Ref. Ares(2022)6608030 - 26/09/2022
Response
x The
EU sanctions target the core of the Kremlin’s disinformation and war propaganda
machine in the EU, namely the RT (Russia Today) channels and Sputnik. Our priority is
the fast and effective implementation of the adopted sanctions on this ‘core’ of the
propaganda machine with EU-wide relevance.
x As a result, the reach of targeted RT channels and Sputnik in the EU is now extremely
limited. The most relevant, traditional means of distribution, in particular by EU satellite
providers (Eutelsat and Astra), are tackled and the access to related websites has been
dramatically reduced. However, the implementation of the sanctions with regard to the
Internet has its challenges.
x We remain in close exchanges with Member States and national regulatory authorities to
ensure that the sanctions are properly implemented.
x We have proposed further three outlets in our latest 6th package of sanctions – still to be
adopted by the Council.
x Due to their role in spreading disinformation, we aim to strengthen the
transparency and
accountability obligations of platforms.
x We are in close contact with you and other main platforms, Google, Meta, Microsoft,
TikTok and Twitter, who are signatories of the Code of Practice on Disinformation.
x All online platforms have quickly suspended the transmission of Russia Today and
Sputnik in the EU, and have taken further action.
x The information provided to the Commission shows that, in recent weeks, they have
strengthened their monitoring and intervention tools related to the situation in Ukraine,
including the following:
De-prioritising or removing of proven disinformation content and closing of accounts
that are persistently disseminating such content.
Depriving players who spread disinformation related to the war of funding, and in
particular avoiding any ‘ad’ placements on and by Russian state affiliated media.
Increasing the cooperation with fact-checkers and labelling of state affiliated sources.
Promoting authoritative content.
x The current extraordinary situation demands extraordinary and decisive action. It shows
the importance that platforms deliver a strong revised
Code of Practice on
Disinformation as soon as possible. The Commission is involved in helping this process
along.
x I thank you Microsoft for its engagement (
You may ask how
sees the process going
and when
expects finalisation).
x We have also asked the
European Digital Media Observatory to focus its activities on
Ukraine. In addition to this Observatory’s fact-checking and investigating activities, its
Ukraine task-force also supports researchers in the attempt to get access to online
platforms’ datasets which are essential to understand disinformation spreaders and tactics
in the current context.
x They also produce – at our request – weekly insights into disinformation narratives and
trends related to Ukraine. The newest one reports 2 new trends: discrediting media
reporting on Ukraine and false information on foreign support for Ukraine.
x Finally, I welcomed report by the
INGE Committee, whose approach and holistic nature is
very much aligned with our EDAP that we are rolling out – next with the EMFA.
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x The Commission will have the exclusive competence for the designation of very large
online platforms (VLOPs) and the enforcement of systemic obligations against them. The
Commission will be able to charge VLOPs an annual supervisory fee, its amount will be
capped to 0.05% of the worldwide net income of platforms.
Political ads
x As you know, the framework to our response to threats to democracy is EDAP.
x On 25 November 2021 we adopted a package of legislative and other measures to
reinforce democracy and protect the integrity of elections. It includes soft measures to
support cooperation on resilient elections and a flagship initiative on political advertising.
x We are grateful for
Microsoft’s input in the preparation of these initiatives, and would
kindly invite you to continue to engage with us in this regard.
x
People must know why they are seeing a political ad, who paid for it, how much and
what targeting criteria were used. New technologies should be tools for emancipation, not
for manipulation, and the online platforms must help us make this happen.
x Our proposal will introduce
common rules for political advertising services across all
media, to provide legal certainty for service providers, to promote accountability in the use
of political ads and discourage bad practices and interference, and to empower citizens.
The proposal protects freedom of expression, does not regulate the content of advertising,
and is without prejudice to national electoral rules.
x We will work with industry and other stakeholders to ensure that the
labelling
requirements and transparency notice are effective, improving awareness and offering
useful information for citizens, supporting the roles of interested entities and authorities in
the democratic process. We have included
safeguards to protect commercial interests,
privacy and to minimise administrative burden, in particular for SMEs.
x The proposal complements and is articulated with the
Digital Services Act (DSA) and the
existing data protection acquis. It addresses the specific problems associated with the
processing of personal data to target and amplify political advertising in a balanced
way, which ensure that explicit consent and the targeting necessary to support political
participation can continue.
x We have
worked with Microsoft in the context of our initiatives. The political ads
proposal articulates with the DSA, the aims of the code of practice on disinformation, and
work should advance on both in tandem.
x There is a
substantial role to be played by Microsoft, other large platforms and their
associations in making our legislating work to provide accessible, usable transparency
with political advertising, and to contribute to the success of our policies more broadly, to
support free and fair elections and resilient democratic processes in the EU.
x We look to you to go that extra mile to support our world leading legislation and our
initiatives combating disinformation.
Privacy Shield
x On 25 March, President von der Leyen and President Biden announced an agreement in
principle for a transatlantic data transfer framework to replace the Privacy Shield.
x This is an important step, but the work continues.
x We now need to translate the agreement into legal texts.
x As a first step, the US commitments have to be included in a new Executive Order to be
adopted by the US President and implementing regulations.
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Background and more extensive LTTs on selected issues
EDAP and political ads
Main messages
x Our political ads initiative is based on a
broad definition of political advertising, to
cover messages sponsored by political actors in a traditional sense, but also those
sponsored by other actors, which are liable to influence the outcome of a democratic
process.
x It is essential that we include such ‘issues ads’, which are used increasingly inside and
outside electoral periods, and to ensure that high
transparency and strengthened
personal data protections apply to them.
x In our proposal, we aim to ensure that this
broad definition is based on objective
factors, which can be determined using information available to service providers. We
have provided a process where most political ads will be identified by their sponsors, and
we will support compliance, including through standards and codes of practice.
x The focus of the definition is obviously to cover political advertising, and while some
commercial adverts
might overlap with this or pursue a dual aim, where commercial
advertisers use advertising which is liable to influence the outcome of democratic
processes, they should do so transparently.
x The same goes for
fund-raising and informational advertising, as used by civil society
actors, for instance. They are not the focus of the definition or the obligations, which we
impose on service providers. But advertising liable to influence the outcome of an election
should be transparent, and individual rights should be protected.
x We will work with industry and other stakeholders to ensure that the
labelling
requirements and transparency notice are effective, improving awareness and offering
useful information for citizens, supporting the roles of interested entities and authorities in
the democratic process, while being implemented through streamlined and automated
processes. We have included
safeguards to protect commercial interests, privacy and to
minimise administrative burden, in particular for SMEs.
x The proposal complements and is articulated with the
Digital Services Act (DSA)
proposal and the existing data protection acquis. It addresses the specific problems
associated with the
processing of personal data to target and amplify political
advertising in a balanced way, which ensure that explicit consent and the targeting
necessary to support political participation can continue.
x The mechanisms and processes proposed to implement these obligations are compatible
with the existing and upcoming acquis, and oversight is ensure through existing
frameworks, which will contribute to
certainty for market actors.
x We are working to support the
European co-legislators in its negotiations. We have
valued your substantive input throughout this process and we welcome your willingness to
continue to engage.
x We have
worked with Microsoft in the context of our initiatives. The political ads
proposal articulates with the DSA, the aims of the code of practice on disinformation, and
work should advance on both in tandem.
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x There is a
substantial role to be played by Microsoft, other large platforms and their
associations in making our legislating work to provide accessible, usable transparency
with political advertising, and to contribute to the success of our policies more broadly, to
support free and fair elections and resilient democratic processes in the EU.
x The Commission has also adopted on 27 April 2022 a strong package to address strategic
lawsuits against journalists and human rights defenders engaged in public participation
(SLAPP). It is essential that journalists and human rights defenders are afforded the
necessary space including to counter disinformation and other manipulative interference
in the democratic debate.
x Delivering on the Commission’s European Democracy Action Plan, a joint mechanism on
election resilience is offered as of this year to Member States as a capacity-building tool to
support the exchange of expertise in areas such as disinformation, cybersecurity, and
online forensics. Member States can use the mechanism to build their capacity to fight
illegal interference, discover covert political funding or ensure effective implementation of
their electoral rules online.
x The Commission also intends to deliver in the coming year a compendium on e-voting
practices, as announced in the Democracy Action Plan.
x We look to you to go that extra mile to support our world leading legislation and our
initiatives combating disinformation.
Defensives
What is the current timeline for the Code?
x Disinformation related to the war in Ukraine illustrates the threats and challenges that this
phenomenon poses to our societies. It reinforces the case for establishing a strong
framework to fight disinformation.
x The Code’s signatories are currently heavily involved in taking urgent action related to the
aggression of the Russian federation against Ukraine. They indicated that they will need
additional time to finalise the Code’s revision.
x Adjusting the timeline of the Code is therefore not only justified but also useful to
strengthen the commitments of the future Code
x The Commission expects that lessons learned on Ukraine war-related disinformation are
reflected in a revised and future proof Code.
x The Commission would expect a Code before the summer, ideally in May.
What is the Commission’s view on the European Parliament’s proposed ban on
targeted advertising (displayed by online platforms) based on special categories of
personal data and personal data of minors to be included in the DSA?
x GDPR has already limit if not de facto bans using sensitive data, but I think there is a lot of
legal creativity in how digital ad sector approaches this. So, I think it is a good idea to try
to close this loophole wit the DSA. We tried to do the same with the political ads, but in a
way much closer to the GDPR. Let’s see the final text of the DSA first, but I believe such
sensitive data should not be used for advertising purposes, especially in a political
context.
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What does the Commission understand by political advertising?
x Sponsored political content (‘political advertising’) is often regulated nationally, and there
are a number of definitions which can include issues-based and partisan adverts, and
certain other kinds of commercial communication during a defined electoral or campaign
period.
x Online platforms have also established their own approaches to such advertising, which
do not necessarily align with any relevant national definitions.
x An aim of the political advertising initiative will be to harmonise the definitions, as well as
the relevant transparency obligations. Narrower and broader options are envisaged.
Will the political ads proposal stop Russia and its proxies disseminating political
advertising in the EU?
x The proposed regulation will introduce a high standard of transparency to political
advertising circulated in the internal market, including from outside the Union.
x It will also introduce stricter rules about how such advertising is disseminated.
x It is based on a broad definition of political advertising which covers both adverts bought
be political actors and those acting on their behalf, as well as many “issues ads” where
those are liable to influence a democratic process.
x The proposal does not affect national competence to establish rules on the content of
political advertising, and its availability, including prohibitions, but these provisions at EU
level will make it easier to monitor and enforce such rules, as well as discouraging
manipulative techniques, such as those using sensitive personal data.
Who is covered by the new rules? Ad companies, like Google Ads, but what about
bloggers and newspapers? Does this regulation also cover private persons or only
political parties and foundations?
x The requirements concerning the transparency of political advertising established by the
new rules will apply to the providers of political advertising services.
x This includes all services consisting of the preparation, placement, promotion, publication
or dissemination, by any means, of a message by, for or on behalf of a political actor,
unless it is of a purely private or a purely commercial nature; or which is liable to influence
the outcome of an election or referendum, a legislative or regulatory process or voting
behaviour.
x This would include newspapers and other traditional media such as radio and television
when they are publishing political advertising, but also bloggers and influencers when they
are paid to present political messages. It would also cover, for instance, new websites
which provide paid-for content which meets the new definition.
x This could also include, for instance, Google when it provides political ads through its
search services, or Facebook when it displays political ads to its users.
x However, the rules about the transparency of advertising will not be engaged in the
context of online intermediary services which are provided without consideration for the
placement, publication or dissemination of a specific message, unless the user has been
remunerated by a third party for the political advertisement.
x This means that individual’s personal social media posts will not fall under the definition of
political advertising, unless they have been paid to make political posts.
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The French Presidency presented on 3 May a compromise text on
chapters I-III that was discussed at GAG in 17 May.
As regards the Parliament, a first presentation of the new Regulation on transparency and
targeting took place in the IMCO committee on 10 January. Members’ comments were
generally supportive, though the Left and Greens called for stricter controls for targeting.
Questions focused on the scope of definitions, the articulation with the DSA and the extent to
which third country actors are addressed. EP has resolved the issue of competence on the
file so that IMCO is in lead, LIBE has exclusive competence on some provisions and shared
competence for the relevant provisions and CULT has shared competence on some
provisions. IMCO rapporteur is MEP Sandro Gozi (Renew, FR).
Microsoft political advertising policies
x Advertising for election related content including election canvassing and election polls,
political parties, candidates, and ballot measures is not allowed.
x Fundraising for political candidates, parties, PACs, and ballot measures is not allowed.
x Advertising that exploits political agendas, sensitive political issues or uses “hot button”
political issues or names of prominent politicians is not allowed regardless of whether the
advertiser has a political agenda.
x Use of political figures past or present cannot be linked in text or images to political
content, products, sensationalized messaging, hot button issues, or as a way to link
historical topics to current issues/events. For example, an ad with the headline “Lowest to
Highest Presidential IQs, ranked” with an image of a political figure would not be allowed.
x Use of political figures past or present cannot be linked in text or images to political
content, products, sensationalized messaging, hot button issues, or as a way to link
historical topics to current issues/events. For example, an ad with the headline “Lowest to
Highest Presidential IQs, ranked” with an image of a political figure would not be allowed.
x Use of political figures past or present cannot be linked in text or images to political
content, products, sensationalized messaging, hot button issues, or as a way to link
historical topics to current issues/events. For example, an ad with the headline “Lowest to
Highest Presidential IQs, ranked” with an image of a political figure would not be allowed.
x In 2020 it removed 20 million ads and 10,000 sites over its political advertising policy.
IAB contribution to the European democracy action plan
IAB Europe to which Microsoft is a member provided responses in the consultation process
when preparing the European democracy action plan and then when preparing the proposal
on political advertising. IAB Europe has also contributed a position paper in the post-adoption
process, which asks for changes in the scope & definitions proposed (incl. of ‘political
advertising’ and ‘political actor’), the transparency requirements, targeting provisions (incl.
alignment with the GDPR) and enforcement.
IAB Europe is the European-level association for the digital marketing and advertising
ecosystem. Through its membership of national IABs and media, technology and marketing
companies, its mission is to lead political representation and promote industry collaboration
to deliver frameworks, standards and industry programmes that enable business to thrive in
the European market.
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Digital Services Act
Main messages
x The Digital Services Act will include a single set of horizontal rules on the content
moderation practices of online platforms, in particular the removal of illegal content, and
their interaction with freedom of speech and a healthy, well-informed public debate.
x In this way, the Digital Services Act will be a gold standard that ensures transparency and
accountability of the online space, enforced by effective democratic oversight across
Member States, and by the Commission.
x The Digital Services Act takes an asymmetric approach, to ensure that very large online
platforms and search engines (45 million EU users) which have become ‘public spaces’ of
expression are open and fair. The Digital Services Act requires more from these platforms
concerning the organisation and design of their systems: they will need to assess, and
address risks their systems pose to freedom of expression and other fundamental rights.
x This includes equipping citizens to understand and interact with the information they see
online, and giving them rights where currently they are at the discretion of private actors –
in particular the large online platforms. This includes measures related to online
advertising, recommender systems, but also core content moderation processes and
ensuring users are appropriately informed.
x The DSA aims at facilitating cross-border enforcement of the specific DSA obligations
through a structured system of public supervision, based on independent authorities in the
country-of-origin principle and tools for cooperation cross-border and at EU level.
x The DSA also includes specific obligations for marketplaces to ensure a better traceability
and accountability of their sellers (e.g. Know Your Business Customers (KYBC) rules) as
well as the products sold on their platforms (compliance-by-design, random checks,
notices of the illegality of former purchases).
x The DSA prohibits online platforms from presenting advertisements to children based on
profiling, as well as advertisements to any user based on profiling using special categories
of personal data (e.g. personal data revealing racial or ethnic origin, data concerning
health, etc.).
x We are monitoring the situation in Ukraine very closely. We have the dual objective of
effectively limiting Russian war propaganda in the EU, while allowing access to
trustworthy information to reach Ukrainian and Russidan audiences.
x The DSA contains a range of measures that are useful in a crisis like the one we are in
today. It contains a dedicated risk management framework to counter, among others, also
risks related to intentional manipulation of the service, supported by comprehensive
transparency and accountability tools that will shed greater light on the dynamics of
information operations and allow the design of adequate response and mitigation
measures.
The DSA’s crisis response mechanisms can essentially be seen as a faster trigger for
the risk assessment and risk mitigation protocols previously included in the DSA, to
make sure that these protocols are conducted in an ad hoc manner during specific
crises.
Having a clear mechanism in place will ensure that the crisis response is balanced,
proportionate and efficient. It will also allow platforms to hold the Commission
accountable for the measures that it might require from them.
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Trade and technology council
Main messages
x In January 2022, we presented the Digital Decade Principles defining our vision of how
the digital economy should abide by values such as democracy, privacy, solidarity,
freedom of choice, and security.
x Our digital ambitions are high, from setting rules for online platforms, to upholding the
highest standards of data protection and ensuring a fair taxation of the digital economy.
x Digital topics are an important part of the EU-US transatlantic dialogue. The Russian
aggression against Ukraine acutely demonstrates the need, or even obligation, for
democratic countries to provide an alternative vision of the world, based on our values.
x Creating strategic partnerships with likeminded nations provides a positive narrative and
shows that digital can be to the service of people, not used to control them.
x After a period of difficult relations with US, setting up the TTC is an achievement in itself, a
closer trans-Atlantic cooperation is re-established.
x We have regular dialogues within the ten working groups, made up of key staff,
addressing a wide range of topics, as defined in the Joint Statement from Pittsburgh.
x As you know, on Monday there was a second TTC meeting at ministerial level, where
there were a number of good results.
TTC discussions on Standards
x In the meeting there was agreement to establish a Strategic Standardisation Information
(SSI) mechanism to defend common interests in international standardisation activities.
And we will continue work to foster the development of aligned and interoperable technical
standards in areas such as AI or Internet of Things.
TTC discussions on AI
x We strive for new ambitious global norms, AI-related international standardisation
initiatives and cooperation frameworks, in line with the rules-based multilateral system and
the values it upholds.
x More generally, through bilateral and multilateral efforts the EU aims to ensure a global
level playing field for trustworthy and ethical use of AI. It seeks to be an active player in
promoting good governance of AI globally.
x As digitalisation spreads through the globe, a closer transatlantic cooperation can provide
the foundation for a new set of global digital rules aimed at balancing free markets and
personal liberties.
x Yesterday, there was agreement with the US to develop a joint roadmap on evaluation
and measurement tools for trustworthy AI and risk management
TTC discussions on cybersecurity
x The protection of supply chains, notably ICT, is key, for both the EU and the US. We
share the objective of making them (cyber)secure and resilient. This topic falls under TTC
Working Group 4 on ICT Security & Competitiveness.
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