The world seems a grim place to be in right now. And thus I do not have cheery puns to start this week off. I hope the energy around IT law can represent itself around human rights in the near future.
🤖 Artificial Intelligence
The US saw issue of executive order on safe, secure, and trustworthy AI. The order calls for new standards for AI, including red-team testing and biological synthesis screening, to prevent misuse in areas like cybersecurity and biotechnology. It also seeks to protect Americans from AI-driven fraud and invasions of privacy, proposing bipartisan privacy legislation. Furthermore, the order addresses the potential for AI to exacerbate discrimination and directs the development of best practices to ensure AI’s equitable use across various domains such as housing, employment, and criminal justice. The initiative also considers AI’s impact on the workforce, urging principles to mitigate job displacement and labor disruptions. To maintain U.S. competitive edges in AI, the order encourages innovation and addresses immigration policies for skilled professionals, as well as international collaborations. Bit fairytale-ish?
🎩 Competition
UK’s Competition and Markets Authority (“CMA”) secured commitments from Amazon and Meta, ensuring fair competition on their retail platforms, Amazon Marketplace and Facebook Marketplace, respectively. Amazon’s commitments aim to level the playing field for third-party sellers by ensuring equitable access to the ‘Buy Box’, preventing Amazon from using sellers’ data to its advantage, and allowing sellers to negotiate their own Prime delivery rates. These commitments stem from a July 2022 investigation into Amazon’s potential abuse of dominance. An independent trustee will monitor compliance. Meta’s commitments focus on preventing the misuse of advertising customers’ data, offering advertisers the option to withhold their data from being used to enhance Facebook Marketplace, and restricting Meta’s use of this data in product development. This will curb Meta’s potential for unfair competitive advantage. Naughty corner apologies and promises?
The FTC sued Amazon for illegally maintaining monopoly power. The accusations include that Amazon is maintaining its market dominance through anticompetitive and exclusionary practices. The complaint suggests that Amazon’s strategies prevent competitors from offering lower prices or better quality, effectively stifling competition and innovation. The alleged tactics include punishing sellers for discounting products elsewhere and forcing them to use Amazon’s expensive fulfillment services to gain ‘Prime’ eligibility, resulting in higher fees for sellers and increased prices for consumers. The FTC is seeking a permanent injunction to end these practices, aiming to dismantle Amazon’s monopoly and revive competitive fairness in online retail and marketplace services. So many areas to ensure fairness, so little time.
🔏 Data Protection & Privacy
The EDPB adopted an urgent binding decision on processing of personal data for behavioural advertising by Meta. The decision was prompted by a Norwegian DPA request, emphasizing the need for consistent data protection enforcement throughout the EEA, remember last weeks’ picks? The EDPB’s urgent binding decision requires a processing ban based on contractual necessity and legitimate interest. Meta’s alternative consent-based approach is under review. The EDPB’s prior decisions in December 2022 had already dismissed contract-based data processing for advertising as unsuitable, and Meta had not shown adherence to previous directives. Enter the subscription. 👇
Meta is offering a subscription for no ads in Europe. The Europe vs Mega saga is going strong. This time, Meta has taken it upon themselves to try to adapt (or maybe circumvent? – you decide) to European data protection laws by offering a new subscription model for Facebook and Instagram users in the EU, EEA, and Switzerland. Starting from November, users can opt for an ad-free experience at €9.99 per month on the web or €12.99 on mobile, or continue with the traditional ad-supported version for free. The initiative claims to support Meta’s advocacy for an ad-supported internet while adapting to the CJEU’s guidance on user consent and data use in advertising. Meta seems to have quoted the CJEU judgement in Case C‑252/21, where it was stated (in paragraph 150) that users should have the option to individually decline consent for non-essential data processing when signing up for a social network service and be provided, potentially at a cost, with an equivalent service that does not require this data processing. Frenemies at heart.
The EU and Japan concluded a landmark deal on cross-border data flows at High-Level Economic Dialogue. The deal aims to eliminate data localization requirements, thus reducing costs and complexity for businesses. It aligns with EU privacy standards and is seen as a step against digital protectionism, fostering the free flow of data across borders. Once integrated into the EU-Japan Economic Partnership Agreement, the agreement will provide a predictable legal framework, benefitting sectors from e-commerce to machinery. It reflects a commitment to a rules-based trade system and will influence global data governance. This forms part of the EU’s broader strategy to incorporate digital trade rules in its international agreements, with similar negotiations with other Asian economies underway. The growing EU data economy, expected to triple by 2025, underscores the deal’s economic significance. Pack your bags data?
📄 Recommended Readings
Here’s a couple –in no particular order– of recent publications that piqued my interest this week. Remember to grab a cuppa and settle in for some riveting reading.
The ordoliberal internet? Continuity and change in the EU’s approach to the governance of cyberspace by Benjamin Farrand
Explainable artificial intelligence for assault sentence prediction in New Zealand by Harry Rodger, Andrew Lensen & Marcin Betkier
Disclaimer: I am in no way affiliated with the authors or publishers in sharing these, and do not necessarily agree with the views contained within. I try to include mostly open access publications due to, well you know, accessibility of knowledge and science.
If you have any thoughts or suggestions on how to make this digest more enjoyable, feel free to drop a line. Your feedback is always welcome!
Featured image generated using DALL·E 3.
