Ref. Ares(2020)3580458 - 07/07/2020
DG CONNECT
Discussion with
Facebook,
, moderated by CERRE
Brussels, 18 May 2020
BRIEFING NOTE (Commission Internal)
Scene setter/Context of the meeting:
• You are going to discuss a post Covid-19 world with
. The topic is
what benefits, opportunities and risks online platforms can bring to the society and
industry for the “day after”.
• You last met
on 17 February, when he iterated his call for Regulation, and where
you recalled Facebook’s responsibility towards EU citizens.
• On Covid-19, broadly speaking Facebook, Google, Twitter and other platforms have
been responsive during the crisis.
• They’ve taken action to combat disinformation, taking down illegal content that
could lead to physical harm or undermine public order, demoting content fact-
checked as false or misleading, and limiting ads that promote false products and
services. They have also promoted authoritative information about COVID-19, and
stepped up their partnerships with fact-checkers.
• Your discussion comes days after Facebook announced the set-up of an “Oversight
Board”, for which the first 20 of 40 members have been appointed among high-
profile freedom of expression online advocates.
• The discussion will be moderated by CERRE
, who
also
Expert Group to the Observatory on the Online Platform Economy that
is organised by the Commission.
• There will be high media interest in this event and your statements made.
Objective of the meeting:
• Position the European Commission as the world’s main regulatory authority that can
hold platforms accountable
• Keep political pressure on Facebook to further adjust their practices in the interest of
European society, acknowledging recent progress in their responsibility
1
• Get media coverage for the Digital Services Act package – as the upcoming regulatory
framework that will regulate platforms’ responsibility; and promote the voluntary by
the EU and the platforms together in the interest of society – including the code of
practice
KEY messages
• Welcome Facebook’s reaction to the COVID-19 crisis, and their openness
to regulation as a sign that they know their responsibilities in society
• Voluntary, private actions are important and useful – but we now need
Regulation in the form of the Digital Services Act to frame the
responsibility of companies like Facebook
• Facebook should not be marking its own homework any longer: we need
public oversight and democratic accountability, to protect citizens and
our democracy.
• Facebook’s business model and commercial interest of sel ing advertising
and getting eye bal s may also sometimes be at odds with public interest.
• As a first and immediate step, the area where Facebook needs to do
more now is on giving researchers wide access to data to study their
platforms, especial y on disinformation. News reports that advertisers
have been able to target Facebook users who are interested in
“pseudoscience” for years are very worrying.
• Ultimately, Facebook’s responsibility and accountability needs to be
rooted in a clear legal framework, not just based on its own voluntary
actions. This wil be the aim of the Digital Services Act.
• Regardless of the issue of content moderation, al online platforms need
to pay back to the EU society their fair share as regards the revenues
obtained from operations in the EU. A fair taxation system for platforms
such as Facebook is a priority for this Commission.
2
Sound bites / Media quotes
• Facebook has shown a greater sense of responsibility during this crisis
than in other situations before in the EU. I can only applaud this.
• But Facebook is not off the hook. This is a new beginning, and we need
to see more action, not only the EU, but also in the poorer
neighbourhood.
• We fully agree that Facebook should not be put in a position where it
gets to decide on what people can see and do on its platform. This is a
recognition that public oversight is necessary. Our response is the Digital
Services Act.
• As a first step,
is to embrace openness of their
platforms and give researchers much broader access to data on how
content spreads on their platforms, details of ads and targeting criteria
• We need to be sure that Facebook’s business model and commercial
interest of selling advertising and getting eye bal s by over-extracting
personal data is not at odds with the wider public interest.
• We know these services are free, but there is legitimate concerns about
the hidden costs to society.
• Facebook needs to be more accountable to democratic institutions.
Private “oversight boards” can be seen as smoke screens; instead
Facebook needs to be accountable to public institutions. This wil be one
of the goal of the Digital Services Act. EU citizens expect that their
speech online is governed by the law, not by private standards.
•
, I know Facebook has the resources to deal with multiple laws at
national level, but many smal er platforms cannot. Our aim is to have
one set of rules for the whole of the EU. So greater responsibility should
go together with easier operating conditions across the DSM.
• There is bigger conversation here about disinformation and democracy,
filter bubbles, and the importance of quality journalism. We wil not
accept in Europe that our quality press and media disappears since they
are part of the foundation on which are democratic societies are built.
Social networks must not undermine this.
• You wanted to “move fast and break things”. You almost broke
democracy. In some parts of the world, you contributed to breaking the
society. It’s high time that you realise your responsibility; and we invent
a new legal framework for today and tomorrow.
3
Line to take
Role of large platforms in the society
• Facebook is now a grown-up platform. It has shown that it is starting to
behave like a grown up now.
• We’ve engaged in a lot of self-regulation and demanding them to step up
in their responsibilities vis-à-vis the users and society. Some progress has
been done, and needs to be acknowledged.
• However, it is time for regulate the public space. There is a need for a
clear and framework of rules. It wil benefit citizens and businesses, as
they wil have a clear set of rights, but the platforms themselves, which
wil enjoy a predictable environment to operate in the EU.
• It is crucial that Facebook –and other large platforms- understand that
their activities need to be deeply rooted in the law, and cannot depend
solely on the good faith of unilateral contractual terms.
• This concerns also, in particular, the need for transparency on the way
they moderate and decide on the users’ content, and the need to put in
place measures to protect users from manipulative or simply il egal
practices.
• We welcome some steps taken by Facebook to improve the way content
is moderated. In this sense, the "oversight board” might be a step in the
right direction. But this should not be a smoke screen.
• It is important not to deviate the attention from the fact that law comes
first: EU citizens expect that the decisions on their speech are based on
democratic rules, not on the private company's Terms of Service and
private interests. Real "oversight" should be in the hands of democratic
institutions.
• The Commission is going to propose, under the Digital Services Act, a set
of rules to ensure that online content is subject to legal standards, as
much as offline content. Digital services can be provided for the benefit
of the citizen, not at their cost. This wil set a new standard for consumer
protection and consumer choice – as wel as safeguarding diversity and
fair competition.
4
Platforms acting as gatekeepers
• Today few large digital platforms are able to control increasingly
important ecosystems, due to significant economies of scale and scope in
the digital economy.
• Traditional businesses are becoming increasingly dependent on these
large digital platforms – now more than ever during the COVID-19 crisis.
• Facebook is an enormous gatekeeper for market access – and this
requires Facebook to be fair, open, and transparent. This wil help help
contestable for innovators, businesses, and new market entrants.
• This is linked to increasing concerns in the EU that Facebook is now an
enormously powerful rule-setter in huge parts of public life. We wil not
accept in Europe that our quality press and media disappears since they
are part of the foundation on which are democratic societies are built.
Social networks must not undermine this.
• Facebook’s business model and commercial interest of sel ing advertising
and getting eye bal s may sometimes be at odds with public interest.
Role of platforms and collaboration between them and
governments during Covid-19 crisis as regards disinformation
• The COVID-19 pandemic has been accompanied by an overflow of
information –and increase of scams- through online media, which has
made it difficult for citizens to find trustworthy sources and reliable
guidance.
• The Commission has been in close contact with online platforms -
signatories of the
Code of Practice against disinformation - since the
beginning of the crisis.
• Facebook has been actively supporting the global efforts to respond to
the crisis. We welcome the strong decision made to provide
authoritative information to users across all their platforms – in
particular col aborating since the early stages of the pandemic with the
WHO, removing content that may bring physical harm, demoting content
deemed false, prohibiting exploitative tactics in ads and establishing
strong links with authoritative journalism and the fact checking
community.
5
• Nevertheless, there is stil a significant flow of falsehoods and conspiracy
theories about COVID-19 spread through social media channels, in
particular through Facebook - as recently reported by NewsGuard.
• Platforms should provide more information about the actual effect on
users of their actions to promote authoritative content. Particularly, we
would need to be able to evaluate what is the impact of the user
engagement with quality information, in each Member State.
• Also, more transparency is needed on media manipulation and
coordinated inauthentic behaviour detected on the platforms, including
information on geographic origin and target audience.
• More information is also required from the platforms and the advertising
industry on the scope and nature of these practices as well as
information enabling a better understanding of the flow of advertising
revenues to websites trafficking in disinformation around COVID 19.
The world tomorrow
• Looking ahead, I would stress the need to strengthen platforms'
collaboration with researchers and fact checkers, and also with national
authorities.
• We value Facebook’s efforts to support and cooperation with fact
checkers, and this is important for content curation and moderation, but
the actions we require should go beyond today’s system and include
many more fact checkers that operate under international y recognised
standards, and not only in the rich parts of the world. There are serious
concerns that influence operations in the EU’s neighborhood are going
undetected, and unchecked.
• Ultimately, we now need to move to regulation under the Digital Services
Act – which should make all platforms accountable to democratic
institutions, and define clear and uniform rules for content moderation
and transparency across the EU.
6
DEFENSIVES – Online platforms & Covid-19, DSA package
How will the current emergency affect legislative initiatives that are being prepared by
the Commission?
Currently the Commission focuses its work and attention on the management of the crisis,
but at the same time, the services continue work on the major initiatives announced earlier
during the Commission mandate. The Digital Services Act package will build also on an
experience from the crisis to create a sustainable and modern framework for governing
our information space.
Will you delay future public consultations? Mostly small and medium companies may
not have capacity to respond to consultations now.
We are very conscious of the difficulties that the European companies are facing and will do
the utmost to ensure that we have meaningful consultations on the proposals in
preparation. We have already extended some deadlines and will take into account the
developments when launching new ones.
When is the DSA package planned and what will it address?
We announced the DSA package for the end of this year. Launch of the open public
consultation has been slightly delayed because of the crisis but we have resumed work.
We believe that the DSA package will be very important in the post crisis situation to
recreate a fair market for platforms in Europe.
The DSA package should include a proposal on modernisation of the ecommerce framework
and a proposal on ex ante regulation of platforms with market power
Are you considering specific obligations for very large platforms?
Large platform obligations could include the participation in crisis protocols and other
cooperation mechanism, as well as much more far-reaching transparency and audit
obligations, e.g. on ranking or recommendation algorithms, which should not be imposed
on smaller platforms with limited resources. Potentially, harsher sanctions for non-
compliance could be envisaged.
Does the Commission envisage temporary VAT waiver on some products?
The Commission will consider a broad range of measures that are suitable to support the
industry, including for VAT.
What does the Commission think of the new Oversight Body that Facebook
established recently?
We are looking carefully at any self-regulatory activities of large online platform companies,
and in general, we welcome such an approach reflecting its role in a society. However, we
don’t think that the large companies should set up limits of what is acceptable in the online
space and what is not; this role should remain to the Governments and regulators, and
final decision should rely on Court careful consideration.
7
Tracing apps
Is the Commission developing a single pan-European application?
-
No, the Commission is not developing a pan-European application but supports
Members States in developing a common European approach via the toolbox by setting
requirements and functionalities collectively identified by Member States’ authorities.
Interoperability is an essential functionality so that a user can be alerted by his or her app
while travelling across Europe. However, should Member States decide that one EU app is
needed, the Commission stands ready to work closely with them on the development of such
an app.
What about tracking apps (not tracing)?
-
EU Member States, supported by the Commission, published a toolbox to use mobile
applications for efficient contact tracing and warning in response to the coronavirus
pandemic.
-
The Commission also issued guidance on the development of new apps that support
the fight against coronavirus in relation to data protection and privacy.
-
Both the toolbox and the guidance only cover apps that are used voluntarily.
-
Location data is not necessary for the purpose of contact tracing functionalities, as
their goal is neither to follow the movements of individuals nor to enforce quarantine. In
addition, the processing of location data in the context of contact tracing would create
security and privacy issues. For this reason, the Commission advises not to use location data
in this context. In the Toolbox and the Guidance, the use of Bluetooth Low Energy (BLE)
communications data (or data generated by equivalent technology) is recommended to
determine proximity.
-
That being said, the Commission is monitoring the actions by Member States and is
in touch with data protection authorities.
Mobile data
How will the system work?
-
The Commission and the Joint Research Center (JRC) gets aggregated and
anonymised data from mobile network operators. The JRC will then perform the data
analytics. There is no tracing of individuals.
-
The statistical model looks into mobility patterns. Patterns will be correlated with the
propagation level of the coronavirus.
What is the timeline?
-
The system will be operational with data as soon as possible. Operators have sent
samples of data sets.
-
The datasets that are used will as much as possible go back to the beginning of the
crisis..
-
This will then also be the end of that project. This is a temporary measure that will be
terminated at the end of the crisis. .
8
How exactly will the data be aggregated? How is ensured that the anonymised
metadata remain anonymised and protected?
-
National data will be aggregated by operators. Anonymised and aggregated data
received by the Commission will be stored on a secure server at the JRC. The JRC will
ensure the highest security standards.
-
The data will only be used for that particular purpose in the fight against the
coronavirus pandemic, and it will not be shared with third parties. The data will be deleted as
soon as the crisis is over.
9
• Initial data projects that in some countries, almost 40% of start-ups will have to reduce
their employees and more almost 50% will run out of financial sources in three months
1.
• There are indications of excessive surge prices in
essential items as well as fake claims
on digital players’ effectiveness in combatting the virus.
• Here are also indications that some companies are also prioritizing its assortment;
essential products such as food, soap, cleaning gear, baby products, and articles that
support telework and entertainment are prioritized over others. The consequence is that
other products can be temporarily offline or that delivery takes longer.
•
Both of these actions have a negative impact on smaller businesses, whose delivery
of products and services provision might be disadvantaged.
•
On the other hand, beside the
financial aid that the Commission has launched (EUR
1 bn. redirected from the Structural Funds to help SMEs) or suggested (EUR 37 bn. to
provide liquidity to corporates) and targeted measures approved by the
Member States,
some
large platforms have announced rather modest financial or technical
assistance that targets mostly SMEs.
• As regards
Facebook, it has taken diverse actions:
- Announced new Data for Good tools to support selected health researchers and non-
profit organizations- three new types of Disease Prevention Maps were launched to
help inform disease forecasting efforts and protective measures, using aggregated
data to protect people’s privacy:
o
Co-location maps: reveal the probability that people in one area will come in
contact with people in another, helping illuminate where COVID-19 cases may
appear next.
o
Movement range trends: show at a regional level whether people are staying
near home or visiting many parts of town, which can provide insights into whether
preventive measures are headed in the right direction.
o
The social connectedness index: shows friendships across states and
countries, which can help epidemiologists forecast the likelihood of disease
spread, as well as where areas hardest hit by COVID-19 might seek support.
- Limited the spread of misinformation and harmful content about the virus also on
WhatsApp and Instagram via Global network of third-party fact-checkers, that are
continuing their work reviewing content and debunking false claims that are spreading
related to the coronavirus. When information is related as false,
the spread on
Facebook and Instagram is limited and accurate information from these partners is
show.
- Prohibited ads for products that refer to the coronavirus in ways intended to create
panic or imply that their products guarantee a cure or prevent people from contracting
it.
- Launched Whatsapp Worked together with the WHO and launched WHO Health
Alerts as a way to get authoritative information about the corononavirus sent directly
to WhatsApp. People can receive daily situation reports, as well as tips on how to
protect themselves and answers to FAQ.
- Started retroactively informing people that they have seen a misinformation content
that was removed later.
- Launched its digital literacy program ‘Get Digital’ to provide lessons and resources to
help young people develop the competencies and skills they need to more safely
navigate the internet.
- Diverse support for SMEs, but only in the US.
1 Impact of the Corona crisis on start-ups & tech. Dealroom, 24 March 2020.
11
- Despite the claims to fight misinformation, almost 40 Facebook pages across the
European Union with large online followings continue to spread falsehoods and
conspiracy theories about COVID-19, according to an analysis published on 5 May by
NewsGuard, an analytics firm that tracks misinformation.
Platforms role vis-a-vis SMEs
With the lockdown measures introduced by many Member States, shops selling non-food
products had to limit their operations or even close their doors. Food retailers could remain
open but important limitations have been introduced. Because of this but also out of health
concerns, many consumers turned to online shopping. Online grocery sales experienced
double-digit growths within weeks. For example, in week 12 compared to the same week in
2019, online food sales grew by 142% in Italy, 55% in Spain, 93% through home delivery and
by 74% through Drive-in in France.
2 This trend caused grocery delivery Internet applications
downloads grow two- or three-fold. Data indicates that European consumers under lockdown
measures are placing more orders online.
Data indicates that European consumers under lockdown measures are placing more orders
online. As of May 2020, a number of orders with ecommerce brands, which trade purely
digitally, has increased in Europe by around 80% compared to the same period last year,
with for example Ireland and Belgium seeing growth of 200% and 86%, respectively. At the
same time, retail brands that mainly trade in physical stores have seen growth of digital sales
of over 100%.
3
However, online sales of discretionary products have fallen significantly. Consumers are
cautious with their spending. Fashion retailers, DIY, furniture and other shops, even if they
are able to still sell via multichannel distribution, have been observing a dramatic drop in
sales.
Platforms that experience increased consumer demand also face numerous challenges, for
example with labour force shortages, protection of employees, logistics, parcel delivery, etc.
Platforms’ focus on essential goods but also changes in consumer demand caused online
sales of many SMEs dropping to zero.
However, the use of many Internet applications has increased. Average weekly hours spent
in non-gaming apps in March 2020, grew by 30% in Italy, 10% in Germany and 15% in
France. Conference call apps use jumped by 30 times for certain providers, e.g. in France
and Germany. Education app downloads grew by 90% globally (190% in Australia, 150% in
UK, 95% in France, 65% in Germany, 55% in Italy). Health and fitness app downloads grew
by 45% worldwide, 105% in Italy, 85% in France, 80% in Spain. Consumer spend on these
apps also grew by 85% in Italy, 70% in France and 65% in Spain. These trends also hold for
social and communication apps, for streaming and gaming. The growth in use does not
however mean growth in revenue, as new app users have not yet been monetised (most
apps were free downloads).
4 The Single Market is crucial during the crisis. Closing of borders to certain goods or workers
must not take place. To this end, the Commission issued guidelines for borders
management, which aim at helping reinstating necessary flow of certain goods. The
Commission also issued guidelines that deal with the free movement of critical workers
during COVID-19 outbreak, including workers involved in the supply of goods.
2 Nielsen data, quoted after EuroCommerce.
3 https://ccinsight.org/trends-by-location/, 8.05.2020.
4 Information from DG CNECT.
12
Despite the fact that consumers increasingly turn to online shops, sale of non-essential
goods have seen a significant drop. The situation is dynamic, however, even popular
ecommerce platforms have seen a decline in traffic up to 50%.
5
The Single Market will also be key in the post-crisis phase. The Commission needs to work
closely with Member States, businesses and other stakeholders on the recovery strategy.
Retailers are joining forces with social partners, to ensure continued safety of the workforce
in retail and wholesale. They call on EU and national authorities to secure jobs where shops
had to close, to provide for temporary unemployment, support workers in training and
childcare, as well as ensure that those workers can cross borders to get to work.
6
Solidarity between Member States as well as between businesses is important. We hear of
positive examples of online platforms involvement in supporting SMEs. Free trainings
provided to small traders on how to digitalise (e.g. Amazon), accelerated payments to
suppliers (e.g. Amazon, Facebook), grants programmes and funds (e.g. Facebook, Google,
Amazon), etc. Some digital services providers also waive their fees (e.g. Microsoft, Ebay,
UberEats, Alibaba and others).
Social responsibility of digital services providers means nowadays not only being sustainable
in environmental and social terms, but also supporting governments in their fight with the
COVID-19 crisis and helping small companies keep afloat. Positive examples include
Allegro, a Polish online e-commerce platform launched a support package for sellers worth
over PLN 16 million in order to help current sellers maintain their business continuity and to
facilitate new companies open new online channels. The package includes extended
commission payment periods for small businesses, easy access to cashback loans,
suspension of previously announced increases in fees and no commission for new Polish
sellers.
7 Another European e-commerce platform, the French Cdiscount, provides their
sellers with knowledge of crisis management by organizing webinars which allow live
discussion. Their vendors can also benefit from a shorter payment cycle in order to increase
their cash-flow capacity. Cdiscount further launched a system to facilitate the registration of
new French sellers by offering, inter alia, 6 months of standard subscription, with no
commitment and no cancellation fees.
8 Experts tend to predict that changes in consumer spending might last longer, or even be
permanent. This will depend on many factors, ranging from consumer income and spending
power to consumer attitudes and beliefs. For some companies this will mean new
opportunities but other might find it challenging. In both cases, the swift functioning of the
Single Market has an important positive role to play.
5 https://thenextweb.com/corona/2020/03/24/online-marketplaces-tanking-corona-except-for-amazon/,
29.04.2020.
6 Joint statement by EuroCommerce and UNI-Europa; https://www.eurocommerce.eu/resource-
centre.aspx#PressRelease/13379
7 https://magazyn.al egro.pl/90778-al egro-oglasza-pakiet-wsparcia-dla-sprzedajacych-zeby-pomoc-polskim-
firmom-w-czasie-pandemi -koronawirusa
8 https://tamebay.com/2020/03/cdiscount-marketplace-coronavirus-update.html)
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Digital Services Act
• The Commission will present a new framework “…
to upgrade our liability and safety
rules for digital platforms, services and products, and complete our Digital Single
Market.”, as President von der Leyen announced in her Political Guidelines.
• New framework
is envisaged as a revision of the eCommerce Directive under the
umbrella of the
Digital Services Act package.
• The eCommerce Directive from 2000 is widely regarded as one of the central pieces of
Internet Regulation in the EU. It regulates Treaty Freedoms such as the freedom to
provide (digital) services in the Internal Market, as well as the freedom of establishment
for providers of these services. It also regulates the liability that intermediaries such as
internet service providers, Cloud service providers, or online platforms have for third party
content, which they transmit or host. The established framework guarantees a balanced
framework helping both innovators while also protecting fundamental rights online.
• The purpose of the Digital Services Act is to
adapt the current regulatory framework to
the continuously
changing landscape of digital services that has evolved since the
adoption of the eCommerce Directive. So has the
scale of their use as well as our
behaviour online.
• The Commission does not intend to modify the
core principles of the current
framework, i.e. the country of origin principle and the limited liability exemption of online
intermediaries, but rather to
reinforce and clarify them.
• In this regard, the Digital Services Act will aim at
completing the Single Market and at
enabling platforms to innovate and scale up across the EU, in particular to the
European SMEs.
•
Fundamental rights, freedom of expression particularly, and safety of users on
internet are of high importance for the Commission as well, including preparatory work
towards Digital Services Act
.
• At the same time, we need to make sure that our societies and citizens are not exposed to
undue risks emanating from new digital services and technologies.
• Service providers will have to act responsibly, providing us with
reasonable reassurance
that they mitigate risks such as illegal content (hate speech, terrorist propaganda, or
child sexual abuse material) or products placed on our markets that are totally unsafe, i.e.
do not respect European product safety and consumer protection rules.
•
Simultaneously, European companies – especially the small ones – are confronted
with a legal framework that is neither clear nor predictable, nor sufficiently
harmonised within Single Market.
• Against this background, some Member States have started to regulate in this field, which
is creating a patchwork of national rules that create undue fragmentation in the Single
Market.
[Germany with NeztDg or France with Avia law].
•
No new European digital leader can scale up in Europe against this dis-harmonised
background.
Only the current, big companies (most of which are American) have the
resources to offer their services all over Europe. The less clear and harmonised our
legal framework is, the more the big companies will strive.
• We also need to ensure that European rules are properly
enforced in Europe. This also
concerns services provided by
the third countries platforms in the EU (beside US also
Chinese), that brings new challenges as regards e.g. product safety.
14
• This will require
better cooperation between platforms and public authorities, as well
as between national authorities that are able to
cooperate better across jurisdictions
and in enforcing the law.
• Needless to say that
current corona crisis also brings new experience as regards
large
platforms response, that quickly reacted to the emergency situation and shows that they
are aware of the
societal responsibility they bear. Although voices are that they still do
much more (e.g. to support small companies), this is a
considerable difference in
comparison to a situation only a few years ago.
• Nevertheless, due to the emergency situation publication of an open public consultation is
likely to be slightly delayed from originally targeted end of March 2020 to May. It will
contain also questions regarding the economic power of the large platforms.
• The legislative proposal is still planned to be adopted in December 2020, therefore at the
very end of the German Presidency to the Council of the EU.
• Under the current timeline, the German Presidency will be in charge of a choice which
Council formation will be negotiating the proposal, and this might significantly influence
the final outcome of the negotiation. For the moment, Telecommunication Council and
Competitiveness Council are at stake. The Commission would prefer the Competitiveness
Council to negotiate the proposal, as there is a prominent link to the internal market. The
latest information at working level is that Germany might move the proposal rather to the
Competitiveness Council.
Regulation of Online Platforms with Significant Network Effects acting as gatekeepers
• The Commission announced, in the Communication on Shaping Europe’s Digital Future,
that it would further ‘explore, in the context of the Digital Services Act Package ex ante
rules to ensure that markets characterised by large platforms with significant network
effects acting as gatekeepers, remain fair and contestable for innovators, businesses,
and new market entrants. The package is announced in the Commission’s Work
Programme for Q4 2020.
• Building on the platform-to-business Regulation (EU) 2019/1150 as well as on the work of
the Observatory on the Online Platform Economy, we are exploring a flexible and fast
regulatory framework specifically for online platform ecosystems.
• The platform economy is characterised by strong concentration processes, driven by
strong economies of scale, and direct and indirect network effects, reinforced through
private or business data captured through the provision of their services. These platforms
also increasingly act as private gatekeepers to critical online activities for an exceptionally
large population of private and business users. This gatekeeper role is enabled inter alia
by their hold over
vast troves of data and in some cases very large customer bases.
• The above described market failures cannot sufficiently be addressed by competition law
alone. The new tool will be designed as a necessary
complement to competition law as
it would close perceived enforcement gaps left by the complex substantive requirements
and corresponding duration of competition law proceedings.
• The intrinsic cross-border nature of online platforms imply that the objectives of this
initiative cannot be reached effectively by any Member States alone. Further
fragmentation of the Digital Single Market into 27 different, potentially contradictory
frameworks should be avoided. National solutions like the German or French proposals
are likely to lead to conflicting outcomes where they are implemented by platforms
operating at a pan-European scale, whereas a multiplication of national rules in addition
makes it disproportionately difficult for start-up platforms to scale-up and compete.
15
• This file is sensitive because it may affect the market value of some of the largest
corporations in the world. It is also sensitive as it may raise
trade related issues.
Data portability
Facebook has identified ‘data portability’ as one of the four strategic challenges for its
company next to privacy, preservation of integrity of democratic elections and fighting
harmful content
9. It has published in September 2019 a ‘White Paper’ on the topic and
sponsors on-going work by researchers of the CERRE network (a report is being prepared
and presented in June 2020).
Already for a number of years, Facebook allows the export of uploaded content to a
destination of the users choice through a simple API process, even before adoption of
GDPR.
Key challenges to data portability (also identified in the Facebook paper):
-
Imperfections of Article 20 GDPR:
-
Conceived for provider switching, it does not enable real-time access to data through
APIs in machine-readable formats; this makes it difficult to build services on the basis
of e.g. Facebook data outside the platform.
-
Unclear delineation when data relate to several persons
-
Unclear scope: Only data actively provided by users covered, or also passively
observed data.
-
Liability of Facebook (or data holder) when it comes to third party use of ported data
(as exposed in Cambridge Analytica scandal).
Data Tracing App
• On 8 April 2020, the Commission adopted a
Recommendation on a common Union
toolbox for the use of technology and data to combat and exit from the COVID-19
crisis, in particular concerning mobile applications and the use of anonymised mobility
data. The Recommendation sets out key principles for the use of these apps and
data, as regards data security and the respect of EU fundamental rights, such as
privacy and data protection.
• Furthermore, the Recommendation sets out a process towards the adoption with the
Member States of a
Toolbox. The first priority of the Toolbox is a pan-European
approach for COVID-19 mobile contact tracing and warning applications, published
on 16 April. This is a key element of the Commission’s and Council’s Joint European
Roadmap towards lifting COVID-19 containment measures published on 15 April.
• In combination with other measures like increased testing, these apps can play an
important role in the crisis exit strategy when the confinement is gradually lifted. The
toolbox reflects a common approach to these apps as regards an epidemiological
framework, technical requirements, cybersecurity measures, safeguards and
governance.
9 In many op-eds, such as here: https://www.washingtonpost.com/opinions/mark-zuckerberg-the-internet-
needs-new-rules-lets-start-in-these-four-areas/2019/03/29/9e6f0504-521a-11e9-a3f7-
78b7525a8d5f story.html
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• The common approach emphasises the interoperability requirements of these apps
so that European citizens are protected also when they cross borders. To this end, on
13 May, the eHealth Network published
interoperability guidelines for approved
contact tracing mobile applications in the EU.
• The Recommendation and the toolbox are complemented by the
Commission
Guidance on privacy and data protection aspects of contact tracing and warning
apps, published also on 16 April. It is important to ensure that EU citizens can fully
trust such innovative digital solutions. EU rules, notably the General Data Protection
Regulation (GDPR) and the ePrivacy Directive, provide the strongest safeguards of
trustworthiness (i.e. voluntary approach, data minimisation, time limitation) for such
apps to operate widely and accurately. The Guidance takes into account the
contribution from the EDPB.
• The
EDPB published its Guidelines on the use of location data and contact tracing
tools in the context of the COVID-19 outbreak on 21 April 2020. The EDPB
encourages a common European approach and an interoperable framework
respecting the principles of effectiveness, necessity, and proportionality, as part of a
comprehensive public health strategy to fight the pandemic, including testing and
subsequent manual contact tracing. The EDPB Guidelines are in line with the
Commission Guidance.
• The Commission Recommendation also sets up a process for a common approach
for
modelling and predicting the evolution of the virus through anonymous and
aggregated mobile location data, and sets out the necessary safeguards to protect
data security and privacy. Work of Member States and the Commission on this
common approach (toolbox) has already started.
Mobile data
• The Commission works with the Global System for Mobile Communications
Association (GSMA) to facilitate the sharing of anonymised and aggregated mobile
phone location data by European mobile operators. The Commission’s Joint
Research Centre (JRC) is receiving and analysing this data to better understand the
dynamics and propagation of Covid-19 by feeding into the epidemiological model; to
quantify the impact of social distancing measures and the gradual lifting of those
measures on mobility.
• The JRC has adopted strict security measures, the data will be hosted on a dedicated
secure platform and will not be shared with any third parties. The data access will be
controlled by the Commission and granted to a limited number of research staff at the
JRC. The provision of the data by the mobile operators is voluntary and the data will
be deleted as soon as the current emergency ends. The project will be finalised at the
end of the Covid-19 crisis. The European Data Protection Supervisor (EDPS) has
confirmed the lawfulness of the use of aggregated and anonymised mobile location
data.
Actions taken by Facebook to fight COVID-19 disinformation
(Please also see Annex 1 for more comprehensive overview)
On Facebook
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• Facebook has created a "coronavirus information centre" at the top of the News
Feed, with data from the WHO and other resources and has been pushing
authoritative content and connecting people to accurate information, while prohibiting
ads intended to create panic or imply that certain products guarantee a cure or
prevent people from contracting the coronavirus.
• Facebook has been removing COVID-19 related misinformation that could contribute
to imminent physical harm, and banning ads and commerce listings for hand
sanitizer, surface disinfecting wipes and COVID-19 testing kits, but also removing
organic posts that try to sell Covid19-related medical material.
• By mid-April, Facebook started informing people who had interacted with Harmful
COVID-19 claims, showing messages in News Feed to people who have liked,
reacted or commented on harmful misinformation about COVID-19 that FB has since
removed. These messages will connect people to COVID-19 myths debunked by the
WHO.
• Facebook announced a $100-million investment to support journalists — including
$25 million in emergency grant funding for local news through the Facebook
Journalism Project and an extra $75 million in marketing to get money to publishers
around the world at a time when their advertising revenue is declining.
• As part of its Data for Good program, Facebook released aggregated data that can
help academics and non-governmental organizations understand population
movements.
In particular,
• Facebook has directed over 2 billion people to resources from the WHO and other
health authorities through our COVID-19 Information Center and pop-ups on
Facebook and Instagram with over 350 million people clicking through to learn more
• During the month of March, it displayed warnings on about 40 million posts on
Facebook related to COVID-19, based on around 4,000 articles by its independent
fact-checking partners. When people saw those warning labels, 95% of the time they
did not go on to view the original content.
• To date, Facebook has also removed hundreds of thousands of pieces of
misinformation that could lead to imminent physical harm. It also reacted promptly,
and in coordination with YouTube, to prevent further spreading of disinformation
relating to possible links between 5G deployment and the diffusions of the virus.
• In the US, Facebook is removing content that promotes anti-quarantine protests using
false information, while allowing information about gatherings that stick to local
government guidelines.
• On 13 May Facebook released its fifth Community Standards Enforcement Report
with data on how much content it actioned, including how much content was
appealed, how much content was restored, and where possible, the prevalence of
certain violating content on Facebook and Instagram. There was an increase in
content actioned from 5.7M in Q4 2019 to 9.6M in Q1 2020, 88.8% of which was
proactively detected by Facebook.
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WhatsApp and Facebook Messenger
• WhatsApp reduced from five down to one the number of simultaneous “forwards” of
the same content to different users/groups. “Highly forwarded” messages are now
labelled with double arrows to indicate they did not originate from a close personal
contact.
• WhatsApp activated a chatbot created with the WHO that answers to specific topics
and queries related to COVID-19. The chatbot is available in multiple languages.
Similar chatbots has been activated for fact-checkers in several countries, and a
specific one for the International Fact Checking Network.
• WhatsApp identified and banned 2 million accounts per month engaged in mass
messaging.
• WhatsApp partners with NGOs and governments all over the world to set up
Coronavirus health information lines, with the goal of keeping people safe and
informed, but also to provides a source of accurate information in order to combat
misinformation.
• WhatsApp also announced a $1M grant to the International Fact Checking Network to
support fact-checking for the #CoronaVirusFacts Alliance, to report on rumours that
may be circulating on various messaging services including WhatsApp or SMS.
• Facebook launched the Facebook Messenger Coronavirus Community Hub with tips
and resources to keep people connected to their friends, family, colleagues and
community, and prevent the spread of misinformation.
In particular:
• Since putting into place the new limit of WhatsApp chats a “highly-forwarded”
message can be forwarded to, from five down to one, globally, there has been a 70
per cent reduction in the number of highly forwarded messages sent on WhatsApp.
• WhatsApp identified and banned 2 million accounts per month engaged in mass
messaging.
Facebook Oversight Board
• This newly created body, consisting of 20 experts, including the former Prime Minister
of Denmark, former judges, and several law professors, launched its work at the
beginning of May 2020.
• It should work as a self-regulatory experiment for content moderation: it will decide
whether to remove or leave up content that might violate the community standards of
Facebook and Instagram.
• According to Facebook announcement made on 13 May, their decision are going to
be final and binding, “even if I
or anybody else in the company
disagree with them”.
• Its main criticism is based on a fact that while the Oversight Board members say the
panel shouldn’t be viewed as a court, the board will develop a kind of precedential
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case law just like a court. It’s decision will be publicised, though meetings of the
Board will not be.
5th Community Standards Enforcement Report (CSER).
Facebook and Instagram just released their fifth Community Standards Enforcement
Report (CSER). The CSER provides data on how much content they actioned, proactively
detected before people reported it, how much content was appealed after they took action,
how much content was restored, and where possible, the prevalence of certain violating
content on Facebook and Instagram.
The CSER is released alongside their Transparency Report, which includes data on Internet
Disruptions, Government Requests for User Data and Content Restrictions, and Intellectual
Property removals, all of which can be found at transparency.facebook.com.
They continue to expand upon the data provided in the CSER. This latest report includes
new data for:
• content removals for organized hate, on both Instagram and Facebook
• content appeals and restores on Instagram
• Instagram in the areas of hate speech, violent & graphic content, bullying &
harassment, and adult nudity & sexual activity
The data provided in the CSER shows a continued trend toward Facebook identifying more
violating content proactively, through the use of AI technologies. In particular, greater and
improved use of hate speech classifiers made possible an increase in content actioned from
5.7M in Q4 2019 to 9.6M in Q1 2020, 88.8% of which was proactively detected by
Facebook.
They expect to see the full impact of Covid-19 on content moderation data in their next
report, and possibly beyond. You can read more about their efforts related to Covid-19
here: https://about.fb.com/news/2020/04/coronavirus/. They are also announcing new user
control features on Instagram and updates on efforts to combat organized hate.
Contact(s):
Covid-19 & platforms -
(DG CNECT F2), tel.:
Disinformation –
(DG CNECT I4), Tel.:
Gatekeeper platforms –
(DG CNECT F2), tel.:
Data tracing app -
((DG CNECT H2), tel.:
Digital Inclusion -
(DG CNECT G3), tel.
Safer Internet for Kids –
(DG CNECT G3), tel.:
Data -
(DG CNECT G1), tel.:
Collaboration between health authorities and platforms in the Covid contex-
(DG
CNECT F3), tel.:
Platforms vis-à-vis SMEs-
(DG GROW E4) tel. :
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