2025 State of the Union: Tech sovereignty amid geopolitical pressure

The European Commission President, Ursula von der Leyen, delivered her 2025 State of the Union address to the European Parliament in Strasbourg. The speech set out priorities for the coming year and was framed by growing geopolitical tensions and the push for a more self-reliant Europe.

Von der Leyen highlighted that global dynamics have shifted.

‘Battlelines for a new world order based on power are being drawn right now, ’ she said.

In this context, Europe must take a more assertive role in defending its own security and advancing the technologies that will underpin its economic future. The President characterised this moment as a turning point for European independence.

Digital policy appeared less prominently than expected in the address. Von der Leyen often referred to ‘technology sovereignty’ to encompass not only digital technologies, but also other types of technologies necessary for the green transition and to achieve energetic autonomy. In spite of that, some specific references to digital policy are worth highlighting.

  • Europe’s right to regulate. Von der Leyen defended Europe’s right to set its own standards and regulations. The assertion came right after her defence of the US-EU trade deal, making it a direct response to the mounting pressure and tariff threats from the US President Donald Trump’s administration.
  • Regulatory simplification. A specific regulatory package (omnibus) on digital was promised, under inspiration from the Draghi report on EU competitiveness. 
  • Investment in digital technology. Startups in key areas, such as quantum and AI, could receive particular attention, in order to enhance the availability of European capital and strengthen European sovereignty in these areas. According to her, the Commission ‘will partner with private investors on a multi-billion euro Scaleup Europe Fund’. No concrete figures were provided, however.
  • Artificial intelligence as key to European independence. In order to support this sector, von der Leyen highlighted the importance of some initiatives, such as the Cloud and AI Development Act, and the European AI Gigafactories. She praised the commitment of CEOs from some leading European companies to invest in digital in the recently launched AI and Tech Declaration
  • Mainstreaming information integrity. According to von der Leyen, Europe’s democracy is under attack, with the rise of information manipulation and disinformation. She proposed to create a new European Centre for Democratic Resilience, which will bring together all the expertise and capacity across member states and neighbouring countries. A new Media Resilience Programme aimed at supporting independent journalism and media literacy was also announced.
  • Limits to the use of social media by young people. The President of the Commission raised concerns about the impact of social media on children’s mental health and safety. She committed to convening a panel of experts to consider restrictions for social media access, referencing efforts that have been put in place in Australia.  

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Canadian news publishers clash with OpenAI in landmark copyright case

OpenAI is set to argue in an Ontario court that a copyright lawsuit by Canadian news publishers should be heard in the United States. The case, the first of its kind in Canada, alleges that OpenAI scraped Canadian news content to train ChatGPT without permission or payment.

The coalition of publishers, including CBC/Radio-Canada, The Globe and Mail, and Postmedia, says the material was created and hosted in Ontario, making the province the proper venue. They warn that accepting OpenAI’s stance would undermine Canadian sovereignty in the digital economy.

OpenAI, however, says the training of its models and web crawling occurred outside Canada and that the Copyright Act cannot apply extraterritorially. It argues the publishers are politicising the case by framing it as a matter of sovereignty rather than jurisdiction.

The dispute reflects a broader global clash over how generative AI systems use copyrighted works. US courts are already handling several similar cases, though no clear precedent has been established on whether such use qualifies as fair use.

Publishers argue Canadian courts must decide the matter domestically, while OpenAI insists it belongs in US courts. The outcome could shape how copyright laws apply to AI training and digital content across borders.

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CJEU annuls DSA fees for Meta and TikTok

The General Court of the Court of Justice of the EU (CJEU) has annulled the European Commission’s 2023 supervisory fee decisions for Meta’s Facebook, Instagram, and TikTok under the Digital Services Act (DSA).

These platforms, designated as ‘huge online platforms’ (VLOP), were charged annual fees based on their average monthly user base to fund the EU oversight activities.

In 2024, Meta and TikTok filed a legal complaint against the Commission’s decision before the General Court of the CJEU.

The General Court found that the Commission improperly used implementing decisions to apply a key methodology for calculating user numbers, an essential element under the DSA that should have been established via a delegated act. As a result, this procedural misstep led to the annulment of the decisions.

However, the General Court did not dispute the platforms’ obligation to pay the fees. To avoid disruption, it has provisionally upheld the effects of the annulled decisions for up to 12 months.

Last, this gives the Commission time to revise its methodology in line with DSA requirements and issue new decisions.

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Pressure mounts as Apple prepares AI search push with Google ties

Apple’s struggles in the AI race have been hard to miss. Its Apple Intelligence launch was disappointing, and its reliance on ChatGPT appeared to be a concession to rivals.

Bloomberg’s Mark Gurman now reports that Apple plans to introduce its AI-powered web search tool in spring 2026. The move would position it against OpenAI and Perplexity, while renewing pressure on Google.

The speculation comes after news that Google may integrate its Gemini AI into Apple devices. During an antitrust trial in April, Google CEO Sundar Pichai confirmed plans to roll out updates later this year.

According to Gurman, Apple and Google finalised an agreement for Apple to test a Google-developed AI model to boost its voice assistant. The partnership reflects Apple’s mixed strategy of dependence and rivalry with Google.

With a strong record for accurate Apple forecasts, Gurman suggests the company hopes the move will narrow its competitive gap. Whether it can outpace Google, especially given Pixel’s strong AI features, remains an open question.

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Google avoids breakup as AI reshapes search and threatens e-commerce traffic

The US tech giant Google will not be forced to divest Chrome or Android following the long-running US monopoly case.

Judge Mehta ruled that while Google holds a monopoly in traditional search, the rise of AI companies is creating new competitive pressures.

The judgement prevents Google from striking exclusive distribution deals but still allows it to pay partners for preloading and placement of its products. The court also ordered Google to loosen its control over search data, a move that could enable rivals to build their own AI-driven search tools.

Yet, concerns remain for e-commerce businesses.

Google Zero, the company’s AI-powered search summary, is cutting website traffic by keeping users within Google’s results.

Research shows sharp declines in mobile click-through rates, leaving online retailers uncertain of their future visibility.

Experts warn that zero-click searches are becoming the norm. Businesses are being urged to optimise for Google’s AI overviews, enhance the value of product and review pages, track traffic impacts, and diversify their marketing channels.

While Google has avoided structural remedies, its dominance in search and AI appears far from over.

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Unlocking the EU digital future with eIDAS 2 and digital wallets

The EU’s digital transformation and the rise of trusted digital identities

The EU, like the rest of the world, is experiencing a significant digital transformation driven by emerging technologies, with citizens, businesses, and governments increasingly relying on online services.

At the centre of the shift lies digital identity, which enables secure, verifiable, and seamless online interactions.

Digital identity has also become a cornerstone of the EU’s transition toward a secure and competitive digital economy. As societies, businesses, and governments increasingly rely on online platforms, the ability for citizens to prove who they are in a reliable, secure, and user-friendly way has gained central importance.

Without trusted digital identities, essential services ranging from healthcare and education to banking and e-commerce risk fragmentation, fraud, and inefficiency.

The EU has long recognised the challenge. The first introduction of the eIDAS Regulation, on Electronic Identification, Authentication and Trust Services, in 2014, was a milestone in creating a legal framework for electronic identification and trust services across its borders.

However, it quickly became clear that further steps were necessary to improve adoption, interoperability, and user trust.

In May 2024, the updated framework, eIDAS 2 (Regulation (EU) 2024/1183), came into force.

At its heart lies the European Digital Identity Wallet, or EDIW, a tool designed to empower EU citizens with a secure, voluntary, and interoperable way to authenticate themselves and store personal credentials.

EU security

By doing so, eIDAS 2 aims to strengthen trust, security, and cross-border services, ensuring Europe builds digital sovereignty while safeguarding fundamental rights.

Lessons from eIDAS 1 and the need for a stronger digital identity framework

Back in 2014, when the first eIDAS Regulation was adopted, its purpose was to enable the mutual recognition of electronic identification and trust services across member states.

The idea was simple (and logical) yet ambitious: a citizen of one EU country should be able to use their national digital ID to access services in another, whether it is to enrol in a university abroad or open a bank account.

The original regulation created legal certainty for electronic signatures, seals, timestamps, and website authentication, helping digital transactions gain recognition equal to their paper counterparts.

For businesses and governments, it reduced bureaucracy and built trust in digital processes, both essential for sustainable development.

Despite the achievements, significant limitations emerged. Adoption rates varied widely across member states, with only a handful, such as Estonia and Denmark, achieving robust national digital ID systems.

Others lagged due to technical, political, or budgetary issues. Interoperability across borders was inconsistent, often forcing citizens and businesses to rely on paper processes.

Stakeholders and industry associations also expressed concerns about the complexity of implementation and the absence of user-friendly solutions.

The gaps highlighted the need for a new approach. As Commission President Ursula von der Leyen emphasised in 2020, ‘every time an app or website asks us to create a new digital identity or to easily log on via a big platform, we have no idea what happens to our data in reality.’

Concerns about reliance on non-European technology providers, combined with the growing importance of secure online transactions, paved the way for eIDAS 2.

The eIDAS 2 framework and the path to interoperable digital services

Regulation (EU) 2024/1183, adopted in the spring of 2024, updates the original eIDAS to reflect new technological and social realities.

Its guiding principle is technological neutrality, ensuring that no single vendor or technology dominates and allowing member states to adopt diverse solutions provided they remain interoperable.

Among its key innovations is the expansion of qualified trust services. While the original eIDAS mainly covered signatures and seals, the new regulation broadens the scope to include services such as qualified electronic archiving, ledgers, and remote signature creation devices.

The broader approach ensures that the regulation keeps pace with emerging technologies such as distributed ledgers and cloud-based security solutions.

eIDAS 2 also strengthens compliance mechanisms. Providers of trust services and digital wallets must adhere to rigorous security and operational standards, undergo audits, and demonstrate resilience against cyber threats.

In this way, the regulation not only fosters a common European market for digital identity but also reinforces Europe’s commitment to digital sovereignty and trust.

EU European Commission Quantum tech Cybersecurity

The European Digital Identity Wallet in action

The EDIW represents the most visible and user-facing element of eIDAS 2.

Available voluntarily to all EU citizens, residents, and businesses, the wallet is designed to act as a secure application on mobile devices where users can link their national ID documents, certificates, and credentials.

For citizens, the benefits are tangible. Rather than managing numerous passwords or carrying a collection of physical documents, individuals can rely on the wallet as a single, secure tool.

It allows them to prove their identity when travelling or accessing services in another country, while offering a reliable space to store and share essential credentials such as diplomas, driving licences, or health insurance cards.

In addition, it enables signing contracts with qualified electronic signatures directly from personal devices, reducing the need for paper-based processes and making everyday interactions considerably more efficient.

For businesses, the wallet promises smoother cross-border operations. For example, banks can streamline customer onboarding through secure, interoperable identification. Professional services can verify qualifications instantly.

E-commerce platforms can reduce fraud and improve compliance with ‘Know Your Customer’ requirements.

By reducing bureaucracy and offering convenience, the wallet embodies Europe’s ambition to create a truly single digital market.

Cybersecurity and privacy in the EDIW

Cybersecurity and privacy are central to the success of the wallet. On the positive side, the system enhances security through encryption, multi-factor authentication, and controlled data sharing.

EU Cybersecurity

Instead of exposing unnecessary information, users can share only the attributes required, for example, confirming age without disclosing a birth date.

Yet risks remain. The most pressing concern is risk aggregation. By consolidating multiple credentials in a single wallet, the consequences of a breach could be severe, leading to fraud, identity theft, or large-scale data exposure. The system, therefore, becomes an attractive target for attackers.

To address such risks, eIDAS 2 mandates safeguards. Article 45k requires providers to maintain data integrity and chronological order in electronic ledgers, while regular audits and compliance checks ensure adherence to strict standards.

Furthermore, the regulation mandates open-source software for the wallet components, enhancing transparency and trust.

The challenge is to balance security, usability, and confidence. If the wallet is overly restrictive, citizens may resist adoption. If it is too permissive, privacy could be undermined.

The European approach aims to strike the delicate balance between trust and efficiency.

Practical implications across sectors with the EDIW

The European Digital Identity Wallet has the potential to reshape multiple sectors across the EU, and its relevance is already visible in national pilot projects as well as in existing electronic identification systems.

Public services stand to benefit most immediately. Citizens will be able to submit tax declarations, apply for social benefits, or enrol in universities abroad without needing paper-based procedures.

Healthcare is another area where digital identity is of great importance, since medical records can be transferred securely across borders.

Businesses are also likely to experience greater efficiency. Banks and financial institutions will be able to streamline compliance with the ‘Know Your Customer’ and anti-money laundering rules.

In the field of e-commerce, platforms can provide seamless authentication, which will reduce fraud and enhance customer trust.

Citizens will also enjoy greater convenience in their daily lives when signing rental contracts, proving identity while travelling, or accessing utilities and other services.

National approaches to digital identity across the EU

National experiences illustrate both diversity and progress. Let’s review some examples.

0JzKZNWx flags Figure 10 EU

Estonia has been recognised as a pioneer, having built a robust e-Identity system over two decades. Its citizens already use secure digital ID cards, mobile ID, and smart ID applications to access almost all government services online, meaning that integration with the EDIW will be relatively smooth.

Denmark has also made significant progress with its MitID solution, which replaced NemID and is now used by millions of citizens to access both public and private services with high security standards, including biometric authentication.

Germany has introduced BundID, a central portal for accessing public administration services, and has invested in enabling the use of national ID cards via NFC-based smartphones, although adoption is still limited compared to Scandinavian countries.

Italy has taken a different route by rolling out SPID, the Public Digital Identity System, which is now used by more than thirty-five million citizens to access thousands of services. The country also supports the Electronic Identity Card, known as CIE, and both solutions are being aligned with wallet requirements.

Spain has launched Cl@ve, a platform that combines permanent passwords and electronic certificates, and has joined several wallet pilot projects funded by the European Commission to test cross-border use.

France is developing its France Identité application, which allows the use of the electronic ID card for online authentication, and the project is at the centre of the national effort to meet European standards.

The Netherlands relies on DigiD, which provides access to healthcare, taxation, and education services. Although adoption is high, the system will require enhanced security features to meet the new regulations.

Greece has made significant strides in digital identity with the introduction of the Gov.gr Wallet. The mobile application allows citizens to store digital versions of their national identity card and driving licence on smartphones, giving them the same legal validity as physical documents in the country.

These varied examples reveal a mixed landscape. Countries such as Estonia and Denmark have developed advanced and widely used systems that will integrate readily with the European framework.

Others are still building broader adoption and enhancing their infrastructure. The wallet, therefore, offers an opportunity to harmonise national approaches, bridge existing gaps, and create a coherent European ecosystem.

By building on what already exists, member states can speed up adoption and deliver benefits to citizens and businesses in a consistent and trusted way.

Risks and limitations of the EDIW

Despite the promises, the rollout of the wallet faces significant challenges, several of which have already been highlighted in our analysis.

First, data privacy remains a concern. Citizens must trust that wallet providers and national authorities will not misuse or over-collect their data, especially given existing concerns about data breaches and increased surveillance across the Union. Any breach of that trust could significantly undermine adoption.

masked hacker under hood using computer to commit data breach crime

Second, Europe’s digital infrastructure remains uneven. Countries such as Estonia and Denmark (as mentioned earlier) already operate sophisticated e-ID systems, while others fall behind. Bridging the gap requires financial and technical support, as well as political will.

Third, balancing innovation with harmonisation is not easy. While technological neutrality allows for flexibility, too much divergence risks interoperability problems. The EU must carefully monitor implementation to avoid fragmentation.

Finally, there are long-term risks of over-centralisation. By placing so much reliance on a single tool, the EU may inadvertently create systemic vulnerabilities. Ensuring redundancy and diversity in digital identity solutions will be key to resilience.

Opportunities and responsibilities in the EU’s digital identity strategy

Looking forward, the success of eIDAS 2 and the wallet will depend on careful implementation and strong governance.

Opportunities abound. Scaling the wallet across sectors, from healthcare and education to transport and finance, could solidify Europe’s position as a global leader in digital identity. By extending adoption to the private sector, the EU can create a thriving ecosystem of secure, trusted services.

Yet the initiative requires continuous oversight. Cyber threats evolve rapidly, and regulatory frameworks must adapt. Ongoing audits, updates, and refinements will be necessary to keep pace. Member states will need to share best practices and coordinate closely to ensure consistent standards.

At a broader level, the wallet represents a step toward digital sovereignty. By reducing reliance on non-European identity providers and platforms, the EU strengthens its control over the digital infrastructure underpinning its economy. In doing so, it enhances both competitiveness and resilience.

The EU’s leap toward a digitally sovereign future

In conclusion, we firmly believe that the adoption of eIDAS 2 and the rollout of the European Digital Identity Wallet mark a decisive step in Europe’s digital transformation.

By providing a secure, interoperable, and user-friendly framework, the EU has created the conditions for greater trust, efficiency, and cross-border collaboration.

The benefits are clear. Citizens gain convenience and control, businesses enjoy streamlined operations, and governments enhance security and transparency.

But we have to keep in mind that challenges remain, from uneven national infrastructures to concerns over data privacy and cybersecurity.

eu cybersecurity standards

Ultimately, eIDAS 2 is both a legal milestone and a technological experiment. Its success will depend on building and maintaining trust, ensuring inclusivity, and adapting to emerging risks.

If the EU can meet the challenges, the European Digital Identity Wallet will not only transform the daily lives of millions of its citizens but also serve as a model for digital governance worldwide.

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Altman questions if social media is dominated by bots

OpenAI CEO Sam Altman has sparked debate after admitting he increasingly struggles to distinguish between genuine online conversations and content generated by bots or AI models.

Altman described a ‘strangest experience’ while reading about OpenAI’s Codex model, saying comments instinctively felt fake even though he knew the growth trend was real. He said social media rewards, ‘LLM-speak,’ and astroturfing make communities feel less genuine.

His comments follow an earlier admission that he had never considered the so-called dead internet theory until now, when large language model accounts seemed to be running X. The theory claims bots and artificial content dominate online activity, though evidence of coordinated control is lacking.

Reactions were divided, with some users agreeing that online communities have become increasingly bot-like. Others argued the change reflects shifting dynamics in niche groups rather than fake accounts.

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Teens turn to AI chatbots for support, raising mental health concerns

Mental health experts in Iowa have warned that teenagers are increasingly turning to AI chatbots instead of seeking human connection, raising concerns about misinformation and harmful advice.

The issue comes into focus on National Suicide Prevention Day, shortly after a lawsuit against ChatGPT was filed over a teenager’s suicide.

Jessica Bartz, a therapy supervisor at Vera French Duck Creek, said young people are at a vulnerable stage of identity formation while family communication often breaks down.

She noted that some teens use chatbot tools like ChatGPT, Genius and Copilot to self-diagnose, which can reinforce inaccurate or damaging ideas.

‘Sometimes AI can validate the wrong things,’ Bartz said, stressing that algorithms only reflect the limited information users provide.

Without human guidance, young people risk misinterpreting results and worsening their struggles.

Experts recommend that parents and trusted adults engage directly with teenagers, offering empathy and open communication instead of leaving them dependent on technology.

Bartz emphasised that nothing can replace a caring person noticing warning signs and intervening to protect a child’s well-being.

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Nepal lifts social media ban after protests

The Nepali government has lifted its ban on major social media platforms following days of nationwide protests led largely by youth demanding action against corruption.

The ban, which blocked access to 26 social media sites including WhatsApp, Facebook, Instagram, LinkedIn, and YouTube, was introduced in an effort to curb misinformation, online fraud, and hate speech, according to government officials.

However, critics accused the administration of using the restrictions to stifle dissent and silence public outrage.

Thousands of demonstrators took to the streets in Kathmandu and other major cities in Nepal, voicing frustration over rising unemployment, inflation, and what they described as a lack of accountability among political leaders.

The protests quickly gained momentum, with digital freedom becoming a central theme alongside anti-corruption demands.

The United Nations Office for the High Commissioner of Human Rights addressed the situation, stating: “We have received several deeply worrying allegations of unnecessary or disproportionate use of force by security forces during protests organized by youth groups demonstrating against corruption and the recent Government ban on social media platforms.”

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Google boosts Gemini with audio uploads and NotebookLM upgrades

The US tech giant has expanded the capability of its Gemini app by allowing users to upload audio files for AI analysis across Android, iOS, and the web. The upgrade enables transcription of interviews, voice memos and lecture recordings instead of relying solely on typed or spoken prompts.

Free-tier users can upload clips of up to ten minutes with five prompts daily, while paid subscribers have access to three hours of uploads across multiple files. According to Gemini vice president Josh Woodward, the feature is designed to make the platform more versatile and practical for everyday tasks.

Google has also enhanced its Search AI mode with five new languages, including Hindi, Japanese and Korean, extending its multilingual reach.

NotebookLM, the company’s research assistant powered by Gemini, can now generate structured reports such as quizzes, study guides and blog posts from uploaded content, available in more than 80 languages.

These improvements underline Google’s ambition to integrate AI more deeply into everyday applications instead of leaving the technology confined to experimental tools. They also highlight growing competition in the AI market, with Google using Gemini 2.5 to expand its services for global users.

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