Archive – 2019

Senator Hawley Proposes Bill to Ban Common Web Site Features

Review by Vox

Key Insight – Senator Josh Hawley has sponsored legislation (S. 2314) to prohibit practices such as auto-playing and content scrolling in video and news feeds that some believe promote Internet addiction, as well as mandate a default technological block on Internet services blocking them from being used more than 30 minutes in a day.  This follows on his bill (S. 1951) which requires digital companies to regularly report to users and the SEC on the value of their data to the company, legislation (S. 1578) creating a mandatory “Do Not Track” system described as an Internet version of the FTC’s “Do Not Call” system, a bill (S. 1914) that would require larger Internet communications platforms to be certified every two years by the Federal Trade Commission that their content moderation and take-down practices are “ideologically neutral”.

Australian Competition Authority Delivers Report on Google & Facebook

Report from CNBC

Key Insight – Following more than a year-and-a-half review of the activities of the largest digital communications, media and advertising platforms on the Australian market, including on traditional journalism, media and advertising businesses, the Australian Competition and Consumer Commission released a 623 page report that includes 23 recommendations for government action. The Australian Government, which has been quite pronounced in the view that Google and Facebook in particular require new models of regulation, are expected to take up some or all of the recommendations starting in late 2019. The report includes a wide range of recommendations, including the prospect of regularized governmental review of various company algorithms to determine potential bias, and leaves open the prospect that some new regulations will apply to a wide range of digital businesses.

Leaked Document Shows EU Drafting a “Digital Services Act” to Replace the eCommerce Directive

Report from Netzpolitik.org

Key Insight – The legislation described in the leaked memo is expected to unveiled in 2020 and will propose to replace a range of national policies and enforcement agencies with an EU-wide digital regulator.  It is not clear what will be included in the remit of the new regulator as treatment of “free speech” and “hate speech” are different in different countries.  In addition, the new law is expected to cover “fairness in ecommerce” but is not expected to rewrite copyright law which was recently updated in the context of Internet platforms via the European Copyright Directive.

Proposed Indian Version of Digital Services Tax Reported to Kick In at $3 m and 500,000 Users

Report from the India Times

Key Insight – In the spirit of the digital services tax ideas proposed but not enacted by the EU, and then enacted by France and UK, new details of a proposal by the Government of India to implement a tax policy of Significant Economic Presence has been reported.  The intent of the proposal is to establish the nexus between the Indian market and non-resident digital businesses who engage Indian consumers, providing a basis for direct Indian taxation of corporate income. The proposed thresholds would include 200 million rupees in income (approximately $3 million USD) and 500,000 users in the country.

India Slows Ecommerce Policy and Reiterates Marketplace FDI Rules

Report from the Business Standard

Key Insight – The Indian Government has announced that a draft “ecommerce” policy document released in February, which included a broad range of proposals on Internet, privacy and data localization, was being placed on a delayed timetable. The Department for Promotion of Industry and Internal Trade (DPIIT) would form a new task force intended to release a revised proposal in 2020. However, the government reiterated that ecommerce marketplace FDI limits which prohibit majority ownership by non-Indian companies in online “marketplace” businesses that also sell significant inventory they own would remain in effect.

White House Summit on Anti-Conservative Social Media Bias

Story from Fast Company

Key Insight – The topic of ideologically slanted user content moderation policies, in particular by some conservative Republicans claiming that large platform businesses that are led by and largely employ progressives are undermining conservative voices, was the topic of a July 10 White House Summit.  The topic has also been raised by conservative Senators grilling tech company executives, and Senator Josh Hawley has sponsored legislation linking civil liability for user-generated content to “viewpoint neutrality” as determined by the Federal Trade Commission.

California Independent Worker Bill Talks Spark Labor Controversy

Story from the New York Times

Key Insight – Last year’s Dynamex decision in the CA Supreme Court, setting a standard for categorizing someone as an independent contractor or employee, which is seen as threatening a range of traditional and “Gig” type digital platform work models, has kicked of a major legislative effort in California to codify such standards. Leading ride service platforms Uber and Lyft have called for greater ability to offer drivers’ benefits without creating traditional employee relationships and have reportedly been engaged in negotiations with labor organizations, including the SEIU, which has sparked controversy among some of the leading advocates for aggressive employee categorization. Assembly Bill 5 has been passed by the State Assembly, shifting debate to the California Senate, and is the subject of intensive lobbying, including from the broad industry-led I’m Independent Coalition.

France Is Latest to Debate Expanded Social Media Moderation Duties

Story from TheLocal.fr

Key Insight – France has joined the procession of countries such as Australia and Germany proposing to impose increased burdens on digital social media platforms to police hate speech and other objectionable content, with the National Assembly beginning debate on a bill to streamline how social media platforms police contentand reinforce platform intervention by expanding platform penalties. While the legislation has drawn some criticism as threatening free speech and injecting big tech companies in a speech moderator role some think should be reserved for government, it is expected to pass and move to consideration by the French Senate.

Some Digital Platform News from the G20 Summit in Osaka, Japan

Story from Reuters

Key Insight – Although not a headline grabber, the G20 leaders reaffirmed their commitment to a general work program of the World Trade Organization to develop rules and policies to promote digital trade and development. This reaffirmed a recommendation from the June 8-9 Ministerial Meeting on Trade and the Digital Economy.  In news involving less consensus but more controversy, Australian Prime Minister Scott Morrison returned home claiming international support for the type of aggressive user content policing of extreme communicationslegislated in Australiafollowing the Christchurch attacks.

Platform Tax Collection from Global (Japan) to Local (US “Smart Cities”)

Story from The Japan News

Key Insight – In Japan, the National Tax Agency is concerned that people are using digital platforms for home sharing, product selling and crypto-currency trading to make money, but not paying taxes. Along with dedicating new compliance resources to this issue, the agency will reportedly require platform providers to provide user information to tax authorities to assist in tax collection starting next year. On the other side of the globe and the other end of the governmental spectrum, the US-based “Smart Cities Policy Group” will bring together city regulators, property owners and managers, and representatives from companies involved in short-term rental transactions at an August conference in Austin, Texas.