Content Policy Archives | Digital Watch Observatory

EU calls on US tech firms to respect rules on handling staff data

Concerns over data protection have intensified as the European Commission calls on major technology companies to apply the EU standards when handling sensitive staff information linked to digital regulation.

Pressure follows requests from the US House Judiciary Committee seeking access to communications between US firms and the EU officials involved in enforcing laws such as the Digital Services Act and Digital Markets Act.

The EU officials emphasise that formal exchanges with companies take place through official channels, including documented correspondence, rather than informal messaging platforms. Internal communication practices may involve encrypted tools, reflecting growing concerns about data security and external scrutiny.

Debate surrounding the issue reflects wider tensions between the EU and the US over digital governance, privacy protections and regulatory authority. Questions over jurisdiction and access to sensitive communications are likely to remain central as transatlantic tech policy evolves.

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Vera CPU by NVIDIA accelerates large-scale AI workloads

NVIDIA has unveiled the Vera CPU, designed specifically for agentic AI and reinforcement learning. It delivers 50% faster performance and double the energy efficiency, already adopted by Alibaba, Meta, ByteDance, Oracle Cloud, CoreWeave, and Lambda.

Vera features 88 Olympus cores, high-bandwidth memory, and advanced multithreading, supporting large-scale AI deployments. Liquid-cooled racks can host over 22,500 concurrent CPU environments, allowing enterprises and research labs to scale agentic AI efficiently.

The CPU integrates with NVIDIA GPUs via NVLink-C2C and includes ConnectX SuperNIC and BlueField-4 DPUs to enhance networking, storage, and security. Early users like Cursor and Redpanda report major gains in AI agent throughput and real-time data processing.

High performance, energy efficiency, and GPU integration make Vera a new standard for faster, scalable, and responsive AI systems. The platform supports coding assistants, reinforcement learning, and large-scale data, making it suitable for enterprise and scientific use.

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AI agents test limits of EU rules

AI agents are rapidly gaining traction, raising questions about whether existing EU rules can keep pace. Unlike chatbots, these systems can act autonomously and interact with digital tools on behalf of users.

Experts warn that AI agents require deeper access to personal data and online services to function effectively. Regulators in Europe are monitoring potential risks as the technology becomes more integrated into daily life.

Lawmakers are examining whether current legislation, such as the AI Act and GDPR, adequately covers agent-based systems. Legal experts highlight challenges around contracts, liability and accountability when AI acts independently.

Despite concerns, many governments remain reluctant to introduce new rules, citing regulatory fatigue. Policymakers may rely on existing frameworks unless major incidents force a reassessment of AI oversight.

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Publishers challenge OpenAI over alleged copyright infringement

Legal pressure is increasing on OpenAI as Encyclopaedia Britannica and Merriam-Webster file a lawsuit accusing the company of large-scale copyright violations.

According to the complaint, nearly 100,000 copyrighted articles were allegedly used without authorisation to train large language models. Publishers also argue that AI-generated outputs can reproduce parts of their content, raising concerns about unauthorised distribution.

Additional claims focus on how AI systems retrieve and present information. The lawsuit argues that retrieval-augmented generation tools may rely on proprietary databases, potentially undermining publishers’ business models by reducing traffic to original sources.

Concerns are also raised about inaccurate outputs attributed to publishers, which could affect trust in established information providers. The case highlights ongoing tensions between AI development and intellectual property protections.

Growing legal disputes involving media organisations, including The New York Times, suggest that courts will play a key role in defining how copyrighted material can be used in AI training.

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ECA Digital law raises pressure on Big Tech in Brazil

Brazil is set to enforce a new law aimed at strengthening protections for children online, marking a significant shift in how digital platforms are regulated in the country. The legislation, known as ECA Digital, introduces stricter rules for technology companies and will test whether stronger oversight can translate into real-world impact.

The law, which takes effect this week, allows authorities to impose warnings and fines of up to $10 million for violations. In severe cases, courts may order the suspension or banning of platforms operating in B razil. The measure was passed rapidly following public outrage over online content involving the sexualisation of minors.

ECA Digital builds on Brazil’s existing child protection framework and adapts it to the digital environment. It introduces obligations such as age verification, stricter content moderation, and mechanisms to remove harmful material involving minors without requiring a court order.

The law also targets platform design, requiring companies to limit features that may encourage compulsive use among children. This includes restrictions on excessive notifications, profiling for targeted advertising, and design elements that prolong user engagement.

Enforcement of ECA Digital will be led by Brazil’s data protection authority, ANPD, alongside a new screening centre within the Federal Police. However, implementation challenges remain, including limited regulatory capacity and the short timeline between the law’s approval and enforcement.

Experts say the law reflects a broader global trend, with dozens of countries considering similar measures. While technology companies have introduced tools such as age verification and parental controls, critics argue that bigger changes to platform design and content moderation are still needed.

Brazil’s experience may serve as a test case for how governments balance child protection, platform responsibility, and enforcement capacity. The effectiveness of ECA Digital will depend not only on its legal framework but also on how rigorously it is applied in practice.

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xAI faces lawsuit over alleged misuse of AI image generation

Legal action has been filed against xAI in a US federal court, with plaintiffs alleging that its AI system Grok was used to generate harmful and explicitly manipulated images of minors.

The lawsuit claims that xAI failed to implement adequate safeguards to prevent the creation of such content, despite similar protections adopted by other AI developers.

According to the filing, the technology enabled the transformation of real images into explicit material without sufficient restrictions.

Plaintiffs seek to establish a class action, arguing that the company should be held accountable for both direct and third-party uses of its models. Legal arguments focus on whether responsibility extends to external applications built using the same underlying AI systems.

The case also highlights broader regulatory challenges surrounding AI-generated content, particularly the difficulty of preventing misuse when systems can modify real images. Questions around platform liability, safety standards, and enforcement are likely to shape future policy discussions.

Growing scrutiny of AI developers reflects increasing concern over how generative systems are deployed, especially in contexts involving sensitive or harmful content.

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Microsoft Exchange Online outage affects users globally

A service disruption has affected users of Microsoft Exchange Online, and Microsoft has confirmed ongoing investigations into mailbox access issues affecting enterprise customers worldwide.

Reports indicate that Microsoft users encountered difficulties connecting via multiple access points, including the Microsoft Outlook desktop and mobile applications and browser-based email services. The issue affects specific connection methods rather than the entire platform.

Organisations relying on cloud-based communication tools experienced interruptions in email workflows, calendar scheduling, and shared mailbox functionality. Such disruptions can significantly disrupt operational continuity, particularly for businesses that depend on real-time communication systems.

Updates through Microsoft’s service health channels suggest that engineering teams are working to identify the root cause, though no definitive explanation has yet been provided.

Such incidents highlight broader concerns around resilience in cloud infrastructure, as enterprises increasingly depend on centralised platforms for critical communication services.

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EU adopts cyber-related sanctions on companies based in China and Iran

The European Union imposed sanctions on two China-based companies and one Iranian company in connection with cyber operations targeting the EU member states. The Council’s official press release does not specify the underlying operations. The designated entities are Integrity Technology Group and Anxun Information Technology, both based in China, and Emennet Pasargad, based in Iran.

According to an EU statement, Integrity Technology is assessed to have facilitated the compromise of over 65,000 devices across six member states. Anxun is assessed to have provided offensive cyber capabilities targeting critical infrastructure, and two of the company’s co-founders have been individually designated for their roles in these operations.

Emennet is assessed to have a compromised digital advertising infrastructure to disseminate disinformation during the 2024 Paris Olympics.

The sanctions entail an asset freeze and a travel ban for the listed individuals. The EU citizens and entities are additionally prohibited from making funds available to the designated companies.

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Human made labels emerge as industries react to AI expansion

Organisations around the world are developing certification labels designed to show that products or creative work were made by humans rather than AI. New badges such as ‘Human made’, ‘AI free’ and ‘Proudly Human’ are appearing across books, films, marketing and websites as industries respond to the rapid spread of AI tools.

At least eight initiatives are now attempting to create a label that could achieve global recognition similar to the Fair Trade mark. Experts warn that competing definitions and inconsistent certification systems could confuse consumers unless a universal standard is agreed upon.

Some schemes allow creators to download AI-free badges with little or no verification, while others use paid auditing processes that rely on analysts and AI detection tools. Researchers note that defining ‘human-made’ is increasingly difficult because AI technologies are embedded in many everyday software tools.

Creative industries are at the centre of the debate as generative AI rapidly produces books, films and music at lower cost and higher speed. Advocates of certification argue that verified human-created content may gain greater value if consumers can clearly distinguish it from AI-generated work.

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Tinder tests AI matchmaking features for modern dating

Popular dating platform Tinder is testing a new AI-powered feature called ‘Chemistry’ designed to improve matchmaking. The tool analyses user profiles to identify more relevant connections while the app’s familiar swipe system remains central to the experience.

Developed by parent company Match Group, the feature uses AI to understand personality traits, interests and preferences through profile data. Future updates may allow users to answer questionnaires or share photo archives to refine recommendations.

Additional modes are also being introduced to further personalise matches. Music preferences and astrology signs can now influence suggested profiles, reflecting evolving trends among younger online daters.

The platform is also testing in-person events and virtual video speed dating to encourage real-world interaction. AI moderation tools are also being deployed, helping detect inappropriate messages and verify that profiles belong to real people.

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