Digital Updates – February

DIGITAL UPDATES

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FEBRUARY UPDATES

Alliance Holds Video Call with Twitter

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On February 14, the Alliance Digital Advisory Group — the Alliance’s hub for discussing issues related to the online ecosystem — held a video conference with Twitter on monetization issues. First, Twitter updated Alliance members on how sponsored tweets could potentially benefit publishers. A business can sponsor news content promoted on Twitter, with the revenue from the sponsored content split evenly between Twitter and the business, effectively giving the organization 1.5 times the value of the sponsorship. Twitter also discussed plans to develop a program for local news organizations to effectively monetize their content on the platform, called the Local News Monetization Program. The beta test participants for the Local News Monetization Program will likely be selected by the second quarter of 2019, and Twitter will share the learning outcomes with the Alliance.

Federal Trade Commission Creates Big Tech Task Force

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On February 26, the Federal Trade Commission (FTC) announced that it will establish a task force to examine and lead enforcement efforts against anti-competitive activities by big tech companies. The move follows intense scrutiny of the FTC’s enforcement efforts and oversight by Congress. The task force is a part of the FTC’s Bureau of Competition and is composed of approximately 17 lawyers. It is modeled after the agency’s Merger Litigation Task Force, launched in 2002, and will be led jointly by Patricia Galvan and Krisha Cerilli. The FTC’s move comes after reports that Senator Lindsey Graham (R-SC) plans to create a task force of the Senate Judiciary and Commerce committees to examine online privacy, content and bias, among other issues. Similarly, the newly-appointed Attorney General William Barr indicated during his confirmation process that he would be interested in further examining the role of big tech companies. Read more about the FTC’s task force here.

Congress Holds Two Hearings on Consumer Privacy

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On February 26 and 27, the House and the Senate held separate hearings on the need for federal approaches to consumer data privacy. The House Consumer Protection and Commerce Subcommittee’s hearing, “Protecting Consumer Privacy in the Era of Big Data,” featured panelists from both consumer and business advocacy organizations, including Color of Change, Interactive Advertising Bureau (IAB), American Enterprise Institute (AEI), Center for Democracy & Technology and Business Roundtable. The panelists, as well as many of the representatives, emphasized the need for federal privacy legislation. IAB’s Dave Grimaldi and AEI’s Dr. Roslyn Layton noted the need to ensure that such legislation does not stifle innovation or harm small businesses, drawing particular attention to the fact that more than one thousand U.S. news sites are not available in Europe because of the General Data Protection Regulation (GDPR). Meanwhile, in the Senate, the Commerce Committee’s hearing on “Policy Principles for a Federal Data Privacy Framework in the United States” featured speakers mainly from industry groups. All witnesses supported the creation of a federal privacy framework, with most panelists agreeing that the law should preempt state laws. Some panelists and Senators, including Ranking Member Maria Cantwell (D-WA), noted that the federal privacy protections should be comprehensive and meaningful. Watch the full recordings of the House hearing here and the Senate hearing here.

European Union Moves Forward with the Copyright Directive

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Following the deal reached between the European Parliament and the Council on the language of the proposed Copyright Directive — including Article 11, which would create a Publishers’ Right in the European Union — the Council approved the final version on February 20. Following the Council’s vote, the Parliament’s Legal Affairs Committee approved the deal on February 26. The compromise version of Article 11 sticks closer to the Council’s proposal, with “individual words and short extracts” falling outside the scope of protection. However, the negotiators inserted a sentence ensuring that the exclusion of short extracts is not interpreted to weaken the effectiveness of the Publishers’ Right. Following the votes in the Council and the Legal Affairs Committee, the Directive must now be approved by the full Parliament. The Parliament is expected to vote on the measure during its session from March 25–28. The Alliance will work with our European partners to help ensure the passage of the Directive. Read the Legal Affairs Committee’s press release on the Directive here

LawView Now Includes State Data Privacy Bills

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The Alliance LawView state legislation tracking tool now includes data privacy bills. The bills captured by the privacy tracker include the data privacy bills currently being considered in New York, Washington state, North Dakota and Massachusetts, among other states. Among the bills being considered is New York’s “Right to Know Act of 2019” (NY S 224 and NY A 3739), which would establish a right of access and regulate the information businesses must provide to residents of New York state. New York is also considering the “Stop Hacks and Improve Electronic Data Security Act (SHIELD Act)” and the “Personal Information Protection Act.” These bills would amend existing breach notification requirements and establish a personal bill of rights, respectively. Similarly, the “Washington Privacy Act” (WA SB 5376 and WA HB 1854) calls for transparency, individual control, respect for context, focused collection and responsible use, security, access and accuracy. In North Dakota, meanwhile, HB 1485 establishes consumer data protections and would define “personal information” to include browsing history and inferences drawn from other personal information. Massachusetts’s SD 341 would add a new “Consumer Data Privacy” section in the state’s code and establish access and notice requirements, in addition to a right to delete. These and other data privacy bills follow the passage of the California Consumer Privacy Act (CCPA) last year. The California Attorney General is currently conducting public forums in relation to the CCPA rulemaking process, with the next hearing scheduled for March 5. The AG’s office is also accepting written comments until March 8. Find out more about the rulemaking process here. To view the data privacy bills, visit the LawView State Legislation Tracker here and click on an individual state in the map or, under Issue Area, click on Privacy.

Germany Restricts Facebook’s Data Collection Activities

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On February 7, the German competition authorities issued a decision prohibiting Facebook from linking user data it collects on its services and third-party sites with a Facebook account without explicit user consent. The competition regulator noted that the company’s existing procedures for collecting consent for such activities are not sufficient. The regulator also noted that Facebook’s unregulated collection and combination of user data has contributed to its dominant market position. The decision could affect Facebook’s recent decision to further integrate its Instagram, WhatsApp and Facebook Messenger services, in addition to its use of Like and Share buttons and the Facebook Login feature offered to external websites. Facebook has four months to comply with the order or risk fines of up to 10 percent of its annual revenues. The company also has one month to appeal the decision. Read the full decision here.

European Union Reaches a Compromise on Copyright

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On February 13, the European Parliament and the Council reached a long-awaited deal on the proposed Copyright Directive, including Article 11, which would create a Publishers’ Right in the European Union. The compromise version of Article 11 sticks closer to the Council’s proposal, with “individual words and short extracts” falling outside the scope of protection. However, the negotiators inserted a sentence ensuring that the exclusion of short extracts is not interpreted to weaken the effectiveness of the Publishers’ Right. The right may also be available to non-European publishers. This is an excellent result for news publishers who worked diligently over the last few years to secure the inclusion of a strong and enforceable Publishers’ Right in the Directive. The negotiators, who have been meeting since October, reached the compromise just before the February 14 deadline. The text will now be translated and then both the Council and the full European Parliament will vote on the deal by April. The Alliance will continue working with our European partners to encourage the member states and the members of the European Parliament to adopt the Directive as soon as possible. Read the text of Article 11 here, and the Alliance’s statement on the final deal here.

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