Tech Policy Conversation #7: Governments in waiting
The businesses breaking ranks to work with Labour
In the run up to polling day yesterday we spent a lot of time talking about how organisations are preparing for the next big vote, a General Election - and today we’re sharing some of those conversations with you.
In this issue:
THE MILLTOWN VIEW: Preparing for a change of government
KEY DEVELOPMENTS: Major policy milestones from April 2024
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THE MILLTOWN VIEW: WHEN DOES THE OPPOSITION BECOME A GOVERNMENT-IN-WAITING?
As millions of pencils wavered over the ballot paper yesterday, businesses were facing their own political choice: whether and how to publicly work with the Labour Party.
Most of the time this choice is easy. There is rarely an upside to irritating the government of the day, and if a vote looks close then hedging your bets is the sensible option.
But if a change seems inevitable, at what point do you start treating the Opposition as a government-in-waiting?
Obviously there are potential benefits. For the Labour Party a partnership with a business underlines their credibility and creates the kind of comms opportunity that has for a long time been reserved for the government.
For a business, the opportunity to build relationships with individuals who might form the next Cabinet — and be seen by them to have taken an early punt on their success — could prove invaluable in the long term. But no election is certain, and even in the case of a landslide there will be millions of people who vote for the other side.
For a risk-averse corporate, deciding when the reward outweighs the risk is a difficult call. But it seems this month that some businesses have started to reassess that balance.
At the beginning of April the Labour Party announced that a Labour government would partner with Virgin Media O2 to provide glucose monitoring technology to children with type 1 diabetes.
We should note that this was hardly a full throated endorsement. There isn't mention of a "partnership" on their own channels so it seems O2 won't be repurposing its #WearTheRose campaign just yet.
But as one of the first tacit endorsements from a business it caught our eye, and it's one signal that might tip the balance for others wrestling with this issue.
Will the general public care about this announcement in particular? Almost certainly not. But for those of us that do watch these things, a further set of partnerships would be a sign of authority continuing to ebb away from the government.
It might be that as results come in over the coming days a move like this looks less and less like a roll of the dice. But if you're trying to make this call yourself, bear in mind the reward comes from being seen to take the risk — there won't be much upside to being in the pack.
KEY DEVELOPMENTS: APRIL 2024
UK: DMCC Bill enters ping-pong (link) - On Tuesday 30 April, MPs met to consider changes to the Digital Markets, Competition and Consumers Bill which had been introduced in the House of Lords. The Government overturned the majority of "pro-competition" amendments introduced in the Lords, meaning that amendments on proportionality, countervailing benefits, and appeals were all rejected. The Government also passed its own amendment on the deadline for Secretary of State approval of CMA guidance. The Bill now returns to the House of Lords to consider these changes. This could happen in mid-May and Peers are not expected to push back against the Government, meaning the Bill could achieve Royal Assent by the end of May.
UK: Ofcom shares annual Children's Media Lives report (link) - Ofcom has shared its annual study of children’s relationship with the media and online worlds, which has found that infant school children are increasingly online and given digital independence, a third are using social media unsupervised. Ofcom has said it will be opening a consultation on a set of proposals to ensure children are better protected online “in the coming weeks”.
UK: CMA publishes detailed report on AI Foundation Models (FMs) (link) - The report outlines developments the CMA has observed in this market since September 2023 and views it has heard from consultations with industry, civil society, academia and government. Notable among these are concerns about the growing presence and power of the largest technology firms across the FM value chain.
UK: Vodafone’s proposed merger with Three subject to in-depth investigation from the CMA (link) - The CMA has announced that an anticipated £15bn merger between mobile giants Vodafone and Three will move to the next stage of investigation over fears that the deal could harm competition and consumers. A more detailed, second phase of scrutiny is expected to conclude later this year in September.
UK: i.AI and NHS England sign Collaboration Charter to support the use of AI in the NHS (link) - NHS England has signed a collaboration charter with the Incubator for Artificial Intelligence (i.AI), a team of technical AI experts established by 10 Downing Street and the Cabinet Office.
EU: Parliament adopts its positions on PSD3 and PSR (link) - The European Parliament has adopted its positions on the Payment Services Directive (PSD3) and Payment Services Regulation (PSR), aiming to create a more competitive payment services sector within the EU while fortifying defences against fraud and data breaches.
Key measures include ensuring clear fee disclosure, improving cash accessibility in remote areas, and fostering a level playing field between traditional banks and non-bank providers. Additionally, new rules address data security concerns and allow for the entry of new payment service players, subject to authorisation.
EU: Commission opens proceedings against TikTok under the DSA (link) - On 22 April, the European Commission announced the initiation of formal proceedings against TikTok under the Digital Services Act (DSA) due to concerns regarding the launch of TikTok Lite in France and Spain. This follows the Commission’s letter on 17 April requesting TikTok to provide more information. The Commission is particularly concerned about the potential negative impact on mental health, especially among minors, due to the potentially addictive design of TikTok's "Task and Reward Program" and the lack of effective age verification mechanisms.
EU: Microsoft’s investment in ChatGPT avoids antitrust probe (link) - The European Commission’s merger watchdog will not formally investigate Microsoft's $13 billion investment in OpenAI. The EU deems that the investment is not considered a takeover, and does not grant Microsoft control over OpenAI's direction. While EU regulators agreed that the investment was fair, they announced that they will keep monitoring the anticompetitive risks brought by Big Tech investments. Commission Vice-President Margrethe Vestager declared on 16 April 2024 that the EU is keeping its eye on Big Tech’s AI acquisitions.
Meanwhile Microsoft announced on 1 April 2024 that it will unbundle its Teams service from the Office suite worldwide, to comply with the Digital Markets Act (DMA) obligations.