Public Affairs Roundup - November 2009

The names of the individuals appointed to the EU’s new top posts were announced 19th November, following an informal summit of the EU’s head of state. Herman Van Rompuy was appointed permanent President of the European Council, Catherine Ashton was appointed High Representative of the Union for Foreign Affairs and Security Policy and Pierre de Boissieu Secretary-General of the Council Secretariat.The appointments have received a mixed response, largely on account of their low international profiles. EU leaders were unanimous in their choice however, and have emphasised their consensus-building credentials. Both Van Rompuy and Catherine Ashton have characterised their approach as discreet diplomacy.

Later in the month, on 27^th November, José Manuel Barroso, President of the European Commission, announced the portfolios responsibilities for the next Commission.  President Barroso said: "I am confident that this College will be decisive in steering Europe towards recovery and a sustainable social market economy that works for the people. I have put together a strong Commission to fill the enhanced role of Europe, including on the world stage, provided by the Lisbon Treaty." 

With the entry into force of the Lisbon Treaty on 1 December, Vice-President Baroness Catherine Ashton will be the High Representative of the Union for Foreign Affairs and Security Policy. Along with 6 others, she will also be Vice-President of the Commission. The new College will have 27 members, including President Barroso, one from each Member State. It includes 9 women.  

President Barroso has announced a number of new portfolios: Climate Action; Home Affairs; Justice, Fundamental Rights and Citizenship. He has reconfigured a number of other portfolios; including Education, Culture, Multilingualism and Youth; Health and Consumer Policy; and has renewed the Digital Agenda portfolio. 

Responsibilities of the Commissioners-designate -  

-    Joaquín ALMUNIA: Competition. Vice-President of the Commission.

-    László ANDOR: Employment, Social Affairs and Inclusion.

-    Baroness Catherine ASHTON: High Representative of the Union for Foreign Affairs and Security and Vice-President of the Commission.

-    Michel BARNIER: Internal Market and Services.

-    Dacian CIOLOS: Agriculture and Rural Development.

-    John DALLI: Health and Consumer Policy

-    Maria DAMANAKI: Maritime Affairs and Fisheries.

-    Karel DE GUCHT: Trade.

-    Štefan FÜLE: Enlargement and European Neighbourhood Policy. *

-    Johannes HAHN: Regional Policy.

-    Connie HEDEGAARD: Climate Action.

-    Maire GEOGHEGAN-QUINN: Research and Innovation.

-    Rumiana JELEVA: International Cooperation, Humanitarian Aid and Crisis Response. *

-    Siim KALLAS: Transport. Vice-President of the Commission.

-    Neelie KROES: Digital Agenda. Vice-President of the Commission.

-    Janusz LEWANDOWSKI: Budget and Financial Programming.

-    Cecilia MALMSTRÖM: Home Affairs.

-    Günter OETTINGER: Energy.

-    Andris PIEBALGS: Development.*

-    Janez POTOČNIK: Environment.

-    Viviane REDING: Justice, Fundamental Rights and Citizenship. Vice-President of the Commission.

-    Olli REHN: Economic and Monetary Affairs.

-    Maroš ŠEFČOVIČ: Vice-President of the Commission for Inter-Institutional Relations and Administration.

-    Algirdas ŠEMETA: Taxation and Customs Union, Audit and Anti-Fraud.

-    Antonio TAJANI: Industry and Entrepreneurship. Vice-President of the Commission.

-    Androulla VASSILIOU: Education, Culture, Multilingualism and Youth.

* In close cooperation with the High Representative/Vice-President in accordance with the treaties.

A table with a more detailed description of the portfolio responsibilities can be found below. 

Next steps - The Commissioners must first gain approval from Parliament in January, after which the Commission as a whole will be voted on. The Commission will then be appointed by the European Council, and will run until 31 October 2014.    

For any questions, do not hesitate to contact us: publicaffairs@iabeurope.eu Giovanna Fumagalli Public Affairs IAB Europe    

1.       Agreement finally reached on the Telecoms Package In the early hours of the morning of Thursday 5^th November and after two years of discussions, the European Parliament and the Council reached an agreement on the telecoms package, a wide ranging legislative framework designed to reform and update EU telecom rules. Negotiations surrounded the now notorious ‘Amendment 138’ which insisted on an internet user’s right to a prior judicial procedure before restricting internet access. The final agreed wording was ambiguous, but the European Parliament website interprets that “a user's internet access may be restricted, if necessary and proportionate, only after a fair and impartial procedure including the user's right to be heard.” It remains to be seen whether Member States such as the UK and France will be able to push through their ‘three-strike’ anti- piracy legislation measures.  

Click here for the full article:

http://www.europarl.europa.eu/news/expert/infopress_page/052-63798-309-11-45-909-20091105IPR63793-05-11-2009-2009-true/default_en.htm 

The revised ePrivacy Directive is now undergoing final formalities before it enters into force, giving Member States 18 months for it to be implemented. The directive will improve the protection of the privacy and personal data of online users in Europe, and is the result of close cooperation between the EDPS and the European Parliament, Council and the Commission. Peter Hustinx, of EDPS, noted the particular emphasis on spyware and cookies, protecting privacy rights in relation to “so called targeted advertising”. The directive provides a framework for the mandatory notification of personal data breaches, requiring ISPs to inform individuals of such activity; better protection against spyware and cookies, through the provision of more effective user controls and information; the possibility to bring legal proceedings against spammers; and a significant strengthening of the powers of national data protection authorities. http://europa.eu/rapid/pressReleasesAction.do?reference=EDPS/09/13&format=HTML&aged=0&language=EN&guiLanguage=en

On 24 November, the EU Parliament adopted the EU telecoms framework directive with overwhelming majority. The new rules will strengthen consumer rights, bolster safeguards on internet freedom and data protection, increase competition and open up radio spectrum use. The package, which must be implemented within 18 months, came up against several difficulties during negotiation procedures, notably with regard to the protection of internet users’ rights, and it remains to be seen how Member States will interpret rules in this area.Consumers will gain the following rights:

• The right to switch fixed or mobile operators in one working day while keeping their number; 
• the right to be better informed about subscription-based services; 
• the right to be informed about data breaches by their telecoms operator, and; 
• the obligation for operators to give consumers the option of signing a contract which lasts no longer than 12 months.

Giles Chichester MEP, ECR spokesman on the parliament's industry committee, said:"It is important that we have the right regulatory framework to encourage investment and ensure consumers have access to all the relevant information; however we have avoided over-regulation that would have stifled innovation.“We argued all along against a single EU telecoms regulator, which would have no understanding of local market conditions. Fortunately, our view won through and we now have greater independence for national regulators but better coordination at European level in order to create a more robust cross-border telecoms market which will increase competition, and drive prices down and quality up.” Kimon Zorbas, Vice President of IAB Europe, commented: “The EU legislator kept the existing opt-out regime for cookies and improved it to the benefit of Internet users. Importantly, business now has a solid legal basis to rely on the browser settings when deploying cookies. This recognises the established practice that web users set their cookie preferences in their settings managers.” The framework will also see the creation of a new European telecom market authority, dealing with both competition and network security issues. Its first task will be to harmonise radio spectrum management for broadband.   http://www.europarl.europa.eu/news/expert/infopress_page/058-65039-327-11-48-909-20091123IPR65038-23-11-2009-2009-false/default_en.htm   

2.       Conference on online consumer safety  On 4^th November, the Swedish Presidency of the EU held a conference in Stockholm on online consumer protection; particular focus was given to the issue of faulty goods and digital content services. The conference was hosted by the Swedish Minister for Consumer Policy, Nyamko Sabuni. EU Consumer Commissioner Meglena Kuneva and Monique Goyens from the European Consumers’ Organisation (BEUC) were invited as speakers.  Stakeholders from consumer and business sector organisations, consumer lawyers and policy makers discussed current proposals for an EU directive on consumer rights when buying software, games, music or films by downloading them from the Internet. At present, digital products are not included in the scope of the Directive proposals relating to faulty goods.  

Minister for Consumer Affairs Nyamko Sabuni stated:"It is becoming increasingly common for people to purchase music, films and games digitally on the Internet. The pace of technological development is rapid, and it is a growing market. We must have consumer protection that is adapted to today’s consumption patterns. It is therefore crucial to spotlight these issues, which we have begun to do today." Meglena Kuneva, Commissioner for Consumer Affairs, European Commission said: "European consumers increasingly use the Internet for their purchases and there is an enormous potential for online digital content in the internal market. However, a functioning internal market requires clear, harmonised and effective consumer rights, as well as empowered consumers. I see today’s conference as an important step towards that." Important discussions involved issues such as information being provided before purchase and where responsibility lies when the product, film or music does not maintain acceptable standards or when it damages consumers’ computers. The Swedish Presidency website stated that “We are now looking forward to the study that the European Commission will soon be initiating to analyse consumers’ experience and problems when purchasing digital products in different Member States, and examine the legislation applied in various Member States and the USA.” 

Speaking before the conference, Monique Goyens, Director General European Consumers' Organization and Natali Helberger of the Institute for Information Law, (University of Amsterdam) both agreed on the necessity for stronger consumer protection in the online market and for the need of new, specific rules about digital services. Natali Helberger said that officials will have to decide if it is better to update existing rules and extend them to also cover digital content services, or to establish new specific laws according to the needs of the digital consumer. Monique Goyens indicated that the proposed directive on consumer rights was pointing us in the right direction and could be “the foundation for future regulation, if tailored to the specific requirements and characteristics of digital products”. 

Click here for the full article on the conference:http://www.se2009.eu/en/2.543/2.578/2.737/2.741/1.22056 

Click here for Monique Goyens and Natali Helberger’s views in full:http://www.se2009.eu/en/2.543/2.578/2.737/2.739/1.21640   

3.       Reding speech at BEUC: “A European Digital Agenda for the New Digital Consumer” Viviane Reding, Commissioner for Information Society and Media, recently gave a speech on the European Digital Agenda to the BEUC multi-stakeholder Forum on "Consumer Privacy and Online Marketing: Market Trends and Policy Perspectives". Reding focused on the changes and challenges the internet and innovative technologies present for the consumer, noting the potential these industries have for economic growth and the role of consumers in this process.

Starting with a review of the soon to be adopted telecoms reform, Reding outlined the fundamental rights and freedoms that the measures are designed to protect, such as internet freedom, consumer rights and consumer choice in the digital environment. Reding noted the barriers that consumers currently face to online commerce, reflected in the fact that in a recent test 60% of all cross border transactions were prevented due to technical difficulties. Drawing attention to the need for trustworthy online payment systems, she also highlighted other factors creating uncertainty; such as intrusions of personal privacy, misuse of personal data and malicious activities such as phishing.  Reding outlined the changes brought about by the new Telecoms Reform, relating to personal data breaches, clarified transparency requirements against spyware and malware, improved action against spammers and better enforcement of the rules. She also stated her belief that the Commission should investigate further issues related to the ePrivacy Directive, such as targeted advertising, and online identifiers. With regards to consumers, Reding explained the eYouGuide, a tool made available for European Consumers with the aim of increasing consumer awareness.

Reding also drew attention to three important areas for personal privacy: social networking, behavioural advertisement and RFID "smart chips"; emphasizing that those responsible must ensure that the consumer is consenting. Reding also noted the role a regulatory system for European websites would play in further building consumer trust, such as the assurances provided through the .eu domain.  Finally, Reding called on all other parties to fulfill their respective roles and responsibilities; including industry, public authorities, international partners and consumers themselves.  

To read the speech in full, see: http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/09/524&format=HTML&aged=0&language=EN&guiLanguage=en   

4.  EU: Kuneva releases paper on steps towards securing EU Online Single Market On 5^th November, Commissioner for Consumer Protection Meglena Kuneva, presented a paper on future policy solutions for barriers to online, cross border trading. Entitled “A Blueprint for Consumer Policy in Europe – Making Markets Work with and for People,” the paper is largely based on results of the 2009 online cross-border mystery shopping investigation, published in a Commission Communication on 22^nd October. Focusing on overcoming the remaining obstacles to the creation of an EU Online Single Market, the paper highlights three key areas:  

1. the removal of administrative burdens for cross-border trading.

2. improving the enforcement of existing legislation.

3. the need to adopt the Consumer Rights Directive. 

The Commissioner’s paper also refers to the significance of collective redress and to the importance of consumer trust online. Ms Kuneva said that the Commission would be focussing on the issue of personal data collection in 2010 and stressed that “the growth of online services should not hurt the fundamental rights of EU citizens.” 

Click here to view the paper:http://ec.europa.eu/consumers/docs/kuneva_consumer_blueprint_en.pdf 

Click here for a copy of the Commission Communication on E-Commerce: http://ec.europa.eu/consumers/strategy/docs/COM_2009_0557_4_en.pdf   5.        

5.   Data protection rules   On Tuesday 27^th October, Viviane Reding, the Information Society Commissioner participated to a conference on data protection in Brussels and underlined the priorities of EU Commission for the next years. In 2010, increased data protection for Internet services and additionally for non-virtual sectors, would be the main target for EU officials. Commissioner Reding declared that: "Protection against data breaches cannot be limited to electronic communications networks alone, but may need to be addressed in new EU rules which cover online services as well". The Commission is concerned about the collection of sensitive data from social networks and in this matter will concentrate its efforts on more protection. Jacques Barrot, responsible for EU Judicial Affairs "will assess the possibility to introduce a mandatory notification of personal data breaches" but Commissioner Reding stressed that for now they are only studying possible measures to protect users from data breaches, e.g. the possible introduction of a mandatory notification for personal data breaches. http://ec.europa.eu/commission_barroso/reding/docs/speeches/2009/brussels-20091023.pdf

On 3^rd November, over 50 representatives of EU and non-EU Data Protection Authorities attended the 31st International Conference of Data Protection and Privacy Commissioners in Madrid. A set of standards for the development of data protection and privacy guidelines was adopted to better align national legislation and further the development of the online market. The standards include, among other things, definitions of personal data and transparency.

Click here to see a copy of the Standards:http://www.privacyconference2009.org/privacyconf2009/dpas_space/space_reserved/documentos_adoptados/common/2009_MADRID/estandares_resolucion_madrid_en.pdf     

6.     Reding on convergence in the electronic communications markets On 23 November, Viviane Reding, Member of the European Commission responsible for Information Society and Media gave a speech entitled “Convergence in the electronic communications markets: challenges for the EU regulatory policies”. Speaking in Barcelona, Reding stated that the Telecoms Package will provide ‘a supportive and predictable environment for competition and investment in the electronic communications sector. They will also ensure that the common regulatory principles, which underpin the digital economy, are consistently applied across the EU, thanks to the central role now that they give to the European Commission and the new European Telecoms Authority BEREC in market analysis and competition remedies.’ Reding outlined the following changes: The Reform strengthens national regulators’ competition tools, while taking into consideration the risks involved in allowing access to NGA networks, meaning telecoms operators receive a fair return on investments. The rules regarding the sharing of network elements are also updated. Reform of the radio spectrum will help overcome the digital divide, improving capacities and service flexibility. Consumer protection against personal data breaches and spam have also been reinforced, increasing confidence and legal certainty.  Reding paid particular attention to copyright issues in her speech; citing figures that the creative sector counts for more than € 650 billion annually and contributes on average 2.6% of EU GDP. She noted the potential new technologies have for the distribution of creative content, and the importance this content will play for spurring advances in this area. Emphasising the need to protect copyright, Reding outlined how access to digital content must quickly become more consumer friendly. She also referred to the fragmented copyright system, suggesting that it should be re-shaped in line with a renewed intellectual property rights strategy, which would in turn allow progress the Digital Single Market.  Reding announced that the next European Commission will have an ambitious European Digital Agenda, with Barroso’s strategic vision “EU 2020” to include targeted legislative action.  She also mentioned the adoption of the Reflection Paper on Creative Content in Digital Single Market, and the launch of a public consultation on better access to content and more efficient protection of rights holders. Finally, stating her belief that it is necessary to act at EU level to create a coherent licensing framework, Reding highlighted the possibility of establishing a “European Copyright Law” as a single legal framework. http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/09/551&type=HTML&aged=0&language=EN&guiLanguage=en   

7.       Legal action against UK over confidentiality of electronic communications Gaps in UK law about the confidentiality of electronic communications have driven the European Commission to launch legal action against the British government. European laws state that Member States must ensure the confidentiality of people's electronic communication by prohibiting their unlawful interception without the user's consent. The UK failed to comply with these rules which are provided in the ePrivacy Directive 2002/58/EC and the Data Protection Directive 95/46/EC. More specifically, The European Commission found three gaps to UK laws. Firstly, they indicated the lack of an independent national authority to supervise the interception of communications. Secondly, the current UK law (RIPA) failed to comply with EU rules defining consent. Thirdly, the RIPA provisions prohibiting and providing sanctions in case of unlawful interception are limited to ‘intentional’ interception only, whereas the EU law requires commitment to be both intentional and unintentional. Viviane Reding stated: “Ensuring digital privacy is key for building trust in the internet. I therefore call on the UK authorities to change their national laws to ensure that British citizens fully benefit from the safeguards set out in EU law concerning confidentiality of electronic communications.”The UK has two months to reply to this second stage of the infringement proceeding. If the Commission receives no reply, or if the response presented by the UK is not satisfactory, the Commission may refer the case to the European Court of Justice.http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/1626&format=HTML&aged=0&language=EN&guiLanguage=en  

8.       Reding speech: "Bringing down walls and barriers in the digital world – priorities for the European Digital Agenda" In a recent speech at a conference entitled 'Visby Agenda: Creating impact for an eUnion 2015', the European Commissioner for Information Society and Media, Viviane Reding, spoke on the centrality of ICT and media policies for achieving a European single market. Reding said that in order to spur employment and business growth, today's challenge is to provide Europeans with high speed internet. She outlined the following five priorities: 

1.       High speed broadband for all. Reding noted that this will provide the foundation of European productivity and innovative services, yet only 3% of the investment of European telecoms operators goes into fibre. She also stressed the importance of a strategic approach and investment in next generation access (NGA) networks.

2.       Copyright and the single market for creative content. Reding commented that the Lisbon Treaty will make Europe a stronger player with regard to copyright, Article 118 allowing for the creation of a European copyright title. Stating that a single market for online content could quadruple revenues to €8.3bn, territorial fragmentation of licensing conditions hinders this. Reding referred to the recent Reflection Paper on Creative Content in Digital Single Market, noting three possible outcomes: enabling intellectual property rights for online services for all 27 EU Member States; consolidating online rights into a unitary licence and a central database of licence information; and creating a 'European Copyright Law', harmonising copyright laws at a European level. Reding emphasised the importance of swift action in this area.

3.       Consumer perspective. Reding noted that only 7% of transactions made by European consumers over the web are cross-border, owing to legal and technical difficulties. She added that the protection of personal data will be central to imbuing consumer trust in the process, with M-commerce presenting important opportunities for commercial and social innovation.

4.       Improve the services available to European consumers. Reding emphasised the importance of developing a 'European Cloud', with cloud technology taking forward business and public services.

5.        The ICT contribution to achieving the Copenhagen goals. Reding commented on the need for ICT to reduce its own carbon footprint, which is currently increasing, and on the crucial role ICT will play in ‘greening’ the economy. For the speech in full, see: http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/09/519&format=HTML&aged=0&language=EN&guiLanguage=nl 

The chair of the Council Working Party on Telecommunications and Information Society, Mr. Jörgen Samuelsson, announced in early November that future IT policy is currently the Working Party’s most important issue. The Party has been focusing on a 5 year programme for IT policy which ends in 2010, it is now wanting to establish a large debate about ICT issues in order to create a strategy for the coming years. The Party initiated a major independent consultant study which produced the report ‘A Green Knowledge Society’ which will form the basis of discussions at a November conference entitled ‘Visby Agenda – creating impact for an eUnion 2015’. The output of the conference is expected to feed into the telecommunications ministers’ Council meeting in December.

9.       Internet Governance Forum: Commission welcomes steps towards global internet In a speech to the Internet Governance Forum (IGF) in Sharm El Sheikh on 16 November, EU Commissioner Viviane Reding said that the IGF must continue "as a unique forum where we can engage in open, non-binding and multi-stakeholder dialogue". Calling for the extension of the forum’s mandate until 2015, Reding highlighted useful areas of dialogue such as international domain names and child safety online. Reding also announced that the EU will soon allow internet users and businesses to have internationalised domain names on Europe’s own Top Level Domain – .eu. Internet domain names were previously either fully or partly in the Latin "a to z" alphabet. ICANN (the Internet Corporation for Assigned Names and Numbers), has announced that a fast track process would be launched today to open up country code top level domains (like ".eu" of europa.eu) to other alphabets. Reding also emphasised the role of public authorities in ensuring the internet is free and open, and welcomed the new arrangements for ICANN regarding accountability and a more multilateral approach. http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/1717&format=HTML&aged=0&language=EN&guiLanguage=nlhttp://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/09/531&format=HTML&aged=0&language=EN&guiLanguage=en   

10.   Report condemns EU rules on eCommerce 'counter-productive'   A specialist lawyer who issued a damning report on laws on cross-border eCommerce for the European Commission has criticised the complexity and weight of rules introduced by the EU. Patrick van Eecke’s report was also followed by a recent EU survey that found online and cross border payment difficulties and lack of trust in online shopping were significant in discouraging Europeans in this area. In response, the Commission has admitted that the rules and practices are confusing and unclear.

In 2008 the EU proposed a harmonisation under the Consumer Rights Directive, which received wide support.  Van Eecke also criticised eInvoicing for its complexity and inaccessibility. Similarly, with regards to the EU’s eMoney scheme, while Japan resisted from imposing regulations and has subsequently enjoyed success in this area, the EU has prevented progress due to overly demanding legal requirements. However, MEP Malcolm Harbour responded to van Eecke’s comments saying that prior to drafting laws on ecommerce, MEPs must concentrate on data protection, not on the user’s perceived entitlements. Harbour also stated that once businesses begin feel the pressure from the awaited Consumer Rights Directive, harmonisation of rules on eCommerce would arrive “by the back door”. The European Council is expected to adopt the Directive in December 2009. http://www.euractiv.com/en/infosociety/eu-rules-ecommerce-counter-productive/article-187507