Over the next three months, European Commissioner Margrethe Vestager will draft a new European law for AI. As of December, she will be responsible for the digitization of the European market. She plans to present her new AI law in March. After that, the European Parliament and the governments and parliaments of the Member States will have to approve her new AI law.

The new AI law is to lay out the rules regarding the collection and sharing of data by, among others, the large American tech companies such as Facebook, Amazon and Google whose internet platforms are being used on a massive scale by European citizens. At the moment there is only a guideline for e-privacy and one set of regulations for data protection (GDPR). The new law must include rules that make the collectors and distributors of data liable for any abuse use of this data.

Nightmare for the US

The greatest nightmare for the high profile big tech companies in the US is her intention to adopt new tax regulations following on from the new AI law. This should apply to internet platforms all over the world which make money from consumers in European countries. In recent years, Vestager has already taken Apple to court for tax evasion. She imposed a fine of 13 billion euros on them for this.

As far as she is concerned, the new tax regulations that she has in mind should be applicable worldwide. If she cannot do this because, for example, some countries do not want to cooperate, she said that the European Commission will continue to impose fines on non-European companies on an individual basis if they pay insufficient tax in the EU.

Breaking up Google and Facebook

She may also impose fines if American big tech companies abuse their dominant market position. She has done so in the past few years while she was European Commissioner for Competition. If these fines do not lead to an improvement in their behaviour on the European market, she wants to break up the American business conglomerates. That is what she said in response to questions from Paul Tang, a Dutch Member of the European Parliament. Tang is also member of the Progressive Alliance of Socialists and Democrats on behalf of this PvdA party (the Dutch Labor Party). Vestager then told Tang that she had the means to do this. She did not specify what kind of means she has at her disposal.

Member of the European Parliament Paul Tang wants Commissioner Margrethe Vestager to break open American ‘big tech’ companies.

Gaining citizen’s trust

With its new European AI law, Vestager said they want to allay the fears of European citizens. In particular those who currently lack faith in the digitization of society. She says this is necessary as she believes there are two types of companies. The type that is digital – and the type that will soon become digital. In other words, sooner or later all citizens will have to participate in the digitization of everyday life, so she wants to make sure that the Internet is not intimidating to them.

In the second place, she wants AI to be used to make the citizens’ lives easier rather than more difficult. She wants to prevent digital platforms from collecting data via AI in order to influence the choice of consumers and businesses so that they can earn money from them. It was precisely for this reason that during her previous term as European Commissioner for Competition, she imposed a fine of 4.3 billion euros on the search engine Google.

More rules, less innovation?

The question is whether the new rules for AI will not stand in the way of innovation. Nicola Beer, an MEP from the Renew Group in the European Parliament, wanted to know whether Vestager had thought about how she intended to preserve Europe’s leading role in AI innovation. Vestager replied that she was looking for a more balanced situation. According to her, European citizens should benefit from the innovations that AI brings. Yet at the same time also be protected against their eventual misuse.

Europarliamentarian Nicola Beer wants to know how Vestager will ensure that the EU will remain a leader in the AI field.

Meanwhile, the initial reactions from the AI group of professionals to Vestager’s plans for new legislation have been quite reserved. “I find it a bit vague that Vestager says that AI sometimes makes life more difficult.” That’s what Buster Franken says, AI entrepreneur and developer from TU/e. “It is true that AI influences your choices via Google. But that can also make your life a lot easier.”

‘Small-scale AI companies in the EU are the victims’

Franken believes that there is a danger that a new law will burden smaller AI companies with far too many rules. “We already have a hard time finding capital to invest in our innovations. If new rules are added now, that will adversely affect us. It also means that you have extra work in order to comply with them. Maybe we don’t have the money for this. While this new law is supposed to combat abuse by large companies such as Google and Facebook.”

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“The point is namely that companies like Google can abuse data because they have loads of money. If there is a new law, they will undoubtedly be able to comply with it. Then they will simply look for another route. They have enough money to hire an army of elite lawyers. Small AI companies don’t have that.”