Yazılar

EU Firm on AI Rules Timeline Despite Industry Calls for Delay

/in /tarafından

The European Commission reaffirmed on Friday that it will adhere to the legal timeline for implementing the European Union’s groundbreaking Artificial Intelligence Act, rejecting recent appeals from major tech companies and some member states to postpone the rollout.

Key Points:

  • Major tech players including Alphabet (Google), Meta (Facebook), as well as European firms like Mistral and ASML, had urged the Commission to delay the AI Act by several years.

  • Commission spokesperson Thomas Regnier made clear at a press conference:

    • No pause, no grace period, and no stop-the-clock on the AI Act timeline.

    • Initial provisions took effect in February 2024.

    • Rules for general purpose AI models will begin enforcement in August 2024.

    • Requirements for high-risk AI models will start in August 2026.

  • The Commission indicated plans to simplify digital rules later this year, potentially reducing reporting obligations for smaller companies.

  • Concerns from companies center on the compliance costs and strict regulations, as the AI Act seeks to regulate a technology critical to sectors dominated by the US and China.

EU Digital Rules Hurting Innovation and European Users

/in /tarafından

Google is warning that the European Union’s Digital Markets Act (DMA)—a sweeping antitrust law targeting Big Tech—is stifling innovation and leading to worse experiences for European consumers and businesses. The message will be delivered Tuesday at a European Commission workshop convened to allow Google critics to voice concerns and seek clarity.

Google’s legal team will argue that the new regulatory demands, intended to reduce the dominance of platforms like Google Shopping and Google Flights, are backfiring. According to Clare Kelly, one of Google’s lawyers, the company’s efforts to comply have resulted in clunky interfaces, higher ticket prices, and a 30% drop in direct booking traffic for airlines, hotels, and restaurants across Europe.

“We remain genuinely concerned about real world consequences of the DMA, which are leading to worse online products and experiences for Europeans,” Kelly is expected to say, according to remarks seen by Reuters.

The Digital Markets Act, which came into force in March 2024, imposes strict obligations on companies designated as “gatekeepers”, like Alphabet’s Google, Apple, Amazon, Meta, Microsoft, and ByteDance. Violations can result in fines up to 10% of global annual revenue.

In response to DMA scrutiny, Google has modified its search display to better highlight rival services, but critics say the changes don’t go far enough to ensure genuine competition. Google’s Oliver Bethell will call on regulators to provide clearer compliance guidelines to avoid delays and uncertainty.

“If we can understand precisely what compliance looks like, not just in theory, but taking account of on-the-ground experience, we can launch compliant services quickly and confidently across the EEA,” Bethell will say.

He also challenges Google’s critics to provide evidence-based analysis of both the costs and benefits of proposed remedies. “We need help identifying the areas where we should focus,” Bethell will argue, urging for data-driven input that can be jointly assessed with the Commission.

The Commission’s workshop—attended by EU officials, competition experts, and Google rivals—aims to clarify compliance expectations and evaluate whether the DMA is achieving its stated goals without unintended negative consequences.

Google Faces Setback as EU Court Adviser Supports Antitrust Regulators

/in /tarafından

Alphabet’s Google encountered a potential setback on Thursday after an adviser to Europe’s highest court sided with EU antitrust regulators over a landmark €4.34 billion ($4.98 billion) fine imposed seven years ago.

The European Commission ruled in 2018 that Google had abused its dominant position by using its Android mobile operating system to block competitors. While a lower court upheld the ruling in 2022, it slightly reduced the fine to €4.1 billion. Google subsequently appealed to the Court of Justice of the European Union (CJEU).

Juliane Kokott, Advocate-General at the Luxembourg-based CJEU, issued a non-binding opinion recommending the court reject Google’s appeal and confirm the reduced fine. Kokott stated, “The legal arguments put forward by Google are ineffective.”

She dismissed Google’s claim that regulators should assess the situation by comparing Google with a hypothetical, equally efficient competitor. Kokott explained, “Google held a dominant position in several markets of the Android ecosystem and thus benefited from network effects that enabled it to ensure that users used Google Search.”

Judges typically follow the Advocate-General’s opinion in about 80% of cases. A final ruling is expected in the coming months.

Google responded by emphasizing Android’s role in creating choice and supporting businesses globally, expressing disappointment with the opinion. A spokesperson said, “If followed by the Court, [the opinion] would discourage investment in open platforms and harm Android users, partners, and app developers.”

The regulators’ investigation found Google had imposed illegal practices dating back to 2011, including requiring manufacturers to pre-install Google Search and Chrome browser alongside Google Play on Android devices. Google also paid manufacturers to pre-install only Google Search and prevented the use of rival Android systems.

Google’s Android runs on approximately 73% of the world’s smartphones, according to Statcounter.

This fine is part of a broader enforcement effort against Google, which has amassed €8.25 billion in penalties across three antitrust cases over the past decade, with additional investigations ongoing.

Case Reference: C-738/22 P Google and Alphabet v Commission