a priority and we will continue to build on our efforts.”

    Many companies should be able to comply with the law, given their existing policies, teams and monitoring tools, according to Robert Grosvenor, a London-based managing director at the consulting firm Alvarez & Marsal. “Europe’s largest online service providers are not starting from ground zero,” Grosvenor said. But, he added: “Whether they are ready to become a highly regulated sector is another matter.”

    EU officials have signaled they will be scrutinizing companies for violations. Earlier this summer, European officials performed preemptive “stress tests” of X, the company formerly known as Twitter, as well as Meta and TikTok to determine the companies’ readiness for the DSA.

    For much of the year, EU Commissioner Thierry Breton has been publicly reminding X of its coming obligations as the company has backslid on some of its content moderation practices. Even as Breton concluded that X was taking its stress test seriously in June, the company had just lost a top content moderation official and had withdrawn from a voluntary EU commitment on disinformation that European officials had said would be part of any evaluation of a platform’s compliance with the DSA.

    X told CNN ahead of Friday’s deadline that it was on track to comply with the new law.

    Analysts anticipate that the EU will be watching even more closely after the deadline — and some hope that the rules will either encourage tech platforms to replicate their practices in the EU voluntarily around the world or else drive policymakers to adopt similar measures.

    “We hope that these new laws will inspire other jurisdictions to act because these are, after all, global companies which apply many of the same practices worldwide,” said Agustin Reyna, head of legal and economic affairs at BEUC, a European consumer advocacy group. “Europe got the ball rolling, but we need other jurisdictions to win the match against tech giants.”

    Already, Amazon has sought to challenge the very large platform label in court, arguing that the DSA’s requirements are geared toward ad-based online speech platforms, that Amazon is a retail platform and that none of its direct rivals in Europe have likewise been labeled, despite being larger than Amazon within individual EU countries.

    The legal fights could present the first major test of the DSA’s durability in the face of Big Tech’s enormous resources. Amazon told CNN that it plans to comply with the EU General Court’s decision, either way.

    “Amazon shares the goal of the European Commission to create a safe, predictable and trusted online environment, and we invest significantly in protecting our store from bad actors, illegal content, and in creating a trustworthy shopping experience,” an Amazon spokesperson said. “We have built on this strong foundation for DSA compliance.”

    TikTok did not immediately respond to a request for comment on this story.

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  • EU officials warn TikTok over Israel-Hamas disinformation | CNN Business

    EU officials warn TikTok over Israel-Hamas disinformation | CNN Business

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    CNN
     — 

    EU officials warned TikTok Thursday about “illegal content and disinformation” on its platform linked to the war between Hamas and Israel, calling for CEO Shou Zi Chew to respond within 24 hours.

    In a letter to Chew, European Commissioner Thierry Breton said failure to comply with European Union laws around content moderation could result in penalties.

    It is the third such letter Breton has sent to large social media platforms this week, after he sent similar warnings to X, the platform formerly known as Twitter, and Meta.

    In August, a recently passed EU law known as the Digital Services Act went into effect for large online platforms including the companies Breton addressed this week. The law sets out specific obligations for social media companies to protect user privacy and safety.

    Since the war began, Breton wrote, TikTok has reportedly spread graphic videos and misleading content on the platform.

    “I therefore invite you to urgently step up your efforts and ensure your systems are effective, and report on the crisis measures taken to my team,” Breton wrote in the letter, which he shared on X.

    TikTok didn’t immediately respond to a request for comment.

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  • EU and UK strike new deal over post-Brexit trade rules in Northern Ireland | CNN

    EU and UK strike new deal over post-Brexit trade rules in Northern Ireland | CNN

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    London
    CNN
     — 

    Britain and the European Union have reached an agreement on new trade rules in Northern Ireland in an attempt to resolve a thorny issue that has fueled post-Brexit tensions in Europe and on the island of Ireland.

    The deal could potentially resolve the issue of imports and border checks in Northern Ireland, one of the most challenging and controversial aspects of the United Kingdom’s split from the EU. Northern Ireland is part of the UK but shares a land border with the Republic of Ireland, an EU member state.

    Speaking at a press conference in Windsor, just outside London, Prime Minister Rishi Sunak said that the new deal, called the “Windsor Framework,” will deliver “smooth flowing trade” within the UK, “protects Northern Ireland’s place” in the UK and “safeguards” the sovereignty of Northern Ireland.

    European Commission President Ursula von der Leyen acknowledged the tense relations between the UK and EU since Brexit. She said that in order for the two parties to “make the most of our partnership” new solutions were needed. She pointed to the UK and EU’s cooperation on Ukraine and said that “we needed to listen to each others concerns very carefully.”

    The purpose of the deal is to fix the issues created by the Northern Ireland Protocol, an addendum to the Brexit deal agreed by Boris Johnson and the EU in 2019. The protocol was created to prevent a hard border on the island of Ireland by keeping Northern Ireland aligned with the EU, meaning goods don’t need to be checked between the Republic and the province. The Windsor Framework will replace the Northern Ireland Protocol.

    The two leaders laid out three essential areas in which the new deal will improve the protocol.

    Sunak said the deal will protect the flow of free trade between Great Britain and Northern Ireland by creating green and red lanes for goods flowing into Northern Ireland. Goods that might end up entering the Republic of Ireland will be placed in the red lane for checks before entering Northern Ireland.

    Goods destined to remain in Northern Ireland will flow freely, Sunak said, meaning that “if food is available on supermarket shelves in Great Britain, it will be available in Northern Ireland.” New rules affecting different goods – like product labeling – will be phased in at different times to make the implementation of the framework as smooth as possible.

    The prime minister said that through the deal the UK and the EU have managed to protect “Northern Ireland’s place in the union” by allowing the UK government to determine VAT rates applicable in Northern Ireland, as opposed to the current system where the rates are determined by the EU. He said this would allow recent policies, such as the reform to lower the price of pints in British pubs, to now apply in Northern Ireland. 

    Finally, he also announced a new “Stormont brake” that would allow Northern Ireland’s devolved government to pull an “emergency brake” on any new EU laws from being imposed on the province.

    “This will establish a clear process through which the democratically elected assembly can pull an emergency brake for changes to EU goods, rules that would have significant and lasting effect on everyday lives,” Sunak said. 

    He added that if the brake is pulled by the Northern Irish government, the Westminster government will be given a veto over the law. 

    The Stormont brake is likely to be the most controversial part of the deal as it raises questions over the imposition of EU law on a sovereign country. While the brake makes use of an old mechanism that exists in the Belfast Agreement, a peace deal signed in 1998 that brought peace to Northern Ireland, there is inevitably confusion about how the brake will be used.

    If the Northern Ireland government pulls the brake but the British government doesn’t use its veto, there will be tension between Westminster and Northern Ireland. If one party in the Northern Irish government wants to use the brake but another doesn’t (Northern Ireland’s government must be made up of politicians from both the Unionist and Republican communities) the government in Westminster might have to effectively pick a side.

    UK government officials implied in briefings on Monday that there is a certain degree of flexibility in what will happen in these circumstances. It’s clear from the noises both in London and Brussels that the deal has been negotiated in a way that assumes good faith – something that seemed impossible just a few months ago.

    The announcement of the deal will also raise questions about the future of British politics. Boris Johnson, the former Prime Minister, has spent recent weeks arguing that Sunak should not drop the Northern Ireland Protocol Bill, legislation Johnson brought forward during his mandate that allowed the British government to effectively ignore parts of the Northern Ireland Protocol.

    Both Sunak and von der Leyen have made clear that this bill is now dead – possibly taking with it the political career of Johnson.

    Von der Leyen arrived in the UK Monday for final talks with Sunak, ahead of a statement about the deal in the House of Commons. On Von der Leyen’s schedule was also tea with King Charles III at Windsor Castle, Buckingham Palace confirmed.

    Now that a deal is done, Sunak faces a potential political backlash from hardline Euroskeptics in his Conservative Party, though many prominent Brexiteers have given the deal their blessing.

    Von der Leyen’s meeting with the King has proved controversial. “The King is pleased to meet any world leader if they are visiting Britain and it is the Government’s advice that he should do so,” the Palace said when it announced the sit-down.

    According to a royal source, the meeting would be an opportunity for Charles to discuss topics including the war in Ukraine and climate change.

    But it was criticized by some prominent unionist figures. “I cannot quite believe that No 10 would ask HM the King to become involved in the finalising of a deal as controversial as this one,” former Northern Ireland First Minister Arlene Foster wrote in a tweet. “It’s crass and will go down very badly in NI.”

    The Northern Ireland Protocol, signed with Brussels by Boris Johnson, attempted to recognize the delicate situation that Brexit created in Northern Ireland.

    Ordinarily, the existence of a border between an EU member state and a non-EU nation like the UK would require infrastructure such as customs posts. But during the period of sectarian strife known as the Troubles, security posts along the border between Northern Ireland and the Republic of Ireland became a target for paramilitary groups fighting for a united Ireland.

    In theory, the Northern Ireland Protocol was intended to do away with the need for border infrastructure. It was agreed that Northern Ireland would remain within the EU’s regulatory sphere, and that goods entering Northern Ireland from Great Britain would be checked before they arrived – effectively imposing a sea border.

    That enraged the pro-British unionist community in Northern Ireland, who argued they were being cut off from the rest of the UK and forced closer to the Republic. Disputes about the arrangements, in part, have been a barrier to the restoration of the Northern Ireland Assembly, which has been suspended since 2017. The sharing of power between unionists and republicans is a key part of the Good Friday Agreement – the peace deal that marked the end of the Troubles.

    The wrangling has also affected trade between Great Britain and Northern Ireland to the extent that the UK has not fully implemented the protocol.

    Without question the biggest issue in Northern Ireland at the moment is that it doesn’t have a government. The Belfast Agreement requires that Northern Ireland’s government is comprised of representatives from the the Unionist and Republican communities.

    Disagreements over many things, including the protocol, caused the government to collapse, with the Democratic Unionist Party (the largest Unionist party) feeling cut off from the rest of the UK due to being in the EU’s regulatory sphere and subject to new EU law.

    While this deal does make things less complicated and addresses the issue of EU laws being imposed, there will still be less friction between Northern Ireland and the Republic of Ireland than Northern Ireland and Great Britain.

    It’s also worth noting that the Stormont Brake can only work if there is a government, which could through stick rather than carrot finally restore the government in Belfast.

    That depends on who you ask. Since the UK left the EU’s regulatory spare, trade between the two has been hampered. That has impacted all manner of businesses – from delays meaning retailers are unable to import fresh food in time to exporters giving up doing business in Europe due to it being too expensive.

    The Bank of England has said that Brexit has made inflation worse for the UK and has discouraged inward investment.

    Brexiteers, however, are quick to dismiss complaints about the economics of Brexit as being part of larger structural problems, like the war in Ukraine and the recovery from the Covid pandemic.

    It’s worth noting that this deal only fixes the specific issues surrounding the unique status of Northern Ireland, but doesn’t change anything for the rest of the UK.

    The EU is very happy. Brussels largely wants to stop thinking about Brexit, which has slipped quite a long way down its priority list since 2020.

    Sunak will be happy for now. Prominent Brexiteers have given their approval to the deal, which was likely to be his biggest problem at home. Things might unravel as lawmakers examine the deal in closer detail, but the potential of a Conservative rebellion was the biggest risk to Sunak’s premiership taking a critical hit.

    European officials are vaguely amused that the UK is still arguing about Brexit and privately point out that the UK hasn’t been able to implement its own deal – a sign that the balance of power lies firmly in Brussels. Still, the quickest way to get a European diplomat’s blood boiling is by asking a question about Brexit.

    That said, this deal really has been negotiated in good faith. The flexibility the EU has shown and willingness to leave certain legal issues vague shows a dramatic improvement in trust.

    The US president has said repeatedly that his priority is protecting the Belfast Agreement. This deal in theory means that the risk of a hard border between Northern Ireland and the Republic of Ireland is off the cards for a while. However, that doesn’t mean tensions will evaporate, especially if the Unionist community feels hard done by.

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  • Twitter must comply with Europe’s platform rules, EU digital chief warns Musk in virtual meeting | CNN Business

    Twitter must comply with Europe’s platform rules, EU digital chief warns Musk in virtual meeting | CNN Business

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    Washington
    CNN Business
     — 

    A top European Union official warned Twitter owner Elon Musk on Wednesday that the social media platform must take significant steps to comply with EU content moderation laws, and that European officials will be monitoring closely for compliance.

    Twitter has “huge work ahead” to meet its obligations under the Digital Services Act, Europe’s new platform regulation, said Thierry Breton, the EU’s digital chief, in a readout of his meeting with Musk.

    “Twitter will have to implement transparent user policies, significantly reinforce content moderation and protect freedom of speech, tackle disinformation with resolve, and limit targeted advertising,” Breton said in a statement. “All of this requires sufficient AI and human resources, both in volumes and skills. I look forward to progress in all these areas and we will come to assess Twitter’s readiness on site.”

    During Wednesday’s meeting, Musk agreed to let EU officials “stress test” the social media platform for compliance with the DSA early next year, Breton added. The testing, which will be performed at Twitter’s headquarters in early 2023, will provide ample opportunity for Twitter to make changes in order to meet any legal deadlines and to prepare for an independent audit of the company’s practices, Breton’s office added.

    The DSA, which went into effect this month, lays out new rules on how the tech industry handles misinformation and illegal content on social media, as well as illegal goods and services on online marketplaces. The biggest companies that violate the law could face billions in fines.

    The meeting between Breton and Musk follows an earlier discussion the two had in May in which Musk expressed support for the European regulations.

    In a blog post Wednesday, Twitter said none of its policies have changed since Musk took over the company, and that its trust and safety team “remains strong and well-resourced, and automated detection plays an increasingly important role in eliminating abuse.” Content that violates Twitter’s rules, it added, will be demoted on the platform.

    Since his purchase of Twitter, however, Musk has restored numerous accounts suspended for earlier violations of Twitter’s rules, including that of former President Donald Trump, and relaxed enforcement of Twitter’s terms, including by ending enforcement of Twitter’s Covid-19 misinformation policies.

    In addition to EU scrutiny, Musk’s Twitter could also face additional pressure at home. At a conference on Wednesday, Treasury Secretary Janet Yellen said she “misspoke” when she previously said she sees “no basis” to investigate Musk’s acquisition of Twitter, which included financing from a Saudi prince. Yellen added that it could be appropriate for the Committee on Foreign Investment in the United States (CFIUS) to review Musk’s Twitter takeover.

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  • EU formally adopts law requiring Apple to support USB-C chargers | CNN Business

    EU formally adopts law requiring Apple to support USB-C chargers | CNN Business

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    Washington
    CNN Business
     — 

    A landmark law requiring Apple and other electronics makers to adopt USB-C as a universal charging standard in the European Union has cleared its final procedural hurdle, after EU member states voted to approve the legislation on Monday.

    The new law, which is targeted at smartphones, tablets, digital cameras, portable speakers and a wide array of other small devices, is the first of its kind anywhere in the world. It aims to streamline the number of chargers and cables consumers must contend with when they purchase a new device, and to allow users to mix and match devices and chargers, even if they were produced by different manufacturers.

    Apple could be among the most affected by the legislation. The iPhone maker has historically required users to charge its mobile devices using a proprietary charging connector known as Lightning; under the new rules, Apple would be forced to migrate away from Lightning in its devices sold in the EU. That change, which Apple is reportedly testing for iPhones, could potentially extend to devices Apple sells in other markets as well.

    The EU law must still be signed by the presidents of the EU parliament and European Council, according to a release, but those are considered formalities. Earlier this month, the legislation received final approval from EU lawmakers.

    In addition to covering new, small electronics going on the market at the end of 2024, the rules will also extend to larger electronics such as laptops beginning in 2026. It will also commit European officials to streamlining standards for wireless charging, a technology that is only just becoming more widespread.

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  • TikTok ‘stress test’ shows it’s not ‘fully ready’ for looming EU social media rules, commissioner says | CNN Business

    TikTok ‘stress test’ shows it’s not ‘fully ready’ for looming EU social media rules, commissioner says | CNN Business

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    Washington
    CNN
     — 

    TikTok has “more work” to do to meet tough new European standards that are coming for social media and content moderation, according to a top EU official who performed a “stress test” of the company this week.

    The report by EU Commissioner Thierry Breton comes ahead of a looming Aug. 25 deadline for platforms such as TikTok to comply with the Digital Services Act (DSA) — a package of regulations aimed at battling misinformation, potential privacy abuses and illegal content, among other things.

    European Commission staff conducted the TikTok test on Monday at the company’s Dublin offices, according to a statement from the commissioner, and Breton outlined the results of the voluntary inspection to CEO Shou Chew on Tuesday.

    “TikTok is dedicating significant resources to compliance,” Breton said, pointing to changes TikTok has made to its recommendation algorithms and its transparency procedures as evidence the company appears to be taking its obligations seriously.

    But, he added, the test results also showed “more work is needed to be fully ready for the compliance deadline.”

    “Now it is time to accelerate to be fully compliant,” Breton said, indicating that officials will be revisiting at the end of the summer whether TikTok has closed the gap.

    TikTok didn’t immediately respond to a request for comment on the test results.

    TikTok isn’t the only large tech platform to submit to an EU stress test. Last month, European officials evaluated Twitter’s platform for DSA compliance and also announced plans to stress test Facebook-parent Meta’s services.

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