Table.Briefing: Europe

Stability Pact reform + The first steps of the DSA + Hard line against Russia

  • Stability Pact: fundamental criticism of reform plans
  • Digital Services Act: These are the first steps
  • Borrell: not the time for peace talks
  • Reports of missile strike in Poland
  • Gas price cap: Von der Leyen appeals to EU states
  • Timmermans at COP27: ‘No new climate target’
  • Anti-coercion: Council wants to decide for itself
  • Habeck strengthens Europe department in Ministry for Economic Affairs and Climate Action
  • Opinion: Dark patterns – the dark side of cookies
Dear reader,

With a reform of the Stability and Growth Pact (SGP), the Commission wants to safeguard the debt sustainability of the EU states and at the same time promote investment and reforms for more growth. But Germany and other member states are raising concerns. At the center of the criticism is the proposal to negotiate individual plans with countries to reduce their debt burden on the basis of a debt sustainability analysis. But such an analysis is extremely demanding and carries the risk of unequal treatment, experts also say. Till Hoppe and Christof Roche have the details.

More transparency and control over major online platforms and search engines – the Digital Services Act is intended to make the online world a little safer and more transparent. Today, the Digital Services Act comes into force. From now on, online platforms have three months to publish the number of active users on their websites and report it to the Commission. Corinna Visser knows what steps will then follow and how the Commission intends to handle the new tasks.

The Digital Services Act is also the topic of today’s Opinion: Stephanie Richter and Patrick Zurheide from the law firm Taylor Wessing explain how cookie banners must be designed and what impact the DSA will have on the controversial dark patterns.

At the meeting of foreign ministers on Monday and defense ministers yesterday, Josep Borrell, the EU’s Foreign Affairs Representative, once again made his position clear: The goal is to further isolate Russia and support Ukraine – for example, by increasing the so-called Peace Facility. However, Borrell was tight-lipped on the question of possible negotiations to end the war. For the EU, peace talks are a taboo subject, but in the United States the debate has begun. And in Europe, there is not quite as much agreement on support as it appears from the outside, analyzes Eric Bonse.

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Sarah Schaefer
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Feature

Stability Pact: fundamental criticism of reform plans

Germany and other member states have considerable reservations about the EU Commission’s proposals to reform the Stability and Growth Pact. According to information from Europe.Table, the criticism is directed primarily at the Commission’s approach of negotiating individual plans with countries to reduce their debt burden on the basis of a debt sustainability analysis.

Germany and the Netherlands consider this approach to be fundamentally problematic. For its analysis of the long-term sustainability of a country’s debt, the Commission has to make numerous assumptions, for example about the development of a country’s tax revenues or labor market, which can hardly be measured objectively in the short term, government circles in Berlin and The Hague say. In this way, the Commission opens the door to poisoned discussions among the member states as to whether individual countries have been judged particularly favorably.

Other countries are also reported to have concerns. At an initial exchange of views in the Council’s Economic and Financial Committee (EFC) on Monday, there were many questions about how the Commission intends to implement the debt sustainability analysis in detail, it was said in Brussels. Member states now want to deepen the discussion on the EU Commission’s approach at the technical level in expert groups to reach a common understanding of the various elements of the new rules package. The next EFC meeting is scheduled for the end of November.

Much room for maneuver for the Commission

Economists show understanding for the concerns. Long-term analyses of debt sustainability are “more of an art than a science and require political judgment,” write Johannes Lindner and Nils Redeker of the Jacques Delors Centre at the Hertie School. “There is concern that this could concentrate too much power in the hands of the Commission and lead to unequal treatment between member states.”

The Brussels-based authority set out its ideas in a communication last week. The proposal is to maintain the ceilings for new debt of three percent of economic output and 60 percent for total debt, but to abandon blanket requirements such as the 1/20 rule, which envisages a reduction in debt beyond the 60 percent threshold by five percent per year.

Instead, the authority wants to find a reference path for budgetary consolidation together with the individual member state. The basis for this is the Commission’s debt sustainability analysis. According to this, the government would have four years to reduce its debt accordingly. If economic policy reforms or the country’s investment needs so require, the adjustment period can be extended to up to seven years. The reference path is based on a single operational indicator, the so-called net primary expenditure (expenditure minus special revenue and interest payments).

Finance minister takes a critical view of individual agreements

The German Federal Ministry of Finance (BMF) is already balking at the approach of bilateral agreements, which gives the Commission considerable discretionary powers. “A unified monetary union also needs unified fiscal rules,” Finance Minister Christian Lindner (FDP) said last Wednesday in an initial reaction to the Brussels proposals. For Lindner, a multilateral approach in European fiscal rules is essential to ensure equal treatment, comparability and sustainable debt sustainability. The BMF did not want to comment beyond that.

The SPD and the Greens are reportedly more willing to compromise here and could probably accept stronger guard rails for the individual procedures.

The Netherlands has shown itself to be open to such agreements between the Commission and the member state, as had been established under the COVID reconstruction fund. The Hague had fed the approach for stronger national ownership into a joint paper with Spain. But this “must be accompanied by commitments to ambitious debt reduction and effective enforcement mechanisms,” it said. France and other southern European states are also in favor of the bilateral approach, which gives them more leeway.

In view of the fundamental objections in Berlin and other countries, it is questionable whether the rapid agreement called for by Economic Affairs Commissioner Paolo Gentiloni will pass in the Council. An initial discussion at ministerial level is scheduled for the meeting of EU finance ministers in early December. At the chief executive level, the reform could be discussed at the EU summit in March.

Time is pressing, as the Stability and Growth Pact is suspended until the end of 2023 due to the impact of the pandemic. Agreement must be reached before member states present their 2024 budgets, Gentiloni urged. The Commission aims to present the necessary legislative proposals for the reform of the EU fiscal package in the first quarter of 2023, he said. With Christof Roche

  • European policy
  • Finance
  • Financial policy
  • Stability Pact

Digital Services Act: These are the first steps

The online world will soon be a little safer and more transparent – at least that’s how the European Commission sees it. Because today, Nov. 16, after the Digital Markets Act, another important piece of the digital agenda comes into force: the Digital Services Act (DSA) regulation. This means that the Commission now has new powers, for example, to request information from online platforms. To do justice to its task, the Commission is setting up a new research and forecasting center for algorithmic transparency.

Online platforms now have three months to publish and report to the Commission the number of active users on their websites. Based on these user figures, the Commission classifies the platforms and decides which are considered very large online platforms (VLOPs) or very large online search engines (VLOSEs). These are then subject to special requirements. Very large platforms are those that have more than 45 million users (more than ten percent of the population) in Europe.

Following the Commission’s decision to classify them as VLOPs or VLOSEs, the companies concerned again have four months to comply with the obligations under the DSA. This includes VLOPs and VLOSEs performing the first of the annual risk assessments and submitting them to the Commission. By February of the following year, EU member states must establish their digital services coordinators. Because from then on, all platforms within the scope of the DSA will be obliged to apply the rules.

So consumers will have to wait until next summer to notice the changes the law is supposed to bring. They will see it, for example, in the fact that there are new ways to report illegal content. Or they can see it in the new terms and conditions, which now have to be presented and worded in such a way that even children can understand them. Or users notice that they can influence the way recommendation systems work. For example, on popular social media platforms such as YouTube, Whatsapp or Tiktok, they have the choice of turning off profiling.

New center for algorithmic transparency

With the introduction of the DSA, the Commission has new responsibilities. The Commission directly supervises VLOPs and VLOSEs itself. In addition, the national coordinators of the member states and the Commission will cooperate via a European Council for Digital Services, an EU-wide cooperation mechanism. Because of the new tasks, there will be changes in the remit of DG Connect, as well as new staff.

The Commission is also looking for additional staff for the newly established European Centre for Algorithmic Transparency (ECAT), which is due to start work in January. The main goal of ECAT is to better explain the algorithmic systems behind the platforms and make them more transparent. For example, the center, based in Seville, Spain, will assist the Commission in determining whether the functioning of an algorithmic system is in line with the risk management obligations set out by the DSA for VLOPs and VLOSEs.

To do so, the commission is looking for experts from a variety of disciplines – not only computer scientists, but also social scientists are needed: experts in Big Data, artificial intelligence, algorithmic systems, algorithm monitoring or testing recommendation systems. A groundbreaking team of 30 people is what it should be, said a commission official. Twenty staff will work out of Seville, with another ten spread between the Joint Research Centre (JRC) in Ispra, Italy, and Brussels. Ten are already on board.

ECAT’s main tasks:

  • provide scientific and technical expertise to the Commission
  • serve as a top-notch research and forecasting facility
  • create a dynamically growing network for algorithmic transparency

Is Musk playing by EU rules?

The application of the DSA will probably be particularly exciting with regard to Twitter because since Elon Musk took over the leadership of the short message service, it is difficult to predict whether Twitter will play by the EU’s rules. At first, Musk went on a confrontational course – via Twitter – and was called to order by Internal Market Commissioner Thierry Breton – also via Twitter. In the meantime, Musk is sending more conciliatory signals and probably wants to meet Breton in person again soon.

Should Twitter be classified as a VLOP and fail to comply with the rules of the DSA, the company, like other VLOPs, will face severe fines. The Commission can impose penalties of up to six percent of global sales or even a ban on activities in the EU single market in the event of repeated serious violations.

  • Digital policy
  • Digital Services Act
  • Digitization
  • twitter

Borrell: not the time for peace talks

Further isolate Russia, support Ukraine even more: This was the motto of EU Foreign Affairs Commissioner Josep Borrell at two Council meetings in Brussels. At the meeting of foreign ministers on Monday, Borrell presented the draft for a new EU-Russia strategy, in which the international isolation of Moscow is the top priority. At the meeting of defense ministers on Tuesday, the Spaniard then pleaded for an increase in the so-called Peace Facility, which the EU uses to finance its arms deliveries to Ukraine.

The weapons from Europe are “extremely useful,” even “vital” for the fight against the Russian occupiers, Borrell said. The €5 billion Peace Facility, from which €3.1 billion have so far flowed to Ukraine for military equipment, should therefore be replenished, he said. The EU states must also continue to rearm and jointly procure new weapons systems, he added.

The hard line is underpinned by the new military training mission EUMAM Ukraine. After foreign ministers gave the green light, defense ministers were quickly discussing practical details. “We plan to train around 5,000 soldiers by next June alone,” said German Defense Minister Christine Lambrecht (SPD).

Comparison with weapons assistance from the USA

Brussels is all about the Russian war of aggression and aid to Ukraine, the two Council meetings made clear. Borrell and Lambrecht were again at pains to rebut criticism of a lack of support. At €8 billion, EU arms aid, if national supplies are included, is barely lower than that of the United States, Borrell stressed.

The EU’s chief diplomat, on the other hand, was extremely tight-lipped when it came to possible negotiations. Now is not the time for peace talks, he said. “Russia has made it clear: the war continues.” Moreover, he said, it is not his job to take the initiative. “We will help Ukraine all the way to victory,” Borrell said. The “parameters” for that will be set in Kyiv, not Brussels, he said.

There was no opposition from Foreign Minister Annalena Baerbock and Defense Minister Lambrecht. They stressed the importance of arms deliveries, but did not speak out – at least publicly – in favor of negotiations. Without weapons, there would be even more refugees, they said. Russia should not be underestimated, even after the recent withdrawal.

Opinions differ in parliament

The withdrawal from Kherson has raised high hopes. It was preceded by a visit to Kyiv by US National Security Advisor Jake Sullivan, and on Monday CIA Chief William Burns met with his Russian counterpart Sergei Naryshkin in Turkey. General Mark A. Milley, the Chairman of the Joint Chiefs of Staff, has even publicly advocated “diplomatic solutions.”

A debate on a possible end to the war has begun in Washington, but in Brussels, this topic remains taboo. Borrell, Baerbock, and Lambrecht have not ruled out a diplomatic solution, but they show no interest in actively advocating it. Is the EU missing an opportunity to get involved diplomatically?

In the European Parliament, opinions differ widely. “The EU’s goal is clear: Russian aggression must be stopped completely and Russia must be held accountable for its crimes,” said Michael Gahler (CDU), foreign policy spokesman for the EPP Group. That talks between Ukraine and Russia are possible is proven by several successful prisoner exchange actions, he added. However, “it is up to the Ukrainian leadership alone to decide if, when and on what it could negotiate with the Russian regime“.

Resistance to new sanctions grows

In contrast, SPD foreign policy expert Dietmar Köster advocates more diplomatic engagement. “Those who want peace must prepare for peace,” he said. “We therefore urgently need more diplomatic initiatives, such as those now being brought into play by numerous actors in the United States.” However, he said, the EU Commission does not seem to be well prepared for this. The EU Parliament’s Ukraine resolutions also completely underestimate the importance of diplomacy, he added.

Parliament has repeatedly spoken out in favor of a hard line toward Russia. Parliament President Roberta Metsola traveled to Kyiv in the spring before Commission President Ursula von der Leyen; since then, she has been competing with the German politician for the favor of the Ukrainians. Therefore, no new Ukraine policy can be expected from the Parliament and the Commission at present.

The attitude in the Council appears more uncertain. For no matter how resolute the ministers appear to be: Behind the scenes, consensus is crumbling. Resistance to new economic sanctions against Russia is growing; talks on a ninth sanctions package are stalling. The foreign ministers have also not yet been able to agree on a new €18 billion aid package for Ukraine – the financing is a source of dispute.

The EU fears for its unity. All the more reason for it to cling to the agreed line. Brussels is also less agile than Washington in Ukraine policy.

  • European policy
  • Foreign Policy
  • Ukraine

News

Reports of missile strike in Poland

Two people have died in an explosion on a farm in a Polish town near the border with Ukraine. The cause of the explosion in the village of Przewodów is still unclear, a spokesman for the fire department in Hrubieszów told Deutsche Presse-Agentur on Tuesday. Earlier, the government in Warsaw had called a meeting of the National Security Council following unconfirmed reports of an alleged missile strike in the border area with Ukraine. In addition, an unscheduled cabinet meeting was called at short notice Tuesday evening, the government’s information center said.

No official details were initially given on the cause of the emergency meetings. However, reports suggested a connection with the massive Russian missile fire on neighboring Ukraine on Tuesday. Government spokesman Piotr Müller, however, warned against disseminating unverified information. All information from the Polish government’s Security and Defense Committee should also be made available to the public later, he announced, according to the Polish news agency PAP.

“We are looking into these reports and coordinating closely with our alliance partner Poland,” a NATO official told Deutsche Presse-Agentur on Tuesday evening. Several EU states assured Poland of their solidarity shortly after the reports became known.

The private Polish radio station Zet had reported that two stray missiles had hit the Polish village of Przewodów near the border. The Russian army had shelled Ukraine with more than 90 missiles and cruise missiles on Tuesday, according to Kyiv. The western Ukrainian city of Lviv had also been the target of Russian attacks on Tuesday, according to authorities. Mayor Andriy Sadoviy spoke of damage to the power system. dpa

  • Foreign Policy
  • Geopolitics
  • Poland
  • Security policy

Gas price cap: Von der Leyen appeals to EU states

On the gas price cap, the dispute between the Commission and member states is coming to a head. “We look forward to your active participation to ensure the adoption of the latest urgent proposals by the Energy Council to stabilize energy markets […] and get us safely through this difficult winter and the next,” writes Commission President Ursula von der Leyen in a joint letter with Czech Minister and European Council President Petr Fiala to EU states.

The letter was available to Europe.Table yesterday – as was the Council’s third revision of the emergency regulation on Monday. The document suggests that several EU ambassadors apparently threatened a failure of the Commission’s proposal at their meeting last Friday.

A majority of member states had asked the Commission to present a concrete legislative proposal on the price correction mechanism for the gas market before the next energy council. “The presidency stressed that a legal text available in time for the Council meeting on Nov. 24 would significantly contribute to facilitating the discussions and agreement on this regulation in the Council,” Monday’s Council paper said.

States to pay shortage prices in case of gas shortage

By the time of the Council of Ministers, however, the Commission will only present a “detailed description” of the temporary gas price cap instead of a finished legislative proposal, von der Leyen and Fiala write. This makes it increasingly likely that the dispute over the price cap will continue at least until the meeting of heads of state and government on Dec. 15 and 16. At the summit, von der Leyen says the Commission also plans to present its own estimate of how much gas could be missing next year when filling storage facilities for the winter of 2023/24.

The latest revision of the emergency regulation by the Council also contains several changes in detail. One of these is to ensure that smaller EU states and gas companies receive pro rata gas volumes in joint gas purchases if available supplies exceed demand.

If member states ask for solidarity gas supplies from other EU countries in the event of a gas shortage, they would also pay the previous day’s day-ahead price rather than an average of the last seven or 30 days, according to the document. This should ease the financial burden on supplying states, and receiving states would pay higher prices, which would more closely reflect acute shortages. Solidarity-granting states would also be allowed to withhold gas volumes for European critical infrastructure, namely the energy and transport sectors. ber

  • Energy
  • Energy policy
  • Energy Prices
  • Natural gas

Timmermans at COP27: ‘No new climate target’

The EU will update its climate target (NDC) but not officially increase it for the time being. This was announced by EU Commission Vice President Frans Timmermans on Tuesday in Sharm el-Sheikh. Already, the EU is ready to reduce its emissions by 57 percent, he said in the plenary hall at COP27, which would exceed the current climate target of “at least” 55 percent less CO2 emissions in 2030 compared to 1990.

However, this apparently does not mean that the official NDC deposited with the UN will be increased. “We are not increasing our target,” Timmermans said later in a press conference. The 57 percent does not reflect a new target, he said, and no new level of ambition results from it. “It is just the translation in numbers of what we agreed on,” Timmermans explained. What is meant is last week’s trilogue agreement on more ambitious natural greenhouse gas reduction performance in the LULUCF sector.

The difference between “updating” the NDC and “increasing” it is crucial at this point (Climate.Table reported). An increase would require the agreement of all member states. Timmermans could not announce a new NDC at the COP anyway without their mandate. It is not ruled out that member countries will come out in favor of an NDC increase at a later date. However, discussions on this in the Council are not expected to take place until the reform of the European Emissions Trading System (ETS) and the Renewables Directive have also been negotiated. The results could provide even more scope for a higher climate target.

‘Even a new target would not be 1.5-degree compliant’

An update would only have an impact on the annex to the NDC, which explains how the EU intends to achieve its climate target. The overachievement of the 55 percent target could be included there.

Timmermans also stressed in Sharm el-Sheikh that the EU is on track with its 1.5-degree target. However, this is hotly disputed, despite a possible NDC increase. The EU’s fair contribution to the Paris Agreement should be at least 65 percent emissions reductions, according to Climate Action Network Europe (CAN Europe). Such a target is not utopian and contributes adequately to limiting the temperature increase by 1.5 degrees, CAN Europe claims.

The EU has historically emitted far more greenhouse gases than many countries in the global South that are most affected by climate change, CAN Europe writes. “You can’t present yourself as a top performer if the stakes are too low. We need a much higher level of ambition,” demands Sven Harmeling, international climate policy expert at CAN Europe. luk

  • Climate & Environment
  • Climate Targets
  • Frans Timmermans

Anti-coercion: Council wants to decide for itself

Member states are expected to adopt their position on the anti-coercion instrument today, paving the way for final negotiations with the European Parliament. The latest compromise proposal of the Czech Council Presidency has been met with approval at expert level and is now to be adopted by the EU ambassadors, according to the draft decision published by “Contexte”.

The EU Commission proposed the new instrument last December to enable the EU as a whole to better defend itself against coercive economic measures by third countries. The model case is China’s de facto trade embargo against Lithuania after Taiwan was allowed to open a diplomatic representation in Vilnius. If such a dispute cannot be settled amicably, the EU will be able to impose punitive tariffs or import restrictions and exclude companies from the country in question from public tenders in the future.

During the discussions in the Council, several member states, including Germany, had insisted on being more involved in the decisions in view of their foreign policy significance. The Czechs’ proposal now provides for the Council itself to determine whether the actions of a third country constitute coercive measures under the new regulation. The Commission wanted to reserve this competence for itself. As before, decisions on countermeasures would then be taken on the basis of a proposal from the Commission under the comitology procedure.

In the European Parliament, the Council’s amendments are met with resistance. “The decision-making procedure will be the major sticking point in the negotiations,” it is said. It is unacceptable that the Council claims sole decision-making authority in a communitarized policy area such as trade. The member states wanted to assert that they could decide whether China, for example, was exercising economic coercion without the involvement of the Commission and the European Parliament. In doing so, they made themselves the target of Beijing’s massive influence. It is not yet clear when the trialogue negotiations will begin. tho

  • European policy
  • Trade
  • Trade Policy

Habeck strengthens Europe department in Ministry for Economic Affairs and Climate Action

The Federal Ministry for Economic Affairs and Climate Action (BMWK) is strengthening its European department as part of an internal restructuring. Department E, headed by Kirsten Scholl, will in the future also be responsible for sanctions and arms exports, which were previously the responsibility of the foreign trade department, according to BMWK sources. This will strengthen the idea of cooperation in these policy areas. The former Green MEP Sven Giegold is responsible as State Secretary.

The changes are part of a larger restructuring initiated by Economic Affairs Minister Robert Habeck in the wake of the Russian war against Ukraine and the energy crisis. To this end, a new department for energy security and economic stabilization was already established in October, which combines tasks and units from previously different departments. The department is headed by Philipp Steinberg, who was previously responsible for economic policy at the ministry. The new department is also to be given additional posts.

Steinberg’s successor as the head of the economic policy department will be economist Elga Bartsch. Bartsch is an expert in monetary and fiscal policy and in modeling climate risks to the economy. She was formerly chief European economist at US investment bank Morgan Stanley and most recently worked for the think tank of US asset manager Blackrock. The cabinet would still have to confirm the decision. tho/rtr

  • Climate & Environment
  • Energy
  • Federal Government
  • Robert Habeck

Opinion

Dark patterns – the dark side of cookies

By Stephanie Richter and Patrick Zurheide
Stephanie Richter und Dr. Patrick Zurheide von Taylor Wessing
Stephanie Richter and Patrick Zurheide work at Taylor Wessing in the Technology, Media & Telecoms practice area.

Until now, the qualification of what is to be assessed as a dark pattern and what is still permissible – especially under the GDPR – in terms of the linguistic, structural and visual representation of cookie banners has been fraught with great uncertainty. The European Data Protection Board (EDPB) has now made a first contouring in March 2022 through its Guidelines 3/2022 on dark patterns in social media platform interfaces: How to recognize and avoid them (EDPB Guideline on dark patterns).

It is true that the EDPB guidance on dark patterns is primarily aimed at social media platforms. However, it also contains special case groups for cookie banners as well as case groups whose evaluations are at least transferable to cookie banners.

The EDPB guideline on dark patterns cites – as examples of impermissible linguistic design (distraction) – such cookie banner consent texts that distract from the legal meaning and risks in consent through the chosen form of language. As a concrete example, it is listed that a funny allusion to “cookies” casts doubt on the legal meaning and seriousness of consent.

It is also considered obstructive and thus impermissible if the revocation of consent to cookie use cannot be made as easily as the consent itself. This is the case with a cookie banner if there is no direct opt-out link.

Groups of cases transferable to cookie banners

In the presentation of the buttons (p. 19), the aim is to ensure that the more data-intensive setting options are highlighted more clearly than those that allow less extensive data processing. For example, by making the selection button for only necessary cookies smaller or paler in color, or by not positioning it centrally. The same applies in reverse for the visual and structural highlighting of more data-intensive setting options.

The request for consent (pp. 15-16) is another transferable group of cases. It concerns the repeated request for more privacy-intensive processing. In the case of cookie banners, this is the case when cookies that are not required or certain categories of cookies that have been rejected cause the cookie banner to be repeatedly displayed (so that “accept all cookies” is clicked after all).

Non-consistent terms/explanations (pp. 22-24) are also frequently encountered in connection with cookie banners. In this context, terms are not used consistently or uniformly, for example by designating categories of cookies differently in the privacy policy than in the cookie banner.

Unfinished implementations (p. 21) are very common in practice: for example, when links in the cookie banner to the privacy notices do not work, or when the cookie settings cannot be found where described after accepting the cookies.

With the EDPB guideline on dark patterns, the individual supervisory authorities in the EU are now provided with concrete assessment criteria for the first time. This means that action against dark patterns is associated with fewer uncertainties for the individual supervisory authorities. Perhaps also against this background, the action taken by the Austrian data protection organization NOYB (None Of Your Business) since the beginning of the year against such cookie banner elements has proven to be extremely effective. 50 percent of websites warned by NOYB have already adjusted their cookie banners as of the end of October.

With the mandatory application of the Digital Services Act (DSA) in 2024 at the latest, the pressure against the use of dark patterns will increase even further and the rather restrained enforcement practice of supervisory authorities will intensify. For one thing, the DSA explicitly restricts the use of dark patterns in Article 25(1) – much more explicitly than the GDPR. And fines under the DSA, at up to 6 percent of annual global group turnover, can once again be significantly higher than under the GDPR.

On the other hand, in addition to the “normal” competent supervisory authorities, there will also be the coordinators for digital services, who are to effectively coordinate cooperation at both national and international levels. Whether the sanctioning and enforcement means of the DSA, which are in themselves quite similar to the GDPR, will actually be exercised more strictly in practice, remains to be seen.

PIMS could end discussion

However, the discussion about dark patterns could soon be rendered obsolete in purely factual terms by so-called Personal Information Management Services (PIMS). These are laid down in German law in Section 26 of the Telecommunications and Telemedia Data Protection Act (TTDSG) by way of implementation via a corresponding ordinance.

A PIMS is a software that allows users to specify in advance the cases in which they agree to information being stored and read. When a user visits a website, this specification is then automatically transmitted to the website. The advantage of this is that it is no longer necessary to obtain consent separately for each visit. Without cookie banners, however, there would then also be no more dark patterns. A first draft for such a consent management regulation in the sense of Section 26 TTDSG was already published in August 2022.

  • Cookie-Banner
  • Data protection
  • Digital policy
  • Digitization

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Licenses:
    • Stability Pact: fundamental criticism of reform plans
    • Digital Services Act: These are the first steps
    • Borrell: not the time for peace talks
    • Reports of missile strike in Poland
    • Gas price cap: Von der Leyen appeals to EU states
    • Timmermans at COP27: ‘No new climate target’
    • Anti-coercion: Council wants to decide for itself
    • Habeck strengthens Europe department in Ministry for Economic Affairs and Climate Action
    • Opinion: Dark patterns – the dark side of cookies
    Dear reader,

    With a reform of the Stability and Growth Pact (SGP), the Commission wants to safeguard the debt sustainability of the EU states and at the same time promote investment and reforms for more growth. But Germany and other member states are raising concerns. At the center of the criticism is the proposal to negotiate individual plans with countries to reduce their debt burden on the basis of a debt sustainability analysis. But such an analysis is extremely demanding and carries the risk of unequal treatment, experts also say. Till Hoppe and Christof Roche have the details.

    More transparency and control over major online platforms and search engines – the Digital Services Act is intended to make the online world a little safer and more transparent. Today, the Digital Services Act comes into force. From now on, online platforms have three months to publish the number of active users on their websites and report it to the Commission. Corinna Visser knows what steps will then follow and how the Commission intends to handle the new tasks.

    The Digital Services Act is also the topic of today’s Opinion: Stephanie Richter and Patrick Zurheide from the law firm Taylor Wessing explain how cookie banners must be designed and what impact the DSA will have on the controversial dark patterns.

    At the meeting of foreign ministers on Monday and defense ministers yesterday, Josep Borrell, the EU’s Foreign Affairs Representative, once again made his position clear: The goal is to further isolate Russia and support Ukraine – for example, by increasing the so-called Peace Facility. However, Borrell was tight-lipped on the question of possible negotiations to end the war. For the EU, peace talks are a taboo subject, but in the United States the debate has begun. And in Europe, there is not quite as much agreement on support as it appears from the outside, analyzes Eric Bonse.

    Your
    Sarah Schaefer
    Image of Sarah  Schaefer

    Feature

    Stability Pact: fundamental criticism of reform plans

    Germany and other member states have considerable reservations about the EU Commission’s proposals to reform the Stability and Growth Pact. According to information from Europe.Table, the criticism is directed primarily at the Commission’s approach of negotiating individual plans with countries to reduce their debt burden on the basis of a debt sustainability analysis.

    Germany and the Netherlands consider this approach to be fundamentally problematic. For its analysis of the long-term sustainability of a country’s debt, the Commission has to make numerous assumptions, for example about the development of a country’s tax revenues or labor market, which can hardly be measured objectively in the short term, government circles in Berlin and The Hague say. In this way, the Commission opens the door to poisoned discussions among the member states as to whether individual countries have been judged particularly favorably.

    Other countries are also reported to have concerns. At an initial exchange of views in the Council’s Economic and Financial Committee (EFC) on Monday, there were many questions about how the Commission intends to implement the debt sustainability analysis in detail, it was said in Brussels. Member states now want to deepen the discussion on the EU Commission’s approach at the technical level in expert groups to reach a common understanding of the various elements of the new rules package. The next EFC meeting is scheduled for the end of November.

    Much room for maneuver for the Commission

    Economists show understanding for the concerns. Long-term analyses of debt sustainability are “more of an art than a science and require political judgment,” write Johannes Lindner and Nils Redeker of the Jacques Delors Centre at the Hertie School. “There is concern that this could concentrate too much power in the hands of the Commission and lead to unequal treatment between member states.”

    The Brussels-based authority set out its ideas in a communication last week. The proposal is to maintain the ceilings for new debt of three percent of economic output and 60 percent for total debt, but to abandon blanket requirements such as the 1/20 rule, which envisages a reduction in debt beyond the 60 percent threshold by five percent per year.

    Instead, the authority wants to find a reference path for budgetary consolidation together with the individual member state. The basis for this is the Commission’s debt sustainability analysis. According to this, the government would have four years to reduce its debt accordingly. If economic policy reforms or the country’s investment needs so require, the adjustment period can be extended to up to seven years. The reference path is based on a single operational indicator, the so-called net primary expenditure (expenditure minus special revenue and interest payments).

    Finance minister takes a critical view of individual agreements

    The German Federal Ministry of Finance (BMF) is already balking at the approach of bilateral agreements, which gives the Commission considerable discretionary powers. “A unified monetary union also needs unified fiscal rules,” Finance Minister Christian Lindner (FDP) said last Wednesday in an initial reaction to the Brussels proposals. For Lindner, a multilateral approach in European fiscal rules is essential to ensure equal treatment, comparability and sustainable debt sustainability. The BMF did not want to comment beyond that.

    The SPD and the Greens are reportedly more willing to compromise here and could probably accept stronger guard rails for the individual procedures.

    The Netherlands has shown itself to be open to such agreements between the Commission and the member state, as had been established under the COVID reconstruction fund. The Hague had fed the approach for stronger national ownership into a joint paper with Spain. But this “must be accompanied by commitments to ambitious debt reduction and effective enforcement mechanisms,” it said. France and other southern European states are also in favor of the bilateral approach, which gives them more leeway.

    In view of the fundamental objections in Berlin and other countries, it is questionable whether the rapid agreement called for by Economic Affairs Commissioner Paolo Gentiloni will pass in the Council. An initial discussion at ministerial level is scheduled for the meeting of EU finance ministers in early December. At the chief executive level, the reform could be discussed at the EU summit in March.

    Time is pressing, as the Stability and Growth Pact is suspended until the end of 2023 due to the impact of the pandemic. Agreement must be reached before member states present their 2024 budgets, Gentiloni urged. The Commission aims to present the necessary legislative proposals for the reform of the EU fiscal package in the first quarter of 2023, he said. With Christof Roche

    • European policy
    • Finance
    • Financial policy
    • Stability Pact

    Digital Services Act: These are the first steps

    The online world will soon be a little safer and more transparent – at least that’s how the European Commission sees it. Because today, Nov. 16, after the Digital Markets Act, another important piece of the digital agenda comes into force: the Digital Services Act (DSA) regulation. This means that the Commission now has new powers, for example, to request information from online platforms. To do justice to its task, the Commission is setting up a new research and forecasting center for algorithmic transparency.

    Online platforms now have three months to publish and report to the Commission the number of active users on their websites. Based on these user figures, the Commission classifies the platforms and decides which are considered very large online platforms (VLOPs) or very large online search engines (VLOSEs). These are then subject to special requirements. Very large platforms are those that have more than 45 million users (more than ten percent of the population) in Europe.

    Following the Commission’s decision to classify them as VLOPs or VLOSEs, the companies concerned again have four months to comply with the obligations under the DSA. This includes VLOPs and VLOSEs performing the first of the annual risk assessments and submitting them to the Commission. By February of the following year, EU member states must establish their digital services coordinators. Because from then on, all platforms within the scope of the DSA will be obliged to apply the rules.

    So consumers will have to wait until next summer to notice the changes the law is supposed to bring. They will see it, for example, in the fact that there are new ways to report illegal content. Or they can see it in the new terms and conditions, which now have to be presented and worded in such a way that even children can understand them. Or users notice that they can influence the way recommendation systems work. For example, on popular social media platforms such as YouTube, Whatsapp or Tiktok, they have the choice of turning off profiling.

    New center for algorithmic transparency

    With the introduction of the DSA, the Commission has new responsibilities. The Commission directly supervises VLOPs and VLOSEs itself. In addition, the national coordinators of the member states and the Commission will cooperate via a European Council for Digital Services, an EU-wide cooperation mechanism. Because of the new tasks, there will be changes in the remit of DG Connect, as well as new staff.

    The Commission is also looking for additional staff for the newly established European Centre for Algorithmic Transparency (ECAT), which is due to start work in January. The main goal of ECAT is to better explain the algorithmic systems behind the platforms and make them more transparent. For example, the center, based in Seville, Spain, will assist the Commission in determining whether the functioning of an algorithmic system is in line with the risk management obligations set out by the DSA for VLOPs and VLOSEs.

    To do so, the commission is looking for experts from a variety of disciplines – not only computer scientists, but also social scientists are needed: experts in Big Data, artificial intelligence, algorithmic systems, algorithm monitoring or testing recommendation systems. A groundbreaking team of 30 people is what it should be, said a commission official. Twenty staff will work out of Seville, with another ten spread between the Joint Research Centre (JRC) in Ispra, Italy, and Brussels. Ten are already on board.

    ECAT’s main tasks:

    • provide scientific and technical expertise to the Commission
    • serve as a top-notch research and forecasting facility
    • create a dynamically growing network for algorithmic transparency

    Is Musk playing by EU rules?

    The application of the DSA will probably be particularly exciting with regard to Twitter because since Elon Musk took over the leadership of the short message service, it is difficult to predict whether Twitter will play by the EU’s rules. At first, Musk went on a confrontational course – via Twitter – and was called to order by Internal Market Commissioner Thierry Breton – also via Twitter. In the meantime, Musk is sending more conciliatory signals and probably wants to meet Breton in person again soon.

    Should Twitter be classified as a VLOP and fail to comply with the rules of the DSA, the company, like other VLOPs, will face severe fines. The Commission can impose penalties of up to six percent of global sales or even a ban on activities in the EU single market in the event of repeated serious violations.

    • Digital policy
    • Digital Services Act
    • Digitization
    • twitter

    Borrell: not the time for peace talks

    Further isolate Russia, support Ukraine even more: This was the motto of EU Foreign Affairs Commissioner Josep Borrell at two Council meetings in Brussels. At the meeting of foreign ministers on Monday, Borrell presented the draft for a new EU-Russia strategy, in which the international isolation of Moscow is the top priority. At the meeting of defense ministers on Tuesday, the Spaniard then pleaded for an increase in the so-called Peace Facility, which the EU uses to finance its arms deliveries to Ukraine.

    The weapons from Europe are “extremely useful,” even “vital” for the fight against the Russian occupiers, Borrell said. The €5 billion Peace Facility, from which €3.1 billion have so far flowed to Ukraine for military equipment, should therefore be replenished, he said. The EU states must also continue to rearm and jointly procure new weapons systems, he added.

    The hard line is underpinned by the new military training mission EUMAM Ukraine. After foreign ministers gave the green light, defense ministers were quickly discussing practical details. “We plan to train around 5,000 soldiers by next June alone,” said German Defense Minister Christine Lambrecht (SPD).

    Comparison with weapons assistance from the USA

    Brussels is all about the Russian war of aggression and aid to Ukraine, the two Council meetings made clear. Borrell and Lambrecht were again at pains to rebut criticism of a lack of support. At €8 billion, EU arms aid, if national supplies are included, is barely lower than that of the United States, Borrell stressed.

    The EU’s chief diplomat, on the other hand, was extremely tight-lipped when it came to possible negotiations. Now is not the time for peace talks, he said. “Russia has made it clear: the war continues.” Moreover, he said, it is not his job to take the initiative. “We will help Ukraine all the way to victory,” Borrell said. The “parameters” for that will be set in Kyiv, not Brussels, he said.

    There was no opposition from Foreign Minister Annalena Baerbock and Defense Minister Lambrecht. They stressed the importance of arms deliveries, but did not speak out – at least publicly – in favor of negotiations. Without weapons, there would be even more refugees, they said. Russia should not be underestimated, even after the recent withdrawal.

    Opinions differ in parliament

    The withdrawal from Kherson has raised high hopes. It was preceded by a visit to Kyiv by US National Security Advisor Jake Sullivan, and on Monday CIA Chief William Burns met with his Russian counterpart Sergei Naryshkin in Turkey. General Mark A. Milley, the Chairman of the Joint Chiefs of Staff, has even publicly advocated “diplomatic solutions.”

    A debate on a possible end to the war has begun in Washington, but in Brussels, this topic remains taboo. Borrell, Baerbock, and Lambrecht have not ruled out a diplomatic solution, but they show no interest in actively advocating it. Is the EU missing an opportunity to get involved diplomatically?

    In the European Parliament, opinions differ widely. “The EU’s goal is clear: Russian aggression must be stopped completely and Russia must be held accountable for its crimes,” said Michael Gahler (CDU), foreign policy spokesman for the EPP Group. That talks between Ukraine and Russia are possible is proven by several successful prisoner exchange actions, he added. However, “it is up to the Ukrainian leadership alone to decide if, when and on what it could negotiate with the Russian regime“.

    Resistance to new sanctions grows

    In contrast, SPD foreign policy expert Dietmar Köster advocates more diplomatic engagement. “Those who want peace must prepare for peace,” he said. “We therefore urgently need more diplomatic initiatives, such as those now being brought into play by numerous actors in the United States.” However, he said, the EU Commission does not seem to be well prepared for this. The EU Parliament’s Ukraine resolutions also completely underestimate the importance of diplomacy, he added.

    Parliament has repeatedly spoken out in favor of a hard line toward Russia. Parliament President Roberta Metsola traveled to Kyiv in the spring before Commission President Ursula von der Leyen; since then, she has been competing with the German politician for the favor of the Ukrainians. Therefore, no new Ukraine policy can be expected from the Parliament and the Commission at present.

    The attitude in the Council appears more uncertain. For no matter how resolute the ministers appear to be: Behind the scenes, consensus is crumbling. Resistance to new economic sanctions against Russia is growing; talks on a ninth sanctions package are stalling. The foreign ministers have also not yet been able to agree on a new €18 billion aid package for Ukraine – the financing is a source of dispute.

    The EU fears for its unity. All the more reason for it to cling to the agreed line. Brussels is also less agile than Washington in Ukraine policy.

    • European policy
    • Foreign Policy
    • Ukraine

    News

    Reports of missile strike in Poland

    Two people have died in an explosion on a farm in a Polish town near the border with Ukraine. The cause of the explosion in the village of Przewodów is still unclear, a spokesman for the fire department in Hrubieszów told Deutsche Presse-Agentur on Tuesday. Earlier, the government in Warsaw had called a meeting of the National Security Council following unconfirmed reports of an alleged missile strike in the border area with Ukraine. In addition, an unscheduled cabinet meeting was called at short notice Tuesday evening, the government’s information center said.

    No official details were initially given on the cause of the emergency meetings. However, reports suggested a connection with the massive Russian missile fire on neighboring Ukraine on Tuesday. Government spokesman Piotr Müller, however, warned against disseminating unverified information. All information from the Polish government’s Security and Defense Committee should also be made available to the public later, he announced, according to the Polish news agency PAP.

    “We are looking into these reports and coordinating closely with our alliance partner Poland,” a NATO official told Deutsche Presse-Agentur on Tuesday evening. Several EU states assured Poland of their solidarity shortly after the reports became known.

    The private Polish radio station Zet had reported that two stray missiles had hit the Polish village of Przewodów near the border. The Russian army had shelled Ukraine with more than 90 missiles and cruise missiles on Tuesday, according to Kyiv. The western Ukrainian city of Lviv had also been the target of Russian attacks on Tuesday, according to authorities. Mayor Andriy Sadoviy spoke of damage to the power system. dpa

    • Foreign Policy
    • Geopolitics
    • Poland
    • Security policy

    Gas price cap: Von der Leyen appeals to EU states

    On the gas price cap, the dispute between the Commission and member states is coming to a head. “We look forward to your active participation to ensure the adoption of the latest urgent proposals by the Energy Council to stabilize energy markets […] and get us safely through this difficult winter and the next,” writes Commission President Ursula von der Leyen in a joint letter with Czech Minister and European Council President Petr Fiala to EU states.

    The letter was available to Europe.Table yesterday – as was the Council’s third revision of the emergency regulation on Monday. The document suggests that several EU ambassadors apparently threatened a failure of the Commission’s proposal at their meeting last Friday.

    A majority of member states had asked the Commission to present a concrete legislative proposal on the price correction mechanism for the gas market before the next energy council. “The presidency stressed that a legal text available in time for the Council meeting on Nov. 24 would significantly contribute to facilitating the discussions and agreement on this regulation in the Council,” Monday’s Council paper said.

    States to pay shortage prices in case of gas shortage

    By the time of the Council of Ministers, however, the Commission will only present a “detailed description” of the temporary gas price cap instead of a finished legislative proposal, von der Leyen and Fiala write. This makes it increasingly likely that the dispute over the price cap will continue at least until the meeting of heads of state and government on Dec. 15 and 16. At the summit, von der Leyen says the Commission also plans to present its own estimate of how much gas could be missing next year when filling storage facilities for the winter of 2023/24.

    The latest revision of the emergency regulation by the Council also contains several changes in detail. One of these is to ensure that smaller EU states and gas companies receive pro rata gas volumes in joint gas purchases if available supplies exceed demand.

    If member states ask for solidarity gas supplies from other EU countries in the event of a gas shortage, they would also pay the previous day’s day-ahead price rather than an average of the last seven or 30 days, according to the document. This should ease the financial burden on supplying states, and receiving states would pay higher prices, which would more closely reflect acute shortages. Solidarity-granting states would also be allowed to withhold gas volumes for European critical infrastructure, namely the energy and transport sectors. ber

    • Energy
    • Energy policy
    • Energy Prices
    • Natural gas

    Timmermans at COP27: ‘No new climate target’

    The EU will update its climate target (NDC) but not officially increase it for the time being. This was announced by EU Commission Vice President Frans Timmermans on Tuesday in Sharm el-Sheikh. Already, the EU is ready to reduce its emissions by 57 percent, he said in the plenary hall at COP27, which would exceed the current climate target of “at least” 55 percent less CO2 emissions in 2030 compared to 1990.

    However, this apparently does not mean that the official NDC deposited with the UN will be increased. “We are not increasing our target,” Timmermans said later in a press conference. The 57 percent does not reflect a new target, he said, and no new level of ambition results from it. “It is just the translation in numbers of what we agreed on,” Timmermans explained. What is meant is last week’s trilogue agreement on more ambitious natural greenhouse gas reduction performance in the LULUCF sector.

    The difference between “updating” the NDC and “increasing” it is crucial at this point (Climate.Table reported). An increase would require the agreement of all member states. Timmermans could not announce a new NDC at the COP anyway without their mandate. It is not ruled out that member countries will come out in favor of an NDC increase at a later date. However, discussions on this in the Council are not expected to take place until the reform of the European Emissions Trading System (ETS) and the Renewables Directive have also been negotiated. The results could provide even more scope for a higher climate target.

    ‘Even a new target would not be 1.5-degree compliant’

    An update would only have an impact on the annex to the NDC, which explains how the EU intends to achieve its climate target. The overachievement of the 55 percent target could be included there.

    Timmermans also stressed in Sharm el-Sheikh that the EU is on track with its 1.5-degree target. However, this is hotly disputed, despite a possible NDC increase. The EU’s fair contribution to the Paris Agreement should be at least 65 percent emissions reductions, according to Climate Action Network Europe (CAN Europe). Such a target is not utopian and contributes adequately to limiting the temperature increase by 1.5 degrees, CAN Europe claims.

    The EU has historically emitted far more greenhouse gases than many countries in the global South that are most affected by climate change, CAN Europe writes. “You can’t present yourself as a top performer if the stakes are too low. We need a much higher level of ambition,” demands Sven Harmeling, international climate policy expert at CAN Europe. luk

    • Climate & Environment
    • Climate Targets
    • Frans Timmermans

    Anti-coercion: Council wants to decide for itself

    Member states are expected to adopt their position on the anti-coercion instrument today, paving the way for final negotiations with the European Parliament. The latest compromise proposal of the Czech Council Presidency has been met with approval at expert level and is now to be adopted by the EU ambassadors, according to the draft decision published by “Contexte”.

    The EU Commission proposed the new instrument last December to enable the EU as a whole to better defend itself against coercive economic measures by third countries. The model case is China’s de facto trade embargo against Lithuania after Taiwan was allowed to open a diplomatic representation in Vilnius. If such a dispute cannot be settled amicably, the EU will be able to impose punitive tariffs or import restrictions and exclude companies from the country in question from public tenders in the future.

    During the discussions in the Council, several member states, including Germany, had insisted on being more involved in the decisions in view of their foreign policy significance. The Czechs’ proposal now provides for the Council itself to determine whether the actions of a third country constitute coercive measures under the new regulation. The Commission wanted to reserve this competence for itself. As before, decisions on countermeasures would then be taken on the basis of a proposal from the Commission under the comitology procedure.

    In the European Parliament, the Council’s amendments are met with resistance. “The decision-making procedure will be the major sticking point in the negotiations,” it is said. It is unacceptable that the Council claims sole decision-making authority in a communitarized policy area such as trade. The member states wanted to assert that they could decide whether China, for example, was exercising economic coercion without the involvement of the Commission and the European Parliament. In doing so, they made themselves the target of Beijing’s massive influence. It is not yet clear when the trialogue negotiations will begin. tho

    • European policy
    • Trade
    • Trade Policy

    Habeck strengthens Europe department in Ministry for Economic Affairs and Climate Action

    The Federal Ministry for Economic Affairs and Climate Action (BMWK) is strengthening its European department as part of an internal restructuring. Department E, headed by Kirsten Scholl, will in the future also be responsible for sanctions and arms exports, which were previously the responsibility of the foreign trade department, according to BMWK sources. This will strengthen the idea of cooperation in these policy areas. The former Green MEP Sven Giegold is responsible as State Secretary.

    The changes are part of a larger restructuring initiated by Economic Affairs Minister Robert Habeck in the wake of the Russian war against Ukraine and the energy crisis. To this end, a new department for energy security and economic stabilization was already established in October, which combines tasks and units from previously different departments. The department is headed by Philipp Steinberg, who was previously responsible for economic policy at the ministry. The new department is also to be given additional posts.

    Steinberg’s successor as the head of the economic policy department will be economist Elga Bartsch. Bartsch is an expert in monetary and fiscal policy and in modeling climate risks to the economy. She was formerly chief European economist at US investment bank Morgan Stanley and most recently worked for the think tank of US asset manager Blackrock. The cabinet would still have to confirm the decision. tho/rtr

    • Climate & Environment
    • Energy
    • Federal Government
    • Robert Habeck

    Opinion

    Dark patterns – the dark side of cookies

    By Stephanie Richter and Patrick Zurheide
    Stephanie Richter und Dr. Patrick Zurheide von Taylor Wessing
    Stephanie Richter and Patrick Zurheide work at Taylor Wessing in the Technology, Media & Telecoms practice area.

    Until now, the qualification of what is to be assessed as a dark pattern and what is still permissible – especially under the GDPR – in terms of the linguistic, structural and visual representation of cookie banners has been fraught with great uncertainty. The European Data Protection Board (EDPB) has now made a first contouring in March 2022 through its Guidelines 3/2022 on dark patterns in social media platform interfaces: How to recognize and avoid them (EDPB Guideline on dark patterns).

    It is true that the EDPB guidance on dark patterns is primarily aimed at social media platforms. However, it also contains special case groups for cookie banners as well as case groups whose evaluations are at least transferable to cookie banners.

    The EDPB guideline on dark patterns cites – as examples of impermissible linguistic design (distraction) – such cookie banner consent texts that distract from the legal meaning and risks in consent through the chosen form of language. As a concrete example, it is listed that a funny allusion to “cookies” casts doubt on the legal meaning and seriousness of consent.

    It is also considered obstructive and thus impermissible if the revocation of consent to cookie use cannot be made as easily as the consent itself. This is the case with a cookie banner if there is no direct opt-out link.

    Groups of cases transferable to cookie banners

    In the presentation of the buttons (p. 19), the aim is to ensure that the more data-intensive setting options are highlighted more clearly than those that allow less extensive data processing. For example, by making the selection button for only necessary cookies smaller or paler in color, or by not positioning it centrally. The same applies in reverse for the visual and structural highlighting of more data-intensive setting options.

    The request for consent (pp. 15-16) is another transferable group of cases. It concerns the repeated request for more privacy-intensive processing. In the case of cookie banners, this is the case when cookies that are not required or certain categories of cookies that have been rejected cause the cookie banner to be repeatedly displayed (so that “accept all cookies” is clicked after all).

    Non-consistent terms/explanations (pp. 22-24) are also frequently encountered in connection with cookie banners. In this context, terms are not used consistently or uniformly, for example by designating categories of cookies differently in the privacy policy than in the cookie banner.

    Unfinished implementations (p. 21) are very common in practice: for example, when links in the cookie banner to the privacy notices do not work, or when the cookie settings cannot be found where described after accepting the cookies.

    With the EDPB guideline on dark patterns, the individual supervisory authorities in the EU are now provided with concrete assessment criteria for the first time. This means that action against dark patterns is associated with fewer uncertainties for the individual supervisory authorities. Perhaps also against this background, the action taken by the Austrian data protection organization NOYB (None Of Your Business) since the beginning of the year against such cookie banner elements has proven to be extremely effective. 50 percent of websites warned by NOYB have already adjusted their cookie banners as of the end of October.

    With the mandatory application of the Digital Services Act (DSA) in 2024 at the latest, the pressure against the use of dark patterns will increase even further and the rather restrained enforcement practice of supervisory authorities will intensify. For one thing, the DSA explicitly restricts the use of dark patterns in Article 25(1) – much more explicitly than the GDPR. And fines under the DSA, at up to 6 percent of annual global group turnover, can once again be significantly higher than under the GDPR.

    On the other hand, in addition to the “normal” competent supervisory authorities, there will also be the coordinators for digital services, who are to effectively coordinate cooperation at both national and international levels. Whether the sanctioning and enforcement means of the DSA, which are in themselves quite similar to the GDPR, will actually be exercised more strictly in practice, remains to be seen.

    PIMS could end discussion

    However, the discussion about dark patterns could soon be rendered obsolete in purely factual terms by so-called Personal Information Management Services (PIMS). These are laid down in German law in Section 26 of the Telecommunications and Telemedia Data Protection Act (TTDSG) by way of implementation via a corresponding ordinance.

    A PIMS is a software that allows users to specify in advance the cases in which they agree to information being stored and read. When a user visits a website, this specification is then automatically transmitted to the website. The advantage of this is that it is no longer necessary to obtain consent separately for each visit. Without cookie banners, however, there would then also be no more dark patterns. A first draft for such a consent management regulation in the sense of Section 26 TTDSG was already published in August 2022.

    • Cookie-Banner
    • Data protection
    • Digital policy
    • Digitization

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