Competition regulation

Council presidency launches talks on AI deepfakes and cyberattacks

EU member states are preparing to open formal discussions on the risks posed by AI-powered deepfakes and their use in cyberattacks, following an initiative by the current Council presidency.

The talks are intended to assess how synthetic media may undermine democratic processes and public trust across the bloc.

According to sources, capitals will also begin coordinated exchanges on the proposed Democracy Shield, a framework aimed at strengthening resilience against foreign interference and digitally enabled manipulation.

Deepfakes are increasingly viewed as a cross-cutting threat, combining disinformation, cyber operations and influence campaigns.

The timeline set out by the presidency foresees structured discussions among national experts before escalating the issue to the ministerial level. The approach reflects growing concern that existing cyber and media rules are insufficient to address rapidly advancing AI-generated content.

An initiative that signals a broader shift within the Council towards treating deepfakes not only as a content moderation challenge, but as a security risk with implications for elections, governance and institutional stability.

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AI-driven semiconductor expansion continues despite market doubts

The pace of the AI infrastructure boom continues to accelerate, with semiconductor supply chains signalling sustained long-term demand.

NVIDIA remains the most visible beneficiary as data centre investment drives record GPU purchases, yet supplier activity further upstream suggests confidence extends well beyond a single company.

ASML, the Dutch firm that exclusively supplies extreme ultraviolet lithography equipment, has emerged as a critical indicator of future chip production.

Its machines are essential for advanced semiconductor manufacturing, meaning strong performance reflects expectations of high chip volumes across the industry rather than short-term speculation. Quarterly earnings underline that momentum.

ASML reported €32.7 billion in net sales, while new bookings reached a record €13 billion, more than double the previous quarter.

New orders reflect how much capacity manufacturers expect to need, pointing to sustained expansion driven by anticipated AI workloads.

Company leadership attributed the surge directly to AI-related demand, with customers expressing growing confidence in the durability of data centre investment.

While order fulfilment will take years and some plans may change, industry signals suggest a slowdown in AI infrastructure spending is not imminent.

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Google faces new UK rules over AI summaries and publisher rights

The UK competition watchdog has proposed new rules that would force Google to give publishers greater control over how their content is used in search and AI tools.

The Competition and Markets Authority (CMA) plans to require opt-outs for AI-generated summaries and model training, marking the first major intervention under Britain’s new digital markets regime.

Publishers argue that generative AI threatens traffic and revenue by answering queries directly instead of sending users to the original sources.

The CMA proposal would also require clearer attribution of publisher content in AI results and stronger transparency around search rankings, including AI Overviews and conversational search features.

Additional measures under consultation include search engine choice screens on Android and Chrome, alongside stricter data portability obligations. The regulator says tailored obligations would give businesses and users more choice while supporting innovation in digital markets.

Google has warned that overly rigid controls could damage the user experience, describing the relationship between AI and search as complex.

The consultation runs until late February, with the outcome expected to shape how AI-powered search operates in the UK.

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Job cuts signal Pinterest’s deeper shift toward AI-powered products

Pinterest is cutting under 15% of its workforce as part of a broader restructuring aimed at shifting more investment toward AI-driven products and roles.

In a regulatory filing, the company said the changes are designed to support transformation initiatives, including reallocating resources to AI-focused teams and reshaping its sales and go-to-market strategy.

The restructuring will also include reductions in office space, with completion targeted for the end of September and expected pre-tax charges ranging from $35 million to $45 million.

Pinterest had around 5,200 employees at the end of last year, meaning the layoffs will affect several hundred staff as the platform accelerates its AI integration.

Recent launches such as AI-powered board updates and the Pinterest Assistant shopping tool reflect a wider trend across the tech sector, where companies are trimming headcount while expanding AI investment.

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The UK labour market feels a sharper impact from AI use

Companies are reporting net job losses linked to AI adoption, with research showing a sharper impact than in other major economies. A Morgan Stanley survey found that firms using the technology for at least a year cut more roles than they created, particularly across the UK labour market.

The study covered sectors including retail, real estate, transport, healthcare equipment and automotive manufacturing, showing an average productivity increase of 11.5% among UK businesses. Comparable firms in the United States reported similar efficiency gains but continued to expand employment overall.

Researchers pointed to higher operating costs and tax pressures as factors amplifying the employment impact in Britain. Unemployment has reached a four-year high, while increases in the minimum wage and employer national insurance contributions have tightened hiring across industries.

Public concern over AI-driven displacement is also rising, with more than a quarter of UK workers fearing their roles could disappear within five years, according to recruitment firm Randstad. Younger workers expressed the highest anxiety, while older generations showed greater confidence in adapting.

Political leaders warn that unmanaged AI-driven change could disrupt labour markets. London mayor Sadiq Khan said the technology may cut many white-collar jobs, calling for action to create replacement roles.

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EU classifies WhatsApp as Very Large Online Platform

WhatsApp has been formally designated a Very Large Online Platform under the EU Digital Services Act, triggering the bloc’s most stringent digital oversight regime.

The classification follows confirmation that the messaging service has exceeded 51 million monthly users in the EU, triggering enhanced regulatory scrutiny.

As a VLOP, WhatsApp must take active steps to limit the spread of disinformation and reduce risks linked to the manipulation of public debate. The platform is also expected to strengthen safeguards for users’ mental health, with particular attention placed on the protection of minors and younger audiences.

The European Commission will oversee compliance directly and may impose financial penalties of up to 6 percent of WhatsApp’s global annual turnover if violations are identified. The company has until mid-May to align its systems, policies and risk assessments with the DSA’s requirements.

WhatsApp joins a growing list of major platforms already subject to similar obligations, including Facebook, Instagram, YouTube and X. The move reflects the Commission’s broader effort to apply the Digital Services Act across social media, messaging services and content platforms linked to systemic online risks.

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France proposes EU tools to map foreign tech dependence

France has unveiled a new push to reduce Europe’s dependence on US and Chinese technology suppliers, placing digital sovereignty back at the centre of the EU policy debates.

Speaking in Paris, France’s minister for AI and digital affairs, Anne Le Hénanff, presented initiatives to expose and address the structural reliance on non-EU technologies across public administrations and private companies.

Central to the strategy is the creation of a Digital Sovereignty Observatory, which will map foreign technology dependencies and assess organisational exposure to geopolitical and supply-chain risks.

The body, led by former Europe minister Clément Beaune, is intended to provide the evidence base needed for coordinated action rather than symbolic declarations of autonomy.

France is also advancing a Digital Resilience Index, expected to publish its first findings in early 2026. The index will measure reliance on foreign digital services and products, identifying vulnerabilities linked to cloud infrastructure, AI, cybersecurity and emerging technologies.

Industry data suggests Europe’s dependence on external tech providers costs the continent hundreds of billions of euros annually.

Paris is using the initiative to renew calls for a European preference in public-sector digital procurement and for a standard EU definition of European digital services.

Such proposals remain contentious among member states, yet France argues they are essential for restoring strategic control over critical digital infrastructure.

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UK banks block large share of crypto transfers, report finds

UK banks are blocking or delaying close to 40% of payments to cryptocurrency exchanges, sharply increasing customer friction and slowing market growth, according to a new industry report.

Around 80% of surveyed exchanges reported rising payment disruptions, while 70% described the banking environment as increasingly hostile, discouraging investment, hiring, and product launches in the UK.

The survey of major platforms, including Coinbase, Kraken, and Gemini, reveals widespread and opaque restrictions across bank transfers and card payments. One exchange reported nearly £1 billion in declined transactions last year, citing unclear rejection reasons despite FCA registration.

Several high-street and digital banks maintain outright blocks, while others impose strict transaction caps. The UK Cryptoasset Business Council warned that blanket debanking practices could breach existing regulations, including those on payment services, consumer protection, and competition.

The council urged the FCA and government to enforce a risk-based approach, expand data sharing, and remove unnecessary barriers as the UK finalises its long-term crypto framework.

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Europe rethinks dependence on US Big Tech

Rising transatlantic tensions have reignited concerns over Europe’s heavy reliance on US Big Tech, exposing vulnerabilities across cloud services, AI, and digital infrastructure.

European lawmakers are increasingly pushing for homegrown alternatives, warning that excessive dependence on a small group of foreign providers threatens economic resilience, public services, and technological sovereignty.

European Parliament data shows over 80 percent of the EU’s digital products and infrastructure come from outside the bloc, with US firms dominating cloud and AI.

Officials warn the concentration increases geopolitical, cyber and supply risks, driving renewed efforts to boost Europe’s digital autonomy and competitiveness.

Initiatives such as Eurostack and rising open-source investment aim to build digital independence, though analysts say real sovereignty could take a decade and vast funding.

While policymakers accept that full decoupling from US technology remains unrealistic, pressure is mounting for governments and public institutions to prioritise European solutions and treat digital infrastructure as a strategic asset.

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Rapid AI growth tests regulation in the Gulf

Gulf states are accelerating AI investment to drive diversification, while regulators struggle to keep pace with rapid technological change. Saudi Arabia, the UAE, and Qatar are deploying AI across key sectors while pursuing regional leadership in digital innovation.

Despite political commitment and large-scale funding, policymakers struggle to balance innovation with risk management. AI’s rapid pace and global reach strain governance, while foreign tech reliance raises sovereignty and security risks.

Corporate influence, intensifying geopolitical competition, and the urgent race to attract foreign capital further complicate oversight efforts, constraining regulators’ ability to impose robust and forward-looking governance frameworks.

With AI increasingly viewed as a source of economic and strategic power, Gulf governments face a narrowing window to establish effective regulatory frameworks before the technology becomes deeply embedded across critical infrastructure.

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