EU Regulators Seem To Think They Can Tell YouTube That Its Business Model Should Be More Like Spotify

from the really? dept

We've been quite concerned about new internet regulations on the way from the EU, with a focus on how internet platforms must act. As we've noted, the effort is officially part of the (reasonable and good!) idea of making a "Digital Single Market," but where the process is being used by some who think it's an opportunity to attack the big internet companies (mainly Google and Facebook). There are two EU Commissioners heading up the effort, and one, Gunther Oettinger, has been fairly explicit that he'd like to burden American internet firms with regulations to "replace" them with European equivalents. Of course, as we've noted, when you have giant companies like Google and Facebook, they can pretty much handle whatever regulatory burden you throw at them. It's the innovators and the startups that will be shut out because they won't be able to manage it. So, ironically, in trying to hold back Google and Facebook with regulations, the EU would really only entrench them as the only players able to handle those regulations.

The other EU Commissioner deeply involved with this process is Andrus Ansip, who is generally seen as more reasonable on internet and technology issues. He actually seems to understand many of the trade offs at play. So it was mostly good to see him make some comments recognizing that across-the-board regulations may have negative consequences:

European Commission Vice-President Andrus Ansip, who is overseeing a wide-ranging inquiry into how web platforms conduct their business, said on Friday the EU executive would not take a horizontal approach to regulating online services.

"We will take a problem-driven approach," Ansip said. "It's practically impossible to regulate all the platforms with one really good single solution."

That's mostly a good sign, but you do worry about what kinds of "problems" they're looking at. Because, at the same time Ansip seemed to indicate that he was upset about how much YouTube paid artists:

Andrus Ansip, who is overseeing an overhaul of the bloc’s copyright rules, said the YouTube’s comparatively small payments to artists gave it an unfair advantage over rivals such as Spotify, the Swedish streaming service.

“This is not only about rights owners and creators and their remuneration — it is also about a level playing field between different service providers,” said the former prime minister of Estonia. “Platforms based on subscriptions are remunerating those authors; others service providers do not. How can they compete?”

Different services have different business models and offer different features and benefits. That's how competition and innovation work. What if it's Spotify's model that is the problematic and unsustainable one? Why is the EU choosing one particular business model over another and suggesting that all business models should work the same way?

Now, I know that there have been lots of complaints about how much YouTube pays -- just as there have been lots of complaints about how much Spotify pays. And I'm not sure how telling these companies how they have to run their business fixes any of that. Because, at the same time, I know of artists who say that they've only become successful because of YouTube or because of Spotify. They're pretty happy with how those systems work. Why should the EU government suddenly come in and say "this model is okay -- this model is not"?

Mandating business models and worrying that one business decision makes it more difficult to compete -- and thinking that's a regulatory issue -- doesn't seem like a good way to encourage startups and innovation in Europe. It sounds like a massive headache for any platform -- especially smaller ones -- operating in Europe.

Filed Under: andrus ansip, digital single market, eu, gunther oettinger, platforms, regulations
Companies: google, spotify, youtube

Pirate Party Launches Site For Public To Put Questions To New EU Commissioners Responsible For Internet Policy

from the give-it-a-go dept

There's a new set of top politicians coming in to form the European Commission, one of the three bodies that run the European Union. Next week, the European Parliament -- another of those three bodies -- gets to grill them on their suitability. It's largely theater, since rejecting a Commissioner-designate is pretty heavy, and rarely happens. Still, if nothing else, it's a chance to put embarrassing questions to people who will soon be powerful and hard to call to account. Sadly, though, it's not something that the public can participate in. The Pirate Party's newly-elected Member of the European Parliament, Julia Reda, wants to change that, and has created a site called "What would you ask?". Here's the explanation:

From September 29 to October 7th, the European Parliament gets to vet the designated members of the EU Commission: The people who will be drafting laws for 500 million people for the next five years. I believe: The people of Europe should also be allowed to ask questions! That's why I'm asking YOU: If you had the chance, what would you ask the Commissioners responsible for internet policy?

There are two Commissioners involved: Andrus Ansip, Designated Vice President for the Digital Single Market, who oversees the breaking-down of borders between EU member states on the Internet, and Günther Oettinger, Designated Commissioner for Digital Economy and Society, responsible for the telecom sector, copyright, start-ups, e-government, security, Internet governance, and the European Commission's own computing services. Rather worryingly, Ansip was an unabashed supporter of ACTA when it was being pushed through a couple of years ago, while questions have been raised about Oettinger's experience and understanding of the digital world.

Reda adds:

I will forward the top-voted questions to the Commissioners and ask them to reply. But please note: Since as an individual MEP even I have very limited opportunity to ask questions, I cannot promise I will be able to pose these questions in the actual committee hearing.

Still, given that previously the public had precisely zero opportunity to pose questions to these people, even a small chance is worth taking.

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Filed Under: andrus ansip, eu commissioner, eu parliament, gunther oettinger, julia reda, pirate party, questions