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!

Cloudflare outage disrupts leading crypto platforms

Cloudflare experienced a significant network outage on Tuesday, which disrupted access to major cryptocurrency platforms, including Coinbase, Kraken, Etherscan, and several DeFi services, resulting in widespread ‘500 Internal Server Error’ messages.

The company acknowledged the issue as an internal service degradation across parts of its global network and began rolling out a fix. However, users continued to face elevated error rates during the process.

Major Bitcoin and Ethereum platforms, as well as Aave, DeFiLlama, and several blockchain explorers, were impacted. The disruption spread beyond crypto, affecting several major Web2 platforms, while services like BlueSky and Reddit stayed fully operational.

Cloudflare shares dropped 3.5% in pre-market trading as the company investigated whether scheduled maintenance at specific data centres played any role.

The incident marks the third significant Cloudflare disruption affecting crypto platforms since 2019, highlighting the industry’s ongoing reliance on centralised infrastructure providers despite its focus on decentralisation.

Industry experts pointed to recent outages from Cloudflare and Amazon Web Services as evidence that critical digital services cannot rely solely on a single vendor for reliability. Kraken restored access ahead of many peers, while Cloudflare stated that the issue was resolved and would continue to monitor for full stability.

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!

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

UK uses AI to fight drug-resistant infections

The UK is harnessing AI to combat the growing threat of drug-resistant infections, a crisis often called ‘the silent pandemic’. The Fleming Initiative and GSK will invest £45m in AI research to speed up new antibiotics and combat deadly bacteria and fungi.

The project targets Gram-negative bacteria, such as E. coli and Klebsiella, which resist treatment due to their protective outer layers. Researchers will test different molecules and use AI to identify which can penetrate and persist in these bacteria.

The goal is to shorten years of laboratory work into rapid computational predictions that guide the design of effective antibiotics.

AI will predict how resistant infections emerge and spread, helping scientists anticipate threats early. The initiative will also target deadly fungal infections, such as Aspergillus, which threaten people with weakened immune systems.

Experts hope the approach can outpace bacterial evolution and reduce the human toll from untreatable infections. Fleming Initiative director Alison Holmes emphasised the vital role of antibiotics in modern medicine and warned that overuse has squandered this critical resource.

Tony Wood, GSK’s chief scientific officer, said the project will open new avenues for discovering antibiotics while anticipating resistance, transforming the treatment and prevention of serious infections worldwide.

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

Bitcoin edges into yearly losses as volatility rises

Bitcoin has slipped into negative territory for the year after a sharp retreat that pushed the price below $90,000 for the first time in seven months. The cryptocurrency has now fallen more than 28% from its peak above $126,000, erasing over $600 billion in market value.

Investors have been rotating out of speculative assets, with concerns around potential Federal Reserve decisions adding to the risk-off sentiment.

Market analysts note that long-term holders have been taking profits following the extraordinary rally that carried Bitcoin to new records in October. Uncertainty around monetary policy, tightening liquidity, and broader macroeconomic pressures have fuelled the downturn.

The impact of the October flash crash, triggered by renewed US-China trade tensions, continues to weigh heavily as thinner order books leave Bitcoin more vulnerable to abrupt price swings.

Bitcoin had rallied strongly throughout the year, supported by optimism over pro-crypto policies under President Donald Trump and the rollout of new digital-asset regulations. Yet the cryptocurrency has now surrendered its gains, underperforming major benchmarks such as the S&P 500 and gold.

Analysts say the market is approaching a pivotal moment, with some fearing a deeper reset while others view the current consolidation as an opportunity for strategic accumulation.

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

Eurofiber France confirms the major data breach

The French telecommunications company Eurofiber has acknowledged a breach of its ATE customer platform and digital ticket system after a hacker accessed the network through software used by the company.

Engineers detected the intrusion quickly and implemented containment measures, while the company stressed that services remained operational and banking data stayed secure. The incident affected only French operations and subsidiaries such as Netiwan, Eurafibre, Avelia, and FullSave, according to the firm.

Security researchers instead argue that the scale is far broader. International Cyber Digest reported that more than 3,600 organisations may be affected, including prominent French institutions such as Orange, Thales, the national rail operator, and major energy companies.

The outlet linked the intrusion to the ransomware group ByteToBreach, which allegedly stole Eurofiber’s entire GLPI database and accessed API keys, internal messages, passwords and client records.

A known dark web actor has now listed the stolen dataset for sale, reinforcing concerns about the growing trade in exposed corporate information. The contents reportedly range from files and personal data to cloud configurations and privileged credentials.

Eurofiber did not clarify which elements belonged to its systems and which originated from external sources.

The company has notified the French privacy regulator CNIL and continues to investigate while assuring Dutch customers that their data remains safe.

A breach that underlines the vulnerability of essential infrastructure providers across Europe, echoing recent incidents in Sweden, where a compromised IT supplier exposed data belonging to over a million people.

Eurofiber says it aims to strengthen its defences instead of allowing similar compromises in future.

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

EU aviation regulator opens debate on AI oversight and safety

EASA has issued its first regulatory proposal on AI in aviation, opening a three-month consultation for industry feedback. The draft focuses on trustworthy, data-driven AI systems and anticipates applications ranging from basic assistance to human–AI teaming.

The move comes amid wider criticism of EU AI rules from major tech firms and political leaders. Aviation stakeholders are now assessing whether compliance costs and operational demands could slow development or disrupt competitive positioning across the sector.

Experts warn that adapting to the framework may require significant investment, particularly for companies with limited resources. Others may accelerate AI adoption to preserve market advantage, especially where safety gains or efficiency improvements justify rapid deployment.

EASA stresses that consultation is essential to balance strict assurance requirements with the flexibility needed for innovation. Privacy and personal data issues remain contentious, shaping expectations for acceptable AI use in safety-critical environments.

Meanwhile, Airbus is pushing to reach 75 A320-family deliveries per month by 2027, driven by the A321neo’s strong order book. In parallel, Mitsui OSK Lines continues to lead the global LNG carrier market, reflecting broader momentum across adjacent transport sectors.

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

Deepfakes surge as scammers exploit AI video tools

Experts warn online video is entering a perilous new phase as AI deepfakes spread. Analysts say totals climbed from roughly 500,000 in 2023 to eight million in 2025.

Security researchers say deepfake scams have risen by more than 3,000 percent recently. Studies also indicate humans correctly spot high-quality fakes only around one in four times. People are urged to question surprising clips, verify stories elsewhere and trust their instincts.

Video apps such as Sora 2 create lifelike clips that fraudsters reuse for scams. Sora passed one million downloads and later tightened rules after racist deepfakes of Martin Luther King Jr.

Specialists at Outplayed suggest checking eye blinks, mouth movements and hands for subtle distortions. Inconsistent lighting, unnaturally smooth skin or glitching backgrounds can reveal manipulated or AI-generated video.

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

New report warns retailers are unprepared for AI-powered attacks

Retailers are entering the peak shopping season amid warnings that AI-driven cyber threats will accelerate. LevelBlue’s latest Spotlight Report says nearly half of retail executives are already seeing significantly higher attack volumes, while one-third have suffered a breach in the past year.

The sector is under pressure to roll out AI-driven personalisation and new digital channels, yet only a quarter feel ready to defend against AI attacks. Readiness gaps also cover deepfakes and synthetic identity fraud, even though most expect these threats to arrive soon.

Supply chain visibility remains weak, with almost half of executives reporting limited insight into software suppliers. Few list supplier security as a near-term priority, fuelling concern that vulnerabilities could cascade across retail ecosystems.

High-profile breaches have pushed cybersecurity into the boardroom, and most retailers now integrate security teams with business operations. Leadership performance metrics and risk appetite frameworks are increasingly aligned with cyber resilience goals.

Planned investment is focused on application security, business-wide resilience processes, and AI-enabled defensive tools. LevelBlue argues that sustained spending and cultural change are required if retailers hope to secure consumer trust amid rapidly evolving threats.

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