Today, the UK’s much-anticipated Online Safety Bill was put on hold until September, when a new Prime Minister is in place.
The delay has prompted relief among Big Tech companies and digital start-ups who were all increasingly alarmed by amendments being pushed through in recent weeks to draft legislation that will attempt to police the internet and protect users.
The proposed laws, which have been developed over the past five years, are designed to force tech platforms such as Google, Facebook and Twitter to deal with harmful content on the internet, ranging from illegal terrorist material and racist abuse, to threats of harm and psychologically distressing messages, or so-called “legal but harmful” content.
As one of the first acts to comprehensively regulate content on the internet, it has been closely watched by regulators around the world from the EU to Australia drafting their own versions.
The delay comes as new amendments being voted on this past week have been criticised by companies as well as civil society. Google, Facebook (now known as Meta, which also owns Instagram and WhatsApp) and Twitter have all expressed alarm on a range of issues, including concerns for freedom of expression, extensive secretary of state powers and safety loopholes, including endangering encryption.
One change announced earlier this month granted Ofcom the power to order tech companies to redesign their platforms, and develop entirely new technologies to detect inappropriate material, failing which they could impose fines. Facebook said in a public submission that this would require sidestepping encryption, and risked “setting a dangerous precedent globally”.
The fate of the bill now hangs in the balance. While many in the tech industry believe it will survive a new government, it is unclear what the legislation will look like. As one person from the tech policy space said: “The bill could become a dividing line for this leadership contest. Depending on the leader, it will be a different bill.”
Read more in my piece here, with our chief political correspondent Jim Pickard.
The Internet of (Four) Things
1. Venture capital firms in China starved of cash
Small and medium-sized investment firms in China are facing huge fundraising challenges, as global investors are deterred by China’s tech crackdown, draconian zero-Covid regime and the possibility of western sanctions, as reported in this great piece by Ryan McMorrow and Nian Liu in Beijing, and FT colleagues in Hong Kong and London.
2. Netflix teams up with Microsoft
As the American streaming giant struggles to reorient itself for leaner times, it has turned to Microsoft to build an advertisement-supported tier of its streaming service, which will be cheaper. The news was particularly surprising as the company’s chief executive Reed Hastings had previously been staunchly against ads, describing Netflix as an advertising-free zone that allows viewers to “relax” without being “exploited”. More here on the race to move to ad-supported streaming, from FT correspondents Anna Nicolaou and Richard Waters.
3. Amazon makes peace offering to the EU
The ecommerce giant has said it will stop using data from third-party sellers to benefit its retail business. It’s part of a deal with Brussels that would see the EU end its two antitrust probes into the company, and also avoid a protracted legal fight, Javier Espinoza reports from Brussels.
4. Can Twitter take on Musk?
I enjoyed John Thornhill’s take this week on how the Delaware trial of Twitter vs Musk is “just another crazy episode in the life of one of history’s most extraordinary entrepreneurs.” As Thornhill says, it is hard to see how Twitter can outsmart Musk — and if winning is even desirable for the social media company.
Tech tools — C SEED N1 TV
All hail the $190,000 television. The Austrian company behind it describes it as not just a TV — more a sculpture or a work of art. The C SEED N1, crafted from aerospace aluminium, folds out from a discrete base that looks like a contemporary sculpture when not in use. It features 4K MicroLED technology and HDR10+ support and comes with twin 100-watt speakers.
