🚨AI&Tech Legal Digest || December 27, 2024
Anita Yaryna
Senior IP & Tech Legal Counsel | US-EU Product, Privacy, and Policy Counsel | AI Advisor | Commercial Counsel
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UK Creative Industries Unite Against AI Copyright Exemption Plan
In a significant development for AI regulation and intellectual property rights, a powerful coalition of UK creative industries has firmly rejected the Labour government's proposed copyright exemption for AI training. The Creative Rights in AI Coalition (Crac), representing thousands of creators including musicians, publishers, photographers, and major media outlets like the Guardian and Financial Times, has taken a strong stance against the government's "opt-out" approach to AI training data.
The controversial proposal, announced by technology and culture minister Chris Bryant, would allow AI giants like OpenAI, Google, and Meta to train their systems on published works unless copyright holders explicitly opt out. Bryant defended the approach, arguing that a stricter regime could disadvantage British AI developers and force international companies to train their models overseas. However, the creative sector argues this fundamentally misunderstands existing copyright law and undermines creators' rights.
High-profile figures have joined the opposition, with Paul McCartney and Kate Bush among the latest to sign a petition that has gathered over 37,500 signatures. The debate has reached Parliament, where Liberal Democrat spokesperson Clement Jones criticized the government's position as being influenced by tech lobbyists, while Conservative MP Caroline Dinenage accused the government of having "fully drunk the Kool-Aid on AI." The creative industries maintain that AI developers should proactively seek permission and negotiate licenses, rather than forcing rights holders to opt out of usage of their work.
Google Faces UK Regulator's Backlash Over Controversial Digital Fingerprinting Plans
In a significant development for digital privacy, the UK Information Commissioner's Office (ICO) has strongly criticized Google's decision to implement digital fingerprinting for advertisers, labeling the move as "irresponsible." The controversy centers around Google's announcement that from mid-February, it will allow advertisers to track users through device fingerprinting - a sophisticated tracking technique that combines hardware and software signals to create unique user identifiers, making it more difficult for users to control their privacy compared to traditional cookies.
The timing of this policy shift is particularly notable given Google's previous stance in 2019, when the company explicitly opposed fingerprinting, stating it "subverts user choice and is wrong." The company's reversal is reportedly driven by the growing advertising opportunities in connected TV (CTV) and streaming services. However, Stephen Almond, ICO's executive director for regulatory risk, has emphasized that businesses do not have unrestricted freedom to deploy fingerprinting and must comply with data protection laws.
ICO's position reflects broader concerns about user privacy and control, stating that fingerprinting reduces people's ability to manage how their information is collected. Unlike cookie tracking, which allows users to consent through pop-up windows, fingerprinting offers limited opt-out options. While Google maintains it will continue to provide users choice regarding personalized ads, the company has agreed to further discussions with the ICO about the policy change, signaling potential developments in this privacy debate.
World Faces EU Data Protection Setback: German Regulator Orders Biometric Data Deletion
In a landmark decision for biometric privacy regulation, Germany's data protection authority (BayLDA) has ordered World (formerly Worldcoin), Sam Altman's ambitious biometric identification project, to delete user data due to non-compliance with GDPR. The ruling follows a comprehensive investigation into the company's iris-scanning technology, which aims to create a universal human verification system in the age of AI.
The authority's decision highlights fundamental concerns about World's data protection practices, particularly regarding its 'Orb' device that scans users' irises and faces. BayLDA President Michael Will emphasized that the ruling enforces European fundamental rights standards in what he described as a "technologically demanding and legally highly complex case." This development is particularly significant as World operates its European headquarters and manufacturing facility in Bavaria.
World has appealed the decision, seeking judicial clarity on whether its Privacy Enhancing Technologies (PETs) meet EU anonymization standards. The company's Chief Privacy Officer, Damien Kieran, defended their current practices, explaining that they've moved away from direct iris code storage to a cryptographic protocol involving third-party database storage at institutions including the University of Berkeley and FAU university. As World continues its planned expansion into markets like Ireland, the UK, and France, this regulatory challenge adds to existing temporary bans in Spain and Portugal, potentially reshaping the landscape of biometric identity verification in Europe.
Google Challenges Japanese Antitrust Authority Over Search Dominance Claims
In a significant development for global tech regulation, Google is preparing to defend itself against Japan's Fair Trade Commission (JFTC) allegations of anticompetitive practices. The watchdog has issued a cease-and-desist order to Google's Japan office, focusing on the company's alleged practices of forcing smartphone manufacturers to prioritize Google Search placement on default screens.
The confrontation marks another chapter in Google's ongoing regulatory challenges worldwide, coming shortly after the JFTC's earlier administrative order regarding the company's practices in targeted search ads with Yahoo Japan. Google has expressed disappointment with the commission's approach, stating that the regulator did not adequately consider their proposed solutions to address competition concerns.
This case adds to the mounting global scrutiny of Big Tech's market practices, with Google now preparing to present its counter-arguments during the hearing process. The company maintains that it has been actively working with the Japanese government to demonstrate its support for the Android ecosystem and efforts to expand user choice in Japan, setting the stage for what could be a pivotal case in Asian tech regulation.
Allegro's Subsidiary Launches €568M Lawsuit Against Google Over Competitive Practices
In a major development in European tech litigation, Ceneo, a subsidiary of Polish e-commerce giant Allegro, has initiated legal proceedings against Alphabet and its Google entities, seeking 2.33 billion zlotys (€568 million) in damages. The lawsuit, filed on December 23, targets Google's alleged preferential treatment of its own price comparison services in search results, which Ceneo claims has significantly damaged its business operations.
The legal action builds upon the precedent set by the European Union's landmark €2.7 billion antitrust fine against Google for similar anticompetitive practices. Ceneo's compensation demand includes 1.72 billion zlotys in direct losses and approximately 615 million zlotys in interest payments covering the period from 2013 to November 2024, with additional statutory interest accruing from the filing date until final settlement.
Google has contested the allegations, defending its Shopping remedy as a successful framework that supports various market players across Poland and Europe. This case emerges amid intensifying global scrutiny of Google's market dominance, particularly following the U.S. Department of Justice's recent recommendation for Google to divest its Chrome browser business, highlighting the mounting pressure on tech giants to ensure fair competition in digital markets.
In this fast-paced, ever-changing world, it can be challenging to stay updated with the latest legal news in the AI and tech sectors. I hope you found this digest helpful and were able to free up some time for the real joys of life.
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Anita
Thank you for sharing these important updates on tech regulation, privacy rights, and AI governance. It's clear that these issues will continue to shape the tech landscape in the coming years. As we move forward, it's crucial that we prioritize privacy by design and ensure that emerging technologies are developed in a way that respects individual rights and freedoms.