Cairncross Review — House of Commons, 2019-02-12
Topic: Technology
Tom Watson (Labour, Centre-left): I thank the Secretary of State for giving me advance sight of his statement. I also thank him for his warm words about the late Gordon Banks, who was not only a great goalkeeper—perhaps the greatest ever to wear three lions—but a true gentleman. Not everyone will know of his contribution to civic life in the Potteries and in Staffordshire as a whole, from support for veterans to dementia care. To the people of Staffordshire, he was not just a sporting hero but a community hero. He will be greatly missed As the Secretary of State said, the release of the Cairncross report is a milestone—a small milestone—on the road of our enormous task of addressing digital and news publishing. Finding the right solutions requires creative policies and cross-party partnership, and Opposition Front Benchers are ready to work with the Government where we can. I thank the Digital, Culture, Media and Sport Committee for the rigour of its ongoing work in relation to the harms caused by digital disruption. I look forward to reading its next report, and I commend its Chair, the hon. Member for Folkestone and Hythe (Damian Collins), for maintaining a determined cross-party unity of purpose in the face of corporate obfuscation from companies such as Facebook As we have heard, this review addresses an urgent issue: we have lost 6,000 frontline reporter jobs since 2007; newspaper circulation rates have fallen by half; 350 local news titles have closed; and half of Britons are now worried about fake news. Meanwhile, the emerging tech companies continue to increase their bottom lines with ever-increasing advertising revenues, extracting value from content produced by others while taking little responsibility for the destruction they leave in their wake. Some of the review’s recommendations in this regard are particularly welcome. We said last summer that Labour would extend charitable status to public service journalism, so I am pleased to hear that the Secretary of State has today written to the Charity Commission to pursue that further. We have also publicly supported increased media awareness courses and reporter training schemes, and I am glad to see that the Government might soon be adopting that approach as well. But in other areas I am afraid that the review is barking up the wrong tree I understand that the Secretary of State is duty bound by this report to write to Ofcom asking for an assessment of BBC News Online’s market impact, but that could be counterproductive, because while local titles are closing it is the BBC that produces exactly the sort of public interest and publicly trusted content that the review was designed to encourage. Does the Secretary of State therefore agree that it will be a big mistake if the Government choose to pick a fight with the BBC over this, or to raid its budgets even further, rather than tackling the real problem: a distorted digital market It seems to me that the problem is clear: savvy tech platforms have developed targeted behavioural advertising that allows companies to direct their products towards certain audiences. Only they can do that, because the data needed to segment markets is overwhelmingly owned by emerging data monopolies, so the only way to reach consumers is through a decreasing number of digital giants. This is all part of surveillance capitalism Mergers and acquisitions by digital giants have meant that over half of all digital advertising revenues in the UK are now hoovered up by two companies, Google and Facebook. This is a duopoly. It is the main cause of the 70% reduction in print advertising revenues that has hit newspaper bottom lines so hard, and the dominant position of these social media giants means that in negotiations with news publishers they do not play fair I understand that this is a difficult problem to solve: these are global companies so big that they see themselves as being above the law. So let me say to the newspaper industry that I know the situation looks bleak, and it may be disappointed that there are not harder recommendations in this review, but even in these dark days of Brexit and increasing division in politics there is one man who is uniting this House: Mark Zuckerberg. He insulted us all when he refused to attend the Select Committee on Digital, Culture, Media and Sport. He may think that the UK market and our institutions are not a priority for him, but I hope he knows there is now a new resolve that transcends our party differences to deal with abuses by his company and others I appreciate that the Secretary of State has asked the Competition and Markets Authority for a market study of digital advertising, but does he agree that this review was actually tasked with looking at that in its terms of reference? It is not his fault that the review has ducked this part of its responsibilities, but the reality is that commissioning the CMA to look at this kicks the can down the road again We need a bolder, quicker approach. Having looked at this problem for a couple of years now, I think there is a position and a process that we could all coalesce around. First, we need to address the immediate symptoms of market abuse caused by the data monopolies: the harms, the hate, and the fake news. To do that we need a new duty of care obligation on social media companies, enforced by a tough new regulator. Last week a Minister indicated that the duty of care could be enforced by criminal sanctions, not just civil penalties, if companies are found to be in breach. Can the Secretary of State confirm that the Government are considering this Secondly, we must address the root cause of the problem, which I believe is a distorted digital market. A review by the CMA is all well and good, and we welcome it, but we need to modernise competition laws to make them fit for the data age to really address abuse in the digital market Thirdly, once we have dealt with the symptoms and the causes of the problem, we must improve the health of our digital markets by shaping a digital public sphere to bolster our media sector and protect our democracy. I envisage an online sphere where citizens can access trustworthy news from professional reporters and researchers, content from public institutions, central and local government and public service broadcasters, and public services like our great galleries and collections without being surveilled or targeted by advertisers and having to give up their personal data to transact for services. I hope we can commit today to take our lead from the Digital, Culture, Media and Sport Committee and work in a spirit of unity to deal with the destructive dominance of the tech giants.