// HIGHLIGHT //
G7 countries take on AI, data flows
As we anticipated last week, the G7 digital ministers wrapped up their weekend meeting in Japan with a focus on AI and data flows, setting the stage for new developments in some areas and a bit of a letdown in others. The good parts first.
If AI is queen, data is still king
The digital ministers of the world’s seven largest economies – Canada, France, Germany, Italy, Japan, the UK, and the USA – will start implementing Japan’s plan for a Data Free Flow with Trust (DFFT).
In essence, this approach will try to reconcile the need for data to flow freely, with the need to keep personal data safe and uphold people’s right to privacy. Although the group of seven have strong economies in common, the way the USA approaches data protection is at odds with stronger European safeguards. Max Schrems can tell us a thing or two about this.
The new plans outlined in the G7 digital ministers’ declaration involve setting up a new entity in the coming months, called an Institutional Arrangement for Partnership (IAP), and choosing the OECD to lead the IAP’s work. Although the OECD has only 37 members, its recent success in getting over 140 countries to agree on a new global digital tax deal shows that it’s capable of navigating complex terrains. Data flows are clearly a politically sensitive, highly charged issue.
The DFFT was first proposed by Japan’s former prime minister Shinzo Abe, debuted at the World Economic Forum annual meeting in Davos, and was later endorsed by the G20. Since Japan is chairing the G7 this year, it will want to see the IAP up and running by the end of 2023. Good news for DFFT supporters: The pressure’s on for the IAP stream.
Generative AI: G7 digital ministers hedge their bets
While things will move quickly on the data flows front, the ministerial declaration is somewhat of a letdown when it comes to regulating generative AI tools such as ChatGPT.
The group of seven did acknowledge the popularity that generative AI tools have gained quickly and the need to take stock of benefits and challenges. But the best the ministers could offer was a vague, non-committal plan:
‘We plan to convene future G7 discussions on generative AI which could include topics such as… (transparency, disinformation)… These discussions should harness expertise and leverage international organisations such as the OECD to consider analysis on the impact of policy developments and GPAI to conduct relevant practical projects.’
What they did commit to is ‘to support interoperable tools for trustworthy AI’, meaning: to develop tools that allow AI tools to work together seamlessly. This includes developing standards and promoting dialogue on interoperability between governance frameworks.
Meanwhile, there’s still a possibility that the G7 heads of state, meeting later this month in Hiroshima, will take more concrete steps to tackle the privacy and security concerns of generative AI.
// ANTITRUST //
UK competition watchdog blocks Microsoft’s purchase of Activision Blizzard
The UK’s Competition and Markets Authority (CMA) has blocked Microsoft’s acquisition of Activision Blizzard, valued at USD68.7 billion (EUR62.5 billion), over concerns that it would negatively affect the cloud gaming industry.
We might have known this would happen: In February, the watchdog said the merger would harm competition and proposed several remedies. Even though Microsoft’s reassurances seemed promising, it did not dissuade the watchdog strongly enough to overturn its initial thoughts, and a war of words ensued.
Why is this relevant? It’s relevant because of what happens next. An unsuccessful appeal by Microsoft could influence the decisions of the US Federal Trade Commission and the European Commission. If past experience is anything to go by, a second rejection by the European Commission will convince the FTC to block the merger as well.
// CONTENT POLICY //
China to root out false news about Chinese businesses
The Central Cyberspace Administration of China will carry out a three-month nationwide campaign to remove fake news about Chinese businesses from online circulation. The aim is to allow ‘enterprises and entrepreneurs’ to work in ‘a good atmosphere of online public opinion’.
Why is it relevant? There’s nothing new about China’s ‘clean-up cyberspace’ campaigns (known as Qinglang) – these campaigns actually started in 2016. But the fact that the government wants to improve local businesses’ reputation shows its intent to promote its domestic market.
Brazil blocks (and reinstates) Telegram over non-disclosure of personal data
Brazil’s Supreme Court temporarily suspended access to messaging app Telegram for users in the country after the company failed to comply with an order to provide data linked to a group of neo-Nazi organisations using the platform.
Telegram CEO Pavel Durov said that the data requested by the court ‘is technologically impossible for us to obtain’, as the users had already left the platform. But the court disagreed.
The court has lifted its suspension, but retained the non-compliance fine of one million reais (USD198,000 or EUR182,000) per day until the company provides the requested data.
Why is it relevant? Because the same thing happened to Telegram last year and to WhatsApp in previous years.
(Click here for the original Du Rove Channel machine-readable message)
