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Category: Public Affairs

  • The Business, Energy and Industrial Strategy Committee calls on Ofcom to investigate Royal Mail

    The Business, Energy and Industrial Strategy Committee calls on Ofcom to investigate Royal Mail

    MPs said that Royal Mail has been prioritising parcel deliveries over letters and called on Ofcom to investigate. In response, Ofcom said that Royal Mail’s recent performance was “clearly well short of where it should be” and said it would consider the MPs’ report.

    Royal Mail said it had clear policies that parcels and letters “should be treated with equal importance”. Royal Mail must, by law, deliver letters to all parts of the UK, six days per week, as part of its Universal Service Obligation. If it fails to do this, it can be fined by communications regulator Ofcom.

    There was widespread evidence that Royal Mail “systemically failed to deliver” on this obligation, telling postal workers to make sure they delivered parcels before letters, MPs on the Business, Energy and Industrial Strategy committee said.

    MPs referred the matter to Ofcom, calling on it to open an enforcement investigation, talk to postal workers, and report back to the committee. The Business, Energy and Industrial Strategy committee said that:

    “We recognise the importance of the Universal Service Obligation in delivering a vital public service, and we hope that Royal Mail seizes the commercial opportunities available to it in accessing every household across the country on six days of the week. We call on the Government to formally engage with Royal Mail, following the outcome of Ofcom’s enforcement investigation, to secure the future of the Universal Service Obligation and Royal Mail, and to provide an initial report to this Committee no later than the end of 2024.”

    The PPA: With many PPA member businesses sending out subscription copies via letter post, these Royal Mail missed targets have serious implications. We will be monitoring the situation as Ofcom investigates further. You can find more information here and here.

  • Technology Secretary Michelle Donelan announces Data Protection and Digital Information Bill

    Technology Secretary Michelle Donelan announces Data Protection and Digital Information Bill

    The Data Protection and Digital Information Bill was first introduced last summer but paused in September 2022 so ministers could engage in a co-design process with business leaders and data experts. It seeks to move away from the ‘one-size-fits-all’ approach of GDPR and maintain Britain’s data protection standards – so businesses can continue to trade freely with global partners, including the EU.

    Science, Innovation and Technology Secretary, Michelle Donelan said: “This new Bill ensures that a vitally important data protection regime is tailored to the UK’s own needs. Our system will be easier to understand and easier to comply with. This Bill will unlock new discoveries, drive forward next-generation technologies, create jobs, and boost our economy.”

    The Bill aims to: 

    • Introduce a simple and clear framework that will not be costly to implement – taking the best elements of GDPR and providing businesses with more flexibility about how they comply with the new data laws

    • Ensure our new regime maintains data adequacy with the EU, and wider international confidence in Britain’s comprehensive data protection standards

    • Further reduce the amount of paperwork organisations need to complete to demonstrate compliance

    • Support international trade without creating extra costs for businesses if they’re already compliant with current data regulation

    • Provide organisations with greater confidence about when they can process personal data without consent

    • Increase public and business confidence in AI technologies by clarifying the circumstances when robust safeguards apply to automated decision-making

    The PPA is analysing what the Bill means for PPA members, particularly in relation to ensuring a new system will not be too different from GDPR that it will disrupt business.

  • ChatGPT raises questions about exploitative AI practices

    ChatGPT raises questions about exploitative AI practices

    In a column published in the Times this week, McBride highlights how imperative it is for the government to ensure the Digital Markets, Competition, and Consumer Bill protects publishers from the negative impact of digital technology on the dissemination of information, news, and opinion.

    When passed, the Digital Markets, Competition, and Consumer Bill will give the Digital Markets Unit (DMU) statutory powers and will be a crucial tool for publishers to rebalance their relationships with platforms.

    The Bill is expected after Easter (according to PPA government sources) and will empower the DMU by giving it powers for an ex-ante competition regime for the largest digital firms. The Bill will also introduce new consumer law regulations for the selling of subscriptions contracts.

    The DMU will be simultaneously writing firm-specific codes for Meta and Google, so engagement with the Unit itself is necessary to ensure that they are prioritising provisions that will benefit members. This includes rebalancing the digital advertising market, guaranteeing publisher access to data, having prior sight and understanding of algorithm payments, and specialist publishers being encompassed by the mechanism that will allow publishers to negotiate with platforms for the value of content.

    Next steps:
    The PPA will keep members updated and continue to lobby to ensure we are fairly represented as the DMU moves to rebalance the relationship between big tech and publishers.

    The PPA will also work to ensure that the new consumer law regulations regarding subscription contracts do not, as far as possible, negatively impact publishers’ subscription businesses.

  • Nicola Sturgeon resigns: so what happens next?

    Nicola Sturgeon resigns: so what happens next?

    On 15th February Nicola Sturgeon announced her resignation as First Minister of Scotland. Her speech cited both political and personal reasons for her decision.

    Sturgeon noted that the UK Supreme Court’s blocking of an independence referendum and her decision to seek a “de facto referendum” at the next general election – which would see an SNP majority in votes count as a vote for independence – played a role. Despite it being believed that many in the SNP see this course of action as a vote-loser, Sturgeon said she was confident there was majority support in Scotland for independence and that she could have led the party to victory at the next election.

    Nevertheless, she felt views about her had become entrenched and that the baton should be passed to a figure without controversy to maximise the SNP’s chances of electoral and independence success. She claimed that by standing down, she could “free” the SNP to choose its direction at a conference next month.

    What next?

    The new leader will need to bridge Sturgeon’s supporters – who are a majority within the SNP – and her vocal critics. Historically, the SNP was divided over fundamentalists – who wanted to declare independence as soon as possible – and gradualists, who saw devolution and government in Scotland as a route to independence. The gradualists won that battle under Alex Salmond but since the 2014 referendum, impatience for independence has grown within the party and internal divisions have brought about a return to the pre-2014 dividing lines. Sturgeon was a gradualist, intent on building majority support for independence. Her call for a “de facto referendum” last year therefore seemed out of character: an admission of weakness in the face of both constitutional realities and internal critics.

    A new SNP leader will be in an unquestionably precarious position. They will need to find a way to independence that satisfies both those who want to play within the UK government’s rules, and hard-liners who are increasingly attracted to more controversial options, including a unilateral declaration of independence. Under Alex Salmond, the SNP was famed for its discipline; though divisions over Brexit and controversial policies like the Named Person Scheme – though minor relative to divisions in the Tories and Labour – signalled an end to the era of uniformity.

    Though the failure of Alex Salmond’s Alba Party has helped to ensure the SNP is unlikely to fracture, ill discipline risks its election-winning record as does a resurgent Labour Party. SNP members will be acutely aware that, if the party falters, so does the hope of independence. The new leader will therefore also have to be a determined and convincing campaigner for independence.

    Potential successors

    A remarkable factor of this decision is that, in Sturgeon’s long period in office, no obvious candidate has emerged. Though this list includes MPs, Sturgeon made clear the party is looking for a new leader and a new first minister, meaning that anyone not currently in Holyrood is a highly unlikely candidate.

    1. Kate Forbes, Cabinet Secretary for Finance
      Forbes has impressed colleagues, the often SNP-sceptic Scottish business sector, and even UK civil servants; though she appears to lack Sturgeon’s aggressive zeal, which may make her be less attractive to her party.
      Sceptical commentators tend to focus on her socially conservative views; though her classically liberal approach to economics is likely the greater obstacle for a party with many self-identified socialists in its membership.

    1. Humza Yousaf, Health Secretary
      Sturgeon has long valued him as a competent, involved minister and as a bullish campaigner. He is, however, not universally popular among colleagues and some in the party may fear minor scandals and messaging clangers could blow into something bigger.

    1. Angus Robertson, Former Westminster leader and Constitution Secretary
      Robertson represents continuity Sturgeonism. He has long embodied the europhile, socially liberal approach the SNP has hoped will win liberal No voters to independence. He combines this, however, with an occasional abrasiveness both in public and in dealings with colleagues. This may undermine his chances.

    1. Keith Brown, Deputy leader of the party
      Brown has served as a “safe pair of hands” in various government roles. His low profile may make him look like an outsider but a long-running Holyrood rumour has favoured him as the one candidate who can unite pro-Sturgeon supporters and critics.

    1. John Swinney, Deputy First Minister and former leader
      Swinney has proven himself as a loyal, competent minister. His disastrous term as leader may have spoiled his chances, however, and those close to him suspect he is likely to retire soon.

    1. Shirley-Anne Somerville, Education Secretary
      Somerville could be a dark horse in the race given her relative consistency in office, combined with her anonymity, which would enable her a blank slate to shape the Party’s direction.

    2. Stephen Flynn, Westminster leader
      Flynn is not an ally of Sturgeon and very much an outside candidate; though he may put himself forward.

    3. Mhairi Black, Westminster deputy leader
      Black will no doubt feature in many lists of runners and riders. Though popular with many activists, her lack of government experience and her detachment from the party hierarchy will not count in her favour.

    The PPA is looking into each of the candidates’ track records on media, and will keep our members updated as to any developments.

  • Cabinet reshuffle sees DCMS changes

    Cabinet reshuffle sees DCMS changes

    Lucy Frazer becomes the Secretary of State at the reformed Department for Culture, Media & Sport with ‘Digital’ being relocated to a new Department for Science, Innovation & Technology (DSIT).

    The inclusion of digital in DCMS has long been seen as a misnomer in Westminster, particularly as the UK sought to rewrite policy and regulation following its EU withdrawal. Major policies, including the National Data Strategy and the rollout of broadband will be rehomed in DSIT and will enable the government to be more reflective in its response to the current economic challenges facing Britons. It is expected that the Department for Culture, Media & Sport will keep the Online Safety Bill, but wait to hear how bills covering digital competition and platform regulation will be split across the new departments.

    The new Department for Science, Innovation & Technology (DSIT) will be dedicated to improving public services and growing the economy. Former Culture Secretary, Michelle Donelan, will take on this new department though her initial tenure will be short as she is expected to go on maternity leave next month.

    It is expected that Labour will mirror its own front bench on these changes though Labour has yet to make decisions on appointments.

    Key takeaways

    1. The Online Safety Bill is expected to stay at DCMS and this department remains the sector’s primary sponsor with responsibility for media policy, including press regulation matters and Section 40. The new Secretary of State was sympathetic on S40 in previous conversations and will understand legal arguments owing to her legal career.

    2. The new Department for Science, Innovation & Technology (DSIT) becomes a champion for tech and innovation and could be a barrier to competition reform legislation and bringing into law the promised Digital Markets, Competition and Consumer Bill. The new Secretary of State will understand issues from her time at the DCMS.

    3. There are now three departments with an interest in the Digital Markets, Competition and Consumer Bill and each has stakeholders with different takes and interests.

    4. The PPA awaits clarification on where the Intellectual Property Office (IPOS) will sit.

    5. The PPA will monitor for further new Ministers and divisions of responsibility and will write to the new DCMS Secretary about policy areas concerning our members, including press regulation and competition reform.

    6. The PPA will also write to other relevant new ministers where appropriate and work with industry partners on coordinated activity.
  • DCMS Committee Report echoes PPA calls to empower Digital Markets Unit

    DCMS Committee Report echoes PPA calls to empower Digital Markets Unit

    In its Sustainability of local journalism Report, published on 25th January, the Committee stated it is “glad that the Government appears to be expediting the introduction of the Digital Markets, Competition and Consumer Bill”.

    The Digital Markets Unit aims to rebalance the relationship between big tech platforms and publishers by targeting the root cause of platforms’ market power. In its recommendations, the Committee argued that “clear and explicit provisions for ensuring smaller publishers are fairly renumerated [for use of their content] be included in the Government’s new pro-competition regime”.

    In evidence submitted to the Committee, the PPA had argued: “The Government should anticipate the need to develop additional measures that support smaller, but eligible, media businesses […] The Competition and Market Authority (CMA) and the DMU could also authorise smaller media businesses to engage in collective bargaining under existing competition law before introducing any legislation”.

    The PPA’s evidence also highlighted that any further delays to legislation will negatively impact publishers’ sustainability. The Committee recognised this challenge, noting: “the […] Professional Publishers’ Association highlighted that, in the interim, news publishers would continue to face the difficulties of operating in an unfair market”. The PPA argued to the Committee that large platforms should compensate publishers of special interest news, not only local and national newspapers.

    Evidence presented by the PPA on the impact of rising energy costs was also cited in the Report, with the Committee noting that “recent inflation-driven increases in newsprint costs – as much as 100% for some publishers” have only added to the imperative to rapidly transform business models in the digital age.

    The PPA will continue to engage with the Committee and its work on ensuring the sustainability of UK media businesses.

  • ASA issues updated advice on advertisement features

    ASA issues updated advice on advertisement features

    When a publisher is paid by a brand, subsequent posts should make this clear by displaying a prominent label. If there is payment but no editorial control by the brand, the content is subject to consumer protection law under the Competition and Markets Authority. But when a brand has paid a publisher, and also has editorial control, the content is classed as an advertorial or advertisement feature and is regulated by the ASA.

    The revised advice comes from the Committee on Advertising (CAP), the sister organisation of the ASA, which states that marketing communications must be obviously identifiable. For advertisement features particularly, even if they are designed to resemble the editorial style of the title they appear in, they should be differentiated from strictly editorial content.

    Typically, a label is a simple way to indicate this to consumers. The CAP Code specifically suggests the label “Advertisement Feature” – but it is also likely “Ad”, “Advert”, “Advertising”, “Advertisement”, and “Ad Feature” are likely to be considered acceptable. The ASA advice states that the term “sponsored” is open interpretation – as such, they generally advise against using the term in this context.

    In relation to magazines and newspapers specifically, recent ASA advice noted that previous examples – not an exhaustive list – of the following labels were not clear enough for users:

    • “Sponsored section”
    • “In association with”
    • “Brand Publisher”
    • “Promotion”

    The prominence of the label is crucial, but also visual and contextual signposts are important.

    Advertisers and publishers for which this is relevant should read the updated advice in full. Please note, neither this article nor the ASA advice page constitute legal advice. It does not bind CAP, CAP advisory panels or the ASA.

  • Minister and MPs acknowledge specialist media industry concerns in debate on Royal Mail USO

    Minister and MPs acknowledge specialist media industry concerns in debate on Royal Mail USO

    In a Westminster Hall debate on Thursday 12th January Kate Osborne MP, who worked for Royal Mail for 25 years, highlighted that she had met the PPA this week to discuss the industry’s concerns. Going on to discuss Royal Mail’s regular citing of the fall in letter volumes as evidence for the need to change the USO, Osborne asked the responsible government Minister to confirm “if the USO is the financial burden it is being portrayed as” given the sharp increase in mailing costs.

    The MP, who has represented Jarrow since 2019, asked Minister Hollinrake to confirm that any further evidence provided to Government by Ofcom will be more thorough than the previous 2020 Review of User Needs. She stated that many letters sent in the UK are non-USO mail [this includes Publishing Mail and the magazines mailed using Downstream Access providers] and that this mail is delivered jointly over the same network as USO mail.

    Osborne went on to observe that non-USO mail includes important time-sensitive information such as letters from hospitals and HMRC, or communications from the police and legal documents, as well as highlighting the importance of time-sensitive magazines. She stated that the 2020 Ofcom Review of User Needs, often cited by Royal Mail – which found that five-day-per-week deliveries would meet 97% of residential and SME user needs – did not properly account for large business users and non-USO mail, and is therefore not a reliable review.

    Seema Malhotra MP, Labour’s Shadow Minister for Business and Consumers (which includes the Postal Services brief) highlighted her party’s concerns about Royal Mail’s request to remove Saturday deliveries, including the importance of “magazine subscriptions where Saturday deliveries form part of those delivery models”.

    Chris Stephens MP, the SNP Spokesperson for Levelling Up, also cited the impact of changes on the publishing industry, including the potential for cancelled subscriptions and lost advertising revenue. Labour MP Matt Rodda, Shadow Minister for Pensions, agreed with points about the delivery of literature, and also discussed the importance of Saturday deliveries for small businesses advertising their services. MPs noted their constituents’ concerns about Royal Mail’s poor quality of service: David Johnston, the Conservative MP representing Wantage, flagged complaints he has received about the slow delivery of magazines as well as missing bank cards and hospital appointment letters.

    Responding to MPs views, the Government Minister attending the debate, Kevin Hollinrake MP, stated that the Government backs the six-day USO but emphasised it is facing challenges. He added that Government has yet to receive a convincing case for a need to change the USO to meet user needs and ensure its sustainability. Further, Hollinrake stated that any representations must first be made to Ofcom and he will then consider any evidence presented by the regulator.

    Hollinrake also agreed that any further analysis by Ofcom must take into account the needs of large business users, specifically citing the impact on magazine publishers. The PPA will continue to engage with Royal Mail, MPs, Government, and Ofcom to ensure that publishers are able to sustain and grow their successful subscription businesses.

  • Key report flags the impact of platforms and regulation in 2023

    Key report flags the impact of platforms and regulation in 2023

    The report, authored by Senior Research Associate Nic Newman, notes that big tech platforms are under pressure due to the economic downturn and the migration of users to platforms such as TikTok. Platforms such as Meta appear to be turning their back on news, whilst emerging platforms appear more disinterested, particularly in hard news.

    Newman goes on to observe that long-standing platforms such as Facebook are focused on how they can respond to the creativity unleashed by TikTok, with Amazon, Apple, and Microsoft likely to focus on growing their advertising businesses. This leaves publishers to concentrate on using new technologies to tailor content whilst still emphasising journalism’s human qualities and track record of delivering trusted information.

    Despite the feeling that platforms may be turning away from news, 33% of publishers told Reuters that they expect to get significant revenue from tech platforms for content licensing (or innovation, a big increase year on year. This reflects the implementation or threat of legislation that aims to ensure publishers can negotiate fairly with large platforms.

    Over half of the publishers surveyed stated that online safety legislation makes them concerned that it will become harder for journalists to publish stories that governments don’t like. It is also observed that privacy-related changes threaten to reduce ad revenue in the short term but are prompting publishers to start initiatives to collect their own (first-party) data that could be the basis for a more sustainable future.

  • UK regulators announce plans for the coming year

    UK regulators announce plans for the coming year

    Ofcom’s key aims include an “internet that we can rely on”, exploring how communications regulation must adapt to digital markets, as well as whether the cloud market – currently dominated by big tech firms – is working well.

    The communications regulator will also aim to support a “media we can trust and value”, supporting the Department for Digital, Culture, Media and Sport with the forthcoming Media Bill. The government has committed to repealing Section 40 in the Media Bill, which if ever activated would leave publishers a choice of signing up to a state-backed regulator, or paying both sides’ costs in legal cases, even if the publisher won the case.

    The work to better regulate the BBC will also continue, including improvements to the BBC competition framework and updates to the Operating License which sets out how the Corporation should fulfil its Mission and Public Purposes.

    Also relevant to publishers is Ofcom’s ongoing work on media plurality, which is exploring solutions to ensure that online intermediaries’ impact on the range of news and information is properly regulated. Suggested solutions include a statutory requirement for platforms to surface a range of trusted sources, as well as user empowerment tools.

    Ofcom continues to regulate the postal market in the UK, and is responsible for holding Royal Mail to account if the company misses its quality of service targets. Reacting to the recent calls by Royal Mail to remove the statutory requirement for the company to deliver letters on Saturdays, Ofcom states that this is a matter for the government but it will provide advice to ministers as and when required.

    The CMA’s responsibilities include investigating breaches of competition law and enforcing consumer protection legislation. The regulator states that its current ambitions are: (a) an environment where consumers are confident of good deals and broad choice of products; (b) that competitive, fair dealing businesses can innovate and thrive; and (c) that the whole UK economy can grow productively and sustainably.

    Of particular relevance to publishers is the CMA’s responsibility as the home of the new Digital Markets Unit (DMU), that will be empowered through the forthcoming Digital Markets, Competition and Consumer Bill. Whilst the legislation will set the broad principles that dominant digital firms should adhere to, the DMU itself will have broad agency to prioritise which digital firms are prioritised for designation under the new laws, and will play a key role in creating firm-specific codes for each individual company.

    The PPA looks forward to continuing its strong and productive relationships with Ofcom and the CMA, ensuring that specialist publishers’ interests are properly accounted for and understood as the regulators carry out their duties.