{"id":18851,"date":"2020-05-26T04:52:49","date_gmt":"2020-05-26T04:52:49","guid":{"rendered":"https:\/\/rbsitsoftwaresolution.com\/blog\/europe-to-facebook-pay-taxes-and-respect-our-values-or-well-regulate-2.html"},"modified":"2020-05-26T04:52:49","modified_gmt":"2020-05-26T04:52:49","slug":"europe-to-facebook-pay-taxes-and-respect-our-values-or-well-regulate-2","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/europe-to-facebook-pay-taxes-and-respect-our-values-or-well-regulate-2.html","title":{"rendered":"Europe to Facebook: Pay taxes and respect our values\u00a0\u2014 or we\u2019ll regulate"},"content":{"rendered":"

A livestreamed \u201cdebate<\/a>\u201d yesterday between Facebook CEO Mark Zuckerberg and a European commissioner shaping digital policy for the internal market, Thierry Breton, sounded cordial enough on the surface, with Breton making several chummy references to \u201cMark\u201d \u2014 and talking about \u201chaving dialogue to establish the right governance\u201d for digital platforms \u2014 while Zuckerberg kept it respectful sounding by indirectly addressing \u201cthe commissioner\u201d.<\/p>\n

But the underlying message from Europe to Facebook <\/a> remained steely: Comply with our rules or expect regulation to make that happen.<\/p>\n

If Facebook chooses to invest in \u2018smart\u2019 workarounds \u2014 whether for \u2018creatively\u2019 shrinking its regional tax bill or circumventing democratic values and processes \u2014 the company should expect lawmakers to respond in kind, Breton told Zuckerberg.<\/p>\n

\u201cIn Europe we have [clear and strong] values. They are clear. And if you understand extremely well the set of our values on which we are building our continent, year after year, you understand how you need to behave,\u201d said the commissioner. \u201cAnd I think that when you are running a systemic platform it\u2019s extremely important to understand these values so that we will be able to anticipate \u2014 and even better \u2014 to work together with us, to build, year after year, the new governance.<\/p>\n

\u201cWe will not do this overnight. We will have to build it year after year. But I think it\u2019s extremely important to anticipate what could create some \u201cbad reaction\u201d which will force us to regulate.\u201d<\/p>\n

\u201cLet\u2019s think about taxes,\u201d Breton added. \u201cI have been a CEO myself and I always talk to my team, don\u2019t try to be too smart. Pay taxes where you have to pay taxes. Don\u2019t got to a haven. Pay taxes. Don\u2019t be too smart with taxes. It\u2019s an important issue for countries where you operate \u2014 so don\u2019t be too smart.<\/p>\n

\u201c\u2018Don\u2019t be too smart\u2019 it may be something that we need to learn in the days to come.\u201d<\/p>\n

Work with us, not against us<\/h2>\n

The core message that platforms need to fit in with European rules, not vice versa, is one Breton has been sounding ever since taking up a senior post in the Commission late last year.<\/p>\n

Although yesterday he was careful to throw his customary bone alongside it too, saying he doesn\u2019t want<\/em> to have to regulate; his preference remains for cooperation and \u2018partnership\u2019 between platforms and regulators in service of citizens \u2014 unless of course he has no other choice. So the message from Brussels to big tech remains: \u2018Do what we ask or we\u2019ll make laws you can\u2019t ignore\u2019.<\/p>\n

This Commission, of which Breton is a part, took up its five-year mandate at the end of last year \u2014 and has unveiled several pieces of a major digital policy reform plan this year<\/a>, including around sharing industrial data for business and research; and proposing rules for certain \u2018high risk\u2019 AI applications.<\/p>\n

But a major rethink of platform liabilities remains in the works. Though yesterday Breton declined to give any fresh details on the forthcoming legislation, saying only that it would arrive by the end of the year.<\/p>\n

The Digital Services Act could have serious ramifications for Facebook\u2019s business which explains why Zuckerberg made time to dial into a video chat with the Brussels lawmaker. Something the Facebook CEO has consistently refused the British parliament<\/a> \u2014 and denied multiple international parliaments<\/a> when parliamentarians joined forced to try to question him about political disinformation.<\/p>\n

The hour-long online discussion between the tech giant CEO and a Brussels lawmaker intimately involved in shaping the future of regional platform regulation was organized by Cerre, a Brussels-based think tank which is focused on the regulation of network and digital industries.<\/p>\n

It was moderated by Cerre, with DG Bruno Liebhaberg posing and choosing the questions, with a couple selected from audience submissions.<\/p>\n<\/p>\n

Zuckerberg had brought his usual laundry list of talking points<\/a> whenever regulation that might limit the scope and scale of his global empire is discussed \u2014 seeking, for example, to frame the only available options vis-a-vis digital rules as a choice between the US way or China.<\/p>\n

That\u2019s a framing that does not go down well in Europe, however.<\/p>\n

The Commission has long talked up the idea of championing a third, uniquely European way for tech regulation \u2014 saying it will put guardrails on digital platforms in order to ensure they operate in service of European values and so that citizens\u2019 rights and freedoms are not only not eroded by technology but actively supported. Hence its talk of \u2018trustworthy AI\u2019.<\/p>\n

(That\u2019s the Commission rhetoric at least; however its first draft for regulating AI<\/a> was far lighter touch than rights advocates had hoped<\/a>, with a narrow focus on so-called \u2018high risk\u2019 applications of AI \u2014 glossing over the full spectrum of rights risks which automation can engender.)<\/p>\n

Zuckerberg\u2019s simplistic dichotomy of \u2018my way or the China highway\u2019 seems unlikely to win him friends or influence among European lawmakers. It implies he simply hasn\u2019t noticed \u2014 or is actively ignoring \u2014 regional ambitions to champion a digital regulation standard of its own. Neither of which will impress in Brussels.<\/p>\n

The Facebook CEO also sought to leverage the Cambridge Analytica data misuse scandal<\/a> \u2014 claiming the episode is an example of the risks should dominant platforms be required to share data with rivals, such as if regulation bakes in portability requirements to try to level the competitive playing field.<\/p>\n

It was too much openness in the past that led to Facebook users\u2019 data being nefariously harvested by the app developer that was working for Cambridge Analytica, was his claim.<\/p>\n

That claim is also unlikely to go down well in Europe where Zuckerberg faced hostile questions from EU parliamentarians back in 2018<\/a>, after the scandal broke \u2014 including calls for European citizens to be compensated for misuse of their Facebook data.<\/p>\n

Facebook\u2019s business, meanwhile, remains subject to multiple, ongoing investigations related to its handling of EU citizens\u2019 personal data. Yet Zuckerberg\u2019s only mention of Europe\u2019s GDPR during the conversation was a claim of \u201ccompliance\u201d with the pan-EU data protection framework which he also suggested means it\u2019s raised the standards it offers users elsewhere.<\/p>\n

Another area where the Facebook CEO sought to muddy the water \u2014 and so lobby to narrow the scope of any future pan-EU platform regulations \u2014 was around which bits of data should be considered to belong to a particular user. And whether, therefore, the user should have the right to port them elsewhere.<\/p>\n

\u201cIn general I\u2019ve been very in favor of data portability and I think that having the right regulation to enforce this would be very helpful. In general I don\u2019t think anyone is against the idea that you should be able to take your data from one service to another \u2014 I think all of the hard questions are in how you define what is your data and, especially in the context of social services, what is another person\u2019s data?\u201d he said.<\/p>\n

He gave the example of friends birthdays \u2014 which Facebook can display to users \u2014 questioning whether a user should therefore be able to port that data into a calendar app.<\/p>\n

\u201cDo your friends need to now sign off and every single person agree that they\u2019re okay with you exporting that data to your calendar because if that needs to happen because in practice it\u2019s just going to be too difficult and no developer\u2019s going to bother building that integration,\u201d he suggested. \u201cAnd it might be kind of annoying to request that from all of your friends. So where would we draw the line on what is your data and what is your friends is I think a very critical question here.<\/p>\n

\u201cThis isn\u2019t just an abstract thing. Our platform started off more open and on the side of data portability \u2014 and to be clear that\u2019s exactly one of the reasons why we got into the issues around Cambridge Analytica that we got into because our platform used to work in the way where a person could more easily sign into an app and bring data that their friends had shared with them, under the idea that if their friend had shared something with you, for you to be able to see and use that, you should be able to use that in a different app.<\/p>\n

\u201cBut obviously we\u2019ve seen the downsides of that \u2014 which is that if you bring data that a friend has shared with you to another app and that app ends up being malicious then now a lot of people\u2019s data can be used in a way they didn\u2019t expect. So getting the nuance right on data portability I think is extremely important. And we have to recognize that there are direct trade-offs about openness and privacy. And if our directive is we want to lock everything down from a privacy perspective as much of possible then it won\u2019t be as possible to have an open ecosystem as we want. And that\u2019s going to mean making compromises on innovation and competition and academic research, and things like that.\u201d<\/p>\n

Regulation that helps industry \u201cbalance these two important values around openness and privacy\u201d, as Zuckerberg put it, would thus be welcomed at 1 Hacker Way.<\/p>\n

Breton followed this monologue by raising what he called \u201cthe stickiness\u201d of data, and pointing out that \u201caccess to data is the number one asset for the platform economy\u201d.<\/p>\n

\u201cIt\u2019s important in this platform economy but \u2014 but! \u2014 competition will come. And you will have some platforms allowing this portability probably faster than you think,\u201d he said. \u201cSo I think it\u2019s already important to anticipate at the end of the day what your customers are willing to have.\u201d<\/p>\n

\u201cPortability will happen,\u201d Breton added. \u201cIt\u2019s not easy, it\u2019s not an easy way to find an easy pass but\u2026 what we are talking about is how to frame this fourth dimension \u2014 the data space\u2026 We are still at the very beginning. It will take probably one generation. And it will take time. But let me tell you something but in terms of personal data, more and more the customers will understand and will requests that the personal data belongs to them. They will ask for portability one way or the other.\u201d<\/p>\n

On \u201cmisinformation\u201d, which was the first topic Zuckerberg chose to highlight \u2014 referring to it as misinformation (rather than \u2018disinformation\u2019 or indeed \u2018fakes\u2019) \u2014 he had come prepared with a couple of stats to back up a claim that Facebook has \u201cstepped up efforts\u201d to fight fakes related to the coronavirus crisis.<\/p>\n

\u201cIn general we\u2019ve been able to really step up the efforts to fight misinformation. We\u2019ve taken down hundreds of thousands of pieces of harmful misinformation. And our independent fact-checking program has yielded more than 50M warnings being shown on pieces of content that are false related to COVID,\u201d he said, claiming 95% of the time people are shown such labelled content \u201cthey don\u2019t end up clicking through\u201d \u2014 further suggesting \u201cthis is a really good collaboration\u201d.<\/p>\n

(Albeit, back of an envelop math says 5% of 50M is still 2.5 million clicks in just that one narrow example\u2026 )<\/p>\n

Breton came in later in the conversation with another deflator, after he was asked whether the current EU code of practice on disinformation \u2014 a self-regulatory initiative which several tech platforms have signed up for \u2014 is \u201csufficient\u201d governance.<\/p>\n

\u201cWe will never do enough,\u201d he rejoined. \u201cLet\u2019s be clear. In terms of disinformation we will never do enough, This is a disease of the center. So everything we have done has to be followed.\u201d<\/p>\n

\u201cIt\u2019s a huge issue,\u201d Breton went on, saying his preference as a former CEO is for KPIs that \u201cdemonstrate we\u2019re progressing\u201d. \u201cSo of course we need to follow the progress and if I\u2019m not able to report [to other EU institutions and commissioners] with strong KPIs we will have to regulate \u2014 stronger.\u201d<\/p>\n

He added that platforms cooperating on self regulation in this area gave him reason to be optimistic that further progress could be made \u2014 but emphasized: \u201cThis issue is extremely important for our democracy. Extremely\u2026 So we will be extremely attentive.\u201d<\/p>\n

The commissioner also made a point of instructing Zuckerberg that the buck stops with him \u2014 as CEO \u2014 lightly dismissing the prospect of Facebook\u2019s newly minted \u2018oversight board<\/a>\u2018 providing any camouflage at all on the decision-making front, after Zuckerberg had raised it earlier in the conversation.<\/p>\n

\u201cWhen you\u2019re a CEO at the end of the day you are the only one to be responsible, no one else\u2026 You have an obligation to do your due diligence when you take decisions,\u201d said Breton, after scattering a little polite praise for the oversight board as \u201ca very good idea\u201d.<\/p>\n

\u201cUnderstand what I\u2019m trying to tell you \u2014 when you are the CEO of an important platform you have to deal with a lot of stakeholders. So it\u2019s important of course that you have bodies, could be advisory bodies, could be a board of director, it could be any kind of things, to help you to understand what these stakeholders have to tell you because at the end of the day the mission of a CEO is to be able to listen to everyone and then to take the decision. But at the end of the day it will be Mark that will be responsible.\u201d<\/p>\n

In another direct instruction, Breton warned the Facebook CEO against playing \u201ca gatekeeper role\u201d.<\/p>\n

\u201cBe careful to help our internal market, don\u2019t play a role where you will be a systemic player, the gatekeeper controlling others to play with. Be careful with the democracy. Anticipate what\u2019s going to happen. Be careful with disinformation. It could have a bad impact on what is extremely important for us \u2014 including our values,\u201d he said, appealing to Zuckerberg \u201cto work together, to design together the right governance tools and behavior\u201d \u2014 and ending with a Silicon Valley-style appeal to \u2018build the future together\u2019.<\/p>\n

\n

Commissioner @ThierryBreton<\/a> to Mark Zuckerberg:
“Pay taxes”. pic.twitter.com\/QlRGvWS418<\/a><\/p>\n

\u2014 Pablo P\u00e9rez (@PabloPerezA) May 19, 2020<\/a><\/p>\n<\/blockquote>\n

\n

The inescapable point Breton was working towards was just \u201cbecause something is not prohibited it doesn\u2019t mean that it\u2019s authorized\u201d. So, in other words, platforms must learn to ask<\/em> regulators for permission \u2014 and should not expect any forgiveness if they fail to do this. This principle is especially important for the digital market and the information society at large, Breton concluded.<\/p>\n

A particular low point for Zuckerberg during the conversation came earlier, when Liebhaberg had asked for his assessment of the effectiveness of content moderation measures Facebook has taken so far \u2014 and specifically in terms of how swiftly it\u2019s removing illegal and\/or harmful content. (Related: Last week<\/a> France became the latest EU country to pass a law requiring platforms quickly remove illegal content such as hate speech.)<\/p>\n

Zuckerberg made a nod to his usual \u201cfree expression vs content moderation\u201d talking point \u2014 before segwaying into a claim of progress on \u201cincreasingly proactive\u201d content moderation via the use of artificial intelligence (\u201cAI\u201d) and what he referred to as \u201chuman systems\u201d.<\/p>\n

\u201cOver the last few years\u2026 we\u2019ve upgraded all of our content review systems to now\u2026 our primary goal at this point is what percent of the content that\u2019s going to be harmful can our systems proactively identify and take down before anyone even sees that? Some of that is AI and some of that is human systems,\u201d he said, referring to the up to 30,000 people Facebook pays to use their brain and eyes for content moderation as \u201chuman systems\u201d.<\/p>\n

\u201cIf a person has to see it and report it to us we\u2019re not going to catch everything ourselves but in general if someone has to report it to us then that means that we should be doing a bit better in future. So there\u2019s still a lot of innovation to happen here,\u201d Zuckerberg went on, adding: \u201cWe\u2019re getting a lot better at this. I think our systems are continually improving.\u201d<\/p>\n

His use of the plural of \u201csystems\u201d at this point suggests he was including human beings in his calculus.<\/p>\n

Yet he made no mention of the mental health toll that the moderation work entails for the thousands of people Facebook\u2019s business depends upon to pick up the circa 20% of hate speech be conceded its AI systems still cannot identify. (He did not offer any performance metrics for how (in)effective AI systems are at proactively identifying other types of content which human moderates are routinely exposed to so Facebook users don\u2019t have to \u2014 such as images of rape, murder and violence.)<\/p>\n

Just last week<\/a> Facebook paid $52M to settle a lawsuit brought by 11,000 current and former content moderators who developed mental health issues including PTSD on the job.<\/p>\n

The Verge<\/a> reported that under the terms of the settlement, every moderator will receive $1,000 which can be spent how they like but which Facebook intends to partly fund medical treatment, such as for seeking a diagnosis related to any mental health issues a moderator may be suffering.<\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunch\/social\/~3\/99JyJC5dC6I\/<\/p>","protected":false},"excerpt":{"rendered":"

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