E-commerce and trade

EU targets X for breaking the Digital Services Act

European regulators have imposed a fine of one hundred and twenty million euros on X after ruling that the platform breached transparency rules under the Digital Services Act.

The Commission concluded that the company misled users with its blue checkmark system, restricted research access and operated an inadequate advertising repository.

Officials found that paid verification on X encouraged users to believe their accounts had been authenticated when, in fact, no meaningful checks were conducted.

EU regulators argued that such practices increased exposure to scams and impersonation fraud, rather than supporting trust in online communication.

The Commission also stated that the platform’s advertising repository lacked essential information and created barriers that prevented researchers and civil society from examining potential threats.

European authorities judged that X failed to offer legitimate access to public data for eligible researchers. Terms of service blocked independent data collection, including scraping, while the company’s internal processes created further obstacles.

Regulators believe such restrictions frustrate efforts to study misinformation, influence campaigns and other systemic risks within the EU.

X must now outline the steps it will take to end the blue checkmark infringement within sixty working days and deliver a wider action plan on data access and advertising transparency within ninety days.

Failure to comply could lead to further penalties as the Commission continues its broader investigation into information manipulation and illegal content across the platform.

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UK government confirms crypto as protected personal property

A significant shift in property law has occurred in the United Kingdom, as digital assets are gaining formal recognition as personal property.

The Property Digital Assets Act has received Royal Assent, giving owners of cryptocurrency and non-fungible tokens clearer legal rights and stronger protection. Greater certainty over ownership aims to reduce disputes and strengthen trust in the sector.

The government aims to boost the country’s position as a global centre for legal innovation, rather than merely reacting to technological change. The new framework reassures fintech companies that England, Wales and Northern Ireland can support modern commercial activity.

As part of a wider growth plan, the change is expected to stimulate further investment in a legal services industry worth more than £ 40 billion annually.

Traditional law recognised only tangible items and legal rights, yet digital assets required distinct treatment.

The Act creates a new category, allowing certain digital assets to be treated like other property, including being inherited or recovered during bankruptcy. With cryptocurrency fraud on the rise, owners now have a more straightforward path to remedy when digital assets are stolen.

Legal certainty also simplifies commercial activity for firms handling crypto transactions. The move aligns digital assets with established forms of property rather than leaving them in an undefined space, which encourages adoption and reduces the likelihood of costly disagreements.

The government expects the new clarity to attract more businesses to the UK and reinforce the country’s role in shaping future digital regulation.

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ESMA could gain direct supervision over crypto firms

The European Commission has proposed giving the European Securities and Markets Authority (ESMA) expanded powers to oversee crypto and broader financial markets, aiming to close the regulatory gap with the United States.

The plan would give ESMA direct supervision of crypto service providers, trading venues, and central counterparties, while boosting its role in asset management coordination. Approval from the European Parliament and the Council is still required.

Calls for stronger oversight have grown following concerns over lenient national regimes, including Malta’s crypto licensing system. France, Austria, and Italy have called for ESMA to directly oversee major crypto firms, with France threatening to block cross-border licence passporting.

Revisions to the Markets in Crypto-Assets Regulation (MiCA) are also under discussion, with proposals for stricter rules on offshore crypto activities, improved cybersecurity oversight, and tighter regulations for token offerings.

Experts warn that centralising ESMA supervision may slow innovation, especially for smaller crypto and fintech startups reliant on national regulators. ESMA would need significant resources for the expanded mandate, which could slow decision-making across the EU.

The proposal aims to boost EU capital market competitiveness and increase wealth for citizens. EU stock exchanges currently account for just 73% of the bloc’s GDP, compared with 270% in the US, highlighting the need for a more integrated regulatory framework.

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€700 million crypto fraud network spanning Europe broken up

Authorities have broken an extensive cryptocurrency fraud and money laundering network that moved over EUR 700 million after years of international investigation.

The operation began with an investigation into a single fraudulent cryptocurrency platform and eventually uncovered an extensive network of fake investment schemes targeting thousands of victims.

Victims were drawn in by fake ads promising high returns and pressured via criminal call centres to pay more. Transferred funds were stolen and laundered across blockchains and exchanges, exposing a highly organised operation across Europe and beyond.

Police raids across Cyprus, Germany, and Spain in late October 2025 resulted in nine arrests and the seizure of millions in assets, including bank deposits, cryptocurrencies, cash, digital devices, and luxury watches.

Europol and Eurojust coordinated the cross-border operation with national authorities from France, Belgium, Germany, Spain, Malta, Cyprus, and other nations.

The second phase, executed in November, targeted the affiliate marketing infrastructure behind fraudulent online advertising, including deepfake campaigns impersonating celebrities and media outlets.

Law enforcement teams in Belgium, Bulgaria, Germany, and Israel conducted searches, dismantling key elements of the scam ecosystem. Investigations continue to track down remaining assets and dismantle the broader network.

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Google boosts Nigeria’s AI development

The US tech giant, Google, has announced a $2.1 million Google.org commitment to support Nigeria’s AI-powered future, aiming to strengthen local talent and improve digital safety nationwide.

An initiative that supports Nigeria’s National AI Strategy and its ambition to create one million digital jobs, recognising the economic potential of AI, which could add $15 billion to the country’s economy by 2030.

The investment focuses on developing advanced AI skills among students and developers instead of limiting progress to short-term training schemes.

Google will fund programmes led by expert partners such as FATE Foundation, the African Institute for Mathematical Sciences, and the African Technology Forum.

Their work will introduce advanced AI curricula into universities and provide developers with structured, practical routes from training to building real-world products.

The commitment also expands digital safety initiatives so communities can participate securely in the digital economy.

Junior Achievement Africa will scale Google’s ‘Be Internet Awesome’ curriculum to help families understand safe online behaviour, while the CyberSafe Foundation will deliver cybersecurity training and technical assistance to public institutions, strengthening national digital resilience.

Google aims to create more opportunities similar to those of Nigerian learners who used digital skills to secure full-time careers instead of remaining excluded from the digital economy.

By combining advanced AI training with improved digital safety, the company intends to support inclusive growth and build long-term capacity across Nigeria.

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SAP elevates customer support with proactive AI systems

AI has pushed customer support into a new era, where anticipation replaces reaction. SAP has built a proactive model that predicts issues, prevents failures and keeps critical systems running smoothly instead of relying on queues and manual intervention.

Major sales events, such as Cyber Week and Singles Day, demonstrated the impact of this shift, with uninterrupted service and significant growth in transaction volumes and order numbers.

Self-service now resolves most issues before they reach an engineer, as structured knowledge supports AI agents that respond instantly with a confidence level that matches human performance.

Tools such as the Auto Response Agent and Incident Solution Matching enable customers to retrieve solutions without having to search through lengthy documentation.

SAP has also prepared organisations scaling AI by offering support systems tailored for early deployment.

Engineers have benefited from AI as much as customers. Routine tasks are handled automatically, allowing experts to focus on problems that demand insight instead of administration.

Language optimisation, routing suggestions, and automatic error categorisation support faster and more accurate resolutions. SAP validates every AI tool internally before release, which it views as a safeguard for responsible adoption.

The company maintains that AI will augment staff rather than replace them. Creative and analytical work becomes increasingly important as automation handles repetitive tasks, and new roles emerge in areas such as AI training and data stewardship.

SAP argues that progress relies on a balanced relationship between human judgement and machine intelligence, strengthened by partnerships that turn enterprise data into measurable outcomes.

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CJEU tightens duties for online marketplaces

EU judges have ruled that online marketplaces must verify advertisers’ identities before publishing personal data. The judgment arose from a Romanian case involving an abusive anonymous advertisement containing sensitive information.

In this Romanian case, the Court found that marketplace operators influence the purposes and means of processing and therefore act as joint controllers. They must identify sensitive data before publication and ensure consent or another lawful basis exists.

Judges also held that anonymous users cannot lawfully publish sensitive personal data without proving the data subject’s explicit agreement. Platforms must refuse publication when identity checks fail or when no valid GDPR ground applies.

Operators must introduce safeguards to prevent unlawful copying of sensitive content across other websites. The Court confirmed that exemptions under E-commerce rules cannot override GDPR accountability duties.

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Legal sector urged to plan for cultural change around AI

A digital agency has released new guidance to help legal firms prepare for wider AI adoption. The report urges practitioners to assess cultural readiness before committing to major technology investment.

Sherwen Studios collected views from lawyers who raised ethical worries and practical concerns. Their experiences shaped recommendations intended to ensure AI serves real operational needs across the sector.

The agency argues that firms must invest in oversight, governance and staff capability. Leaders are encouraged to anticipate regulatory change and build multidisciplinary teams that blend legal and technical expertise.

Industry analysts expect AI to reshape client care and compliance frameworks over the coming years. Firms prepared for structural shifts are likely to benefit most from long-term transformation.

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FCA launches AI Live Testing for UK financial firms

The UK’s Financial Conduct Authority has launched an AI Live Testing initiative to help firms safely deploy AI in financial markets. Major companies, including NatWest, Monzo, Santander, Scottish Widows, Gain Credit, Homeprotect, and Snorkl, are participating in the first cohort.

Firms receive tailored guidance from the FCA and its technical partner, Advai, to develop and assess AI applications responsibly.

AI testing focuses on retail financial services, exploring uses such as debt resolution, financial advice, improving customer engagement, streamlining complaints handling, and supporting smarter spending and saving decisions.

The project aims to answer key questions around evaluation frameworks, governance, live monitoring, and risk management to protect both consumers and markets.

Jessica Rusu, FCA chief data officer, said the initiative helps firms use AI safely while guiding the FCA on its impact in UK financial services. The project complements the FCA’s Supercharged Sandbox, which supports firms in earlier experimentation phases.

Applications for the second AI Live Testing cohort open in January 2026, with participating firms able to start testing in April. Insights from the initiative will inform FCA AI policy, supporting innovation while ensuring responsible deployment.

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Texas makes historic investment with $5 million Bitcoin purchase

Texas has become the first US state to fund a strategic cryptocurrency reserve, purchasing approximately $5 million in Bitcoin through BlackRock’s iShares Bitcoin Trust ETF.

The move follows Governor Greg Abbott signing Senate Bill 21, allowing the comptroller’s office to create a public crypto reserve. states, such as New Hampshire and Arizona, have passed similar bills, but Texas is the first to execute an actual purchase.

The ETF acquisition acts as a temporary measure while the state finalises a contract with a cryptocurrency custodian. Comptroller representatives called the purchase a ‘placeholder investment’ while reviewing bids for a permanent custodian.

Lawmakers have allocated $10 million to the reserve, a small portion of Texas’ $338 billion budget, yet supporters argue it marks an important step for the growing crypto industry.

Bitcoin prices have fluctuated significantly this year, peaking above $126,000 in October before dropping to around $85,000 recently. The state’s purchase at roughly $87,000 per bitcoin reflects ongoing market volatility.

Advocates see the investment as forward-looking, citing potential long-term benefits in job creation, tax revenue, and digital asset adoption.

Critics remain sceptical, warning that public crypto investments carry high risk and may favour industry interests over taxpayers. Some economists criticised the move as conflicting with Texas’ conservative fiscal approach and risky government speculation.

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