GME3: Manssur is Missing!, Pay Is Not Okay, and A Bad Apple?

In this week’s edition of the GME3 we’re looking at the sudden departure of special advisor to Brazil’s Ministry of Finance José Francisco Manssur in the leadup to the launch of their regulated sports betting market, a critical privacy decision related to Meta’s “Pay or Okay” regime in Europe, and a potentially huge fine levied against Apple for anti-competitive practices. Read the full stories below!

Gambling

Manssur is Missing!

In the leadup to the launch of Brazil’s regulated gambling regime, the Ministry of Finance has confirmed that special advisor José Francisco Manssur has resigned from his post. Manssur played a significant role in drafting Bill No. 3,626/2023, the piece of legislation which allows Brazil to create their licensed betting marketplace in the first place.

Only weeks ago Manssur took to the stage at ICE 2024 to deliver an update on Brazil’s status. The plan, as Manssur described it, is to open up the first round of registration in March, with a second registration window scheduled to occur between October and December 2024. One more registration window is planned, with the start and end dates still to be determined. Manssur noted that operators will not be required to start collecting taxes, set at 12% of gross revenue, until that first window begins. To qualify for the first round of registration operators must have presented a (non-binding) expression of interest to the Brazillian government, with 134 total operators opting to do so. Operators who have passed on the opportunity to do so will have to wait for the first round of registration to be completed.

It’s currently unclear why Manssur decided to leave his position. Some Brazillian news sources are reporting that his departure is due to a disagreement over the final measures of the new betting regime. Allegedly, Mansur clashed with the Brazillian legal coalition Centrão over the establishment of the Secretariat of Prizes and Betting. Led by Arthur Lira, Centrão is arguing that the distribution of new tax revenue from sports betting should be decided by the Ministry of Sport, while the Ministry of Finance is angling for a fixed distribution model.

The Ministry of Finance had this to say about Manssur’s departure:

“Manssur was at the forefront of drafting the set of rules for regulating the fixed-odd betting sector in Brazil. The process was conducted throughout 2023 and concluded in December, after the approval of the new legislation by the National Congress and the sanction by the Presidency of the Republic.”

Regardless of his departure, as far as we know the Brazilian market is still expected to launch in the coming months. Stay tuned for any more information that may come to light as we approach the first round of registration next month!

Media

Pay Is Not Okay

The European Data Protection Board (EDPB) will soon be issuing a critical decision regarding privacy protections on the Internet. This case is related to Meta’s “Pay or Okay” approach to data collection and advertising that they instituted in November of 2023. Under this regime, European users of Meta apps like Facebook and Instagram must pay an annual privacy fee of €251.88 or else consent to having their data and analytics tracked. This approach was implemented after July 2023, when the European Court of Justice declared Meta’s handling of user data illegal.

As a result of this, data protection authorities from Norway, Germany, and the Netherlands have requested for the EDPB to step in and provide a binding opinion on the legality of the new approach. They argue that forcing people to pay a, rather significant, fee to protect their fundamental right to privacy goes against European laws, which state that users must have a “free and genuine choice” to opt of out data collection.

28 European civil rights organizations, including Wikimedia Europe, Bits of Freedom, and the Norwegian Consumer Council, have also banded together to urge the EDPB to reject this new policy. The concern is that, if the EDPB were to approve the Pay or Okay approach, then there would be nothing to stop other companies and social media platforms from following their lead. This, some argue, would lead to the end of “genuine consent” to the access to and use of Europeans’ data.

Entertainment

A Bad Apple?

Apple is potentially facing a fine of up to €500 million in the EU for overly restricting access to music streaming services. They are accused of blocking music streaming platforms (like Spotify) from advertising cheaper subscription fees outside of the Apple app store, where Apple takes a significant chunk of the revenue.

This action originated in 2019, when Spotify filed a complaint with the EU, claiming that Apple, by charging a 30% fee on all purchases, was limiting choice and competition. On top of this, Apple prevented streamers from advertising that users could sign up directly on the Spotify website for cheaper.

Apple argues that, due to the amount of work that they put into maintaining the app store, the 30% fee is justified. But, since Apple Music does not face the same extra costs, the approach gives Apple an advantage.

According to the Financial Times, the European Commission will likely deem Apple’s actions illegal under European competition laws, and may even ban the practice of blocking music services from advertising cheaper subscriptions.