regulation – davelevy.info

Energy supply policy

I came across this cartoon, on linkedin, which reminded me of a comment made at a recent ORG meeting that the UK cannot be an AI powerhouse because our electricity is too expensive.

It’s also possible that this is one reason why the bitcoin miners are now all located in China.

It set me thinking, and I made this chart.

International Energy Prices 2026: Source google

The UK is expensive, and it would seem that this is true of the EU too.

The linkedin article argues that China’s energy investment has been about energy sovereignty. Perhaps its time the EU and UK governments thought about these issues. …

AI ethics and accountability

a silhouette of a man in fron of computer code

I attended a lecture on AI Ethics and blogged on Linkedin and mirrored it on Medium, I catalogue the issues as presented by Dr Hung and used Google to see if there were any obvious gaps.

I look at Garbage In, Garbage Out problem, repeat the calls for transparency, I repeat my arguments about authority vs popularity and the role of the GDPR, and I look at copyright and the four [software] freedoms. …

Regulating Social Media

A note on the US regulation of its domestic media and internationally. I say, "Despite the US claiming the strongest free press rights in the world, rights granted in the US constitution belong to its citizens alone and are only enforceable within the United States. The US’s historic regulation of foreign media, much of which remains in place today, includes the licencing of foreign journalists and the statutory requirements the significant media organisations are owned by U.S. citizens. In fact, U.S. politics confuses the freedom of the press, with the right to platform. For more press the button ...

The missing courage of the ICO

I note from Jim Killock’s pinned repost of a post by David Erdos on X, that the media and the ICO have issued a report, dated March 2024, on journalistic practices and the Data Protection Act 2018. This was produced as part of response to the Leveson Report, itself, spawned by the Millie Dowler & celebrity phone hacking scandal. Erdos makes the point that the ICO did not make use of its investigatory powers, which he refers to as §17 powers nor that the story was followed by … err! … the Press.

Additionally, over the last week, the ICO announced its report into its investigations into the Labour Party and its compliance with GDPR/DPA. Again, they weren’t asking the big questions and say more about the mitigation actions than the compliance failures. This allows the Guardian to run a headline focusing on the failure to respond to DSARs, in fact the Guardian focuses only on late response, and not on failure and everyone is silent on the refusals.

I would like to know what measures the Party took to ensure that their IT sub-contractors met their obligations as data processors, what measures the Party took to ensure their DPO was qualified^[1] according to Article 37 of the GDPR, why no compensation has been offered/mandated to victims of the breach, what measures Labour took to ensure the completeness of any DSARs, what measures the Labour Party took to ensure that only appropriate staff had access to personal data and what measures the Party took to ensure that democratic rights of members weren’t adversely effected by the breach? It would seem the ICO have not asked these questions; this is exceedingly disappointing.

Regulatory capture is a well-studied phenomenon. However, it’s simpler if one is the government rather than a private business or an NGO. It seems pretty clear that the ICO is frightened of the major political parties which since human rights law is designed to protect citizens from governments, rather spoils the point of having one. NB the GDPR has a lot to say about the importance of the independence of both Data Protection Officers and also the national data protection supervisory authority.

[1] The data protection officer shall be designated on the basis of professional qualities and, in particular, expert knowledge of data protection law and practices … n.b. Data Protection practices require an expertise in cyber security. …

Virtual Worlds and the EU

I am about to return to Brussels for the final session of the EU's citizen's assembly on virtual worlds. I decided to make a document from my notes on the EU citizens panel on Virtual Worlds. As I have said, my notes were contemporaneous and do not tell a story. This article hopefully documents the lessons I have learned and would like others to read, and of course agree. Hopefully, it's more directed! For more, see overleaf ...

The economics hurdle for rejoining!

This was published on the London 4 Europe web site, arguing that the Euro and “Banking Union” are potential political obstacles to rejoining. I just observe that the author has not caught up with the change in macro-economic management, the Stability and Growth Pact has serious credibility problems given the numerous breaches. We can hope that with a new coloured government in Germany the deficit fetishism of the EU will be weakened. Secondly, banking regulation is global and emanates from the G7 and BIS in Basel. The EU has little room for manoeuvre, although of course, should it be in a position to join BIS that would change things. This is an article designed to show how clever the author is and fails in that goal.

I note the article focuses on Sweden, which has agreed to adopt the Euro and not Denmark which has an opt-out. When we get to negotiating re-entry, the size of the UK economy and the sterling zone will be issues which may lead to us being given an opt-out or a Swedish deal, although I was interested to note that Nordea, Sweden’s largest bank has moved to Finland to locate in the Eurozone.

A serious analysis will come later, when both parties need an answer dealing with transaction volume, prudential regulation and fundamentally macro-economic policy. Let’s note that we had an opt-out of the compliance clauses of the SGP, we doubt we’ll be getting that back.

Macro-economics will be a problem if we have a left led Labour Govt., that wanted to pursue a policy of full employment but more importantly will be the need to meet the democracy criterion of the Copenhagen Criteria, where parliamentary sovereignty, the House of Lords and first past the post together may be seen as obstacles. Starmer’s Labour lacks the will to confront the issue of rejoining the EU but would probably welcome the shackles of today’s Stability and Growth pact. Actually, the Stability & Growth Pact is a serious barrier to rejoining for the Left; perhaps the sterling zone will save us from that too. …

Are Transparency International wearing rose coloured specs?

Reuters Square, if its still called that in black and white.

I find it hard to believe that Transparency International, the world's premier anti-corruption campaigning organisation have marked the UK as having improved on 2020 in their most recent Corruption Perception Index and have the UK as within the top 15 countries. So I ask why might this be? This article looks at the issue of lags, TI's focus on the public sector, press bias via ownership, and some private sector scandals. I finish by asking, if they mark the UK so well despite the evidence, how much worse are the others?, ...

Lightening never strikes twice

In my blogs on the Track & Trace failure [blog | linkedin], I make the throwaway comment that Govt. IT often fails repeatedly because no-one is accountable, nor punished and thus they fail to learn but in this case it’s not true; Dido Harding the CEO of the Track & Trace was CEO of Talk Talk when it was fined £ ½m for another data protection breach caused by another failure to in this case close down an application running on an out of date & unpatched version of MySQL, making it vulnerable to a SQL injection attack, one of the OWASP top 10 vulnerabilities. How unlucky can you get? …

A first domino?

Carol Cadwalladr and others are speculating that the US Federal Trade Commission plan to fine Facebook $5bn for its privacy law breaches. This is reported today in the New York Times, in an article, Facebook Expects to Be Fined Up to $5 Billion by F.T.C. Over Privacy Issues. This documents the breaches which focus on Cambridge Analytica and the Brexit time span and the laws. $5bn is a lot, the EU only fined Google €1.5bn. I posted the NYT article on Facebook with the following comment.

But he still won’t come to the UK to testify to the DCMS select committee, although I have sympathy with the argument that if we aren’t investigating our citizens who have broken the law, why should he put himself at the front of the queue.

…

Eternal vigilance

I have been pointed at China’s Social Credit Scoring plans via two routes. The first is this extract published at Wired from Rachel Botsman’s book, “Who can we trust”. This details the Chinese Governments plan to build a social credit scoring scheme, but the sources and incentives are horrendously comprehensive, including their leading match making agency. (It’s taken me some time to read this article, an I have bookmarked and annotated it in my diigo feed.) Worrying things about the Chinese scheme is that voluntary participation becomes mandatory; while rewards and incentives are at the forefront of everyone’s mind today, control and punishment is planned, in the Chinese case in the short term they are talking about foreign and domestic travel restrictions but as I note, the countries leading dating agency is one of the surveillance agencies. There is also talk of social investment loans (helicopter money) which become available on the basis of social scores.

The second route was an article on Medium by someone who got banned from AirBnB. He pointed at an article on Buzzfeed, “A Chinese-Style Digital Dystopia Isn’t As Far Away As We Think” where a series of regulatory decisions in the USA seem to be paving the way to something similar, a powerful illustration that the argument that surveillance is OK if it’s private sector is horrendously false.

One worrying aspect of the proposed Chinese system is that your reputation is as good as that of your friends and we have idiots trying to replicate it with peeple, and reading up on that has started me worrying about Linkedin and its competitors and we all know we should get off facebook.

The wired article came before machine learning and massive scale AI became a hot topic, but it’ll be interesting to see what happens to social credit scores when they let rip with the application of machine learning. The automated derivation of reputation scores also raises issues of safeguarding, libel and context. Safeguarding and libel laws require the machines to tell the truth, in fact safeguarding may require machines to hide the truth. Context requires a level of nuance that we are unsure if machines will ever have, but even if they get there, justice and judges must remain human and the code must be open; China’s & Facebook’s is not!. The GDPR gives data subjects rights, perhaps its time to revisit the seven principles.

Of course in the UK, we have our very own examples of machines and data sharing getting it wrong. Sajid Javid, the Home Secretary has suspended the intra-government and some of the other immigration data sharing as a result of the backlash on the Windrush scandal. (I wonder if this I an excuse to look again at the DPA Immigration Exemption clauses.) Much of what is happening in China and the USA is also happening in the UK, it’s just that the surveillance agents are the US owned datenkraken and the British State have legalised the hacking of their data streams.

What’s happening in China is terrible, but our governments are following suit! The price of freedom is eternal vigilance. …

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