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EU Digital Single Market and Data RulesWhy should Australia care?
Erich Prem, eutema
@EPIC_ProjectEU
@ErichPrem
www.epicproject.eu
EPIC Europe's ICT innovation partnership with
Australia, Singapore and New Zealand
Identification of cooperation
priorities
Supporting dialogue
Exchange and preparation
visits
Roadmap for cooperation
@EPIC_ProjectEU
www.epicproject.eu
The EU single market
• One of the largest markets in the world
• ~ 28% of world GDP
• 2nd largest market 2017(1st US, 3rd China)
• A single market for goods and nearly a single market for services
• Now also a Digital Single Market for internet services (and goods)?
www.epicproject.eu
Which internet do you want?
Global sourcing of goods and
services Fragmentation into internets
Great FirewallDSMAnything goes
Business
Politics
Research
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The Digital Single Market
AI Initiative
HPC Initiative
Cybersecurity
non-personal data e-ID
Launched 2015, 35 legislative proposals and policy initiatives, nearly “completed“ 2018.
www.epicproject.eu
DSM example online content
• Now enables consumers to access their online content services when they travel in the EU the same way they access them at home.
• Valid for all providers offering paid services (VoD, online TV, music, games; option for free services
• Online content service providers (e.g. Netflix, Spotify) verify country by payment details, internet contract, IP
• Now in force
When a French consumer subscribes to Canal+ film and series online services, the user will be able to access films and series available in France when he or she goes on holidays to Croatia or for a business trip to Denmark.
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DSM success … and not?
Roaming & data roaming
Cross-border portability of
digital content
Consumer Protection
Cooperation
Infrastructure: use of the 700MHz
band
e-government Plan for administrations of member states
Data protectionNIS Directivecybersecurity
Fragmentation (e.g. TV geo-
blocking)
www.epicproject.eu
Example: EU data protection regulation
• Improved data protection for citizens (EU data subjects)
• Reaction to new technologies, platforms and business models
• Very broad definition of personal data (identifiable natural person), e.g. location, IP address, cookies
• Hefty fines: up to € 20 m or 4% of global gross revenue (whichever higher)
Clear consent; right to access
Right to data portability (platforms)
Strict breach notification rules
for companies
Rules for profiling: right to
explanation (information)
Right to be forgotten/erasure
Privacy by design
Forthcoming: ePrivacyregulation for digital marketing
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GDPR: Right to be forgotten
• Already in place, now newly regulated
• Upon request and if no longer needed for reasons for which collected, data must be erased.
• Has severe implications for IT systems, e.g. Google search
• Needs further clarification, e.g. to allow suppression or do-not-contact lists.
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Export of personal data: adequacy
• Export of personal data outside EU without special permission only to “adequate” protection countries.
• EC has power to determine whether a non-EU country offers an adequate level of data protection (legislation or treaty)
• EC recognised • Andorra, Argentina
• Canada (for commercial organisations)
• Faroe Islands, Guernsey, Israel, Isle of Man, Jersey
• New Zealand, Switzerland, Uruguay
• U.S.A. (for the Privacy Shield framework)
• expected for South Korea and Japan.
Exception: data exchange in law enforcement (regulated under the
“Police Directive”)
?
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Brussels effect
Brusselsworld
Implications
Research and technology
„A very positive step for the internet“
(Mark Zuckerberg)California Consumer Privacy Act (CCPA) of
2018
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Implications II
Behavioural ad salesfell 25-50%immediately after GDPR introduction
https://digiday.com/media/gdpr-mayhem-programmatic-ad-buying-plummets-europe/
http://www.exactdrive.com/news/3-key-tips-about-behavioral-advertising
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GDPR and innovation
Challenges
• for business models selling data or relying on advertising
• online marketing and e-Health strongly affected (Goldfarb & Tucker 11)
• for process innovation using 3rd party services
• using data while preserving privacy
Opportunity
• Position EU as safe for personal data -neither US nor Asia has similar level of protection
• Potential market for privacy enhancing technologies: anonymization, little personal big data, selective deletion, privacy aware ML
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GDPR: Profiling and discrimination• Profiling: automated processing to evaluate personal aspects
• Anti-discrimination • deeply rooted in European legal system• Also in GDPR preamble: “implement appropriate measures that
prevents discriminatory effects…”• in particular sensitive data, e.g. racial or ethnic
origin, political opinions, religious or philosophical beliefs, or trade-union membership, …genetic data, biometric data for identification, health, sex life, sexual orientation…
• Minimal interpretation: algorithms not to use directly• But of course: geography + income implies race in some regions
• Maximal interpretation• postal code (or not?)• large datasets->less obvious correlations (predict health status)
• Raises the question of understanding decisions.
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GDPR: Automated decisions and profiling• Art. 22 and Art. 13-14: …information about
automated decision making…• The data subject shall have the right not to be
subject to a decision based solely on automated processing, including profiling, which produces legal effects concerning him or her or similarly significantly affects him or her.
• … the right to meaningful information about the logic involved…
• Implications not full clear: Perhaps more a right to be informed, right to explanation of system functionality
• Future court ruling, further research in AI
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Promising areas for ICT RTDI
Giving consent Anonymization
Forgetting Explaining
Ethical profiling
Privacy by design
• New services and standards
• New business model: shift towards paid services
• Impact on innovation?
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What DSM also is
AI Initiative
HPC Initiative
Cybersecurity
non-personal data e-ID
Launched 2015, nearly „completed“ 2018.
www.epicproject.eu
Non-personal data
• Legislation tackling data localisation restrictions:• Free-flow of non-personal data within EU
• Why?• To tackle existing restriction on the free movement of data
• To address emerging issues: ownership, interoperability, usability, and data access
• Previous EU-Indonesia Trade Negotiations• Prohibit protectionist barriers to cross-border data flows, e.g. to use domestic
computing facilities, forced localisation of data, prohibition of non-domestic data storage
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Europe’s AI position
• Diversity and cultural richness
• Skilled workforce
• Basic AI research
• Advanced roboticssector
• Lack of a homogeneous (language) market
• No leading big-data corporations
• Low private sector AI R&D.
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Europe’s Strategic Approach to AI
Strengthening the tech and industrial side of AI
Promoting the uptake of AI by private European
companies
Preparing the change via the social and cultural framework (non-tech aspects like impact on
jobs, ethics, diversity…)
AI AllianceAI Hi-Level
Expert Group
Digital Innovation
Hubs
Ethical guidelines, democratization,
on-demand platform
www.epicproject.eu
EU and other AI strategies
Plethora of strategies
Strategies of cities, provinces, countries
Plans from EU and large countries: often coordinating
Fear of missing out and ethical aspects
General aspects of education, training, ethics omnipresent
International cooperation
Role very clear for AI technology
Privacy and data aspects – including regulation, concepts, and technologies
Struggle of smaller regions to compete with large players
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The DSM … and EPIC
Artificial Intelligence
IoT, wearables, I4.0
Digital Economy / Digital
Disruption
Next Generation Internet
Cyber Security ICT in TransportSpatial
Intelligence
Single market New rulesBusiness impact,
research challenges and policy innovation
Research cooperation New rulesBusiness interest,
research impact, and policy concept
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Summary and outlook
@EPIC_ProjectEU
Businesses Research Politics
DSM development
and clarification
Horizon Europe
Brexit
EU-Australian FTA
@ErichPrem
www.epicproject.eu
Contact
DDr. Erich Prem Prof. Bruce Wilson, RMIT
eutema GmbH Prof. Mark Sanderson, RMIT
www.eutema.com www.rmit.edu.au
@ErichPrem @RMIT_EU_CENTRE
EPIC project
www.epicproject.eu
info at epicproject.eu
