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Europe Seeks Greater Control Over Digital Offerings Europe Seeks Greater Control Over Digital Services
(35 minutes later)
How do you say “House of Cards” in French? Under new European proposals, you may soon find out.How do you say “House of Cards” in French? Under new European proposals, you may soon find out.
That’s because European officials announced on Wednesday a new set of rules aimed at regulating how the 500 million people in the region buy, access and consume online services from video streaming to messaging applications.That’s because European officials announced on Wednesday a new set of rules aimed at regulating how the 500 million people in the region buy, access and consume online services from video streaming to messaging applications.
The region’s policy makers hope the proposals — which would come into force next year, at the earliest — will help bolster the region’s sluggish economy. But tech companies, particularly video streaming services like Netflix, fear they will soon be forced not only to carry more local content in individual countries but also to help pay for its development. These companies argue that they already promote and produce such content to attract different customers, and putting in place tough regulations could hurt consumer choice. The region’s policy makers hope the proposals — which would come into force next year, at the earliest — will help bolster the region’s sluggish economy. But technology companies, particularly video streaming services like Netflix, fear they will soon be forced not only to carry more local content in individual countries but also to help pay for its development. These companies argue that they already promote and produce such content to attract different customers, and putting in place tough regulations could hurt consumer choice.
Others, including Facebook, might also soon face greater scrutiny over how some of their digital products, including WhatsApp, one of the company’s messaging services, are used across the 28-member bloc.Others, including Facebook, might also soon face greater scrutiny over how some of their digital products, including WhatsApp, one of the company’s messaging services, are used across the 28-member bloc.
And despite assurances from the European Commission, the executive arm of the European Union, that the proposals would apply to all companies, Silicon Valley giants like Facebook, Netflix and Apple still dominate much of the online world that Europeans have come to rely on. These companies — at least in the short term — would most likely be the most affected by European efforts to regulate Internet services. And despite assurances from the European Commission, the executive arm of the European Union, that the proposals would apply to all companies, Silicon Valley giants like Facebook, Netflix and Apple still dominate much of the online world that Europeans have come to rely on. These companies, at least in the short term, would most likely be the most affected by European efforts to regulate Internet services.
The commission’s digital plans are subject to the approval of the European Parliament and individual member states, a lengthy process that could lead to potentially significant changes to the proposals.The commission’s digital plans are subject to the approval of the European Parliament and individual member states, a lengthy process that could lead to potentially significant changes to the proposals.
As part of Wednesday’s announcement, European officials said they would give individual countries the power, if they so choose, to force video streaming services like Netflix, which produces the “House of Cards” series starring Kevin Spacey, to help pay for the production of local content, including movies and television programs. The authorities did not specify how much the national fees might be.As part of Wednesday’s announcement, European officials said they would give individual countries the power, if they so choose, to force video streaming services like Netflix, which produces the “House of Cards” series starring Kevin Spacey, to help pay for the production of local content, including movies and television programs. The authorities did not specify how much the national fees might be.
Such rules already exist for traditional broadcasters, which fork out the equivalent of millions of dollars each year, or roughly 20 percent of their annual revenues, to support local content. European policy makers said that, by contrast, online streaming rivals only invest around 1 percent of their annual revenue. The new rules, they added, would help create a level playing field between companies and would lead to the production of more European content. Such rules already exist for traditional broadcasters, which pay the equivalent of millions of dollars each year, or roughly 20 percent of their annual revenues, to support local content. European policy makers said that, by contrast, online streaming rivals only invest around 1 percent of their annual revenue. The new rules, they added, would help create a level playing field between companies and would lead to the production of more European content.
The proposals are part of Europe’s continuing attempts to manage the online world. The region’s authorities want to create a so-called digital single market across the European Union to give people easy access to electronic offerings like movie streaming, online shopping and cloud computing, no matter where they live.The proposals are part of Europe’s continuing attempts to manage the online world. The region’s authorities want to create a so-called digital single market across the European Union to give people easy access to electronic offerings like movie streaming, online shopping and cloud computing, no matter where they live.
The hope is that by unifying the Continent digitally, Europe can better fulfill its promise as a unified market, while also jump-starting its economy.The hope is that by unifying the Continent digitally, Europe can better fulfill its promise as a unified market, while also jump-starting its economy.
“The way we watch TV or videos may have changed, but our values don’t,” Günther H. Oettinger, the European commissioner in charge of the digital economy, said in a statement on Wednesday. “With these new rules, we will uphold media pluralism.”“The way we watch TV or videos may have changed, but our values don’t,” Günther H. Oettinger, the European commissioner in charge of the digital economy, said in a statement on Wednesday. “With these new rules, we will uphold media pluralism.”
Streaming services will also be required to ensure that at least 20 percent of their online content is from Europe, and that these movies and television programs are given prominence in the digital catalog. A report funded by the European Commission recently found that both Netflix and Apple already met this requirement.Streaming services will also be required to ensure that at least 20 percent of their online content is from Europe, and that these movies and television programs are given prominence in the digital catalog. A report funded by the European Commission recently found that both Netflix and Apple already met this requirement.
Representatives for the two American providers of streaming services declined to comment. But in written statements to the European Commission, Netflix said that it had promoted European content, including funding its own series in several local languages, but that it believed strict quotas would harm consumer choice.Representatives for the two American providers of streaming services declined to comment. But in written statements to the European Commission, Netflix said that it had promoted European content, including funding its own series in several local languages, but that it believed strict quotas would harm consumer choice.
“Rigid numerical quotas risk suffocating the market for on-demand audiovisual media services,” the company said.“Rigid numerical quotas risk suffocating the market for on-demand audiovisual media services,” the company said.
Despite protests from Netflix, Digital Europe, a tech trade group whose members include Google and Microsoft, welcomed the European proposals. It said, however, that any potential new rules for online platforms should be based on evidence that consumers had been harmed.Despite protests from Netflix, Digital Europe, a tech trade group whose members include Google and Microsoft, welcomed the European proposals. It said, however, that any potential new rules for online platforms should be based on evidence that consumers had been harmed.
Europe’s stance on digital services is only the beginning.Europe’s stance on digital services is only the beginning.
On Wednesday, the European Commission said that it would propose new copyright rules in the fall that could force companies like Google to pay online publishers when using their content, for instance on the news aggregation service Google News.On Wednesday, the European Commission said that it would propose new copyright rules in the fall that could force companies like Google to pay online publishers when using their content, for instance on the news aggregation service Google News.
While the proposals are not finalized, analysts said there was a continuing fight between many European publishers, which do not like the power that American tech companies have over access to online content, and Silicon Valley supporters, who say companies like Google helped people view the digital material.While the proposals are not finalized, analysts said there was a continuing fight between many European publishers, which do not like the power that American tech companies have over access to online content, and Silicon Valley supporters, who say companies like Google helped people view the digital material.
Previous attempts to force Google to pay for digital content in Spain and Germany did not prove successful, and the Internet giant either shut down its news aggregation service or removed local publishers from Google News in protest.Previous attempts to force Google to pay for digital content in Spain and Germany did not prove successful, and the Internet giant either shut down its news aggregation service or removed local publishers from Google News in protest.
A representative for Google was not immediately available to comment.A representative for Google was not immediately available to comment.
European officials also said on Wednesday that they were still reviewing possible new rules to police how so-called online platforms like Facebook and Amazon operate.European officials also said on Wednesday that they were still reviewing possible new rules to police how so-called online platforms like Facebook and Amazon operate.
Many legacy European industries, particularly in the telecommunications sector, have complained that start-up rivals like WhatsApp must comply with fewer laws than existing players. Others have complained that tech giants have too much control over people’s online data, which gives them an unfair advantage when offering services to potential customers.Many legacy European industries, particularly in the telecommunications sector, have complained that start-up rivals like WhatsApp must comply with fewer laws than existing players. Others have complained that tech giants have too much control over people’s online data, which gives them an unfair advantage when offering services to potential customers.
A Facebook representative was not immediately available for comment.A Facebook representative was not immediately available for comment.
In response, the European Commission said it would decide by the end of the year whether Internet messaging services like Facebook Messenger may have to comply with existing — and more onerous — telecommunications rules that apply to traditional text messages offered by carriers. In response, the European Commission said it would decide by the end of the year whether Internet messaging services like Facebook Messenger may have to comply with existing — and more onerous — telecom rules that apply to traditional text messages offered by carriers.
European officials also said they were looking into making it easier for people to move their digital information between online platforms by the end of the year, giving them greater control over data that companies collected on their daily digital lives.European officials also said they were looking into making it easier for people to move their digital information between online platforms by the end of the year, giving them greater control over data that companies collected on their daily digital lives.
“I want online platforms and the audiovisual and creative sectors to be powerhouses in the digital economy,” Andrus Ansip, the European Commission vice president in charge of the region’s digital single market proposals. “They need the certainty of a modern and fair legal environment: That is what we are providing today.” “I want online platforms and the audiovisual and creative sectors to be powerhouses in the digital economy,” said Andrus Ansip, the European Commission vice president in charge of the region’s digital single market proposals. “They need the certainty of a modern and fair legal environment: That is what we are providing today.”