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C O N F I D E N T I A L SECTION 01 OF 03 ROME
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TAGS: ECPS ETTC
KIPR EINT
IT
SUBJECT: OPPONENTS OF ITALIAN INTERNET BILL SAY IT
STIFLES
FREE SPEECH, THREATENS DEMOCRACY
REF: 09 ROME 0143
Classified By: Classified by DCM Elizabeth Dibble
for reasons 1.4 (b) a
nd (d)
¶1. (C) SUMMARY:
Opponents of a new bill before Italian
parliament that would further regulate the
Internet say it
endangers free speech and is a threat to Italian
democracy.
The bill also appears to favor PM Berlusconi's
Mediaset
television service while disadvantaging Sky, one
of its major
competitors. The GOI says the bill is intended to
implement
an EU directive that harmonizes media regulation
and that the
provisions being criticised are designed to
establish greater
protection of copyrighted material, to protect
children from
inappropriate broadcasts, and to keep consumers
from paying
twice by being subjected to excessive advertising
on pay-TV
channels. Opponents say the law far exceeds the
scope and
spirit of the EU law and severely restricts free
expression
on the Internet. Due to advertising and content
regulation
in the bill, some have read it as an effort to
give
Berlusconi greater control over communication and
to drive
out Mediaset's competitors. Implementation of the
bill has
been postponed from its original date of January
27 and
parliament is holding hearings on the matter. The
GOI
appears open to discussion of the bill's text.
While
reaction to the bill has been strong among
opposition
politicians and telecom professionals, the issue
has not made
it to the front pages of newspapers so there has
been no
strong public reation. Despite GOI protestations,
the bill
is troubling as it appears to have been written to
give the
government enough leeway to block or censor any
Internet
content. END SUMMARY
¶2. (SBU)
According to the GOI, the Romani Bill (named for
Paolo Romani, Deputy Economic Development Minister,
who
covers communications issues) is designed to
implement EU
Directive 2007/65CE, which aims to harmonize media
regulation
in the EU. Many telecom sector professionals,
however,
believe that the bill vastly exceeds the scope and
spirit of
the EU law. The bill is complex, but there are
three primary
areas of concern: limits to uploading on the
Interet,
television advertising ceilings, and limits to
content aimed
for adults, which would also restrict films judged
by the
Italian rating system as being for those 14 and
older. This
would likely include the vast majority if not all
U.S.-produced PG-13 movies.
- - - - - - - - - - - - - - - - - - -
LIABILITY FOR VIDEO ON THE INTERNET
- - - - - - - - - - - - - - - - - - -
¶3. (U)
Provisions contained in the bill would make
Internet
service providers (ISPs), and hosting sites such
as Blogspot
and YouTube, liable for content in the same way a
television
station is. In the strictest interpretation of the
law, the
sites and ISPs would have to monitor all content
on their
sites, content which is uploaded by millions of
individual
users. This is widely viewed as impossible both in
practical
and economic terms. The Italian Communications
Authority
(AGCOM) would be responsible for oversight of the
law, and
some have interpreted the bill as requiring
government
permission before a video could be uploaded.
¶4. (C) Antonello
Busetto, director of institutional relations
for Confindustria Servizi Innovativi e
Tecnologici, a
business association representing the interests of
IT
companies, said the measure would mean "the
death of the
Internet in Italy."
¶5. (U) Italian
communications commissioner Nicola D'Angelo
was quoted in the press as saying, "Italy
will be the only
Western country in which it is necessary to have
prior
government permission to operate this kind of
service...This
aspect reveals a democratic risk, regardless of
who happens
to be in power." Likewise, AGCOM president
Corrado Calabro
has said that Italy would be unique in the West as
imposing
Internet restrictions until now only imposed by
authoritarian
governments.
¶6. (SBU) The GOI
says the measure is aimed at protecting
copyrighted material from being uploaded and
downloaded
ROME 00000125 002 OF 003
illegally, as well as at monitoring other
potentially illegal
activity on the Internet. The copyright industry
has
expressed some limited approval of the bill. Enzo
Mazza,
president of the Italian Music Federation, said
the music
industry is generally in favor of making ISPs and
sites more
responsible for protecting copyrighted material,
though, he
added that his industry's analysis of the bill was
focused on
this aspect and not other implications.
¶7. (SBU) Because
this could make ISPs and opinion sites
liable for defamation in the way television
broadcasts are,
some see this as an effort to control political
discourse on
the Internet. Others see a commercial angle aimed
at limiting
the video and TV available on the Internet as
Mediaset moves
into the Internet Protocol Television (IPTV)
market.
Alessandro Gilioli, who writes a blog for the
liberal weekly
magazine Espresso wrote "It's the Berlusconi
method: Kill
your potential enemies while they are small. That's
why
anyone doing Web TV -- even from their attic at
home -- must
get ministerial approval and fulfill a host of
other
bureaucratic obligations."
¶8. (SBU) AGCOM
would have the authority to enforce the law.
Among the authority's powers would be the ability
to block
traffic into Italy of sites whose content did not
meet the
requirements of the law. For example, YouTube
could be
blocked because the content was not uploaded with
government
approval. AGCOM would also be able to levy fines
of up to
150,000 euros against foreign companies violating
the law.
Though AGCOM is theoretically an independent
agency, many
fear that it may not be strong enough to resist
political
pressure.
- - - - - - - - - - -
ADVERTISING CEILINGS
- - - - - - - - - - -
¶9. (C) The bill
would place limits on advertising on pay-TV
channels that exceed the EU directive. It would
reduce the
EU ceiling of 20% to 12% in Italy by 2012. The
provision
would penalize Sky in particular. Some argue that
the
measure is designed to favor PM Berlusconi's
free-to-air
Mediaset channels, which would not be subject to
the limit.
Mediaset's pay channels would be subject to the
advertising
ceiling, but Mediaset's channels currently have
less than 12%
each hour dedicated to ads. In addition, reducing
the
overall possibility to advertise on pay-TV would
push
advertising towards free channels operated by
Mediaset and by
the Italian state network RAI. Busetto said this
would allow
Berlusconi to earn more money and also to exercise
greater
control of public information.
- - - - - - - - -
ADULT CONTENT
- - - - - - - - -
¶10. (SBU) The
bill places stringent time restrictions on
broadcasting of so-called "adult content,"
virtually
prohibiting it between 7 a.m. and 11 p.m. Pay
channels such
as those offered by Sky would be subject to the
restrictions;
it appears pay-per-view content would be as well.
Because
they obtain a significant part of their income
from pay adult
content, pay-TV would suffer financially from this
restriction. The bill would limit broadcast of any
film
rated for viewers above age 14 to after 10:30 p.m.
One press
report said this would make films such as Saturday
Night
Fever unavailable until late-night. Again, some
opponents
worry that the objective is to hurt Mediaset's
competition.
- - - - - - - -
EU OPINION
- - - - - - - -
¶11. (U)
Opinion at the EU appears to be conflicting.
According to press reports, the EU is threatening
to start an
infraction procedure against Italy for failing to
swiftly
implement the media directive. At the same time,
other press
reports say the restrictions in the Italian bill
would
likely violate the EU e-commerce directive.
- - - - - - -
ROME 00000125 003 OF 003
COMMENT
- - - - - - -
¶12. (C) In
official statements the government insists the
bill is in no way intended to stifle free speech.
Opponents
are vocal and using alarmist language, but outside
of telecom
industries their numbers appear to be small. There
has been
no visible public outrage, and even Beppe Grillo,
a public
personality usually outspoken about government
regulation,
especially that involving the Internet, has said
very little.
¶13. (C) After
Berlusconi was attacked in Milan in December
and a Facebook fan page for his attacker quickly
amassed
fans, the GOI expressed the need for regulation of
social
networking sites. At that time, Romani said the
government
would work with ISPs and sites to develop a method
of
self-regulation and that there would be no attempt
to
legislate internet content. Despite Romani's prior
statements, this bill appears to have been written
to give
the government enough leeway to block or censor
any Internet
content it deems defamatory or to be encouraging
criminal
activity.
¶14. (C) For
years, the USG has urged the GOI to take action
to protect copyrighted material on the Internet,
in
particular encouraging the establishment of clear
notice-and-takedown procedures and cooperation
among rights
holders and ISPs to prevent illegal filesharing.
Italy has
done very little. Now, this bill skips over
collaboration,
and suddenly moves directly to very stern
regulation. In
light of its reluctance to take action on this
issue in the
past, and also given the many commercial
advantages that this
law appears to give Mediaset and state TV, the GOI
claim that
Internet provisions of this law are aimed at
copyright
protection alone are suspect.
¶15. (C) In all
liklihood, if this bill were to become law as
it is currently written, little would change
immediately in
the way Internet sites operate in Italy, and the
average 11th
grader uploading video to his blog would never be
targeted
for legal action. It would, however, provide a
basis for
legal actions against media operators that proved
to be
commercial or political competition for government
figures.
Over the last three years we have seen several GOI
efforts to
exert control over the Internet, including one
infamous
effort to require bloggers to obtain GOI
journalism licenses.
¶16. (C)
Advocates of Internet freedom have repeatedly
warned
us that Italy's traditional elites -- on both
sides of the
political spectrum -- are very uncomfortable with
the
Internet's ability to bypass the traditional media
that they
control. Becasue this new bill seems to address
these kinds
of concerns, and because it also serves
Berlusconi's business
interests, it is conceivable that this seemingly
improbable
legislation might actually come into force in
Italy. We note
that officers from SKY have told us that Deputy
GOI Minister
Romani (for whom the new bill is named) has been
leading
efforts within the GOI to help Berlusconi's
Mediaset and to
put SKY at a disadvantage. This represents a
familiar
pattern: Berslusoni and Mediaset have been using
government
power in this way ever since the days of Prime
Minister
Bettino Craxi. In addition, this bill would set
precidents
that nations such as china could copy or cite as
justification for their own crackdowns on free
speech.
THORNE
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