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From: Morning Tech Europe <morningtech@politico.eu mailto:morningtech@politico.eu > Reply-To: Morning Tech Europe <morningtech@politico.eu mailto:morningtech@politico.eu > Date: Monday, January 7, 2019 at 5:59 AM Subject: [Ext] POLITICO Pro Morning Tech: Tech's next big challenges — German hack — ePrivacy ghost

By Laura Kayali [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Df0dcbe93df-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=9WgnAo_i3oV-b3HldWU3lQGVNVxAQTH2Z62BIgBFAmo&e= , with help from Laurens Cerulus [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3De9aa360579-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=3-eJOGjZg73hoco0_Mb4FIc4JfAfcplILulOeWwOZfk&e= , Janosch Delcker, [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D749451d307-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=Wm6Vs20DvGm-k55WJ9yB9Xib4WQeG__Sa07k1cPlsKo&e= Simon Van Dorpe [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D76ab149cd6-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=vpgVrl8G-qVJMwul2a8Uc18paBhXodUNop5xAk4edIc&e= and Maxime Schlee [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Dc5dc68a863-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=7cSfEJUwR8-TI_WVXzR-C9AQPaSOuFGIfpn57jeVYoQ&e= | Send tips to lcerulus@politico.eu mailto:lcerulus@politico.eu , lkayali@politico.eu mailto:lkayali@politico.eu , mscott@politico.eu mailto:mscott@politico.eu , jdelcker@politico.eu mailto:jdelcker@politico.eu and adickson@politico.co.uk mailto:adickson@politico.co.uk | View in your browser [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D10253df77c-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=oJQhMkca_DfdHf__PHFb-4Zdhe9ywDLfqbInlg3s-I4&e=

EUROPE’S NEXT CHALLENGES IN TECH POLICY: For policy folks who have the time, now is the time to plot grand plans for the future of Europe’s digital economy. Here are the 7 biggest policy challenges EU policymakers will face during the 2019-2024 mandate. Read more here [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Dc8fc365456-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=DT6YOhWcGCDRbRuda6xo1_fHHTpoFGc398UmIAtZMXs&e= from POLITICO’s tech team or below.

1. Waging the mother of all platform battles: The next European Commission is likely to have to reassess the basic legal framework that exempts Google, Facebook and other digital giants from being liable for what their users post, the e-Commerce directive.

2. Breaking down data silos: Expect initiatives to stop companies from hoarding all the data to themselves.

3. Addressing Europe’s strategic autonomy: This topic combines hot button issues in trade, industrial security and market access to help the EU deal with China — so much will depend on how hawkish the next Commission wants to get, and how far member countries are willing to follow it.

4. Thinking about the regulation of artificial intelligence: European lawmakers will have to decide whether or not to come up with hard rules for AI, or wait for principles to evolve along with the technology.

5. Dealing with tech products’ expiry date: The next Commission is expected to come up with a “software liability framework” to weed out weak or outdated products — and boost resilience against leaks and hackers.

6. Tackling data flows beyond the U.S.: Data flow deals with South Korea, India and Brazil are likely to be drafted during the next mandate, while legal challenges of data flow agreements with the U.S., such as the Privacy Shield, will result in landmark rulings.

7. Taking the end of geoblocking to the next level: The next Commission will have to take another look at cross-border access to content (music, e-books, videos, video games), prompting another lobbying battle with the cultural industry.

GOOD MORNING and welcome to Morning Tech. Normal life resumes in the EU capital as the holiday break officially comes to an end. The Parliament’s Civil Liberties committee meets to discuss the implications of the U.S. CLOUD Act for protection of data in EU information systems. The Council’s competitiveness working party gathers to talk about artificial intelligence (more on that below).

TODAY — ARTIFICIAL INTELLIGENCE IN EUROPE: Attachés in the EU Council’s working party for competitiveness gather for their first meeting of 2019. On their agenda is a proposal for artificial intelligence “made in Europe.” A preparatory document lays out draft conclusions pointing to sectors like healthcare and autonomous driving as being “particularly promising and impactful” when it comes to AI.

To allow for AI “made in Europe,” countries stress the “need to make more data available for the development of artificial intelligence technology and to create a common European data space.” They are also pushing for a “broader approach towards an education for Artificial Intelligence” due to an acute lack of professionals in the field. Read the full draft conclusions here [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3De6ff78e284-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=BtQCm-pc2zg-8REyuIVdl1khQ32lRCnnfYQtxpIkflM&e= .

CYBERSECURITY — GERMAN DATA BREACH: Licking its wounds after what’s been described as one of the worst cyber security breaches in German history, Europe’s largest economy is scrambling to identify who is behind a major hack that exposed data on hundreds of politicians, journalists, comedians and activists. In a “countdown” to Christmas, hackers used a Twitter account to leak details of private emails, Facebook messages, cell phone numbers and photographs on an almost daily basis over a four-week period starting in early December.

— Bringing back bitter memories: In a country still alarmed by a large-scale hack in 2015 [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D3506a1e504-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=TNdp_rBZX9VkJGYxegJQZggcebbXAVEiFE-f8L0-WOo&e= when intruders roamed around freely in the German parliament’s network for weeks, officials are not just worried about the breach itself — they are also alarmed that nobody apparently noticed it had happened until early January. Janosch Delcker reports from Berlin, read more here [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D359130700b-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=mqiEKKs-Om2_rZfbZa9xII4HI95I0oVFqcXquzUrwK0&e= or below.

— Seehofer under fire: Leaders from Germany’s Social Democratic Party urged Interior Minister Horst Seehofer to act. Germans must be informed about “which authority knew what, when, and what the reactions were,” SPD secretary-general Lars Klingbeil told local newspapers Sunday, as reports emerged that the Federal Office for Information Security, the country’s national cybersecurity agency, had known about part of the hack as early as December. “The public will learn everything I know,” Seehofer replied. Read more here [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Db2b368bef4-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=xC6WUPauzAWrqIpbt52k2fWAm58j178efvTRfdwkn14&e= from Laura Kayali.

— Berlin reportedly sought US help: German authorities sought help from the U.S. National Security Agency after discovering the hack, Bild newspaper reported [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D6cbdf6faab-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=yHx5RPAq2JJc5D3L8p3K6QxLHzkndol7PsTrT01-JyY&e= .

**Politics promises to send shockwaves through the world of competition this year. Competition experts expect (and fear) that regulations and principles outside antitrust and state aid law will come to play a larger role in enforcement. POLITICO’s dedicated service, Competition Pro, delves into why competition is increasingly moving to the political mainstream [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D30a6606c19-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=stGc3Xc3ld02Tgt4kfBY7q0tVLL0SpdfM-KLZIaAYJI&e= . Email pro@politico.eu mailto:pro@politico.eu for a complimentary trial.**

MARK YOUR COPYRIGHT CALENDAR: Work on the copyright reform will get off to a flying start again this week as MEPs’ negotiating team gathers to try and usher compromises on the most controversial remaining issues (the “value gap,” the publishers’ right). In the Council, a working party is scheduled [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D972ddce506-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=az-JQ5B5he9GWX_IIFSkn0L6jVh4_1lUN8MBrlSbK6Q&e= for January 9 to discuss “selected issues.” The next and possibly last trilogue could take place on January 21, according to two EU officials.

WILL E-PRIVACY COME BACK TO HAUNT WHATSAPP AND SKYPE IN 2020? Yes, former Commission official Rosa Barcelo wrote [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Dc811ba5293-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=-qbq6a4-tlnd-mxuKXZeIcPtugL-5bjuZI7K0TD2m3s&e= for The international association of privacy professionals website. (Barcelo used to be deputy head of unit of the cybersecurity and digital privacy unit of DG CONNECT in the European Commission, where she helped to draft the ePrivacy regulation. She is now a partner at Squire Patton Boggs data privacy & cybersecurity practice.)

The original ePrivacy: The story of ePrivacy didn’t start with the regulation put forward by the Juncker Commission in January 2017, which has been stuck in the Council. There is an ePrivacy directive dated 2002, which applies to traditional electronic communication services (aka telcos), and is currently applicable.

Enter the Electronic communications code: The recent telecoms reform, adopted in 2018 and applicable in December 2020, broadened the definition of electronic communications services to cover OTT services, such as Skype and WhatsApp. And the scope of the ePrivacy directive is linked to the rules on electronic communication services.

The ugly truth: “Therefore, the change in the definition of electronic communication services in the code translates into a change of scope of the ePrivacy directive, and once the code is transposed into national laws and becomes enforceable, the ePrivacy directive will apply to OTT services,” Barcelo wrote.

TAXATION — GOOGLE MOVED BILLIONS THROUGH BERMUDA IN 2017: The tech giant shifted nearly €20 billion to the tax haven through a Dutch shell company, using a mechanism known as the “Double Irish, Dutch Sandwich,” Reuters reported [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Db56714497f-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=K5prAC5iMEDEfwjyY4KnMkjDr6P17gUnldqTw-jXv-A&e= . The tax arrangement is not illegal, but Ireland will end it in 2020. “We pay all of the taxes due and comply with the tax laws in every country we operate in around the world,” Google told Reuters.

— The nearly-dead European digital tax aimed at shutting down exactly such types of fiscal arrangements. By taxing turnover instead of profits, the Commission wanted to ensure companies paid a levy on a sum they cannot shift abroad.

TRADE — APPLE WILL BE ‘FINE,’ TRUMP SAYS: After news that Apple’s revenue in the first fiscal quarter of 2019 would be several billion dollars lower than expected rocked financial markets in the U.S. and elsewhere, Trump on Friday tried to push the ball back to the tech giant’s court.

Saying that he wasn’t worried about the market impact, he reiterated his claim that the firm has gone up “hundreds of percent since I’m President. Apple was at a number that was incredible and they’re going to be fine.”

Is the trade war to blame? Apple Chief Executive Tim Cook had said that China’s sluggish economy, which has also been impacted by the tit-for-tat tariffs last year, is partially responsible the dip. Other factors like the strong U.S. dollar and a decline in iPhone upgrades also played a role, according to Cook.

Trump told reporters that Apple’s financial woes were not his concern. He also echoed his earlier calls for the firm to assemble its products in the United States. Our U.S. colleagues have more [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D40a0d81d26-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=MLoGavDbbPY2QVSLI3Haq7XpFQc3q0Kym5uLyElhHMc&e= .

SPEAKING OF APPLE … Germany made more than 13,700 device-based requests to Apple between January and June 2018. The iPhone maker released its transparency report [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Ddd0d784bdd-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=C8hbQCTmpZbL0INnVzk3PPJJnRFGSO_y9P5xb_3jAYI&e= for the first semester of 2018. In total, the company received more than 32,400 device-based requests from government agencies looking for customer data. 13,700 of them came from Germany, which is the country with the highest amount of requests. The transparency report also discloses requests related to financial information, preservation or deletion of accounts, among others.

DON’T TWEET ON AN OFFICIAL HUAWEI ACCOUNT FROM AN IPHONE: You might get demoted or suffer a pay cut. The Chinese smartphone maker has sanctioned two employees who tweeted New Year’s greetings on an official Huawei account from an Apple device, Bloomberg reported [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D197c0d6477-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=QnjuyDTcvKy_fbl5bbtno867nJJiV7N5tcQECM6AWh8&e= .

PLATFORMS — FRANCE WILL DRAFT AN ONLINE SALES CHARTER: France will draft a charter to improve the relations between online platforms and small companies, secretary of state for digital affairs, Mounir Mahjoubi, said [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Da518338cbb-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=pMp6ty0CYyGNEnyRt9yoJgwCk-5ArTDuYk3qG5WH308&e= in late December. Mahjoubi chose not to await pending EU-wide platform-to-business legislation [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D4db9ad4470-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=Hvtf4u7fZ5zhRHLCL70bJutyYfFp6X0t_Mzp3-6VnWk&e= , a regulation heavily influenced by France, which deals with similar problems. The secretary of state aims to have a number of e-commerce platforms and SMEs agree by April on a text that should facilitate communication between the companies and include a mediation system if conflicts arise.

SELF DRIVING CARS — MERCEDES-BENZ AIMS FOR THE PODIUM: The Daimler-owned car manufacturer does not plan to become the first company to build a self-driving car, but “among the top two competitors who are in a position to scale up the technology and bring it into series production,” Mercedes-Benz executive Christoph Schroeder said [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D2c185559ce-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=hjmFQIc2Bd8GFo0UTmiXoOu17jXWTi0JLvyvOhvBaww&e= .

ICYMI — ANDROID APPS SHARE DATA WITH FACEBOOK WITHOUT THE USERS’ CONSENT: A Privacy International investigation [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D03a8579b1f-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=pV9GA1vY_H6Azpr1joPW80Y-r3_j13ZoAXxYFkzaCJA&e= found that out of the 34 Android apps the NGO tested, at least 20 automatically transferred data to Facebook upon opening by the users. Data sent to the social media giant include the app’s name, how many time it was opened and the user’s Google advertising ID, whether the user has a Facebook account or not.

Global tech corner …

— Russia allocates spectrum for 5G pilot areas, on Telecompaper [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Df728d750da-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=lELDroVD7z8sMZKJFRNYFP-SfVK2caQKBdkoW35mzRg&e= .

— Baidu, Sohu get caught in latest Chinese Internet clampdown, on Bloomberg. [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D5c37ef190f-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=Gw91dwLPnmSFNRdrdsKKDm5sHFo1Bf0o-Rsp7zAbBTs&e=

— Mark Zuckerberg and other Facebook executives are fed up with The New York Times, on NBC News [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D297cd191a9-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=jHXLfnBGBpPKbJp5eH7eSebcmOC8UaBGyBn66Kma_OQ&e= .

— Bipartisan bill unveiled in U.S. Senate to stop China tech threats, on Reuters [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Db050eeee7f-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=E2VM3RXZMdEH2wg6Y0Lh9FbOABAl6kbiFZzDNvtRqNc&e= .

— Congo‘s internet shutdown after election could cause violent backlash — U.N., also on Reuters [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Df9efbb38dc-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=ehKQw6_u1rI8jky99Khj-gmWJd1YXiHckoG9nHeuzd8&e= .

Morning Tech wouldn’t happen without Nicholas Vinocur, Emma Anderson and Zoya Sheftalovich.

***POLITICO Pro Articles***

7 big things that will shape Europe’s next tech agenda

— By Laurens Cerulus, Laura Kayali and Janosch Delcker | Read online [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D1643806617-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=zZtAQ-zOVtSfLtbyYQKapWONZyHgHQKnKpcU21Ckbbo&e=

With the European Parliament election looming just over the horizon, now is the time to think big and plot grand plans for Europe’s digital economy.

We’re here to help.

With less than five months to go before Europeans head to the polls, political strategists are working on the next wave of policy that will keep the rest of the world worried about EU tech regulation. Over at the European Commission, officials have started drafting handover documents and letters to successors. MEPs are gearing up for next May’s election, and their parties are drafting big plans to win over voters.

POLITICO has listed the biggest policy challenges that EU legislators will face in the next mandate, 2019-2024. Here’s what will be driving the agenda:

1. The big battle on platforms

The next European Commission will likely have to tackle the elephant in the digital single market room: the rule exempting Google, Facebook and others from being liable for what their users post.

Under current rules, platforms are not liable for illegal content hosted on their platform, including terrorist propaganda and hate speech. They are required to remove flagged illegal content but do not have to actively monitor what’s posted by users.

Some platforms have taken up ways to actively monitor for things like ISIS videos. Some scan for nudity, racist comments or other harmful content as well.

The law at the center of the debate, the e-Commerce Directive, was first drafted in 2000 and hasn’t been updated. For almost two decades, many members of the internet community argued that it was sufficient and necessary to keep it as it was.

Tech giants also see the liability exemption in Europe’s e-commerce law and the U.S. Communications Decency Act [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Dc1fb47e943-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=RPoZpcUBWdGgpsWukbeUHHCFNdmr-b99nvK0U71q9a8&e= as a cornerstone of the internet economy that turned them into the world’s largest, richest companies.

But the mood is changing and the tech industry has been preparing for several months to be part of the conversation when the next Commission decides to reassess the liability regime, with the blessing of countries, notably France [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Dd94ca30810-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=oHZ8ZDbIdrBzd91XZcl32ptyGX4tmIMJaPTPx_53y2g&e= .

2. Breaking the data silos

The question being asked in (some) Brussels streets is: When is Margrethe Vestager finally going to start breaking up Amazon?

Knowing competition cases are nearing, tech giants have warmed to the idea of offering smaller competitors or supply chain companies access to their troves of data ex ante, in order to fend off competition regulators ex post.

The current Commission already tested some light measures, with its public sector information directive that would allow data held by public services to be used by app builders and other tech firms, and the car industry is in the midst of a heated debate about who owns data gathered by connected vehicles.

The EU executive is not likely to stop there.

Buzz words floated of late include “interoperability” and “portability” — concepts that aim to stop companies from keeping all the data to themselves. The principles could overhaul the transport sector, where companies increasingly seek profit in big data services, boost the development of artificial intelligence in Europe, and transform cloud services, where Amazon and Alibaba have taken a grip on the market.

3. Strategic autonomy in tech …

Or: How to deal with China?

In past months, the question of how to protect Europe’s technology industry from being overrun or overtaken by China’s has echoed louder and louder in the corridors of the Commission and EU Council.

The current Commission turned bullish on some of the core questions around the digital security of Europe’s industries. An EU task force is assessing Europe’s “exposure to foreign technologies and providers, and the potential associated security risks,” in light of concerns about Chinese telecom vendors, European Security Commissioner Julian King said [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Ddc73a8f384-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=MWGQ7QlkMNXDDdI04ETwjYWziDJzGvBClt2rRjEGtew&e= in December.

The Commission is drafting briefing books on how to decrease the dependency of European technology on foreign supply chain companies. It’s even probing how to potentially ban or limit the access of Chinese telecom vendors Huawei and ZTE.

Revelations about Chinese cyber espionage [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D0121909860-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=GNwszKahgorB1d9SyYe4pROSdElSmh3Yj29IQ1og1cE&e= released by the U.S. and U.K. just before Christmas, and backed by Estonia, raised the stakes further. They showed that a hacker group tied to China’s Ministry of State Security had been infiltrating industrial, economic and infrastructure companies across the West for years, as part of industrial espionage campaigns.

But it’s not just China, others have pointed out. “We are completely dependent on the technical know-how and the products coming from the U.S.” as well, said lead MEP on cybersecurity Angelika Niebler, a German Conservative politician up for re-election in May. She added supply chain security “needs to be one of our top priorities in the next EU Commission.”

It’s a hugely explosive topic, as it combines hot button issues in trade, industrial security and market access — so much will depend on how hawkish the next Commission wants to get, and how far member countries are willing to follow it.

4. Artificial intelligence — to regulate or not to regulate?

This Commission is not likely to release any legislation on AI before the end of its term. That will be up to the next one. Even so, it remains to be seen whether the EU will come with actual hard rules for AI, or wait for principles to evolve along with the technology and draw guidance from court rulings across Europe.

Three documents on AI, which this Commission has yet to publish, will be key to the path forward.

First, there are the EU’s guidelines on AI ethics. The Commission’s group of AI experts published a first draft [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3De547ff59bf-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=DK6vQjUORNpfJ_kkdLTJVn_SV7e6JNq_jHStcRwskyg&e= shortly before Christmas. This draft is now being debated among other stakeholders on an online platform dubbed “European AI Alliance [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3Dad8ce3bdea-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=17LP5R9zX_wpautZ9UNX8LqPK4D65oaHWGmrRWQvfZg&e= .” Later this month, the experts are also due to meet with officials from member states to discuss the draft. Both processes are likely to lead to some last-minute changes before the group publishes its final document in March.

The same group of experts is working on a second document consisting of recommendations on how to boost investment in Europe. Unlike the ethics guidelines, which spell out broad principles, the report will delve into the nitty-gritty reality of how policy should look. Officials expect it to be released in May. Watch out for this document to set the tone on whether and how much to regulate at this point.

Lastly, there is a report from the Commission expected in May, in which it will spell out how to update its “Product Liability Directive,” which dates back to the 1970s, for products based on AI-powered technology.

5. Tech products’ expiry date

What’s worrying people in the tech and software space is the Commission’s as yet unfulfilled desire to impose a “duty of care” principle — an obligation for companies to keep their software products updated.

The current Commission will release a report, likely in May, spelling out guidelines on how to apply the “Product Liability Directive” to tech products. This would lay out numerous issues with the current law when it comes to artificial intelligence, cybersecurity and more.

The focus is on how long software manufacturers should be held liable for their products and be required to update them. Vulnerabilities in products and constant new patches raise the stakes of this requirement. The next Commission is expected to come up with a “software liability framework” to weed out weak or outdated products — and boost resilience against leaks and hackers.

6. Data flows beyond the U.S.

The Commission has made no secret that it has South Korea, India and Brazil among others on its wish list for “adequacy decisions” — or data transfer deals that allow companies an easy route to certify privacy policies and allow for data to travel from Europe to servers installed in third countries.

Striking deals with the above-mentioned countries would extend the reach of Europe’s privacy rules set in the General Data Protection Regulation across the world, further cementing it as a “gold standard” for privacy regulation.

But such decisions and other tools used to transfer data outside of the European Union face challenges before the European Court of Justice. A court case from Ireland, which is likely to wrap up when the next Commission is already in place, could annul “model clauses.” Another challenge to the EU-U.S. Privacy Shield could yet again rock the system of adequacy decisions.

7. Taking the end of geoblocking to the next level

“This video is not available in your country,” is a message current Commission Vice President for Digital Andrus Ansip wanted to make disappear. He didn’t manage to pull it off, leaving it up to the next Commission to take another look at cross-border access to content.

The scope of the legislation to end unjustified geoblocking has to be reassessed in March 2020 to determine if copyright-protected content (music, audiovisual, e-books, video games) should be included in the scope. Expect another fierce lobbying offensive from the cultural industry, especially the audiovisual sector, whose business model sometimes relies on territorial exclusivity.

***

Germany whacked by big data hack

— By Janosch Delcker | Read online [politico.us8.list-manage.com] https://urldefense.proofpoint.com/v2/url?u=https-3A__politico.us8.list-2Dmanage.com_track_click-3Fu-3De26c1a1c392386a968d02fdbc-26id-3D00236541de-26e-3D46ff488f85&d=DwMFaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=noOsJroYvEYNx-KNF_FhjN3GSjDnv5PPRu-ErUuIgX4&m=i2ZgCIJ4iQ4EquoivUOCu2qKg5SKtVw14ajXlnvI044&s=ztbMmuGlZOp0CvvI95n3ae_UToQdDNTwFL1ClTNzvzM&e=

BERLIN — Germany is scrambling to identify who is behind a major hack that exposed data on hundreds of politicians, journalists, comedians and activists.

In a “countdown” to Christmas, hackers used a Twitter account to leak details of private emails, Facebook messages, cell phone numbers and photographs on an almost daily basis over a four-week period starting in early December.

The data dump included information about Chancellor Angela Merkel as well as members of the national parliament, regional state parliaments, the European Parliament and local officials. Among political parties, only the far-right Alternative for Germany (AfD) appeared not to be affected.

In a country still alarmed by a large-scale hack in 2015 when intruders roamed around freely in the German parliament’s network for weeks, officials are not just worried about the breach itself. They are also alarmed that nobody apparently noticed it had happened until early January.

“The German government takes this incident very seriously,” deputy government spokesperson Martina Fietz said Friday, less than 12 hours after a local broadcaster broke the news about the incident.

Merkel’s office did not know about the breach before Thursday night, Fietz told reporters. The news triggered an emergency meeting of the national cyberdefense body Friday morning, and authorities are now working “flat out” to examine how the information was obtained, she said, adding that the data contains no “sensitive” information about Merkel.

‘Advent calendar’

To disseminate the data, hackers uploaded it to various online platforms that allow for sharing content anonymously.

Afterward, they posted links to the files to a Twitter account, which had over 18,000 followers on Friday before it was suspended.

From December 1 to 24, in the style of an advent calendar, a new link was posted each day, leading to new documents. One additional link was posted on December 28.

The leaked data, parts of which were seen by POLITICO, included home addresses, the scans of national ID cards and bank account information.

Government officials dodged questions Friday about how authorities could have missed the release of the sensitive documents for more than a month.

But Fietz cautioned that although some information in the data dump may be authentic, previous experience suggests that such breaches can — and often do — include fake data.

“That’s why everyone who deals with this data should exercise the greatest caution,” she said.

Authentic, outdated, fake?

While much of the released information seems authentic — although, in some cases, outdated — at least some of it appears to be fabricated or is disputed, media reports suggested.

Florian Post, a member of the German parliament for the Social Democrats, told German news agency DPA that he had never seen at least one message attributed to him in the breach.

How the hackers obtained the vast troves of information on a broad range of public figures remains unknown.

A spokesman for the interior ministry, which oversees cybersecurity, declined to comment on whether the published information was stolen during a hacking attack or could have been leaked by someone with regular access to it.

Members of the German parliament affected by the breach complained that they were informed about it Thursday evening by outsiders rather than Germany’s security apparatus.

“It’s absurd that we are being notified about this by worried citizens,” said one Bundestag official, speaking to POLITICO on the condition of anonymity to prevent attracting further attention to his name.

“We would have hoped to get such a warning from the German Federal Office for Information Security, or from Germany’s domestic security agency, which is in charge of counterintelligence,” he added.