The View from Brussels #210

Highlights from the Past Week

CW 18 / Monday, 2 to Thursday, 5 May: Plenary Sessions Week (Strasbourg);

ARTIFICIAL INTELLIGENCE I – FRANCE WITH NEW PROPOSALS FOR THE COUNCIL: The French Presidency of the EU Council has made a series of proposals (PDF) regarding the enforcement of the EU’s Artificial Intelligence Act, which include significant changes to the sanction regime, the timeline, the delegated powers, and confidentiality requirements.

The article concerning penalties has been changed to take into account the size of companies. The highest fines have been limited to unlawful use of prohibited practices, such as social scoring or manipulative algorithms. A new paragraph has also been added stating that the sanctions imposed by the market surveillance authority must be subject to appropriate procedural safeguards that include judicial remedies.

The deadline for the application of the regulation has been extended from two to three years to give businesses more time to adapt. But the Member States are also being granted more time to set up the relevant national authorities. The reviews of Annexes I and III have been extended to take place over a two-year instead of a one-year period.

Confidentiality requirements, originally intended to apply only to notified bodies, have been extended to all parties involved in enforcement, including the Commission and national authorities. The powers given to the Commission have also been significantly reduced, as they have to be renewed every five years and are subject to the veto of the EU Parliament and Council. (see Euractiv)

ARTIFICIAL INTELLIGENCE II – EP ENDORSES AIDA REPORT: Meanwhile, without any amendments and with a clear majority, the European Parliament last week adopted the recommendations (report, PDF) previously adopted at the end of March by the Special Committee on Artificial Intelligence (AIDA). (see EP press release)

Rapporteur Axel Voss (EPP) welcomed the work which has been achieved, but also expressed regret that the Parliament had not been “bolder or even more revolutionary”, pointing to third countries that he sees as being more targeted when it comes to research and investment, as well as being far more flexible. (see Contexte, paywall, FR)

COMMON CHARGERS – EP ENDORSES REPORT: The Internal Market Committee (IMCO) adopted its position on the revised Radio Equipment Directive on 20 April. Last week, this mandate was formally endorsed and negotiations with EU governments on the final shape of the legislation can now begin. (see EP press release)

ONLINE POLITICAL ADVERTISING – FRANCE WITH A FIRST PROPOSAL: In the first compromise proposal (PDF) put forth by the French Presidency of the EU Council on the regulation of political advertising, the time limit for notifications of political ads in the month before an election are to be reduced to 48 hours. Among the changes introduced in the text is a shortening of the timeframe for processing these notifications and responding to them by providing the requested information. (see Euractiv)

DATA ACT – EDPB AND EDPS CALL FOR GUARANTEES: In a joint opinion (PDF), the European Data Protection Board (EDPB) and the European Data Protection Supervisor (EDPS) have criticised the right of access for public authorities in the proposed Data Act. They are “deeply concerned” about such a right for national and EU public authorities. The legitimacy, necessity and adequacy of the obligation to make data available to these authorities in case of “exceptional” needs is called into question.

The two bodies call for the introduction of additional safeguards to ensure that fundamental rights to privacy and the protection of personal data are not compromised by the legislation, and stress in particular the need to ensure that access to data between businesses and public authorities (business-to-government, B2G) takes place in a lawful and proportionate manner.

DSA – LATEST 4–COLUMN DOCUMENT: As shown in the 4-column document of 25 April (PDF), which has been published by Politico Pro (paywall), since the endorsement of the Digital Services Act, the Council and Parliament have been working on bridging the final legal divides.

DMA – COREPER CONFIRMATION POSTPONED: Due to Covid-19 infections having affected the Permanent Representatives Committee, last Friday’s meeting and thus also the confirmation of the Digital Market Act in its consolidated version (PDF) had to initially be postponed by one week.

In the European Parliament’s Internal Market Committee (IMCO), meanwhile, the vote is expected for the coming session on 16 and 17 May.

UK – DMA AS A MODEL: The government of the United Kingdom announced on Friday that it would introduce legal reforms to competition in digital markets. According to the announcement, this is intended to counter the dominance of the largest corporations.

The joint text of the responsible Secretaries of State N. Dorries (Digital) and K. Kwarteng (Business, Energy and Industry) claims that what is required is a regime which is “more flexible and targeted” than other emerging international regulatory solutions.

With the reform, the Competition and Markets Authority (CMA) is to receive further powers. Especially in the case of mergers and acquisitions, companies that have a so-called strategic market status in one or more markets should have to inform the CMA on an earlier and more extensive basis. In the case of infringements, the CMA will be allowed to impose fines of up to 10 percent of the worldwide annual turnover. (see Table Europe, paywall)

TELECOM INFRASTRUCTURE – COMMISSION SEEKS COST CONTRIBUTION: The European Commission is set to present a legislative initiative before the end of the year aimed at having content-heavy platforms contribute to the costs of telecom networks.

Internal Market Commissioner Thierry Breton made this announcement in an interview with the French newspaper Les Echos last week, adding that the Commission has been working on an initiative for one year, and it will be presented before the end of 2022. (see Euractiv)

Relevant Publications, including from the EP Think Tank:

Plenary round-up – May I 2022 (At a Glance)
Pegasus and surveillance spyware (In-Depth Analysis)
Esports – Background Analysis (Study)
IPR and the use of open data and data sharing initiatives by public and private actors (Study)
Roaming Regulation review (Briefing)

Outlook for the Current Week

You can find a list of the upcoming dates of the European Parliament here. The meeting calendar for 2022 can be found here (PDF). A meeting of the Pegasus Inquiry Committee will also be held on Tuesday.

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 fortnight is available here, while an indicative calendar of meetings of the French Presidency Council can be found here (PDF).

Included among these dates are:

Summits and Ministerial Meetings:

EU-Japan Summit, 12 May 2022;

Preparatory Bodies:

Working Party on Telecommunications and Information Society (incl. AI), Tuesday, 10 May;
Horizontal Working Party on Cyber Issues, Tuesday, 10 May and Friday, 13 May;
Working Party on Information Exchange and Data Protection (DAPIX), Wednesday, 11 May;
Working Party on Competitiveness and Growth (Industry), Thursday, 12 May;
Horizontal Working Party on Enhancing Resilience and Countering Hybrid Threats, Thursday, 12 May;
Working Party on Consumer Protection and Information, Thursday, 12 May;
High-Level Working Party on Tax Questions (incl. minimal tax), Thursday, 12 May;
Working Party on Cooperation in Criminal Matters (COPEN), Thursday, 12 May, and Friday, 13 May;
COREPER I ( common chargers), Wednesday 11 and Friday, 13 May;
COREPER II, Wednesday, 11 and Friday, 13 May;

Information on 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 legislative proposal against child abuse (most recently postponed again from 27 April to 11 May) and the Media Freedom Act (29 June).

The following topics are on the agenda for the coming week:

Financial package
- DEBRA – Debt Equity Bias Reduction Allowance
- Distance Marketing of Consumer Financial Services – Review of EU rules
Child rights package
- European strategy for a better Internet for children
- Legislation to effectively tackle child sexual abuse

You can find the judicial calendar of the ECJ here. The oral hearing on the aggregation of user data from different sources will take place on Tuesday (C-252/21).

On Thursday, 12 and Friday, 13 May, a conference will be held at the Council of Europe on the occasion of the opening for signature of the 2nd Additional Protocol to the Budapest Convention on Cybercrime.

European Parliament Committees

CW 19 / Monday, 9 to Thursday, 12 May: Committee Meetings Week (Brussels);

LIBE Committee (EP)

Current Meetings

11 May 2022, 9.00-12.00 and 13.45-15.45 (Brussels)
12 May 2022, 9.00-12.00 and 13.45-15.45 (Brussels)

Excerpt from the Draft Agenda

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11 May 2022, 9.00 – 10.10

Jointly with Committee on Internal Market and Consumer Protection

Harmonised rules on Artificial Intelligence (Artificial Intelligence Act) and amending certain Union Legislative Acts

CJ40/9/07994

***I 2021/0106(COD) COM(2021)0206 – C9-0146/2021

Rapporteurs:
	Brando Benifei (S&D) Dragoş Tudorache (Renew)		PR – PE731.563v01-00
Responsible:
	IMCO, LIBE*
Opinions:
	ENVI	Susana Solís Pérez (Renew)	AD – PE699.056v02-00 AM – PE704.585v01-00
	ITRE*	Eva Maydell (PPE)	PA – PE719.801v01-00 AM – PE719.802v01-00 AM – PE730.106v01-00
	TRAN	Josianne Cutajar (S&D)	PA – PE730.085v01-00 AM – PE731.743v01-00
	CULT*	Marcel Kolaja (Verts/ALE)	PA – PE719.637v01-00 AM – PE730.175v01-00
	JURI*	Axel Voss (PPE)	PA – PE719.827v01-00 AM – PE730.042v01-00 AM – PE730.041v01-00 AM – PE730.031v01-00

Consideration of draft report
Deadline for tabling amendments:18 May 2022, 12.00

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11 May 2022, 14.15 – 15.45

Exchange of views with the Vice-President for Values and Transparency, Věra Jourová, in the framework of the Structured Dialogue

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