AI

Big tech’s ‘blackbox’ algorithms face regulatory oversight under EU plan

Comment

Image Credits: Bryce Durbin / TechCrunch

Major Internet platforms will be required to open up their algorithms to regulatory oversight under proposals European lawmakers are set to introduce next month.

In a speech today Commission EVP Margrethe Vestager suggested algorithmic accountability will be a key plank of the forthcoming legislative digital package — with draft rules incoming that will require platforms to explain how their recommendation systems work as well as offering users more control over them.

“The rules we’re preparing would give all digital services a duty to cooperate with regulators. And the biggest platforms would have to provide more information on the way their algorithms work, when regulators ask for it,” she said, adding that platforms will also “have to give regulators and researchers access to the data they hold — including ad archives”.

While social media platforms like Facebook have set up ad archives ahead of any regulatory requirement to do so there are ongoing complaints from third party researchers about how the information is structured and how (in)accessible it is to independent study.

More information for users around ad targeting is another planned requirement, along with greater reporting requirements for platforms to explain content moderation decisions, per Vestager — who also gave a preview of what’s coming down the pipe in the Digital Services Act and Digital Markets Act in another speech earlier this week.

Europe to limit how big tech can push its own services and use third-party data

Regional lawmakers are responding to concerns that ‘blackbox’ algorithms can have damaging effects on individuals and societies — flowing from how they process data and order and rank information, with risks such as discrimination, amplification of bias and abusive targeting of vulnerable individuals and groups.

The Commission has said it’s working on binding transparency rules with the aim of forcing tech giants to take more responsibility for the content their platforms amplify and monetize. Although the devil will be in both the detail of the requirements and how effectively they will be enforced — but a draft of the plan is due in a month or so.

“One of the main goals of the Digital Services Act that we’ll put forward in December will be to protect our democracy, by making sure that platforms are transparent about the way these algorithms work – and make those platforms more accountable for the decisions they make,” said Vestager in a speech today at an event organized by not-for-profit research advocacy group AlgorithmWatch.

“The proposals that we’re working on would mean platforms have to tell users how their recommender systems decide which content to show – so it’s easier for us to judge whether to trust the picture of the world that they give us or not.”

Under the planned rules the most powerful Internet platforms — so-called ‘gatekeepers’ in EU parlance — will have to provide regular reports on “the content moderation tools they use, and the accuracy and results of those tools”, as Vestager put it.

There will also be specific disclosure requirements for ad targeting that go beyond the current fuzzy disclosures that platforms like Facebook may already offer (in its case via the ‘why am I seeing this ad?’ menu).

“Better information” will have to be provided, she said, such as platforms telling users “who placed a certain ad, and why it’s been targeted at us”. The overarching aim will be to ensure users of such platforms have “a better idea of who’s trying to influence us — and a better chance of spotting when algorithms are discriminating against us,” she added. 

Today a coalition of 46 civic society organizations led by AlgorithmWatch urged the Commission to make sure transparency requirements in the forthcoming legislation are “meaningful” — calling for it to introduce “comprehensive data access frameworks” that provide watchdogs with the tools they need to hold platforms accountable, as well as to enable journalists, academics, and civil society to “challenge and scrutinize power”.

The group’s set of recommendations call for binding disclosure obligations based on the technical functionalities of dominant platforms; a single EU institution “with a clear legal mandate to enable access to data and to enforce transparency obligations”; and provisions to ensure data collection complies with EU data protection rules.

Another way to rebalance the power asymmetry between data-mining platform giants and the individuals who they track, profile and target could involve requirements to let users switch off algorithmic feeds entirely if they wish — opting out of the possibility of data-driven discrimination or manipulation. But it remains to be seen whether EU lawmakers will go that far in the forthcoming legislative proposals.

The only hints Vestager offered on this front was to say that the planned rules “will also give more power to users — so algorithms don’t have the last word about what we get to see, and what we don’t get to see”.

Platforms will also have to give users “the ability to influence the choices that recommender systems make on our behalf”, she also said.

In further remarks she confirmed there will be more detailed reporting requirements for digital services around content moderation and takedowns — saying they will have to tell users when they take content down, and give them “effective rights to challenge that removal”. While there is widespread public support across the bloc for rebooting the rules of play for digital giants there are also strongly held views that regulation should not impinge on online freedom of expression — such as by encouraging platforms to shrink their regulatory risk by applying upload filters or removing controversial content without a valid reason.

The proposals will need the support of EU Member States, via the European Council, and elected representatives in the European parliament.

The latter has already voted in support of tighter rules on ad targeting. MEPs also urged the Commission to reject the use of upload filters or any form of ex-ante content control for harmful or illegal content, saying the final decision on whether content is legal or not should be taken by an independent judiciary.

Simultaneously the Commission is working on shaping rules specifically for applications that use artificial intelligence — but that legislative package is not due until next year.

Vestager confirmed that will be introduced early in 2021 with the aim of creating “an AI ecosystem of trust”.

Europe sets out plan to boost data reuse and regulate ‘high risk’ AIs

More TechCrunch

Over the weekend, Instagram announced that it is expanding its creator marketplace to 10 new countries — this marketplace connects brands with creators to foster collaboration. The new regions include…

Instagram expands its creator marketplace to 10 new countries

Four-year-old Mexican BNPL startup Aplazo facilitates fractionated payments to offline and online merchants even when the buyer doesn’t have a credit card.

Aplazo is using buy-now-pay-later as a stepping stone to financial ubiquity in Mexico

We received countless submissions to speak at this year’s Disrupt 2024. After carefully sifting through all the applications, we’ve narrowed it down to 19 session finalists. Now we need your…

Vote for your Disrupt 2024 Audience Choice favs

Co-founder and CEO Bowie Cheung, who previously worked at Uber Eats, said the company now has 200 customers.

Healthy growth helps B2B food e-commerce startup Pepper nab $30 million led by ICONIQ Growth

Booking.com has been designated a gatekeeper under the EU’s DMA, meaning the firm will be regulated under the bloc’s market fairness framework.

Booking.com latest to fall under EU market power rules

Featured Article

‘Got that boomer!’: How cyber-criminals steal one-time passcodes for SIM swap attacks and raiding bank accounts

Estate is an invite-only website that has helped hundreds of attackers make thousands of phone calls aimed at stealing account passcodes, according to its leaked database.

3 hours ago
‘Got that boomer!’: How cyber-criminals steal one-time passcodes for SIM swap attacks and raiding bank accounts

Squarespace is being taken private in an all-cash deal that values the company on an equity basis at $6.6 billion.

Permira is taking Squarespace private in a $6.9 billion deal

AI-powered tools like OpenAI’s Whisper have enabled many apps to make transcription an integral part of their feature set for personal note-taking, and the space has quickly flourished as a…

Buymeacoffee’s founder has built an AI-powered voice note app

Airtel, India’s second-largest telco, is partnering with Google Cloud to develop and deliver cloud and GenAI solutions to Indian businesses.

Google partners with Airtel to offer cloud and genAI products to Indian businesses

To give AI-focused women academics and others their well-deserved — and overdue — time in the spotlight, TechCrunch has been publishing a series of interviews focused on remarkable women who’ve contributed to…

Women in AI: Rep. Dar’shun Kendrick wants to pass more AI legislation

We took the pulse of emerging fund managers about what it’s been like for them during these post-ZERP, venture-capital-winter years.

A reckoning is coming for emerging venture funds, and that, VCs say, is a good thing

It’s been a busy weekend for union organizing efforts at U.S. Apple stores, with the union at one store voting to authorize a strike, while workers at another store voted…

Workers at a Maryland Apple store authorize strike

Alora Baby is not just aiming to manufacture baby cribs in an environmentally friendly way but is attempting to overhaul the whole lifecycle of a product

Alora Baby aims to push baby gear away from the ‘landfill economy’

Bumble founder and executive chair Whitney Wolfe Herd raised eyebrows this week with her comments about how AI might change the dating experience. During an onstage interview, Bloomberg’s Emily Chang…

Go on, let bots date other bots

Welcome to Week in Review: TechCrunch’s newsletter recapping the week’s biggest news. This week Apple unveiled new iPad models at its Let Loose event, including a new 13-inch display for…

Why Apple’s ‘Crush’ ad is so misguided

The U.K. Safety Institute, the U.K.’s recently established AI safety body, has released a toolset designed to “strengthen AI safety” by making it easier for industry, research organizations and academia…

U.K. agency releases tools to test AI model safety

AI startup Runway’s second annual AI Film Festival showcased movies that incorporated AI tech in some fashion, from backgrounds to animations.

At the AI Film Festival, humanity triumphed over tech

Rachel Coldicutt is the founder of Careful Industries, which researches the social impact technology has on society.

Women in AI: Rachel Coldicutt researches how technology impacts society

SAP Chief Sustainability Officer Sophia Mendelsohn wants to incentivize companies to be green because it’s profitable, not just because it’s right.

SAP’s chief sustainability officer isn’t interested in getting your company to do the right thing

Here’s what one insider said happened in the days leading up to the layoffs.

Tesla’s profitable Supercharger network is in limbo after Musk axed the entire team

StrictlyVC events deliver exclusive insider content from the Silicon Valley & Global VC scene while creating meaningful connections over cocktails and canapés with leading investors, entrepreneurs and executives. And TechCrunch…

Meesho, a leading e-commerce startup in India, has secured $275 million in a new funding round.

Meesho, an Indian social commerce platform with 150M transacting users, raises $275M

Some Indian government websites have allowed scammers to plant advertisements capable of redirecting visitors to online betting platforms. TechCrunch discovered around four dozen “gov.in” website links associated with Indian states,…

Scammers found planting online betting ads on Indian government websites

Around 550 employees across autonomous vehicle company Motional have been laid off, according to information taken from WARN notice filings and sources at the company.  Earlier this week, TechCrunch reported…

Motional cut about 550 employees, around 40%, in recent restructuring, sources say

The company is describing the event as “a chance to demo some ChatGPT and GPT-4 updates.”

OpenAI’s ChatGPT announcement: What we know so far

The deck included some redacted numbers, but there was still enough data to get a good picture.

Pitch Deck Teardown: Cloudsmith’s $15M Series A deck

Unlike ChatGPT, Claude did not become a new App Store hit.

Anthropic’s Claude sees tepid reception on iOS compared with ChatGPT’s debut

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Look,…

Startups Weekly: Trouble in EV land and Peloton is circling the drain

Scarcely five months after its founding, hard tech startup Layup Parts has landed a $9 million round of financing led by Founders Fund to transform composites manufacturing. Lux Capital and Haystack…

Founders Fund leads financing of composites startup Layup Parts

AI startup Anthropic is changing its policies to allow minors to use its generative AI systems — in certain circumstances, at least.  Announced in a post on the company’s official…

Anthropic now lets kids use its AI tech — within limits