Web giants attack government over Digital Economy Bill

Web firms are worried the proposed changes could stifle innovation

Four leading web firms have today sent an open letter to Lord Mandelson urging him to remove Section 17 from the proposed Digital Economy Bill.

Google, Yahoo, Facebook and eBay have all signed the letter in which they express concerns over the clause that would give any future secretary of state the ability to change copyright laws.

They say the clause gives, "any future Secretary of State unprecedented and sweeping powers to amend the law which could open the way for arbitrary measures ".

"These powers could be used, for example, to introduce additional technical measures or increase monitoring of user data even where no illegal practice has taken place," the letter continues.

The firms also say Section 17 could discourage innovation, stifle innovation and damage the government's vision for a Digital Britain.

"We all acknowledge that new business models need to emerge to support creative content," they wrote in the letter.

"They are inherently risky and entrepreneurs rely heavily on there being a consistent and stable approach to copyright enforcement. This clause would inject an unprecedented level of uncertainty in this regard."

The letter ends by attacking the Digital Economy Bill for missing an opportunity to provide "a clear, workable set of principles by which the industry could operate in" and instead creating "uncertainty for consumers and businesses and putting the UK's leading position in a digital Europe at risk."

However, a spokesperson for The Department for Business, Innovation and Skills (BIS) said, "There are constraints on how the power (Section 17) can be used, with requirements for a consultation and votes in both houses of parliament before anything can happen."

"Business will not wake up one morning to a world in which the government has taken extensive digital powers."

The Digital Economy Bill is going through its second reading in the House of Lords today.