Google Outspends Microsoft in EU Lobbying as US-Style Tactics Increase
Google and Microsoft were among the top 50 companies in EU lobbying spending in 2017. Google dropped from sixth in 2016 to 18th, ahead of Microsoft at 26th, LobbyFacts.eu said. Google was in the top 10 as of Wednesday, with an outlay of 5.25 million-5.5 million euros ($6.5 million-$6.8 million), upping the spending it reported to the EU transparency register to pass Microsoft (4.5 million-4.75 million euros). Google outpaced Microsoft and Facebook among lobbying organizations with the most high-level meetings at the European Commission, EU Integrity Watch reported. Continued strong lobbying on digital single market and digital economy issues by companies is increasingly accompanied by U.S.-style corporate tactics, European civil society organizations said.
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The register shows that, among corporate lobbyists that approached the EU on digital economy issues, Amazon Europe reported spending 1.75 million-2 million euros, up from the last reporting period (see 1612040001). GSMA Europe, Facebook Ireland and the European Telecommunications Network Operators Association reported 1 million-1.25 million euros each. Netflix said lobbying expenses were 800,000-899,999 euros, while Cable Europe reported 700,000-799,999 euros. The European Internet Services Providers Association reported it spent less than 9,999 euros.
The European Competitive Telecommunications Association said it spent 650,000 euros, the Computer & Communications Industry Association and eBay EU 400,000-499,000 euros. The register shows Verizon and AT&T reported a spend of 300,000-349,000 euros each. Twitter said its lobbying costs were 25,000-49,999 euros. Two organizations active in online search matters such as the European Commission Google investigations -- FairSearch and the Initiative for a Competitive Online Marketplace -- both reported spending 50,000-99,000 euros. ICANN listed the same amount.
Among other groups, the Center for Democracy and Technology reported lobbying spending of 200,000-299,999 euros. European Digital Rights (EDRi) said it spent 203,500 euros. The Internet Society reported it spent 300,000-349,000 euros, and the European Consumer Organisation (BEUC) reported 2.25 million-2.5 million euros.
Digital rights are a top priority for BEUC, a spokesman said. The EC's digital single market (DSM) initiative "churned out a number of important laws which directly impact on EU consumers," such as abolition of roaming charges, changes to EU copyright law and online privacy, he said. Beyond the DSM initiatives are other issues, such as cybersecurity, the IoT and platforms, that also affect consumers, he said. BEUC also is looking at sectors less traditionally affecting consumer protection, such as digital health services and financial technology, he said. "We have always maintained a high profile on digital files and will certainly continue doing so over the years to come." BEUC is still working on enforcement of competition law in digital markets, and has intervened in high-profile cases before the EC and national authorities, notably in the Google probe, the spokesman said.
Silicon Valley is changing Brussels lobbying, led by Google, said Transparency International in a May paper. There's a general trend among U.S. tech companies of increasing lobbying capacity and spending in Brussels, it said. Corporate Europe Observatory (CEO) tracked the progress of lobbying on the proposed e-privacy regulation through the EU institutions, in an October blog. LobbyFacts data as of October showed a torrent of industry lobby initiatives after the EC consultation process from the tech and telecom sectors. Among the lobbyists were CCIA, with members including Amazon, Facebook, Google and Uber, and DigitalEurope, which has Apple, Google and Microsoft among members, CEO said.
The biggest shift in Brussels lobbying began with the general data protection regulation, said European Digital Rights Executive Director Joe McNamee, who said his organization doesn't lobby on specific legislation but provides policymakers with education and information on digital/tech issues. EDRi increasingly sees the use of U.S.-style "astroturfing," he said. The practice makes it harder to know who's defending what position in the public domain, said a representative of another civil society group. If the funding of some groups isn't obvious, it may distort the debate because it sells corporate demands as public interests, he said.
Another more recent change is "organising of unending 'conferences' to engage with policymakers with a framing that is controlled and moderated by the lobbying entity -- which is generally a trade association," McNamee said. The events often include very high-profile speakers and senior policymakers, and civil society organizations usually don't have the resources to compete with media outlets for sponsorship deals for the conferences, said the public advocacy representative. Civil society groups must then cultivate good working relationships with trade associations to be invited as speakers or panelists, he said.