[isoc-ny] Digital Watch Weekly #83

[ISOC-NY announcements]

Hello ISOC-NY,

Some weekend reading for you. A lot going on in the world! You will find a
sub link for this excellent newsletter (out of Geneva) towards the end.


Every Friday, we update you on the developments from the digital policy
world that are making headlines

*Issue #83 – Friday, 29th April 2022*

Dear readers,

Either the digital battlefield in Ukraine is winding down, or the news
coverage has shifted its focus to other topics. We will still provide
day-to-day updates on the situation in Ukraine on our dedicated page on the
Digital Watch observatory
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=daffabca0e&e=81127bf748>
.

This week, the headlines were dominated by the Twitter Board of Directors’
change of heart and consequent decision to sell Twitter to Elon Musk, as
well as the EU’s Digital Services Act deal. The USA has led more than 60
partners in signing an international Declaration for the Future of the
Internet. We examine its principles below. The Open-Ended Working Group
(OEWG) on cyber has agreed on how stakeholders will participate in the
group’s discussions. We round off this issue with updates on
cryptocurrencies and digital identities, as well as some reading
suggestions.

Stay safe,
*Andrijana and the Digital Watch team*
STORY OF THE WEEK

*Elon Musk buys Twitter*
Elon Musk's bid to buy Twitter has been unanimously approved
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=1d599f1b73&e=81127bf748>
by the Twitter Board of Directors. The deal, estimated to be worth $44
billion, will close in 2022, after which Twitter will become a privately
held company. The sale, however, must be approved by other Twitter
stakeholders as well as regulators.

‘Free speech is the bedrock of a functioning democracy, and Twitter is the
digital town square where matters vital to the future of humanity are
debated’, Musk stated. ‘I also want to make Twitter better than ever by
enhancing the product with new features, making the algorithms open source
to increase trust, defeating the spambots, and authenticating all humans.
Twitter has tremendous potential – I look forward to working with the
company and the community of users to unlock it.’

In the latest instalment of our 'Diplo experts explain' series, we consider
how Musk's purchase of Twitter might affect the company's content policies.
Take a look at this video:
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=14db1109e0&e=81127bf748>
Click on the image to watch the video

THIS WEEK'S UPDATES
*// CONTENT POLICY //*

*The DSA deal*
A week ago, officials from the European Parliament, the French presidency
of the Council of the EU, and the Commission reached a political agreement
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=57ea7e50cc&e=81127bf748>
on the new Digital Services Act (DSA)
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=4601e3a742&e=81127bf748>,
opening the way to formal adoption in the coming weeks. The Act is the most
important update in the regulation of intermediary liability in the EU in
the last 20 years. Its rules apply to intermediary services related to
internet infrastructure, hosting services, online platforms, and very large
online platforms (with at least 45 million monthly active users in the EU).

The DSA follows previous regulations and exempts intermediaries from
liability when they merely transfer, cache, or host information. It also
confirms that intermediaries have no general obligation to monitor
content.  However, it imposes new obligations for digital service providers
in terms of transparency, strengthening user rights, and risk management.
Very large online platforms are subject to stricter obligations on
information, reporting, auditing, risk management, and cooperation. The
fines for non-compliance are up to 6% of annual turnover.

The DSA gives strong enforcement powers
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=6e79670828&e=81127bf748>
to the Commission to supervise the extensive online platform obligations
and establishes cooperation mechanisms to facilitate stakeholder
participation in the enforcement of DSA violations. It will also establish
a European Board for Digital Services.

The DSA has been criticised
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=99af2c19bb&e=81127bf748>
for not granting encryption rights to users, not allowing anonymous use of
digital services, and the possibility of platforms preemptively removing
content to avoid liability, for example.

The formal adoption of the Act is expected at the end of June, with
regulation being in force 15 months later.

*CJEU rulings *
For all legal enthusiasts, the Court of Justice of the European Union
(CJEU) is now live streaming
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=21b7253073&e=81127bf748>
the delivery of judgements and readings of the Advocate General’s opinions.
Credit: CJEU

One of the first judgements to be streamed was on upload filters and
obligations of content sharing services in Art. 17 of the Copyright
Directive (C-401/19 Poland v Parliament and Council
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=dd407a91f9&e=81127bf748>).
The CJEU dismissed Poland’s claim that provisions of Art. 17 ‘infringe the
freedom of expression and information guaranteed in the Charter of
Fundamental Rights of the European Union’. The CJEU stated that the
obligation to review content before posting is accompanied by the necessary
safeguards to ensure that that obligation is compatible with freedom of
expression and information.

*#OnOurRadar*

*EU embraces tech diplomacy *
The EU intends to open an office in San Francisco, to support communication
with companies in Silicon Valley, POLITICO reports
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=edbf1c0059&e=81127bf748>.
The new office – which would operate under the guidance of the EU
delegation in Washington – seems quite timely, given the fact that the DSA
and the Digital Markers Act (DMA) directly target big tech located in the
area.

Speaking of the EU and big tech, it seems Apple is a few days away
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=f4a0ed8189&e=81127bf748>
from being hit with antitrust charges by the European Commission over its
mobile payment system. We’ll keep an eye on how this unfolds.
*// THE FUTURE OF THE INTERNET //*

*International declaration outlines vision and principles for a trusted
internet*
Over 60 countries and territories, including EU member states, Australia,
Canada, the UK, and the USA, have launched a Declaration for the Future of
the Internet
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=682c1883ea&e=81127bf748>,
outlining their commitment to a free, open, interoperable, reliable, secure
global internet and broader digital ecosystem.
Credit: European Commission

To sustain this vision, the signatories intend to uphold and promote
several key principles:

   - *Protect human rights and fundamental freedoms*, as reflected in the
   Universal Declaration of Human Rights, and respect principles such as the
   rule of law, effective oversight, and transparency.
   - *Maintain a global internet*, through actions such as refraining from
   internet shutdowns and blocking access to lawful content; enabling data
   free-flows with trust; and promoting cooperation in research, innovation,
   and standard-setting.
   - *Promote inclusive, affordable, and reliable access to the internet*,
   through supporting efforts to close the digital divide, enhance digital
   literacy, and foster exposure to diverse cultural and multilingual content.
   - *Promote trust in the digital ecosystem*, through actions ranging from
   combating cybercrime and protecting privacy and personal data, to
   supporting a rule-based global digital economy and refraining from using
   the internet to undermine electoral processes.
   - *Protect and strengthen the multistakeholder model of internet
   governance* and refrain from undermining the technical infrastructure of
   the internet.

These principles are intended to be transposed into concrete policies and
actions and promoted within multilateral and multistakeholder processes,
while respecting the regulatory autonomy of the partners.

More countries are expected to join the Declaration, and other
stakeholders, including industry, the technical community, civil society,
and international organisations, will be invited to support it.
*// CYBERCONFLICT //*

*OEWG agrees on modalities of stakeholder participation*
The OEWG reached agreement to apply modalities for the participation of
stakeholders
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=ba0a8f01af&e=81127bf748>
as proposed by the Chair on 20 April, through a silent procedure. NGOs both
with and without ECOSOC status should inform the OEWG Secretariat of their
interest to participate. If no state raises an objection to the Chair, NGOs
will be invited to participate as observers in the formal sessions, make
oral statements during a dedicated stakeholder session, and submit written
inputs to be posted on the OEWG’s website. The modalities will be read out
at the OEWG’s third substantive session for the formal record.

*Chinese drone maker DJI halts all shipments to Russia and Ukraine*
Chinese drone-maker DJI is temporarily halting all business activities in
Russia and Ukraine.
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=59822588c5&e=81127bf748>
According to *The Verge*, this includes halting shipments of its products
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=0228b5dc91&e=81127bf748>
and stopping after-sales support because the company is concerned that its
products are being used in combat.

Previously, Ukrainian Deputy Prime Minister and Digital Transformation
Minister Mykhailo Fedorov claimed
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=2baec9e2f9&e=81127bf748>
that Russia is using DJI’s AeroScope drone detection system to navigate
their missiles and kill civilians.
The company recently admitted – according to *The Verge*
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=da48d5b5e1&e=81127bf748>
– that its drone-tracking system DJI AeroScope does not use encryption for
broadcasted signals. This means that governments and others with the
required technical ability may not require an AeroScope to see the precise
location of every DJI drone and every pilot nearby.
*// CRYPTOCURRENCIES //*

*Central African Republic accepts cryptocurrencies as legal tender*
The Central African Republic became the second country in the world (after
El Salvador) to accept bitcoin and other cryptocurrencies as legal tender
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=cb5f8b620f&e=81127bf748>
along with the national fiat currency (CFA franc). A bill to this effect
was passed by the parliament and signed into law by the country’s
president regulating
the use of cryptocurrencies
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=71395006cf&e=81127bf748>
in online trade and electronic transactions and stipulating that such
exchanges are not subject to tax.

There is, however, an expectation that the law will be challenged
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=b4780b93a6&e=81127bf748>
at the Constitutional Court, over concerns that it may undermine the
national currency.

*Panama’s parliament passes crypto assets bill*
The Legislative Assembly of Panama has approved a bill
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=73ba1e9bbe&e=81127bf748>
regulating the use of crypto assets as payment systems. The bill, which
needs to be signed into law by the country’s president, allows the use of
crypto assets
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=5630bd7fa3&e=81127bf748>
as a means of payment for civil or commercial operations, and enables the
provision of crypto asset services in the country. However, it does not
give crypto assets
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=fee5c9ac95&e=81127bf748>
the status of legal tender.
*// DIGITAL IDENTITIES //*

*Mexican court rules biometric phone registry is unconstitutional*
In a win for privacy activists, Mexico's Supreme Court ruled that the
government-backed
cell phone registry with biometric data is unconstitutional
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=e7e178f1a7&e=81127bf748>.
The registry, called Panaut, was supposed to include eye biometrics or
fingerprints, and ultimately make it more difficult for bad actors to
remain anonymous when purchasing mobile phones.
WHAT ELSE WE'RE READING

*#ICYMI: UNCTAD eCommerce week 2022 *
The UNCTAD e-commerce week was held this week, under the theme ‘Data and
Digitalization for Development’. The event provided the opportunity for a
timely discussion on the role of data and cross-border data flows in the
digital economy, and on the distribution of wealth generated by this data.
We followed the event closely and produced reports from the conference’s
thematic sessions
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=daea0685c6&e=81127bf748>.
Head on over to the Digital Watch Observatory to dive into the discussions.

*Diplo Blog: National champions do not help to win the race for digital
industrialisation*
In a blog post inspired by reflections during eCommerce week 2022, Diplo’s
Head of Digital Commerce and Internet Policy Marília Maciel argues
that national
champions do not help win the race for digital industrialisation
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=4f031751e7&e=81127bf748>
and outlines what developing countries could do to expand the scope of
their participation in value creation in the digital economy.

*Facebook’s ‘data lineage’ problem*
Motherboard obtained a leaked document written by Facebook’s privacy
engineers,
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=fde4bb06ea&e=81127bf748>which
claims that Facebook doesn’t know how its systems use data or where the
data goes once it’s inside Facebook’s systems. ‘We can’t confidently make
controlled policy changes or external commitments such as “we will not use
X data for Y purpose.” And yet, this is exactly what regulators expect us
to do,’ the engineers wrote.

*Was this newsletter forwarded to you, and you’d like to see more? Sign up
for more
<https://diplomacy.us5.list-manage.com/track/click?u=89e7299f9fe54eed66d45cf3d&id=00ee392d1c&e=81127bf748>.*

Lead author: Andrijana Gavrilovic <%20andrijanag at diplomacy.edu>
*Copyright © 2022 DiploFoundation, All rights reserved.*

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