The European Union (EU) is ramping up its efforts to regulate Big Tech, aiming to ensure these giant companies play by its rules. The latest target is Bing, Microsoft’s search engine. The EU suspects that Bing hasn’t properly moderated content produced by its AI systems, possibly violating the Digital Services Act (DSA).
EU vs. Microsoft: The Bing Investigation
On May 17, the EU summit demanded documents from Microsoft to understand how it managed AI-generated content, including deepfakes and misinformation. The timing is crucial, as the European Parliament elections are just around the corner in early June. The EU has given Microsoft until May 27 to respond, which might be too late to make any significant changes before the elections.
Key Issues with Bing
- AI Hallucinations: Incorrect or nonsensical answers generated by AI.
- Deepfakes: Realistic fake videos and images.
- Election Interference: Potential manipulation of voter opinions.
Europe’s New Strategy
The EU has shifted its strategy from just imposing fines to closely monitoring and modifying Big Tech operations. The Digital Services Act (DSA) is central to this approach, aiming for transparency in algorithms and advertising, and protecting users from online harm.
Major Companies Under EU Scrutiny
The EU has identified 22 large companies, including:
- Google (Search, Shopping, Maps, Play)
- YouTube
- Meta (Instagram, Facebook)
- Bing
- X (formerly Twitter)
- Snapchat
- Amazon
- Booking
- Wikipedia
- Apple’s App Store
- TikTok
- Alibaba
- Zalando
- Pornhub, XVideos, Stripchat
Recent Actions
- Meta: Investigated for protecting minors and addictive content.
- TikTok Lite: Blocked due to its social engagement system.
- LinkedIn and AliExpress: Asked to explain ad systems and refund processes.
A Growing Body of Laws
The EU has introduced several laws to regulate the digital space:
- Digital Services Act (DSA): Focuses on transparency and user protection.
- Digital Markets Act (DMA): Addresses Big Tech’s market dominance.
- AI Act: Regulates artificial intelligence applications.
- Data Governance Act (DGA): Protects data usage in public and private sectors.
Despite these efforts, the EU faces challenges in implementing and enforcing these regulations effectively.
DSA: A Closer Look
The DSA requires online service operators to follow strict guidelines. However, the EU needs local authorities to coordinate digital services. As of now, some countries are lagging in appointing these coordinators.
Trusted Flaggers
Trusted flaggers are individuals or entities committed to combating online hate, harassment, and illegal content. Only Finland has appointed a trusted flagger, focusing on copyright infringement.
The Mountain of Data
The EU has a vast database to monitor Big Tech’s compliance. However, managing this data is complex. For example, Google Shopping has triggered many automated alerts, making the data challenging to interpret.
Zalando’s Legal Battle
Zalando, the only European company on the list, is challenging the EU’s user count criteria and the associated fee, arguing that it does not meet the EU’s threshold.
Big Tech’s Response
Big Tech companies have started to comply with EU regulations, but progress is slow. For instance, WhatsApp now allows interoperability with other messaging apps, though few have agreed to connect.
AI Act: The Next Frontier
The AI Act is Europe’s latest attempt to regulate artificial intelligence. The EU aims to establish clear guidelines for AI use, with a focus on transparency and safety.
AI Innovation Accelerator
The EU has launched initiatives to support AI research and development, including a €6 million fund for an AI Innovation Accelerator and €1.5 million for AI testing facilities.
Financial Investments
The EU is investing heavily in AI, with plans to spend €2.1 billion on AI initiatives from 2021 to 2027. However, this is still less than what individual companies like Microsoft have invested in AI.
Conclusion
The EU is determined to regulate Big Tech, but the task is daunting. The complex digital landscape and the vast resources of these companies make it a challenging fight. The EU’s efforts will require continuous adaptation and enforcement to ensure success.
