Highlights from the Past Week

CW 4 / Monday, 24 to Thursday, 27 January: Mini Plenary Sessions (Brussels);

DIGITAL MARKETS ACT – NEGOTIATIONS CONTINUE: Last week, A. Schwab reported on the negotiations in the Internal Market Committee. He noted that there was a good atmosphere, but that no details had been negotiated thus far. He appealed for confidence in the technical talks and promised that arguments for all points would occur an equally high level. (video)

The next, second political trilogue is already scheduled for 3 February, according to an overview from 24 January (PDF) published by Contexte (paywall, FR). According to this, the adoption of the rules is to be accomplished on 24 March. A third trilogue is scheduled for 1 March. What was also published was the latest 4-column document from 27 January (PDF).

A range of compromises have been proposed so far as part of the ongoing technical meetings on the Digital Markets Act, with this reported on by Politico Pro (paywall) from the latest four-column document, dated 27 January. These include a technical agreement on the calculation methodology for determining monthly active end-users and yearly active business users, as formulated in the EU Council text. There was also a draft agreement on a method for determining gatekeepers when they do not meet all quantitative criteria. In this context, the Parliament’s mandate was endorsed and, as part of the assessment, the Commission is to review all planned mergers involving another provider of core platform services or of other services provided in the digital sector.

As Politico Pro goes on to report, the Parliament’s endeavour to compel gatekeepers to comply with the prohibitions and obligations of Articles 5 and 6 “as soon as possible” may however suffer a setback, as negotiators have provisionally agreed on a timeframe of four to six months after a core platform service is included in the notification decision. With regard to reporting obligations, the Council has succeeded in convincing negotiators of the need for gatekeepers to submit a report to the Commission in which they transparently and in detail describe the measures they have taken to ensure compliance with the obligations under Articles 5 and 6.

DISINFORMATION I – SPECIAL COMMITTEE CONCLUDES INQUIRY: The 18-month inquiry by the Special Committee on Foreign Interference (INGE) ended last week and the final recommendations were adopted (draft report, amendments – PDF).

According to the MEPs, the European general public as well as government officials are “overwhelmingly” lacking in awarenesss of the extent of the threat posed by foreign autocratic regimes, especially Russia and China. Inadequate defence, as well as loopholes in legislation and insufficient coordination between EU countries, exacerbate the situation.

As counteraction, the special committee’s recommendations include training and information campaigns, a sanctions regime against disinformation, and stricter rules for social media platforms. Cybersecurity must also be urgently improved and surveillance software banned. (see EP press release)

DISINFORMATION II – PLATFORMS PRESENT REPORTS: Facebook has removed a disinformation network of anti-vaccination activists in recent weeks, Twitter has revised its labelling of misleading tweets about Covid-19 and vaccines, and Google has updated searches on Covid-19 vaccination in all 27 countries. These examples can be found in the reports submitted by the online platforms Google, Facebook, Microsoft, TikTok and Twitter in November and December 2021. The online platforms are signatories to the Code of Practice on Disinformation and regularly report on actions taken against false and misleading information related to Covid-19.

The next reports will follow in March, by which time the signatories should have presented the new, strengthened code, which Commissioner V. Jourová expects “to tackle the existing weaknesses, including by treating all languages in a rigorous way.” (see EP daily news)

OECD – WAVERING OF TAX AGREEMENT: Last October, the agreement on the rewrite of the global tax rules was officially announced. But both parts of the agreement (the first pillar, which requires tax revenues above a certain threshold to be paid in the countries where they operate, and the second pillar, which sets a minimum global tax rate of 15 percent for companies) seem to be under serious pressure. The goal was to sign or approve the agreement by the end of 2023. However, as Politico reports, amid tensions on both sides of the Atlantic which are unpicking the years-long work to secure the approval of more than 130 countries, the deadline is looking increasingly unlikely.

On Pillar One, it’s the US Senate that represents the biggest barrier. While the US Treasury Department believes that the agreement can be passed without having to alter the US tax treaties, the Republicans see it differently. In addition, the mid-term elections (midterms) are coming up, which may shift the balance of power in Congress. And concerns of an economic disadvantage for the USA are also growing.

On Pillar Two, it’s the Europeans who are causing a stir. Hungary, Estonia and Poland have indicated that they will not support a global minimum tax rate for companies until the entire global deal (read: Pillar One) has been approved – in order to prevent the US from reneging on its commitments.

ARTIFICIAL INTELLIGENCE I – NEGOTIATIONS BEGIN IN THE EU PARLIAMENT: After a months-long competence dispute blocked the start of negotiations on the AI Act in the European Parliament, the two lead committees (Internal Market and Consumer Protection Committee – IMCO, and the Civil Liberties, Justice and Home Affairs Committee – LIBE) held a first joint debate last week. For more than two hours, Roberto Viola (Director General, DG Connect) was confronted with MEPs’ questions and concerns about the draft act. (video)

In his opening speech, IMCO rapporteur B. Benifei (S&D, IT) praised the basic principles of the Commission proposal, but criticised it for containing too many exemptions for automated real-time facial recognition in public spaces. He feared an abuse of the exemption regulations.

Benifei also criticised the regulations on the conformity assessment of AI applications, which stipulate that an assessment by third parties only has to be carried out for those high-risk AI systems that are connected to products (i.e., that are security components of products or that constitute a product in their own right). For all other AI applications, including high-risk applications that may pose major risks to fundamental rights, manufacturers can thus carry out the conformity assessment themselves.

In the case of the GDPR and the Product Safety Directive, a conscious decision was made against these self-certifications in order to prevent unsafe products from entering the Single Market. “The text therefore currently does not go far enough to give citizens sufficient security,” said Benifei. “Self-certification is not an easy matter,” Viola countered. Manufacturers would be liable for it and users would be entitled to compensation.

A first hearing with experts and scientists is scheduled for 16 March. Benifei and LIBE rapporteur D. Tudorache (Renew, RO) plan to complete work on their joint report by 5 April. The vote on the report is scheduled for 29 September.

ARTIFICIAL INTELLIGENCE II – US LAUNCHES AI COMMISSION: The US Chamber of Commerce has established an Artificial Intelligence Commission on Competition, Inclusion, and Innovation to address how the US should use and regulate artificial intelligence to expand its leadership in AI technology. This Commission is similar to the EU High Level Expert Group on AI, which has played an important role in shaping the EU’s approach to AI policy. (see US Chamber of Commerce press release)

The Commission is seeking public comments (PDF) by 18 February on questions concerning the definitions of artificial intelligence.

The AI Commission is chaired by former Democratic Congressman John Delaney and Republican Congressman Mike Ferguson. The Commission is made up of a mix of academics and representatives from technology companies.

COMMON CHARGER – COUNCIL ADOPTS POSITION: In September, the EU Commission presented a draft legislation for a common standard port for all smartphones, tablets, digital cameras, headphones, portable speakers and video game consoles.

Last week, the Member States agreed on a negotiating mandate for the common charger proposal (see Council press release). As soon as the Parliament confirms its position, the trilogue negotiations can begin. However, this is not expected until after mid-April.

DIGITAL SERVICES ACT – TRILOGUE TALKS BEGIN: After the first technical talks, the political trilogue talks on the DSA will start this Monday. Politico Pro (paywall) has published the 4-column document in advance (PDF, 100MB).

According to the preparatory document (PDF), in its first meeting with the Council, the Parliament’s negotiating team wants to discuss points on dark patterns, consumer compensation rights and a ban of targeted advertising based on sensitive data. Danish S&D MEP Christel Schaldemose has also proposed to focus during the trilogue talks on traceability of retailers on online marketplaces, recommendation algorithms, and exemptions of small and medium-sized enterprises from some of the content moderation rules.

The internal document also confirms the timetable for the negotiations, with four political trilogues scheduled for 31 January, 15 February, 15 March and the week starting 4 April. (see also Euractiv)

POLITICAL ADVERTISING – CULT AND LIBE COMMITTEES SEEK INVOLVEMENT: The coordinators of the Culture Committee have chosen to challenge the sole responsibility of the Internal Market Committee (IMCO) for the regulation on political advertising and to request linked responsibility (under Article 58) for the dossier.

The Committee on Civil Liberties, Justice and Home Affairs (LIBE) also wants to be involved in the work of IMCO (under Article 57), and to take on the sole responsibility for data protection.

Contexe (paywall, FR) cites S. Veheyen (Chair of the CULT Committee): “A regulation concerning content has nothing to do with the Internal Market. Especially since we already have regulation of advertising as such.” It is her belief that a joint CULT and LIBE report would make the most sense.

The conflict regarding responsibilites will be discussed at the next Conference of Committee Chairs meeting in the course of February.

ROAM LIKE AT HOME – ITRE CONFIRMS TRILOGUE AGREEMENT: The Industry Committee last week clearly confirmed the deal reached in the negotiations with the Council on the Roaming Regulation (69/0/6). The plenary vote is scheduled for 23-24 March. (see EP press release)

GERMANY – HIGH COURT OF JUSTICE RESTRICTS REAL NAME OBLIGATION: In two rulings on 27 January (III ZR 3/21; III ZR 4/21), the German Federal High Court of Justice (BGH) negated the obligation in certain cases to use a real name when using a social network. As such, the use of a pseudonym must be possible under certain circumstances. An unconditional obligation to use a real name for users of social networks is considered to constitute an unreasonable disadvantage and to therefore be unlawful. (see BGH press release – DE)

The General Data Protection Regulation did not apply in the proceedings, as it only became applicable at a later stage.

GERMANY – TIKTOK MAKES A STAND AGAINST NETWORK ENFORCEMENT ACT: As reported by “Der Spiegel” last week, TikTok is taking legal action against submitting masses of user data to the German Federal Criminal Police Office (BKA). According to information from Der Spiegel, the company is filing a lawsuit against part of the Network Enforcement Act and is thus going the same way as YouTube and Meta did before. The German Federal Criminal Police Office (BKA) is actually due to start its work on this on 1 February. (see Der Spiegel – DE)

Relevant Publications, including from the EP Think Tank:

• Main Results of the General Affairs Council, 25 January 2022
• Roaming Regulation review (Briefing)
• Digital transformation – Cost of Non-Europe (Study)
• Understanding EU data protection policy (Briefing)
• How to stress-test EU policies – Building a more resilient Europe for tomorrow (Study)

Outlook for the Coming Week

You can find a list of the upcoming dates of the European Parliament here. The provisional meeting calendar for 2022 can be found here (PDF).

An overview of the most important dates of the Council week can be found here, the meeting calendar is accessible here, and the list of the main topics for the coming 14 days is available here, while an indicative calendar of meetings of the French Presidency Council can be found here (PDF).

Included among these dates are:

Summit and Ministry Meetings:

• Informal Meeting of Ministers for Industry and for the Internal Market, Monday, 31 January and Tuesday, 1 February;
• Informal Meeting of Justice and Home Affairs Ministers, Thursday, 3 and Friday, 4 February;

Preparatory Bodies:

• Working Party on Tax Questions (Indirect Taxation) (incl. VAT in E-Commerce), Monday, 31 January;
• Working Party on Cooperation in Criminal Matters (COPEN – E-Evidence), Monday, 31 January;
• Audiovisual Working Party, Monday, 31 January;
• Horizontal Working Party on Cyber Issues (incl. NIS2), Tuesday, 1 February and Friday, 4 February;
• Working Party on Telecommunications and Information Society (incl. Path to the Digital Decade and European Declaration on Digital Rights and Principles for the Digital Decade), Tuesday, 1 February;
• Data Protection Working Group, Wednesday, 2 February;
• Working Party on Competitiveness and Growth (incl. Fit for 55), Thursday, 3 February;
• Working Party on Cooperation in Criminal Matters (COPEN), Thursday, 3 February;
• Working Party on Tax Questions (Direct Taxation) (incl. Global Minimum Tax), Friday, 4 February;
• Working Party on Competitiveness and Growth (Internal Market), Friday, 4 February;
• COREPER I (incl. DSA), Wednesday, 2 February;
• COREPER II, Wednesday, 2 February and Friday, 4 February;

Information about the weekly Commission meeting can be found in the preview (PDF) or (at short notice) in the current agenda. Topics of particular relevance include the Data Act (23 February), the legislative proposal against child abuse (2 March) or the Media Freedom Act (29 June). Internal Market Commissioner Breton recently underlined the hope of being able to present the Chips Act as early as the beginning of 2022.

The following topic is on the agenda for the coming week:

• Standardisation Strategy

You can find the judicial calendar of the ECJ here.

 

European Parliament Committees

CW 5 / Monday, 31 January to Thursday, 3 February: Committee Meetings Week (Brussels);

LIBE Committee (EP)

Current Meetings

• Monday, 31 January 2022, 15.45-18.45 (Brussels)
• Tuesday, 1 February 2022, 9.00-12.00 and 13.45-15.45 (Brussels)

Excerpt from the Draft Agenda

31 January 2022, 15.45 – 16.45

…

4. Authorising Member States to ratify, in the interest of the European Union, the Second Additional Protocol to the Convention on Cybercrime on enhanced co-operation and disclosure of electronic evidence

LIBE/9/07837

* 2021/0383(NLE) COM(2021)0719

 

Rapporteur:
	Birgit Sippel (S&D)
Responsible:
	LIBE

• Exchange of views with Commission representatives

31 January 2022, 16.45 – 17.45

5. French Presidency of the Council of the European Union, 2022

LIBE/9/08191

• Presentation by Eric Dupond-Moretti, Minister of Justice of the French Republic

31 January 2022, 17.45 – 18.45

6. French Presidency of the Council of the European Union, 2022

LIBE/9/08191

• Presentation by Clement Beaune, Secretary of State for European Affairs of the French Republic

…

1 February 2022, 14.45 – 15.45

12. Exchange of views on the impact on fundamental rights of the Pegasus spyware

LIBE/9/07716

• Exchange of views

…

Further Meetings (Calendar)

• Monday, 7 February 2022, 15.45-18.45 (Brussels)

JURI Committee (EP)

Current Meetings

• None

Further Meetings

• Thursday, 10 February 2022, 9.00-12.00 and 16.45-18.45 (Brussels)
• Monday, 28 February 2022, 13.45-15.45 (Brussels)

Dossiers Timetable (24 January 2022)

 

ITRE Committee (EP)

Current Meetings

• Wednesday, 2 February 2022, 9.00-12.00, 13.45-15.45 and 16.45-18.45 (Brussels)
• Thursday, 3 February 2022, 9.00-12.00 (Brussels)

Excerpt from the Draft Agenda

…

2 February 2022, 14.00 – 16.00

8. Exchange of views with Ms Kadri Simson, Commissioner for Energy, on energy prices in the EU
9. Presentation by Ms Kadri Simson, Commissioner for Energy, of the new EU framework to decarbonise gas markets, promote hydrogen and reduce methane emissions and the revision of the Energy Performance of Buildings Directive (Fit for 55 package)

…

3 February 2022, 9.00 – 12.00

12. Public Hearing on the European Digital Identity Wallet and Trust Services

ITRE/9/07670

• (see separate draft agenda)

* * *

13. Presentation of a Study on the Cost of Non-Europe of Digital Transformation

…

Further Meetings (Calendar)

• Thursday, 3 March 2022, 9.00-12.00 (Brussels)

Dossiers Timetable (27 January 2022)

 

IMCO Committee (EP)

Current Meetings

• Monday, 7 February 2022, 14.00-17.00 (Brussels)

Excerpt from the Draft Agenda

The current agenda is not yet available.

Further Meetings (Calendar)

• Monday, 28 February 2022, 13.45-16.15 and 16.45-18.45 (Brussels)

Dossiers Timetable (January 2022)

 

CULT Committee (EP)

Current Meetings

• Tuesday, 1 February 2022, 9.00-11.00 (alongside ITRE, Brussels)

Excerpt from the Draft Agenda

From the perspective of the Internet industry, there are no topics of relevance on the current draft agenda.

Further Meetings (Calendar)

• Monday, 7 February 2022, 13.45-15.45 and 16.45-18.45 (Brussels)

AIDA Committee (EP) – Special Committee on Artificial Intelligence in a Digital Age

Current Meetings

• None

Further Meetings (Calendar)

• Thursday, 10 February 2022, 9.00-12.00 (Brussels)

Preview of the follow-on meeting

For Thursday 10 February 2022, the Special Committee on Artificial Intelligence in the Digital Age has invited the Secretary of State for the Digital Sector of France – Cédric O – to its committee meeting to present the French Presidency priorities in the digital field. In the meeting, AIDA will also discuss the compromise amendments. The rapporteur and the shadow rapporteurs will discuss the outcome of the work that was conducted in the last couple of weeks.

 

INGE (EP) – Special Committee on Foreign Interference in all Democratic Processes in the European Union, including Disinformation

Current Meetings

• Tuesday, 1 February 2022, 9.00-12.00 and 13.45-15.45 (alongside IMCO/SEDA, Brussels)

Excerpt from the Draft Agenda

 

1 February 2022, 9.00 – 10.00

…

In association with the Committee on the Internal Market and Consumer Protection (IMCO)

3. Exchange of views with Maria A. Ressa, The Nobel Peace Prize 2021 laureate, Journalist and Author, Co-founder and CEO of Rappler

1 February 2022, 10.00 – 12.00

4. Exchange of views on foreign interference in the Baltic states

1 February 2022, 13.45 – 15.45

In association with the Subcommittee on Security and Defence (SEDE)

5. Exchange of views with NATO Strategic Communications Centre of Excellence on “Russia’s Strategy in Cyberspace” with Sanda Svetoka, NATO Strategic Communications Centre of Excellence
6. Exchange of views with NATO Strategic Communications Centre of Excellence on “China as a Narrative Challenge for NATO Member States” with Richard Turcsányi, Palacky University Olomouc
7. Exchange of views with NATO Strategic Communications Centre of Excellence on “Emerging issues in the digital domain: what threats we should look out for and how malicious actors modify their strategy” with:Jānis Sārts, Director of NATO Strategic Communications Centre of Excellence
   Nika Aleksejeva, NATO Strategic Communications Centre of Excellence
   Gundars Bergmanis-Korats, NATO Strategic Communications Centre of Excellence
   Sanda Svetoka, NATO Strategic Communications Centre of Excellence

…

Further Meetings (Calendar)

• Open

Further Scheduled Parliamentary Calendar Dates

• CW 6 / Monday, 7 to Thursday, 10 February: Political Group and Committee Meetings Week (Brussels);
• CW 7 / Monday, 14 to Thursday, 17 February: Plenary Sessions Week (Strasbourg);
• CW 8 / Monday, 21 to Thursday, 24 February: Green Week (no meetings);