Tech Companies Win Reprieve as EU Parliament Delays Copyright Law


Tech Companies Win Reprieve as EU Parliament Delays Copyright Law

Contested rules are an effort to strengthen content providers’ position when negotiating with tech giants

The vote on copyright exposes divisions within Europe over how to rein in big tech firms.

By Sam Schechner Updated July 5, 2018 7:52 a.m. ET

European Union lawmakers rejected new copyright rules Thursday, instead opting for more debate and handing a victory to tech firms that face a broader European effort to rein them in on privacy, taxes and other rules.

The contested rules, part of an overhaul of the bloc’s copyright framework, are aimed at granting new rights to news publishers and content owners, such as record labels, in an effort to strengthen their position when negotiating with big tech firms, such as Alphabet Inc.’s Google.

Technology firms and free-speech advocates have said both measures would stifle online expression.

The vote exposes divisions within Europe over how to rein in big tech companies, as the bloc plays an increasing role in regulating those firms from the U.S. that have generally faced a lighter touch at home.

The EU is currently considering new tax proposals aimed at large tech companies that it says don’t report enough profit, or pay enough income tax, in the European countries where they operate. In May, the EU began enforcing a strict new privacy law, which could end up challenging whether people freely consent to tech companies collecting their personal information.

The directive that EU lawmakers voted to delay on Thursday has been subject to debate and heavy lobbying in Brussels since the European Commission, the EU’s executive arm, first proposed it almost two years ago. On Wednesday, for instance, Sir Paul McCartney sent a letter supporting the law. Tech advocates meanwhile described it as a “censorship machine.”

One controversial measure in the commission’s draft would give news publishers the right to negotiate payment for “digital use” of their content by tech firms, though revisions in the parliament version didn’t extend that right to posting hyperlinks to content. Publishers say the rules are needed because a growing share readership comes through social media and aggregators, undercutting publishers’ efforts to attract subscribers.

Another provision would require online-video sites like Google’s YouTube to pay “proportionate remuneration” for their works, and take measures to prevent uploads of content for which it doesn’t have a license. Record labels have long lobbied to require platforms like YouTube to scan their uploads for copyright material, something it currently does on a voluntary basis. Record labels say the provision would strengthen their negotiations with such platforms.

During the debate on Thursday, Axel Voss, a German member of the EU parliament who has been overseeing the measure, said the bill would force big tech companies to “take more responsibility.”

U.K. member Catherine Stihler said “there are real concerns on the effect of Article 13 on freedom of expression,” referring to one of the law’s provisions, adding that the law “does not achieve the needed balance.”

Tech lobbyists cheered the vote. “Today’s vote shows that MEPs heard the grave concerns of the online sector,” said Maud Sacquet, senior policy manager for the Computer & Communications Industry Association, which represents Google, Facebook Inc. and other tech firms.

The vote means the copyright legislation will be sent back to the full EU parliament for debate in September, rather than advancing directly to three-way negotiations among parliament, EU member states and the EU’s executive arm.

The law’s supporters decried the delay and said they aim to keep pushing in September. “The European Parliament succumbed to the misleading appeals by the platforms at the expense of Europe’s creative sectors,” said Wout van Wijk, executive director of News Media Europe, a trade organization.

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