A clash between Poland’s right-wing president and its centrist ruling coalition
over the European Union’s flagship social media law is putting the country
further at risk of multimillion euro fines from Brussels.
President Karol Nawrocki is holding up a bill that would implement the EU’s
Digital Services Act, a tech law that allows regulators to police how social
media firms moderate content. Nawrocki, an ally of U.S. President Donald Trump,
said in a statement that the law would “give control of content on the internet
to officials subordinate to the government, not to independent courts.”
The government coalition led by Prime Minister Donald Tusk, Nawrocki’s rival,
warned this further exposed them to the risk of EU fines as high as €9.5
million.
Deputy Digital Minister Dariusz Standerski said in a TV interview that, “since
the president decided to veto this law, I’m assuming he is also willing to have
these costs [of a potential fine] charged to the budget of the President’s
Office.”
Nawrocki’s refusal to sign the bill brings back bad memories of Warsaw’s
years-long clash with Brussels over the rule of law, a conflict that began when
Nawrocki’s Law and Justice party rose to power in 2015 and started reforming the
country’s courts and regulators. The EU imposed €320 million in penalties on
Poland from 2021-2023.
Warsaw was already in a fight with the Commission over its slow implementation
of the tech rulebook since 2024, when the EU executive put Poland on notice for
delaying the law’s implementation and for not designating a responsible
authority. In May last year Brussels took Warsaw to court over the issue.
If the EU imposes new fines over the rollout of digital rules, it would
“reignite debates reminiscent of the rule-of-law mechanism and frozen funds
disputes,” said Jakub Szymik, founder of Warsaw-based non-profit watchdog group
CEE Digital Democracy Watch.
Failure to implement the tech law could in the long run even lead to fines and
penalties accruing over time, as happened when Warsaw refused to reform its
courts during the earlier rule of law crisis.
The European Commission said in a statement that it “will not comment on
national legislative procedures.” It added that “implementing the [Digital
Services Act] into national law is essential to allow users in Poland to benefit
from the same DSA rights.”
“This is why we have an ongoing infringement procedure against Poland” for its
“failure to designate and empower” a responsible authority, the statement said.
Under the tech platforms law, countries were supposed to designate a national
authority to oversee the rules by February 2024. Poland is the only EU country
that hasn’t moved to at least formally agree on which regulator that should be.
The European Commission is the chief regulator for a group of very large online
platforms, including Elon Musk’s X, Meta’s Facebook and Instagram, Google’s
YouTube, Chinese-owned TikTok and Shein and others.
But national governments have the power to enforce the law on smaller platforms
and certify third parties for dispute resolution, among other things. National
laws allow users to exercise their rights to appeal to online platforms and
challenge decisions.
When blocking the bill last Friday, Nawrocki said a new version could be ready
within two months.
But that was “very unlikely … given that work on the current version has been
ongoing for nearly two years and no concrete alternative has been presented” by
the president, said Szymik, the NGO official.
The Digital Services Act has become a flashpoint in the political fight between
Brussels and Washington over how to police online platforms. The EU imposed its
first-ever fine under the law on X in December, prompting the U.S.
administration to sanction former EU Commissioner Thierry Breton and four other
Europeans.
Nawrocki last week likened the law to “the construction of the Ministry of Truth
from George Orwell’s novel 1984,” a criticism that echoed claims by Trump and
his top MAGA officials that the law censored conservatives and right-wingers.
Bartosz Brzeziński contributed reporting.
Tag - Online advertising
WARSAW — Poland’s nationalist President Karol Nawrocki on Friday sided with his
ally U.S. President Donald Trump to veto legislation on enforcing the EU’s
social media law, which is hated by the American administration.
Trump and his top MAGA officials condemn the EU’s Digital Services Act — which
seeks to force big platforms like Elon Musk’s X, Facebook, Instagram to moderate
content — as a form of “Orwellian” censorship against conservative and
right-wingers.
The presidential veto stops national regulators in Warsaw from implementing the
DSA and sets Nawrocki up for a a clash with centrist pro-EU Prime Minister
Donald Tusk. Tusk’s parliamentary majority passed the legislation introducing
the DSA in Poland.
Nawrocki argued that while the bill’s stated aim of protecting citizens —
particularly minors — was legitimate, the Polish bill would grant excessive
power to government officials over online content, resulting in “administrative
censorship.”
“I want this to be stated clearly: a situation in which what is allowed on the
internet is decided by an official subordinate to the government resembles the
construction of the Ministry of Truth from George Orwell’s novel 1984,” Nawrocki
said in a statement — echoing the U.S.’s stance on the law.
Nawrocki also warned that allowing authorities to decide what constitutes truth
or disinformation would erode freedom of expression “step by step.” He called
for a revised draft that would protect children while ensuring that disputes
over online speech are settled by independent courts.
Deputy Prime Minister and Digital Affairs Minister Krzysztof Gawkowski dismissed
Nawrocki’s position, accusing the president of undermining online safety and
siding with digital platforms.
“The president has vetoed online safety,” Gawkowski told a press briefing Friday
afternoon, arguing the law would have protected children from predators,
families from disinformation and users from opaque algorithms.
The minister also rejected Nawrocki’s Orwellian comparisons, saying the bill
explicitly relied on ordinary courts rather than officials to rule on online
content.
Gawkowski said Poland is now among the few EU countries without national
legislation enabling effective enforcement of the DSA and pledged that the
government would continue to pursue new rules.
The clash comes as enforcement of the social media law has become a flashpoint
in EU-U.S. relations.
Brussels has already fined Elon Musk’s X €120 million for breaching the law,
prompting a furious response from Washington, including travel bans imposed by
the Trump administration on former EU Commissioner Thierry Breton, an architect
of the tech law, and four disinformation experts.
The DSA allows fines of up to 6 percent of a company’s global revenue and, as a
measure of last resort, temporary bans on platforms.
Earlier this week, the European Commission expanded its investigation into X’s
AI service Grok after it started posting a wave of non-consensual sexualized
pictures of people in response to X users’ requests.
The European Commission’s digital spokesperson Thomas Regnier said the EU
executive would not comment on national legislative procedures. “Implementing
the DSA into national law is essential to allow users in Poland to benefit from
the same DSA rights, such as challenging platforms if their content is deleted
or their account suspended,” he said.
“This is why we have an ongoing infringement procedure against Poland. We have
referred Poland to the Court of Justice of the EU for failure to designate and
empower the Digital Services Coordinator,” in May 2025, Regnier added.
Gawkowski said that the government would make a quick decision on what to do
next with the vetoed bill but declined to offer specifics on what a new bill
would look like were it to be submitted to parliament again.
Tusk four-party coalition does not have enough votes in parliament to override
Nawrocki’s vetoes. That has created a political deadlock over key legislation
efforts by the government, which stands for reelection next year. Nawrocki,
meanwhile, is aiming to help the Law and Justice (PiS) political party he’s
aligned with to retake power after losing to Tusk in 2023.
Mathieu Pollet contributed reporting.
BRUSSELS — The European Commission has opened an antitrust investigation into
whether Google breached EU competition rules by using the content of web
publishers, as well as video uploaded to YouTube, for artificial intelligence
purposes.
The investigation will examine whether Google is distorting competition by
imposing unfair terms and conditions on publishers and content creators, or by
granting itself privileged access to such content, thus placing rival AI models
at a disadvantage, the Commission said on Tuesday.
In a statement, the EU executive said it was concerned that Google may have used
the content of web publishers to provide generative AI-powered services on its
search results pages without appropriate compensation to publishers, and without
offering them the possibility to refuse such use of their content.
Further, it said that the U.S. search giant may have used video and other
content uploaded on YouTube to train Google’s generative AI models without
compensating creators and without offering them the possibility to refuse such
use of their content.
The formal antitrust probe follows Google’s rollout of AI-driven search results,
which resulted in a drop in traffic to online news sites.
Google was fined nearly €3 billion in September for abusing its dominance in
online advertising. It has proposed technical remedies over that penalty, but
resisted a call by EU competition chief Teresa Ribera to break itself up.
BRUSSELS — The European Commission wants Google to break itself up. The U.S.
search giant says no.
Google has delivered its formal response to a landmark ad tech antitrust
decision by the Commission, rejecting the watchdog’s prescription of an asset
sale to address its competition concerns.
The firm submitted a compliance proposal late Wednesday that includes a set of
product and technical changes, including some to be rolled out within the year,
that aim to open up its ad tech empire to rivals.
The move comes on the final day of the deadline imposed by the Commission on
Sept. 5, when it fined the Alphabet unit €2.95 billion for its conduct.
In its decision, the Commission concluded that Google’s abuse was a product of
the “inherent conflict of interest” it has by owning such vast swaths of the
infrastructure that powers online advertising.
A spokesperson for the Commission confirmed in a statement that the EU executive
had received Google’s proposal, and that it will now analyse the proposed
measures.
The search giant has proposed a series of immediate product changes, such as
giving publishers greater pricing power, as well as longer-term fixes to
increase the interoperability of its ad tech tools.
“Our proposal fully addresses the EC’s decision without a disruptive break-up
that would harm the thousands of European publishers and advertisers,” a Google
spokesperson said in a statement.
News publishers on both sides of the Atlantic have long lamented that they face
few options other than Google to administer their ad-powered businesses,
ultimately forcing up costs for the already struggling sector.
Those complaints crystallized in the early 2020s, when both the U.S. Department
of Justice and the European Commission launched antitrust investigations into
Google’s control over the plumbing of online advertising.
When the Commission issued its final decision in September, it made the
unprecedented move of stipulating that its concerns could only be resolved if
Google ceded control of its market-leading ad tech tools.
The measures proposed to Brussels by Google fall far short of the envisioned
structural sell-off that both the Commission and its American counterpart
envisioned as a solution to Google’s distortion of competition in the online
advertising sector.
They also largely echo the proposals Google submitted to the U.S. federal court
overseeing the Trump administration’s ad tech case, where it, too, proposed a
mix of behavioural fixes. Closing arguments in the U.S. trial will begin on
Monday.
In its statement, the Commission said it would analyze Google’s remedies against
a yardstick of whether they end and address the conflicts of interest that
Google’s ownership of the sellside, buyside and exchange infrastructure upon
which digital ads are priced and placed.
The Commission has never imposed structural remedies and faces a high legal bar
for doing so, legal experts have told POLITICO.
A message from Brussels to Google: Would you break yourself up, please?
The search giant faces an early November deadline to say how it intends to
comply with a European Commission decision in September, which found that it had
illegally maintained its grip on the infrastructure that powers online
advertising.
With a €2.95 billion fine in the rearview mirror, the Commission and Google find
themselves in an unprecedented standoff as Brussels contemplates the once
unthinkable: a structural sell-off of part of a U.S. company, preferably
voluntary, but potentially forced if necessary.
The situation is “very unusual,” said Anne Witt, a professor in competition law
at EDHEC Business School in Lille, France.
“Structural remedies are almost unprecedented at the EU level,” Witt added.
“It’s really the sledgehammer.”
In its September decision, the Commission took the “unusual and unprecedented
step,” per Witt, to ask Google to design its own remedy — while signaling, if
cautiously, that anything short of a sale of parts of its advertising technology
business would fall foul of the EU antitrust enforcer.
“It appears that the only way for Google to end its conflict of interest
effectively is with a structural remedy, such as selling some part of its Adtech
business,” Executive Vice President Teresa Ribera, the Commission’s competition
chief, said at the time.
As the clock counts down to the deadline for Google to tell the Commission what
it intends to do, the possibility of a Brussels-ordered breakup of an American
tech champion is unlikely to go unnoticed in Washington, even as the Donald
Trump administration pursues its own case against the search giant. (Google
accounts for 90 percent of the revenues of Alphabet, the $3.3 trillion
technology holding company headquartered in Mountain View, California.)
Executive Vice President Teresa Ribera, the Commission’s competition chief. |
Thierry Monasse/Getty Images
Google has said that it will appeal the Commission’s decision, which in its view
requires changes that would hurt thousands of European businesses. “There’s
nothing anticompetitive in providing services for ad buyers and sellers, and
there are more alternatives to our services than ever before,” Lee-Anne
Mulholland, its vice president and global head of regulatory affairs, wrote in a
blog post in September.
PARALLEL PROBES
The proposal for a voluntary break up of Google marks the culmination of a
decade of EU antitrust enforcement in digital markets in which “behavioral”
fixes achieved little, and a unique alignment in both timing and substance
between the U.S. and the EU of their parallel probes into the firm’s ad tech
empire.
“It would have been unthinkable 10 years ago that there would be a case in the
U.S. and a sister case in Europe that had a breakup as a potential outcome,”
said Cori Crider, executive director of the Future of Tech Institute, which is
advocating for a break-up.
The Commission formally launched the investigation into Google’s ad tech stack
in 2021, following a drumbeat of complaints from news organizations that had
seen Google take control of the high-frequency exchanges where publishers and
advertisers agree on the price and placement of online ads.
Google’s control of the exchanges, as well as infrastructure used by both sides
of the market, was like allowing Goldman Sachs or Citibank to own the New York
Stock Exchange, declared the U.S. Department of Justice in its lawsuit in 2023.
It also created a situation in which cash-strapped news organizations on both
sides of the Atlantic saw Google eating an increasing share of revenues from
online advertising — and ultimately posing a threat to journalism itself.
“This is not just any competition law case — this is about the future of
journalism,” said Alexandra Geese, a German Green member of the European
Parliament. “Publishers don’t have the revenue because they don’t get traffic on
their websites, and then Google’s algorithm decides what information we see,”
she said.
The plight of publishers proved hefty on the other side of the Atlantic too.
In April, the federal judge overseeing the U.S. government’s case against Google
ruled that the search giant had illegally maintained its monopoly over parts of
the ad tech market.
A spokesperson for the company said that the firm disagrees with the
Commission’s charges. | Nurphoto via Getty Images
The Virginia district court held a two-week trial on remedies in September. The
Trump administration has advocated a sale of the exchanges and an unwinding of
Google’s 2008 merger with DoubleClick, through which it came to dominate the
online ad market. Judge Leonie Brinkema will hear the government’s closing
arguments on Nov. 17 and is expected to issue her verdict in the coming months.
STARS ALIGN
Viewed by Google’s critics, it’s the ideal set of circumstances for the
Commission to push for a muscular structural remedy.
“If you cannot go for structural remedies now, when the U.S. is on the same
page, then you’re unlikely to ever do it,” said Crider.
The route to a breakup may, however, be both legally and politically more
challenging.
Despite the technical alignment, and a disenchantment with the impact that past
fines and behavioral remedies have had, the Commission still faces a “big
hurdle” when it comes to the legal test, should it not be satisfied with
Google’s remedy offer, said Witt.
The U.S. legal system is more conducive to ordering breakups, both as a matter
of law — judges have a wide scope to remedy a harm to the market — and in
tradition, said Witt, noting that the U.S. government’s lawsuits to break up
Google and Meta are rooted in precedents that don’t exist in Europe.
Caught in the middle is Google, which should file its proposed remedies within
60 days of being served notice of the Commission decision that was announced on
Sept. 5.
A spokesperson for the company said that the firm disagrees with the
Commission’s charges, and therefore with the notion that structural remedies are
necessary. The firm is expected to lodge its appeal in the coming days.
While Google has floated asset sales to the Commission over the course of the
antitrust investigation, only to be rebuffed by Brussels, the firm does not
intend to divest the entirety of its ad tech stack, according to a person
familiar with the matter who was granted anonymity due to the sensitivity of the
case.
Ultimately, what happens in Brussels may depend on what happens in the U.S.
case.
While a court-ordered divestiture of a chunk of Google’s ad tech business is
conceivable, U.S. judges have shown themselves to be skeptical of structural
remedies in recent months, said Lazar Radic, an assistant law professor at IE
University in Madrid, who is affiliated with the big tech-friendly International
Center for Law and Economics.
“Behavioral alternatives are still on the table,” said Radic, of the U.S. case.
The Commission will likely want to align itself with the U.S. should the
Virginia court side with the Department of Justice, said Damien Geradin, legal
counsel to the European Publishers Council — of which POLITICO parent Axel
Springer is a member — that brought forward the case. Conversely, if the court
opts for a weaker remedy than is being proposed, the Commission will be obliged
to go further, he said.
“This is the case where some structural remedies will be needed. I don’t think
the [European Commission] can settle for less,” said Geradin.
BRUSSELS — Fresh European Union rules intended to improve transparency around
online advertisements have sparked a wave of criticism, as major platforms shut
down political ads instead of complying.
Campaigners say the law will cause a harmful loss of information after it
triggered companies including Google, Meta and Microsoft to implement a blackout
on political advertising. Politicians on both sides of the aisle said it could
be detrimental to democratic debate.
The Commission said it is aware of the serious concerns and is continuing talks
with Big Tech companies to mitigate the unintended impacts. At the heart of the
EU’s attempt is a bid to curb political manipulation and foreign interference
during elections.
The new law on Transparency and Targeting of Political Advertising, which kicked
in on Friday, brings new restrictions and transparency requirements for paid
political ads. Since the law was agreed, Google, Meta and Microsoft have all
opted to stop showing political ads in the EU altogether.
“Smaller, newer parties and independent candidates will lose an affordable
channel to reach voters, while large, well-followed accounts remain largely
unaffected,” said liberal Slovak EU lawmaker Veronika Cifrová Ostrihoňová. “That
shift risks narrowing who can be heard and makes campaigning harder for
newcomers.”
She said that by axing political advertising, platforms are “taking the easier
route,” which she regards as “a worrying signal” of tech firms refusing to seek
compromises with rule makers.
Among the requirements, the law demands that platforms provide information on
what election, referendum or legislative process the ad is linked to, how much
it cost and details on any targeting techniques used.
In announcing their decisions, Google said the definition of political
advertising is too broad, while Meta criticized targeted ad restrictions that
ignore the “benefits [of personalized ads] to advertisers and the people they
want to reach.”
Polish hard-right member of the European Parliament Piotr Müller said the rules
are an example of over-regulation gone wild. “The political market will be
consolidated, with large, well-known parties having the resources to meet the
new requirements. This undermines pluralism and freedom of public debate,” he
said.
Others think the blackout will benefit fringe politicians with more extreme
views, to the detriment of those with moderate messaging.
“You cannot get 50 million views for boring policy videos. If your politicians
do not have social media rizz, I think it disadvantages them now,” said Sam
Jeffers, executive director and co-founder of WhoTargetsMe, a non-profit that
tracks online campaigning.
Jeffers added that researchers risk losing access to political history as they
lose visibility over data on the ads. “Seven years of historical data is gone”
from Google’s political advertising library, he said, as it no longer includes
the EU as a supported region.
In announcing their decisions, Google said the definition of political
advertising is too broad. | Wallace Woon/EPA
“That for me was quite a chilling interpretation of this law,” he said,
expressing concern that the same might happen to Meta’s database.
Google said in response that ads that would previously have been shown on its
dedicated EU political ads transparency database will remain publicly available
in its main advertising pages, subject to retention policies.
Google’s Ads library still contains information on at least some political ads,
POLITICO found, but it seems to be mostly restricted to the previous year —
which would be in line with the EU’s Digital Services Act requirements. The
available information is also not as extensive as for other jurisdictions, and
excludes for example the amount of money spent on ads.
BEYOND POLITICS
Companies have criticized a lack of guidance and clarity from the EU executive.
The Commission published guidelines on the law this week, just two days before
it took effect.
Based on the definition of political advertising, Meta also blocked “social
issue” ads, while Microsoft won’t run “issue-based advertising.”
That could include ads about climate change, migration, social justice and human
rights initiatives or any “politically sensitive or socially divisive issue,”
Microsoft said.
The law’s definition covers anything meant to influence the outcome of an
election, referendum, vote or legislative process — which could include
campaigns by charities and civil society.
Small organizations that are “essential” to EU democracy will see their campaign
and fundraising options limited, said Eoin Dubsky, senior campaign manager for
advocacy group Eko.
The Commission only clarified this week that awareness or fundraising campaigns
by NGOs shouldn’t always be considered political ads.
Commission spokesperson Markus Lammert defended the law, underlining in a
comment for this article that it “does not ban political advertising.”
Lammert said Google and Meta are “private companies and their commercial
decisions on the services and products they choose to offer are theirs to make,”
but that the Commission is also aware of serious concerns from civil society
about the impact.
A group of civil society organizations have written open letters to Meta and
Google, calling for the companies to reconsider their decisions to block
political ads in the EU.
Based on the definition of political advertising, Meta also blocked “social
issue” ads, while Microsoft won’t run “issue-based advertising.” | Olivier
Hoslet/EPA
The Commission’s Lammert said it is in contact with stakeholders and national
governments to “assess the possible impact of Meta’s commercial decision,” and
will continue discussions with both companies on the topic. It will also hold
talks in 2026 to “learn from the experiences at that point and draw insights as
necessary.”
For some, the furore is an unwelcome distraction as the EU grapples with
enforcing other regulations — most notably its Digital Services Act to regulate
content on social media platforms, which already includes requirements on
advertising transparency.
The Commission should focus on tackling “toxic algorithms that push propaganda
ahead of facts” and bombard users with “outrageous content” rather than
“information they actually want,” said German Greens lawmaker Alexandra Geese.
LONDON — Meta will let users in the United Kingdom choose whether to pay for a
monthly fee instead of seeing personalized ads on its platforms in an overhaul
to its advertising model.
Over the coming weeks, Facebook and Instagram users in the U.K. will receive a
notification giving them the option to pay £2.99 a month (or £3.99 if done
though Apple or Google’s operating systems) for “no ads,” Meta said.
Users who don’t pay will continue to see ads, but will “still be able to control
their ads experience” using existing settings, Meta said, adding that while it
continues to “believe in an ad-supported internet,” the new offer gives U.K.
users more control over their data.
The move follows a legal challenge settled with the tech giant by campaigner
Tanya O’Carroll, who argued that Meta’s targeted advertising constitutes “direct
marketing” and it must therefore give users the right to object under U.K. law.
The U.K.’s data protection watchdog, the Information Commissioner’s Office,
backed O’Carroll in the case.
Following the ruling, Meta said it would consider extending a subscription
model, which it already offers in the European Union, to the U.K.
Dubbed ‘pay or consent,’ the model has proven controversial among privacy
advocates. But the ICO concluded this year that it does not contravene U.K. data
protection laws if consent is “freely given,” such as by setting an “appropriate
fee.”
An ICO spokesperson said it welcomed Meta’s announcement but would continue to
monitor its roll out and the broader impact of ‘pay or consent’ models.
“This moves Meta away from targeting users with ads as part of the standard
terms and conditions for using its Facebook and Instagram services, which we’ve
been clear is not in line with U.K. law,” they said.
Meta said the decision followed “extensive engagement” with the ICO, including
over the cost of U.K. subscriptions, which will be a little over half what the
company currently charges in Europe (EU users can pay €5.99 a month for ad-free
services).
The ICO’s “constructive approach” differed from the approach of EU regulators,
Meta said, adding that they “continue to overreach by requiring us to provide a
less personalized ads experience that goes beyond what the law requires,
creating a worse experience for users and businesses.”
“In contrast, the U.K.’s more pro-growth and pro-innovation regulatory
environment allows for a clearer choice for users, while ensuring our
personalized advertising tools can continue to be engines of growth and
productivity for companies up and down the country.”
BRUSSELS — In a bid to slash red tape, the European Commission wants to
eliminate one of its peskiest laws: a 2009 tech rule that plastered the online
world with pop-ups requesting consent to cookies.
It’s the kind of simplification ordinary Europeans can get behind.
Cookies are a foundation of the internet that allow website holders to collect
information about visitors — everything from whether they’ve logged in with a
password to what items they’re looking to buy and therefore, might want to see
advertising about.
European rulemakers in 2009 revised a law called the e-Privacy Directive to
require websites to get consent from users before loading cookies on their
devices, unless the cookies are “strictly necessary” to provide a service. Fast
forward to 2025 and the internet is full of consent banners that users have long
learned to click away without thinking twice.
“Too much consent basically kills consent. People are used to giving consent for
everything, so they might stop reading things in as much detail, and if consent
is the default for everything, it’s no longer perceived in the same way by
users,” said Peter Craddock, data lawyer with Keller and Heckman.
Cookie technology is now a focal point of the EU executive’s plans to simplify
technology regulation. Officials want to present an “omnibus” text in December,
scrapping burdensome requirements on digital companies. On Monday, it held a
meeting with the tech industry to discuss the handling of cookies and consent
banners.
A note sent to industry and civil society attending a focus group on Sept. 15,
seen by POLITICO, showed the Commission is pondering how to tweak the rules to
include more exceptions or make sure users can set their preferences on cookies
once (for example, in their browser settings) instead of every time they visit a
website.
EU countries have floated similar ideas. Denmark (currently presiding over
meetings in the Council of the European Union) suggested in May to drop consent
banners for cookies collecting data “for technically necessary functions” or
“simple statistics.”
Fighting is expected to flare up again next year, when the Commission wants to
present an advertising-focused piece of legislation called the Digital Fairness
Act. | Nicolas Economou/Getty Images
They said these kinds of cookies are “harmless,” unlike ones used for marketing,
advertising or sharing data with third parties.
Meanwhile, the industry suggested that cookie rules could be incorporated into
the EU’s General Data Protection Regulation. The e-Privacy Directive has strict
consent requirements, whereas the GDPR adopts a “risk-based approach,” allowing
companies to adjust their privacy safeguards according to the level of risk
associated with data processing.
PRIVACY, THE THIRD RAIL OF EU POLITICS
The Commission’s opening gambit to reform cookie rules sets up Brussels for a
fierce lobbying showdown: industry versus the privacy community.
From the General Data Protection Regulation to more recent tech laws, Brussels
lobbyists have fiercely debated privacy issues, leaving previous attempts to
reform the cookie law half-baked.
Some of these ideas to streamline consent banners were included in a proposal
for an e-Privacy Regulation presented in 2017. But it was withdrawn in February
of this year — a prized scalp of Commission President Ursula von der Leyen’s
deregulation agenda — as EU institutions struggled to find compromise on the
unwieldy proposal covering everything from online advertising to national
security.
Franck Thomas, policy director at advertisers’ lobby IAB Europe, said the
e-Privacy Directive takes a “very rigid” view on consent and that rules could be
simplified by moving cookie regulation to the GDPR, which takes a more flexible,
risk-based approach. This would allow businesses to rely on more appropriate
legal bases, such as legitimate interest, he said.
However, “our call for simplification should not be confused with a light touch
approach on data protection, but everyone agrees we need to maintain this
balance between safeguarding privacy rights and preserving the competitiveness
of the European tech industry,” Thomas added.
Any new moves to tamper with cookie consent will face stiff opposition from
Brussels’ fierce privacy lobby, which is wary of cookies being used for targeted
advertising.
“Focusing on cookies is like rearranging deckchairs on the Titanic, the ship
being surveillance advertising,” said Itxaso Domínguez de Olazábal, policy
adviser at European Digital Rights.
She said the law already makes an exception for cookies that are necessary to
deliver a service people explicitly expect, such as remembering items in a
shopping cart. “Expanding that category to include [other kinds of] ‘essential’
tracking is misleading, because it risks smuggling in analytics or
personalization for adtech,” she added.
Fighting is expected to flare up again next year, when the Commission wants to
present an advertising-focused piece of legislation called the Digital Fairness
Act. The executive has stated that the rulebook will help protect consumers
online, including from manipulative design or unfair personalization.
Mario Monti is a former prime minister of Italy and EU commissioner.
The European Commission sanctioned Google on Sept. 5, for abusing its dominant
position in the bloc’s advertising technology market. The sanction had two
components: a €2.95-billion fine, as well as the obligation of introducing
changes to the company’s business model that will ensure the discontinuation of
the abuse.
In reaction, U.S. President Donald Trump issued a statement on how “Europe today
‘hit’ another great American company.” Taking to social media, he warned: “We
cannot let this happen to brilliant and unprecedented American ingenuity and, if
it does, I will be forced to start a Section 301 proceeding to nullify the
unfair penalties being charged to these taxpaying American companies” — a
proceeding that would presumably lead to the imposition of tariffs by the U.S.
But, with all due respect, Trump is missing a key point: There is no
discrimination here. The Commission sanctions cases of abuse of dominance that
take place in the EU market, whether they’re carried out by EU or non-EU
companies.
More to the point, this is exactly what the U.S. antitrust authorities do with
respect to the U.S. market. Incidentally, just yesterday, the Federal Trade
Commission in Washington opened an investigation into the advertising practices
of Google and Amazon, much along the lines set out by the Commission.
We’ve been here before — and with the same players too.
Let’s rewind 20 years to when I was Competition commissioner: In 2004, the
Commission sanctioned Microsoft after a long investigation involving
constructive discussions with Co-founder Bill Gates, then-CEO Steve Ballmer and
then-General Counsel Brad Smith, among many others. Eventually, it imposed a
fine of almost €500 million and, more importantly, ordered changes to the
company’s business model.
Interestingly, the complaints that prompted the investigation mainly came from
U.S. companies, including the start-ups of the early days of the internet
economy. They were complaining that Microsoft, which had — through its merits —
legally earned a highly dominant position in operating systems for personal
computers, was leveraging its position onto neighboring markets by obstructing
other companies in a variety of ways, thus stifling innovation.
In fact, I remember one such U.S. start-up — only about three years old when we
began our investigation — had a rather intriguing name: Google. And I remember
then-CEO Eric Schmidt visiting the Commission to praise our “courage.”
The European Commission sanctioned Google on Sept. 5, for abusing its dominant
position in the bloc’s advertising technology market. | Beata Zawrzel/Getty
Images
Incidentally, European corporate leaders, who sometimes urge the Commission to
be less rigorous in its enforcement of competition rules, should also keep these
past cases in mind — especially if they want a more innovative and competitive
European economy, as we all do. Perhaps they should put the issue into a broader
perspective and think twice.
With its Microsoft decision, the Commission — followed by several other
competition authorities across the world — allowed for the emergence of Google
and other start-ups to become hugely successful. In fact, it put pressure on
Microsoft to change its behavior and embrace a corporate culture building on
collaboration rather than monopolization, supporting open-source projects and
fostering partnerships with other companies.
And many analysts believe it is these changes, stimulated by the past
determination of competition authorities, that help explain Microsoft’s success
over the last decade, under the leadership of CEO Satya Nadella.
Against this backdrop, Trump’s view that EU competition policy is driven by
discriminatory motivations against U.S. companies is simply unfounded. What’s
true is that in any national or supranational context like the EU, institutions
such as competition authorities and central banks have been set up in the
eminent American tradition — dating back to the late 19th century (with the
Sherman Anti-Trust Act of 1890) and the early 20th century (with the Federal
Reserve Act of 1913) — precisely with the goal preventing these abuses, whether
by companies in the marketplace or by governments abusing future generations via
high inflation.
Of course, it’s no surprise that leaders with an autocratic vision wouldn’t feel
at ease with institutions entrusted by governments and parliaments of the past
with preventing power from becoming absolute. But it was the U.S. that set
postwar Germany, and later the EU, on this track.
When occupying the country after World War II, America imposed the creation of
two institutions on the newly born Federal Republic of Germany: First, the
Deutsche Bundesbank — an independent central bank modeled on the Federal Reserve
System, meant to avoid a repetition of the hyperinflation that contributed to
the advent of Nazism. Second, the Bundeskartellamt competition authority,
modeled on the Federal Trade Commission and the Antitrust Division of the
Department of Justice, with the power to prevent the reemergence of cartels and
trusts in heavy industry — another factor that had contributed to Hitler’s
aggression and World War II.
Then, at Germany’s request — and on the basis of the country’s democratic and
economic resurgence — these two institutions were transposed to the EU level.
So, today we must thank the U.S. not only for its decisive help in saving the
continent from Nazism and Fascism and protecting it from Soviet Communism, but
also for injecting postwar Europe with such powerful antidotes to the
aberrations of the past.
Perhaps Trump might forgive us if we aren’t ready to give up this great American
legacy.
Meta and TikTok have dealt a blow to the European Commission’s social media rule
book, pressing the EU executive to codify how it calculates the number of users
on online platforms.
The General Court at the Court of Justice of the European Union sided with the
social media companies on Wednesday in their challenge of an annual supervisory
fee the European Union charges to pay for the enforcement of its tech rulebook,
the Digital Services Act (DSA).
It’s the first major court loss for the Commission over the DSA, which entered
into force in 2022 and can be wielded to fine social media and e-commerce
platforms up to 6 percent of their global annual revenue. The EU has yet to
finalize investigations under the law.
At the heart of the case are platforms’ disagreements with how the EU calculated
the fee. The Commission directly supervises “very large online platforms” with
over 45 million average monthly users in the bloc.
Meta and TikTok challenged the European Commission’s decisions imposing
so-called supervisory fees in 2024. These fees are meant to support the
Commission’s work overseeing the very platforms that pay it — an extension of
the “polluter pays” principle often used in environmental policy — and are
proportionate to the number of users platforms have in the EU.
The EU’s General Court said in its ruling the Commission should have passed a
separate set of rules about how users are calculated before determining the
fees. Judges gave the Commission a year to draft a text on how it calculates
platform users, or else potentially refund the platforms’ 2023 fees.
The EU executive has already been working on such rules, called a delegated act.
The Commission said the court merely ruled against it on procedure and not
substance. “The Court confirms our methodology is sound: no error in
calculation, no suspension of any payments, no problem with the principle of the
fee nor the amount,” said spokesperson Thomas Regnier.
Meta said in a statement that the judgement “will force the European Commission
to reassess the unfair methodology being used to calculate these DSA fees,”
adding it “looks forward to the flaws in the methodology being addressed.”
TikTok “welcomed” the decision and will “closely follow the development” of the
case, company spokesperson Paolo Ganino said.