E-commerce and trade Archives | Digital Watch Observatory

EU moves to enforce digital fairness rules with stronger consumer oversight

Regulatory scrutiny of the EU’s digital fairness framework is set to begin on 1 July as the European Commission moves to tighten its supervision of online platforms.

An initiative that forms part of a broader effort to ensure stronger consumer protection across digital markets, with officials signalling stricter oversight of commercial practices that disadvantage users.

The Commission is preparing a major upgrade of its consumer protection framework, expected by December 2026.

The reforms aim to reinforce enforcement tools under the Unfair Commercial Practices Directive and the Consumer Protection Cooperation Regulation, allowing regulators to intervene more effectively when platforms breach fairness standards.

Michael McGrath, Commissioner for Democracy, Justice and Rule of Law, has highlighted the need for greater transparency and accountability as digital markets expand rapidly.

The forthcoming scrutiny focuses on ensuring that platforms respect transparency obligations, avoid manipulating users and provide fair conditions in online transactions.

Regulators seek to replace fragmented enforcement with a more coordinated model that reflects the increasingly cross-border nature of digital commerce.

Stronger consumer safeguards are becoming central to the digital agenda of the EU.

The next phase of reforms is expected to streamline investigations across member states and deliver more predictable outcomes for affected consumers, offering steadier enforcement instead of reactive measures taken after violations escalate.

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ESMA sets guidance for crypto perpetuals and CFDs

The European Securities and Markets Authority (ESMA) has clarified that many crypto-perpetual contracts, including those for Bitcoin and Ether, are likely to be classified as contracts for difference (CFDs).

Due to their leverage, complexity, and risk, these products should target a narrow audience, with distribution strategies aligned accordingly.

The announcement came as Kraken launched perpetual futures for ten tokenised assets, including major indices, gold, and top tech and crypto stocks. ESMA warned that mass marketing or promotions targeting inexperienced investors are inappropriate under its guidance.

Firms must ensure that derivatives falling within the CFD category comply with product intervention requirements. Requirements include leverage limits, risk warnings, margin close-outs, negative balance protection, and a ban on incentives or benefits.

Non-advised services must include an appropriateness assessment to protect investors from unsuitable offerings.

ESMA also emphasised the importance of identifying and managing conflicts of interest arising from these products. The statement seeks to ensure firms market and distribute leveraged crypto products responsibly.

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Microsoft expands Sovereign Cloud with secure offline support for large AI models

Digital sovereignty is gaining urgency as organisations seek infrastructure that remains secure and reliable under strict regulatory conditions.

Microsoft is expanding its Sovereign Cloud to help public bodies, regulated industries and enterprises maintain control of data and operations even when environments must operate without external connectivity.

The updated portfolio allows customers to choose how each workload is governed, rather than relying on a single deployment model.

Azure Local now supports disconnected operations, keeping mission-critical systems running with full Azure governance within sovereign boundaries. Management, policies and workloads stay entirely on site, so services continue during periods of isolation.

Microsoft 365 Local extends the resilience to the productivity layer by enabling Exchange Server, SharePoint Server and Skype for Business Server to run locally, giving teams secure collaboration within the same protected boundary as their infrastructure.

Support for large multimodal AI models is delivered through Foundry Local, which enables advanced inference on customer-controlled hardware using technology from partners such as NVIDIA.

Such an approach helps organisations bring modern AI capabilities into highly restricted environments while preserving control over data, identities and operational procedures.

Microsoft positions it as a unified stack that works across connected, hybrid and fully disconnected modes without increasing operational complexity.

These additions create a framework designed for governments and regulated industries that regard sovereignty as a strategic priority.

With global availability for qualified customers, the Sovereign Cloud aims to preserve continuity, reinforce governance and expand AI capability while keeping every layer of the environment within local control.

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Crypto market embraces AI and structural growth in 2026

The cryptocurrency market in 2026 is showing a shift from hype-driven cycles to structured growth and strategic maturity. Institutional strategies dominate, retail investors take a smaller role, and geopolitical uncertainty affects market sentiment.

Analysts warn that the era of speculative memecoins and whitepaper millionaires is giving way to projects prioritising revenue, sustainability, and systemic utility.

Market leaders note a widening gap between top cryptocurrencies like Bitcoin and Ethereum and smaller altcoins. Major assets gain from liquidity and institutional adoption, while many tokens face higher risk as traditional exchange listings pull capital from on-chain markets.

Investors are advised to focus on infrastructure, liquidity, and scalable systems rather than short-term trends.

AI is emerging as a defining force. Experts highlight the growing use of AI agents to trade, allocate capital, and manage risk autonomously, with blockchain providing transparency and auditability.

The convergence of AI and crypto is expected to shape next-generation financial products, driving adoption beyond speculation and into practical, revenue-generating applications.

Strategic advice for 2026 emphasises diversification, system-oriented thinking, and long-term fundamentals. Investors should diversify across crypto, traditional, and offshore assets, using automated tools to reduce emotional decisions amid ongoing volatility.

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AI tool launched by Amazon Ads enables professional ad creation

Amazon Ads has unveiled Creative Agent, a new AI-powered tool that enables advertisers in Europe to create professional-quality ads rapidly. The tool handles the entire creative process, from brainstorming and scripts to video, animation, voiceovers, music, and final delivery.

Creative Agent uses Amazon retail insights and customer data to develop ad concepts that align with the brand and engage audiences. Its conversational interface guides users, explains creative choices, and lets them refine visuals, scripts, and audio in real time.

Advertisers can produce multi-format campaigns suitable for Sponsored Brands, Sponsored Display, Amazon DSP, Streaming TV, and Brand Stores.

The tool also manages localisation, cultural nuances, and multi-market campaigns efficiently, allowing mid-market and smaller brands to access capabilities previously reserved for large companies.

Built on AWS, including Amazon Nova and Anthropic Claude, Creative Agent enhances Amazon’s AI ad tools, reducing creative barriers and enabling fast experimentation. Early adopters say the platform enhances creative innovation while reducing time and cost across campaigns.

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New Relic advances AI agents for enterprise observability

The expansion into enterprise AI comes with a no-code platform from New Relic that allows companies to build and supervise their own observability agents.

A system that assembles AI-driven monitors designed to detect bugs and performance problems before they affect users, instead of leaving teams to rely on manual tracking.

It also supports the Model Context Protocol so organisations can link external data sources to the agents and integrate them with existing New Relic tools.

The company stresses that the platform is intended to complement other agent systems rather than replace them.

As AI agent software spreads across the market, enterprises are searching for ways to manage risk when giving automated tools access to internal systems.

Industry players such as Salesforce and OpenAI have already introduced their own agent platforms, and assessments from Gartner describe these frameworks as essential infrastructure for wider AI adoption.

New Relic also introduced new tools for the OpenTelemetry framework to remove friction around observability standards.

Its application performance monitoring agents now support OTel data, allowing enterprises to manage these streams in one place instead of operating separate collectors.

The update aims to reduce fragmentation that has slowed OTel deployment across large organisations and to simplify how engineering teams handle diverse observability pipelines.

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OCC approval moves Crypto.com closer to US trust bank

Crypto.com has secured conditional approval from the Office of the Comptroller of the Currency to move ahead with plans to launch a federally regulated national trust bank in the United States.

Approval marks a notable step in the firm’s regulatory roadmap. It also signals continued alignment with US supervisory expectations as the digital asset sector seeks deeper integration with traditional financial infrastructure.

Plans focus on establishing Foris Dax National Trust Bank. The entity is designed to provide a consolidated suite of services, including digital asset custody, staking across multiple blockchain ecosystems such as Cronos, and trade settlement.

Full approval would place the entity under direct federal oversight, positioning it to serve institutional clients that require qualified custodians operating within a clear regulatory perimeter.

Leadership described the decision as recognition of its compliance and risk management framework. Executives said the structure would offer institutions a single regulated gateway to digital asset infrastructure and strengthen market confidence.

Existing operations at Crypto.com Custody Trust Company in New Hampshire will continue without interruption. Final authorisation will determine the timeline for launching the national trust bank and expanding federally supervised US services.

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Stanford speech warns of AI tsunami

Senator Bernie Sanders has warned at Stanford University in California that the US is unprepared for the speed and scale of the AI revolution. Speaking in California alongside Congressman Ro Khanna, he called the moment one of the most dangerous in modern US history.

At Stanford University, Sanders urged a moratorium on the expansion of AI data centres to slow development while lawmakers catch up. He argued that the American public lacks a clear understanding of the economic and social impact ahead and that New York is already considering a pause.

Khanna, who represents Silicon Valley in California, rejected a complete moratorium but called for steering AI growth through renewable energy and water efficiency standards. He outlined principles to prevent wealth from being concentrated among a small group of tech billionaires.

Sanders also raised concerns in California about job losses and emotional reliance on AI, citing projections of widespread automation. He called for a national debate in the US over whether AI will benefit the public or deepen inequality.

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Global microchip shortage pushes electronics prices higher

South African consumers may soon pay more for smartphones and laptops due to a global shortage of memory chips. The high demand is largely driven by AI data centres, which require powerful microchips to operate.

Tech experts report that major AI companies are acquiring large quantities of these chips for their own data centres, limiting supply for other industries. At the same time, importing chips from regions such as China has become more difficult because of trade tensions and tariffs.

Industry leaders, including Apple’s Tim Cook and Tesla’s Elon Musk, have expressed concern over the impact on production and business operations. The strain is being felt across the tech sector as companies compete for the limited supply of components.

With no immediate solution, the increased costs are expected to be passed down to consumers. Analysts warn that the combination of high demand, supply constraints, and global trade issues will make technology and appliances more expensive for consumers.

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Carrefour accelerates AI-enabled transformation to 2030, following Walmart’s strategic playbook

According to reporting by Diginomica, Carrefour, one of Europe’s largest retail groups, is accelerating the adoption of AI across its business as part of a strategic transformation aimed at 2030.

Inspired in part by the AI-driven overhaul undertaken by Walmart in the US, Carrefour’s initiative is intended to reshape its logistics, pricing, forecasting and store operations to become more data-driven, efficient and responsive to consumer trends.

Key elements of Carrefour’s AI focus include supply chain optimisation, dynamic pricing and promotions, customer engagement, and store and back-office automation.

First, using AI to predict demand, manage inventories and reduce waste across national and regional networks. Then, algorithms adjust pricing based on real-time data to improve competitiveness and margin performance.

Personalised offers and recommendations powered by machine learning work to enhance loyalty and user experience. Finally, AI tools streamline staffing, task allocation, and routine merchandising processes.

The transformation plan emphasises enterprise data strategy as a foundation, from consolidating disparate data sources to deploying machine learning models that inform business decisions in near-real time.

Carrefour executives view AI not just as a set of point solutions, but as core to future competitiveness, citing early gains in forecasting accuracy and reduced waste.

Carrefour’s approach is part of a broader retail AI arms race in which large grocers leverage scale and data to drive efficiency and customer centricity, with Walmart often cited as a pioneer whose playbook demonstrates the strategic value of enterprise-wide AI.

The report also notes challenges ahead, such as aligning organisational culture, ensuring data quality and addressing privacy concerns around personalised offers.

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