Competition regulation

EU introduces plan to strengthen consumer protection

The European Commission has unveiled the 2030 Consumer Agenda, a strategic plan to reinforce protection, trust, and competitiveness across the EU.

With 450 million consumers contributing over half of the Union’s GDP, the agenda aims to simplify administrative processes for businesses, rather than adding new burdens, while ensuring fair treatment for shoppers.

The agenda sets four priorities to adapt to rising living costs, evolving online markets, and the surge in e-commerce. Completing the Single Market will remove cross-border barriers, enhance travel and financial services, and evaluate the effectiveness of the Geo-Blocking Regulation.

A planned Digital Fairness Act will address harmful online practices, focusing on protecting children and strengthening consumer rights.

Sustainable consumption takes a central focus, with efforts to combat greenwashing, expand access to sustainable goods, and support circular initiatives such as second-hand markets and repairable products.

The Commission will also enhance enforcement to tackle unsafe or non-compliant products, particularly from third countries, ensuring that compliant businesses are shielded from unfair competition.

Implementation will be overseen through the Annual Consumer Summit and regular Ministerial Forums, which will provide political guidance and monitor progress.

The 2030 Consumer Agenda builds on prior achievements and EU consultations, aiming to modernise consumer protection instead of leaving gaps in a rapidly changing market.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Sundar Pichai warns users not to trust AI tools easily

Google CEO Sundar Pichai advises people not to unquestioningly trust AI tools, warning that current models remain prone to errors. He told the BBC that users should rely on a broader information ecosystem rather than treat AI as a single source of truth.

Pichai said generative systems can produce inaccuracies and stressed that people must learn what the tools are good at. The remarks follow criticism of Google’s own AI Overviews feature, which attracted attention for erratic and misleading responses during its rollout.

Experts say the risk grows when users depend on chatbots for health, science, or news. BBC research found major AI assistants misrepresented news stories in nearly half of the tests this year, underscoring concerns about factual reliability and the limits of current models.

Google is launching Gemini 3.0, which it claims offers stronger multimodal understanding and reasoning. The company says its new AI Mode in search marks a shift in how users interact with online information, as it seeks to defend market share against ChatGPT and other rivals.

Pichai says Google is increasing its investment in AI security and releasing tools to detect AI-generated images. He maintains that no single company should control such powerful technology and argues that the industry remains far from a scenario in which one firm dominates AI development.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Europe’s digital sovereignty advances through SAP’s new AI collaborations

SAP has announced new partnerships with Bleu, Capgemini, and Mistral AI to advance Europe’s digital sovereignty. The collaboration combines SAP’s expertise in enterprise software with France’s AI ecosystem to develop secure, scalable, and sovereign cloud solutions for governments and regulated sectors.

Bleu and Delos Cloud have established a Franco-German alliance focused on crisis resilience, creating joint capabilities for early detection, analysis, and remediation of cyber incidents. Their cooperation supports rapid response in extreme scenarios and reinforces control over critical infrastructure.

SAP and Capgemini are expanding their partnership to advance sovereign agentic AI and strengthen cybersecurity across Europe. Their new Sovereign Technology Partnership will deliver data management, cloud services, and automation tools for public and regulated sectors.

SAP and Mistral AI are also deepening their collaboration to create Europe’s first full sovereign AI stack. SAP will offer Mistral’s frontier models through its sovereign AI foundation on SAP BTP, while both companies co-develop industry-specific AI applications designed for engineering and R&D workloads.

These partnerships form part of SAP’s broader sovereign cloud strategy, backed by more than €20bn in investment. SAP states that its aim is to provide a secure, compliant, and locally controlled infrastructure that enables innovation while safeguarding European data, assets, and long-term technological independence.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Meta wins antitrust case over monopoly claims

Meta has defeated a major antitrust challenge after a US federal judge ruled it does not currently hold monopoly power in social networking. The decision spares the company from being forced to separate Instagram and WhatsApp, which regulators had argued were acquired to suppress competition.

The judge found the Federal Trade Commission failed to prove Meta maintains present-day dominance, noting that the market has been reshaped by rivals such as TikTok. Meta argued it now faces intense competition across mobile platforms as user behaviour shifts rapidly.

FTC lawyers revisited internal emails linked to Meta’s past acquisitions, but the ruling emphasised that the case required proof of ongoing violations.

Analysts say the outcome contrasts sharply with recent decisions against Google in search and advertising, signalling mixed fortunes for large tech firms.

Industry observers note that Meta still faces substantial regulatory pressure, including upcoming US trials regarding children’s mental health and questions about its heavy investment in AI.

The company welcomed the ruling and stated that it intends to continue developing products within a competitive market framework.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

UAE unveils first regulated AED-backed stablecoin

The UAE has taken a major step in its digital finance strategy as the Central Bank of the UAE approved Zand to launch Zand AED, the nation’s first regulated, multi-chain AED-backed stablecoin. The new asset places the dirham on global blockchain rails under the oversight of a fully licensed bank.

Zand AED is fully backed by reserves in regulated accounts, with real-time transparency through independently audited smart contracts and attestations.

Being available on multiple public blockchains enables fast cross-border settlement and simpler integration for developers, enterprises, and financial institutions.

Zand leadership described the launch as a significant advancement for the UAE’s position in global financial innovation. They highlighted that Zand AED bridges traditional and decentralised finance, enabling payments, tokenisation, and digital asset applications.

Analysts expect the global stablecoin market to expand to trillions, and Zand AED positions the UAE as a leading hub for regulated digital finance. The stablecoin offers a secure, scalable foundation for institutions and FinTechs in a leading global financial ecosystem.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

EU examines Amazon and Microsoft influence in cloud services

European regulators have launched three market investigations into cloud computing amid growing concerns about sector concentration.

The European Commission will assess whether Amazon Web Services and Microsoft Azure should be designated as gatekeepers for their cloud services under the Digital Markets Act, despite not meeting the formal threshold criteria.

Officials argue that cloud infrastructure now underpins AI development and many digital services, so competition must remain open and fair.

A move that signals a broader shift in EU oversight of strategic technologies. Rather than focusing solely on size, investigators will examine whether the two providers act as unavoidable gateways between businesses and users.

They will analyse network effects, switching costs and the role of corporate structures that might deepen market dominance. If the inquiries confirm gatekeeper status, both companies will face the DMA’s full obligations and a six-month compliance period.

A parallel investigation will explore whether existing DMA rules adequately address cloud-specific risks that might limit competition. Regulators aim to clarify whether obstacles to interoperability, restricted access to data, tying of services and imbalanced contractual terms require updated obligations.

Insights gathered from industry, public bodies and civil society will feed into a final report within 18 months, potentially leading to changes via a delegated act.

EU officials underline that Europe’s competitiveness, technological resilience and future AI capacity rely on a fair cloud environment. They argue that a transparent and contestable market will strengthen Europe’s strategic autonomy and encourage innovation.

The inquiries will shape how digital platforms are regulated as cloud services become increasingly central to economic and social life.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

AI search tools put to the test in UK study

AI tools are shaping online searches, but testing reveals notable risks in relying on them. ChatGPT, Google Gemini, Microsoft Copilot, Meta AI, and Perplexity were tested on 40 questions in finance, law, health, and consumer rights.

Results show errors, incomplete advice, and ethical oversights remain widespread despite AI’s popularity.

More than half of UK adults now use AI for online searches, with frequent users showing higher trust in the responses. Around one in ten regularly seeks legal advice from AI, while others use it for financial or medical guidance.

Experts warn that overconfidence in AI recommendations could lead to costly mistakes, particularly when rules differ across regions in the UK.

Perplexity outperformed other tools in accuracy and reliability, while ChatGPT ranked near the bottom. Google’s AI overview (AIO) often delivers better results for legal and health queries, while its Gemini chatbot scores higher on finance and consumer questions.

Users are encouraged to verify sources, as many AI outputs cite vague or outdated references and occasionally promote questionable services.

Despite flaws, AI remains a valuable tool for basic research, summarising information quickly and highlighting key points. Experts advise using multiple AI tools and consulting professionals for complex financial, legal, or medical matters.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Microsoft and NVIDIA expand partnership with Anthropic

Microsoft, NVIDIA, and Anthropic have announced new strategic partnerships to expand access to Anthropic’s rapidly growing Claude AI models. Claude will scale on Microsoft Azure with NVIDIA support, offering enterprise customers broader model choices and enhanced capabilities.

Anthropic has committed to purchase $30 billion of Azure compute capacity and additional capacity up to one gigawatt. NVIDIA and Anthropic will optimise Claude models for performance, efficiency, and cost, while aligning future NVIDIA architectures with Anthropic workloads.

The partnerships also extend Claude access across Microsoft Foundry, including frontier models like Claude Sonnet 4.5, Claude Opus 4.1, and Claude Haiku 4.5.

Microsoft Copilot products, including GitHub Copilot, Microsoft 365 Copilot, and Copilot Studio, will continue to feature Claude capabilities, providing enterprise users with integrated AI tools.

Microsoft and NVIDIA have committed $5 billion and $10 billion respectively to support Anthropic’s growth. The partnership makes Claude the only frontier AI model on all three top cloud platforms, boosting enterprise AI adoption and innovation.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Old laws now target modern tracking technology

Class-action privacy litigation continues to grow in frequency, repurposing older laws to address modern data tracking technologies. Recent high-profile lawsuits have applied the California Invasion of Privacy Act and the Video Privacy Protection Act.

A unanimous jury verdict recently found Meta Platforms violated CIPA Section 632 (which is now under appeal) by eavesdropping on users’ confidential communications without consent. The court ruled that Meta intentionally used its SDK within a sexual health app, Flo, to intercept sensitive real-time user inputs.

That judgement suggests an electronic device under the statute need not be physical, with a user’s phone qualifying as the requisite device. The legal success in these cases highlights a significant, rising risk for all companies utilising tracking pixels and software development kits (SDKs).

Separately, the VPPA has found new power against tracking pixels in the case of Jancik v. WebMD concerning video-viewing data. The court held that a consumer need not pay for a video service but can subscribe by simply exchanging their email address for a newsletter.

Companies must ensure their privacy policies clearly disclose all such tracking conduct to obtain explicit, valid consent. The courts are taking real-time data interception seriously, noting intentionality may be implied when a firm fails to stem the flow of sensitive personally identifiable information.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Berlin summit links digital strategy to wider European security

German Chancellor Friedrich Merz and French President Emmanuel Macron will host a Berlin summit to reduce Europe’s reliance on US tech platforms and to shape a more independent EU digital strategy. The meeting coincides with planned revisions to EU AI and data rules.

The push for digital independence reflects growing concern that Europe risks falling behind the US in strategic technologies. Leaders argue that regulatory changes must support competitiveness while maintaining core privacy and safety principles.

Germany is also hosting a two-day European security conference in Berlin, featuring German Defence Minister Boris Pistorius. The parallel agendas highlight how digital strategy and geopolitical security are increasingly linked in EU policy debates.

The German foreign minister, Johann Wadephul, has meanwhile backed the EU enlargement in the Western Balkans during a visit to Montenegro, signalling continued geopolitical outreach alongside internal reforms.

The Berlin discussions are expected to shape Europe’s stance ahead of upcoming AI and data proposals, setting the tone for broader talks on industrial policy, technology sovereignty, and regional security.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!