EU Lobby Register Shows Hike in Spending by Some Tech Companies
Google and other digital industry players have increased European lobbying spending, according to our review of public records and interviews with industry lawyers. And U.S. telecom companies each spent hundreds of thousands of dollars on European lobbying last year. Though it coincided with the digital single market (DSM) and "connected continent" debates, lawyers said it's unclear whether those policy debates caused increased high-tech lobbying spending. Lobbying registrations also are up.
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Some see that as driven by the launch in January of a new version of the EU "transparency register" and the likelihood that signing up will become mandatory. In addition to higher spending by companies such as Google, there are newer tech sector entries by Netflix, Twitter and Uber, said David Lundy, media outreach coordinator for research and campaign group Corporate Europe Observatory.
The European Commission unveiled new registration rules Jan. 27. The new system made several changes to the register, including requiring more information about an entity's involvement in EU committees, forums or other structures, and about what legislation it's currently tracking. The rules also offered more incentives to register, such as requiring all those seeking meetings with commissioners, cabinet members or directors-general to enroll, the EC said. A proposal this year is likely for a mandatory register of lobbyists covering the EC, European Parliament and Council, it said.
In response, 113 nongovernmental organizations asked the EC to "take strong and urgent action to create a high-quality and legally-binding EU lobby transparency register." The current model has "major weaknesses, they said in an Alliance for Lobby Transparency and Ethics Regulation-led Aug. 28 letter to EC Vice President Frans Timmermans. These are: (1) It's not obligatory. (2) Disclosure requirements are too limited to give a full picture of who the EU lobbyists are, how much they spend, and what specific issues they lobby on. (3) The lack of adequate capacity to monitor register entries and impose penalties means that lobbyists can fail to follow the rules without fear of punishment.
"Google, according to its update in the EU lobby transparency register, has more than doubled its lobby spending in Brussels from 2013 to 2014," Lundy said. He compared data that shows that Google's spending range rose over several years from 600,000-700,000 euros ($660,000-$770,000), to 1.25 million-1.50 million euros, to 3.5 million-3,999,999 euros. Other big tech players include Microsoft, which reported spending 4.5 million-4,999,999 euros, which makes it "the biggest spender on lobbying among multinational companies," Lundy said. Facebook said it spends 400,000-499,999 euros per year, while Amazon reports spending 600,000-699,999 euros. Oracle and Apple reported spending of 700,000-799,999 euros in 2014.
Newer arrivals include Netflix, whose register entry says "newly formed entity, no financial year closed," and Twitter, which was suspended from the register for failing to update its entry by the April 28 deadline, Lundy said. Uber declared that it spent 50,000-99,999 euros in 2014.
U.S. telecom companies lobbying in Brussels are AT&T and Verizon. They declared spending last year of 300,00-399,999 euros each. Cisco and Yahoo each said they spent less than 9,999 euros. EBay's EU liaison office said its spending was 400,000-499,999 euros.
Among trade associations, BSA/The Software Alliance, Computer & Communications Industry Association and FairSearch Europe each said lobbying funding was 300,000-399,999 euros in 2014. Cable Europe spent 1 million euros; the European Broadcasting Union 1 million-1,249,999 euros. The European Association of Internet Services Providers and GSMA Europe had lobbying spending of less than 9,999 euros. The European Competitive Telecommunications Association declared spending of 650,000 euros, the European Telecommunications Network Operators' Association 900,000-999,999 euros. High-tech industry trade association DigitalEurope reported spending 2.5 million-2,999,999 euros.
Among public interest organizations, the Center for Democracy & Technology declared lobbying funding of 200,000-299,999 euros for 2013. Corporate Europe Observatory said it spent around 250,000 euros in 2014. European Digital Rights and French citizens' advocacy group La Quadrature du Net reported spending less than 9,999 euros.