Audiovisual Media Services (Amendment) Regulations 2021

Baroness Barran Excerpts

Tuesday 13th April 2021 Grand Committee

Moved by

[Baroness Barran]

That the Grand Committee do consider the Audiovisual Media Services (Amendment) Regulations 2021.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Baroness Barran) (Con)]

My Lords, I am pleased to introduce this instrument, which was laid in both Houses on 25 February and is being made under the European Union (Withdrawal) Act 2018. This instrument will remedy certain failures of retained EU law arising from the withdrawal of the United Kingdom from the EU. It addresses minor and technical issues in domestic law after transposition of the audio-visual media services directive by the Audiovisual Media Services Regulations 2020, and is necessary to ensure that the law remains fit for purpose beyond the end of the transition period.

These regulations amend references to EU legislation, substituting domestic law references and making references to EU legislation ambulatory where appropriate. They also remove the requirement for Ofcom to notify the European Commission of services in scope falling within the UK’s jurisdiction, and address Ofcom’s co-operation with EU member state regulators.

I will now look at the regulations in more detail. The audio-visual media services directive, also known as the AVMS directive, is long-standing EU legislation that co-ordinates the regulation of audio-visual media services. The AVMS directive was revised in 2018 to take into account changes to the media landscape since the last revision of the directive in 2010.

The UK’s Audiovisual Media Services Regulations 2020, which transposed the revised AVMS directive, were made and laid in Parliament on 30 September 2020. Those regulations came into force on 1 November 2020. They introduced rules for video-sharing platform services for the first time, with Ofcom as the national regulatory authority for video-sharing platforms falling under the UK’s jurisdiction. The new rules for video-sharing platforms stipulate that platforms which have the required connection with the UK must have appropriate systems and processes to protect the public, including minors, from illegal and harmful material. The “required connection with the UK” means that if the platform provider is established in the UK, or if a group undertaking of the provider is established in the UK and the service is not regulated by another EEA country, Ofcom will in those circumstances have jurisdiction to regulate the video-sharing platform service.

Three key requirements have been placed on video-sharing platforms: first, to take appropriate measures to protect minors aged under 18 from harmful content; secondly, to take appropriate measures to protect the general public from material inciting hatred or violence, and certain illegal content; and thirdly, to introduce standards around advertising.

Ofcom is currently actively engaging with platforms that may be affected and has published guidance on scope and jurisdiction. In March, Ofcom published draft guidance for consultation on the list of measures that video-sharing platforms can take to protect users from harmful material. More vigorous regulation will commence once all guidance on video-sharing platform regulation has been published later this year.

I now draw the attention of the Committee to the report from the Secondary Legislation Scrutiny Committee considering this instrument, and thank it for its work. The committee’s helpful report flagged two key areas: first, Ofcom’s power to co-operate with EU regulators and, secondly, the delay in the introduction of the online safety Bill.

I will first address the committee’s concern that replacing Ofcom’s duty to co-operate with a power to co-operate with EU regulators could result in uncertainty regarding enforcement for platforms whose services are used in the UK but where the platform is based and regulated outside of the UK.

Co-operation and sharing information between national regulatory authorities is helpful for the purpose of enabling authorities to fulfil their functions in the most efficient and joined-up way, and to collaborate on matters of common interest. In this post-transition period, co-operation continues to be important and this instrument provides Ofcom with the power to co-operate with its EU member-state counterparts. Engagement with other national regulatory authorities will be helpful to resolve any jurisdictional issues and help ensure that UK users are protected from illegal material appearing on a video-sharing platform where the provider of the platform does not have the required connection with the UK.

Ofcom will be able to use this power in a number of circumstances: addressing jurisdictional matters, such as determining where a provider is established; co-ordinating enforcement action; engaging to ensure cross-border compliance; and exchanging regulatory best practice. Without that power, Ofcom would be able to engage only in non-case specific informal co-operation with other EU regulators—for example, exchanging regulatory best practice rather than co-ordinating enforcement action. This could result in a lack of transparency between regulators and could lead to less effective protection of UK users, including minors.

Although this instrument does not guarantee that EU counterparts will reciprocate and co-operate with Ofcom, these regulations show a willingness on the part of the UK Government that Ofcom should engage and promote collaboration in this important area of online safety. Leaving a duty to co-operate in place would be inappropriate because of the lack of reciprocity from EU member states, and would provide no incentive for EU national regulatory authorities to co-operate with Ofcom.

I will now address the committee’s concerns about the timing and introduction of the online safety Bill. While we recognise the importance of being online and the benefits that this can bring, we acknowledge that online safety is a major concern. There are serious risks that users, especially children, currently face when they are online, and the prevalence of the most serious illegal content and activity online is unacceptable. We are working at pace to prepare online safety legislation, which will be ready this year. In the meantime, we are working closely with Ofcom and will continue to engage with parliamentarians as we prepare the legislation.

The current regulation of video-sharing platforms shares broadly the same objectives as the upcoming online safety legislation. In particular, it places requirements on UK-established video-sharing platforms to have systems in place to protect their users. The online safety regime will be broader and is expected to apply to a much wider range of online platforms. It is therefore the Government’s intention that the UK video-sharing platform regime in Part 4B of the Communications Act 2003 will be repealed and superseded by the online safety legislation once the latter has been implemented. Ahead of the repeal, Ofcom, through regulating video-sharing platforms, is gaining invaluable knowledge about systems regulation and how best to keep UK users safe online. This knowledge and experience will help the Government to meet our objective to make the UK the safest place in the world to be online.

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[Baroness Barran (Con)]

My Lords, I start by thanking all noble Lords for their valuable and insightful contributions to this debate. I will do my best to answer the points raised in the time allowed, but if I run out of time I will of course write to your Lordships.

A number of noble Lords, including the noble Lord, Lord Blunkett, and my noble friends Lord Holmes and Lord Kirkhope asked how this approach would work in practice in terms of co-ordination with EU regulators. I believe that I covered some of this in my opening remarks. I would just add that the UK and the EU have similar objectives regarding online harms and continue to share similar values. Both the digital services Act and the online safety legislation will set out new expectations on companies to ensure that they have proportionate systems and processes in place to mitigate risk and to keep their users safe online. We are committed to working with our European and international partners, as well as businesses themselves, to understand how we can implement these existing frameworks better. However, I would like to be clear, in response to many noble Lords’ requests for clarification on jurisdiction, that our forthcoming online safety regime will regulate platforms irrespective of jurisdiction.

The noble Lord, Lord Clement-Jones, asked which platforms would be regulated by this new instrument. From 6 April this year, VSP providers in UK jurisdictions have been legally obliged to notify their services to Ofcom. Existing providers have one month—until 6 May —to notify their services, and the list of providers will be published shortly thereafter. We expect, and this is very important in light of the very valid concerns that your Lordships raised, that this will include some smaller platforms that have never previously been in scope of regulation.

A number of questions were asked about ambulatory references. These ensure that UK law reflects updates to the definition of European works and/or the relevant guidance attached to that, so that when the EU makes changes to legislation, a full legislative process has to be gone through and the UK will therefore get a reasonably lengthy period of notice in which to consider whether or not to disapply the ambulatory reference. As a matter of policy, however, the UK wants to keep close to the EU on the definition of European works, which is why the definition is ambulatory. It is also a technical definition and has links to the European Convention on Transfrontier Television, to which the UK is a party.

A number of questions, including from the noble Lord, Lord Clement-Jones, were asked about the use of age-assurance and age-verification measures within the video-sharing platform regime. Age assurance is one possible appropriate measure in the VSP framework. In order to comply with the VSP regime, age-assurance measures may be adopted by VSPs, along with other measures such as age ratings and parental controls. When considering which measures are needed to protect users adequately, platform providers must consider what is practicable and proportionate, which includes taking into account the rights of users.

Ofcom is committed to promoting best practice in this area within the VSP regime, and its guidance is consistent with the guidance on establishing age within the Information Commissioner’s age-appropriate design code. Throughout the duration of the regime, Ofcom will work with the ICO to provide clarity on roles and coherence in approach. I can tell the noble Lord, Lord McNally, that this will be done with a risk-based approach, both in this regime and in the forthcoming online safety regime.

The noble Baroness, Lady Wheatcroft, asked whether Ofcom had sufficient resources to fulfil its role. Ahead of the online safety Bill we are working closely with the regulator to understand the challenges that it faces, and we are working to ensure that it has the resources, processes and expertise to start building its capability as an effective regulator of VSPs and of course, importantly, as the future online safety regulator.

My noble friend Lady McIntosh of Pickering and the noble Lord, Lord Bassam of Brighton, asked again about jurisdiction and the regulation of platforms not established in the UK. VSPs that are not established in the UK will be regulated not by Ofcom but rather by the EEA state in which they are established. Ofcom will regulate VSPs that are not established in the UK but have a group undertaking in the UK, if the VSP does not fall under the jurisdiction of an EEA state. We hope that the regulation provided by other EU member states will be effective enough to provide protection to UK users in the interim. But, as I said earlier, our online safety regulation is intended to be the long-term regulatory framework.

Lastly in relation to this instrument, my noble friend Lord Kirkhope asked about the regulation of advertising. Under the VSP regime, the requirements placed on providers with regard to restricted material and relevant harmful material in videos apply to adverts as well.

In the time remaining, I will turn to the online harms legislation. Most noble Lords asked me to clarify the timing of the online safety Bill. We are working at pace to prepare the legislation, which will be ready this year. As for pre-legislative scrutiny, I thank the noble Lord, Lord McNally, for his kind remarks about our engagement with parliamentarians, which we have found extremely useful. We will make a final decision on pre-legislative scrutiny nearer the time of introduction, but your Lordships will have heard the Secretary of State say that he is minded to undertake it.

A number of noble Lords asked for clarification on what would be included in the new regulatory framework. In brief, the framework will prioritise action to tackle illegal content and the protection of children. All companies in scope will need to tackle illegal content on their services and protect children. The noble Baroness, Lady Wheatcroft, cited some of the most troubling examples of legal but harmful content. In that case, companies will be required to set out clearly what content and behaviour are acceptable on their services.

I fear that I am running out of time and have not answered all noble Lords’ questions. I will follow up in writing. As I have set out clearly today, these regulations are required to fix the remaining issues of the transposition of the AVMS directive to ensure that the law remains clear and operable beyond the transition period. This instrument will allow Ofcom to continue regulating video-sharing platforms effectively and will give it the power to co-operate with EU regulators when it is appropriate to do so. This will help to ensure that online users, particularly those under the age of 18, will benefit from the protection from illegal and harmful content provided by Ofcom’s regulation of video-sharing platforms ahead of the upcoming online safety legislation. With that, I commend the regulations to the Committee.

Motion agreed.