Digital business models

Indonesia fines Platform X for pornographic content violations

Platform X has paid an administrative fine of nearly Rp80 million after failing to meet Indonesia’s content moderation requirements related to pornographic material, according to the country’s digital regulator.

The Ministry of Communication and Digital Affairs said the payment was made on 12 December 2025, after a third warning letter and further exchanges with the company. Officials confirmed that Platform X appointed a representative to complete the process, who is based in Singapore.

The regulator welcomed the company’s compliance, framing the payment as a demonstration of responsibility by an electronic system operator under Indonesian law. Authorities said the move supports efforts to keep the national digital space safe, healthy, and productive.

All funds were processed through official channels and transferred directly to the state treasury managed by the Ministry of Finance, in line with existing regulations, the ministry said.

Officials said enforcement actions against domestic and global platforms, including those operating from regional hubs such as Singapore, remain a priority. The measures aim to protect children and vulnerable groups and encourage stronger content moderation and communication.

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Europe risks falling behind without telecom scale, Telefónica says

Telefónica has called for a shift in Europe’s telecommunications policy, arguing that market fragmentation is undermining investment, digital competitiveness, and the continent’s technological sovereignty, according to a new blog post from the company.

In the post, Telefónica says Europe’s emphasis on maximising retail competition has produced a highly fragmented operator landscape. It cites industry data showing the average European operator serves around five million customers, far fewer than peers in the United States or China.

The company argues that this lack of scale explains Europe’s lower per-capita investment in telecoms infrastructure and is slowing the rollout of technologies such as standalone 5G, fibre networks, and sovereign cloud and AI platforms.

Telefónica points to recent reports by Mario Draghi and Enrico Letta as signs of a policy shift, with EU institutions placing greater weight on investment capacity, resilience, and dynamic efficiency alongside traditional competition objectives.

The blog post concludes that Europe faces a strategic choice between preserving fragmented markets or enabling responsible consolidation. Telefónica says carefully regulated mergers could support sustainability, reduce regional digital divides, and strengthen Europe’s digital infrastructure.

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How data centres affect electricity, prices, water consumption and jobs

Data centres have become critical infrastructure for modern economies, supporting services ranging from digital communications and online commerce to emergency response systems and financial transactions.

As AI expands, demand for cloud computing continues to accelerate, increasing the need for additional data centre capacity worldwide.

Concerns about environmental impact often focus on electricity and water use, yet recent data indicate that data centres are not primary drivers of higher power prices and consume far less water than many traditional industries.

Studies show that rising electricity costs are largely linked to grid upgrades, climate-related damage and fuel prices instead of large-scale computing facilities, while water use by data centres remains a small fraction of overall consumption.

Technological improvements have further reduced resource intensity. Operators have significantly improved water efficiency per unit of computing power, adopting closed-loop liquid cooling and advanced energy management systems.

In many regions, water is required only intermittently, with consumption levels lower than those in sectors such as clothing manufacturing, agriculture and automotive services.

Beyond digital services, data centres deliver tangible economic benefits to local communities. Large-scale investments generate construction activity, long-term technical employment and stable tax revenues, while infrastructure upgrades and skills programmes support regional development.

As cloud computing and AI continue to shape everyday life, data centres are increasingly positioned as both economic and technological anchors.

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EU moves to tax low-value e-commerce parcels

The European Commission welcomed the decision by EU Member States to introduce a €3 customs duty on low-value e-commerce parcels arriving from third countries.

A measure, which enters into force in July 2026, that applies to items valued below €150 and aims to restore fair competition instead of allowing online imports to benefit from longstanding exemptions.

The move responds to the rapid growth of cross-border e-commerce shipments and will operate as a temporary solution until the EU Customs Data Hub becomes fully operational in 2028.

Until then, the Council and the Commission will coordinate legal changes and IT systems to ensure smooth implementation and effective customs supervision across the Union.

Once the Customs Data Hub is in place, a permanent customs duty regime will replace the temporary measure, offering authorities a comprehensive view of goods entering and leaving the EU.

The €3 duty applies only to parcels sent directly to consumers and remains separate from ongoing negotiations on a handling fee intended to offset the rising operational costs faced by customs authorities.

The reform builds on earlier Commission proposals to remove duty exemptions for low-value parcels and forms part of the most extensive overhaul of EU customs rules in decades.

European institutions argue that modernised customs controls are essential instead of relying on outdated frameworks, particularly as global e-commerce volumes continue to expand.

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BBVA deepens AI partnership with OpenAI

OpenAI and BBVA have agreed on a multi-year strategic collaboration designed to embed artificial intelligence across the global banking group.

An initiative that will expand the use of ChatGPT Enterprise to all 120,000 BBVA employees, marking one of the largest enterprise deployments of generative AI in the financial sector.

The programme focuses on transforming customer interactions, internal workflows and decision making.

BBVA plans to co-develop AI-driven solutions with OpenAI to support bankers, streamline risk analysis and redesign processes such as software development and productivity support, instead of relying on fragmented digital tools.

The rollout follows earlier deployments that demonstrated strong engagement and measurable efficiency gains, with employees saving hours each week on routine tasks.

ChatGPT Enterprise will be implemented with enterprise grade security and privacy safeguards, ensuring compliance within a highly regulated environment.

Beyond internal operations, BBVA is accelerating its shift toward AI native banking by expanding customer facing services powered by OpenAI models.

The collaboration reflects a broader move among major financial institutions to integrate AI at the core of products, operations and personalised banking experiences.

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Google supports UK quantum innovation push

UK researchers will soon be able to work with Google’s advanced quantum chip Willow through a partnership with the National Quantum Computing Centre. The initiative aims to help scientists tackle problems that classical computers cannot solve.

The agreement will allow academics to compete for access to the processor and collaborate with experts from both organisations. Google hopes the programme will reveal practical uses for quantum computing in science and industry.

Quantum technology remains experimental, yet progress from Google, IBM, Amazon and UK firms has accelerated rapidly. Breakthroughs could lead to impactful applications within the next decade.

Government investment has supported the UK’s growing quantum sector, which hosts several cutting-edge machines. Officials estimate the industry could add billions to the UK economy as real-world uses emerge.

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Mercedes-Benz nominates new supervisory board members to drive AI and sustainability

Mercedes-Benz Group AG has announced planned changes to its Supervisory Board, proposing the appointment of Katharina Beumelburg and Rashmi Misra at the company’s 2026 Annual General Meeting.

The move is intended to strengthen the board’s expertise in sustainability, industrial transformation, and AI, reflecting the company’s strategic focus on decarbonisation and digital innovation.

Beumelburg brings extensive experience in global sustainability and energy transition from roles at Heidelberg Materials, SLB, and Siemens. At the same time, Misra brings deep expertise in AI and emerging technologies, having held senior positions at Analogue Devices and Microsoft.

They will succeed Dame Polly Courtice and Prof. Dr Helene Svahn, who will step down in April 2026 after contributing to Mercedes-Benz’s strategic development in recent years.

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Chinese tech giant bolsters AI ambitions with new foundation model division

Huawei Technologies is intensifying its AI strategy with the establishment of a dedicated foundation model unit within its 2012 Laboratories research arm, reflecting the heightened competition among China’s major tech companies to develop advanced AI systems.

A recruitment advertisement posted in October signals that the Shenzhen-based telecom and tech giant is proactively wooing global AI talent to assemble a world-class team focused on foundational model development.

Huawei has confirmed the establishment of the unit but has offered few operational details.

Richard Yu Chengdong, head of Huawei’s consumer group and newly appointed chairman of the Investment Review Board overseeing AI strategy, has personally promoted the drive on social media, urging young engineers to help ‘make the world’s most powerful AI.’

This movement underscores Huawei’s broader ambition to challenge both domestic rivals and Western AI leaders in core areas of generative AI technology.

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How AI is powering smarter digital maps for commercial fleets

AI is increasingly embedded in digital mapping systems used by commercial fleets, transforming static navigation tools into adaptive decision-making platforms.

These AI-powered systems ingest real-time data from vehicles, traffic feeds, weather, and sensors to optimise routes and operations continuously.

For fleet operators, this enables more accurate arrival times, reduced fuel consumption, and faster responses to disruptions such as congestion or road closures. AI models can also anticipate problems before they occur by identifying patterns in historical and live data.

Smarter maps support broader fleet intelligence, including predictive maintenance, driver behaviour analysis, and compliance monitoring. Mapping platforms are becoming core operational infrastructure rather than auxiliary navigation tools.

As logistics networks become increasingly complex, AI-driven mapping is emerging as a competitive necessity for commercial fleets seeking efficiency, resilience, and scalability.

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Taiwan strengthens its role in global semiconductors

Taiwan will continue to produce the world’s most advanced semiconductors domestically to remain a vital player globally. Deputy Foreign Minister Francois Chih-chung Wu said the island’s expertise cannot be easily replicated abroad.

Taiwan has invested in fabs in the US, Japan and Germany, but warned that moving production overseas is complex. The island plans to foster international partnerships while maintaining core technology in-house to safeguard its supply chains.

China’s military pressure on Taiwan has increased concerns over regional stability and global chip supply. Wu emphasised that preventing conflict is the most effective way to secure the semiconductor industry.

Washington and Europe share strategic interests with Taiwan, including the semiconductor industry and navigation in the Taiwan Strait. Wu expressed confidence that the international community would defend these interests, maintaining Taiwan’s essential role in technology.

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