E-commerce and trade

Netherlands expands investment law to include AI and biotech

The Dutch government announced plans to expand its investment screening law to include emerging technologies like biotech, AI, and nanotechnology. The move aims to protect national security amid growing global tensions, with threats such as cyberattacks and espionage becoming more prevalent. Economy Minister Dirk Beljaarts emphasised the importance of safeguarding Dutch businesses, innovations, and the economy.

In addition to biotech and AI, the updated law will cover sensor and navigation technology, advanced materials, and nuclear technologies used in medicine. The government expects these changes to take effect by the second half of 2025.

Introduced in 2023, the investment screening law allows the Dutch government to block foreign takeovers of critical infrastructure or technology that could threaten national security. This comes after the Netherlands imposed restrictions on semiconductor exports to China under US pressure.

Meta projects Instagram to dominate US ad income

Instagram is poised to account for more than half of Meta Platforms’ US advertising revenue by 2025, according to research firm Emarketer. This anticipated growth is largely attributed to the platform’s enhanced monetisation strategies, particularly its focus on short-form video content such as Reels, which competes directly with TikTok and YouTube Shorts.

The increasing engagement with Reels has attracted marketers seeking to capitalise on the popularity of short videos, leading to a significant rise in ad placements. In 2024, Instagram’s ad revenue was primarily derived from its Feed (53.7%) and Stories (24.6%). However, the combined revenue share from Explore, Reels, and potentially Threads is projected to grow to 9.6% in 2025.

Jasmine Enberg, principal analyst at Emarketer, notes that users now spend nearly two-thirds of their Instagram time watching videos, underscoring the platform’s shift towards video-centric content. Additionally, if a TikTok ban were to be enforced in the US, Reels could become a prominent alternative for advertisers, further boosting Instagram’s market share.

Deutsche Bank develops layer 2 blockchain for regulatory compliance

Deutsche Bank is advancing its blockchain ambitions with a Layer 2 platform called Dama 2, designed to address regulatory concerns surrounding the use of public blockchains. Built on Ethereum, the platform is part of a broader effort to integrate tokenised assets into financial systems.

According to Boon-Hiong Chan, Deutsche Bank’s Asia-Pacific lead for innovation, public blockchains like Ethereum pose challenges for institutions due to concerns over transaction validators and potential interactions with sanctioned entities. Dama 2 aims to mitigate these risks by offering a more controlled network, allowing banks to curate trusted validators and provide regulators with monitoring tools to trace fund movements.

The initiative forms part of Project Guardian, a collaborative effort led by the Monetary Authority of Singapore, which includes major financial players like JPMorgan Chase and DBS Group. With Dama 2 leveraging ZKsync technology, Deutsche Bank is paving the way for tokenised funds and hopes to roll out a minimum viable product next year, subject to regulatory approval.

Dutch tech firms unite for Eindhoven growth

A coalition of Dutch technology firms, including chip equipment maker ASML, has announced plans to contribute approximately $230 million towards infrastructure development in Eindhoven, one of Europe’s fastest-growing technology hubs. This initiative aligns with the Dutch government’s “Operation Beethoven,” a €2.5 billion programme aimed at improving housing, transport, education, and electricity in the region.

The corporate funding will complement public investment, supporting projects coordinated by the regional development agency Brainport. Willem van der Leegte, CEO of manufacturing giant VDL Groep, a key ASML supplier, emphasised the mutual benefits of the collaboration, stating, “What is good for the region is good for the companies, and vice versa.” Other prominent contributors include chipmaker NXP and health technology firm Philips.

Eindhoven’s rapid growth as a technology hub has placed increased demand on local infrastructure. By joining forces, public and private sectors aim to create sustainable development that supports both the region’s workforce and the companies driving innovation.

Netflix fined for failing to inform customers about data usage

The Dutch Data Protection Authority (DPA) has imposed a €4.75 million ($4.98 million) fine on Netflix for not adequately informing its customers about how their personal data was being used between 2018 and 2020. The fine follows a detailed investigation that began in 2019, which revealed that Netflix’s privacy statement was insufficiently clear regarding the company’s data practices. Specifically, the DPA found that the streaming giant did not provide customers with enough information on how their data was being processed or used.

The investigation also uncovered that when customers sought to understand which personal data Netflix was collecting, they did not receive clear answers. This lack of transparency was deemed a violation of the General Data Protection Regulation (GDPR), which sets strict requirements on companies to protect user privacy and ensure clear communication about data usage.

In response to the findings, Netflix has since updated its privacy statement and improved how it informs customers about its data collection practices. Despite these changes, the company has objected to the fine, though it did not provide a comment when approached by the press.

This fine highlights the increasing scrutiny on companies to comply with GDPR and underscores the importance of clear, transparent data handling practices, especially for tech giants like Netflix that handle vast amounts of personal information.

Basis lands $34 million to revolutionise accounting

Basis, an AI startup, has secured $34 million in a Series A funding round to develop its AI-powered accounting automation product. The round, led by Khosla Ventures, attracted a diverse group of investors, including NFDG (the AI-focused fund managed by former GitHub CEO Nat Friedman and ex-Apple executive Daniel Gross), OpenAI board members Larry Summers and Adam D’Angelo, and Google’s chief scientist Jeff Dean.

The New York-based company is part of a growing group of AI startups creating autonomous agents—systems capable of performing tasks independently. Basis’ product, designed specifically for accounting firms, can handle various workflows such as entering transactions, verifying data accuracy, and integrating with popular ledger systems like QuickBooks and Xero. The product has already shown promising results, with large firms like Wiss reporting a 30% reduction in time spent on manual accounting tasks. Basis functions similarly to a junior accountant, allowing staff to focus on reviewing the AI’s work rather than completing tasks themselves.

Basis also aims to address the critical shortage of accountants in the US, exacerbated by retiring baby boomers and a decline in younger generations entering the profession. According to the Bureau of Labor Statistics, the accounting sector employs over 3 million people, but the number of candidates sitting for the CPA exam has fallen by 33% between 2016 and 2021. The shortage has led many firms to outsource work to countries like India. Moreover, with AI’s potential to automate tasks traditionally performed by accountants, the sector is expected to experience significant disruption. A 2023 OpenAI paper suggested that automation powered by large language models could eventually impact all accountant and auditor roles.

DR Congo sues Apple subsidiaries over alleged use of conflict minerals, challenges ethical sourcing claims

The Democratic Republic of Congo (DRC) has filed criminal complaints against Apple’s subsidiaries in France and Belgium, accusing the tech giant of indirectly benefiting from conflict minerals sourced from the region. The DRC, a major supplier of tin, tantalum, and tungsten — essential components in electronic devices — alleges that minerals smuggled through its conflict zones fuel violence and atrocities, including mass rapes and killings, often perpetrated by armed groups.

While Apple claims to audit suppliers and maintain a transparent supply chain, international lawyers representing the Congolese government argue the company relies on minerals pillaged from Congo. The legal filings accuse Apple of covering up war crimes, handling stolen goods, and misleading consumers about the integrity of its supply chain. The complaints also criticise the industry-funded ITSCI certification scheme, claiming it falsely legitimises minerals sourced from conflict zones.

Belgium’s historical role in the exploitation of Congo’s resources was highlighted by Congolese lawyers, who called on Belgium to support their legal efforts. Both France and Belgium are seen as jurisdictions that emphasise corporate accountability. Judicial authorities in these countries will decide whether to pursue criminal investigations against Apple and its subsidiaries.

This legal action reflects Congo’s broader struggle to end the illicit trade of its resources, which has contributed to decades of violence. Millions have died or been displaced due to conflicts linked to mineral exploitation, underscoring the urgent need for stricter enforcement of ethical supply chain practices.

TikTok appeals to Supreme Court to block looming US ban

TikTok and its parent company, ByteDance, have asked the Supreme Court to halt a US law that would force ByteDance to sell TikTok by 19 January or face a nationwide ban. The companies argue that the law violates the First Amendment, as it targets one of the most widely used social media platforms in the United States, which currently has 170 million American users. A group of TikTok users also submitted a similar request to prevent the shutdown.

The law, passed by Congress in April, reflects concerns over national security. The Justice Department claims TikTok poses a threat due to its access to vast user data and potential for content manipulation by a Chinese-owned company. A lower court in December upheld the law, rejecting TikTok’s argument that it infringes on free speech rights. TikTok maintains that users should be free to decide for themselves whether to use the app and that shutting it down for even a month could cause massive losses in users and advertisers.

With the ban set to take effect the day before President-elect Donald Trump’s inauguration, TikTok has urged the Supreme Court to decide by 6 January. Trump, who once supported banning TikTok, has since reversed his position and expressed willingness to reconsider. The case highlights rising trade tensions between the US and China and could set a precedent for other foreign-owned apps operating in America.

Bitget secures Bitcoin service licence in El Salvador

Bitget has secured a Bitcoin Service Provider licence from El Salvador’s Central Reserve Bank, allowing the platform to offer Bitcoin-to-fiat exchanges, payments, and custody services in the country. This licence is part of Bitget’s strategy to strengthen its global regulatory position and expand its presence in Latin America.

El Salvador, which made Bitcoin legal tender in 2021, has become a hub for cryptocurrency adoption. With this new licence, Bitget aims to tap into the country’s growing crypto market, which serves as a gateway to the wider region. The company is also pursuing a Digital Assets Service Provider licence from El Salvador’s National Commission of Digital Assets to extend its services to other cryptocurrencies.

In addition to its progress in Latin America, Bitget has secured Virtual Asset Service Provider licences in Poland and Lithuania and recently re-entered the UK market through a partnership with Archax. The company also plans to set up a dedicated team in El Salvador to strengthen its local presence.

Challenges and opportunities in Africa’s digital transformation: Data governance and sharing under scrutiny

The ongoing digital transformation across Africa has put data governance and sharing at the forefront of economic growth and innovation. In an Internet Governance Forum session titled ‘Data Without Borders? Navigating Policy Impacts in Africa’, experts emphasised the importance of harmonised data policies to support the African Union’s (AU) Data Policy Framework.

Souhila Amazouz from the African Union Commission highlighted the framework’s principles of transparency and cooperation, while Thelma Quaye of Smart Africa stressed the urgency of aligning national policies to ensure seamless cross-border data flows. Lillian Nalwoga noted the need for robust national data strategies, noting that two-thirds of African countries have data protection laws, though challenges remain in unifying national and continental interests.

The conversation revealed critical hurdles to effective data governance, including gaps in legal frameworks, limited institutional capacities, inadequate infrastructure, and cybersecurity risks. Souhila Amazouz discussed efforts to address these gaps through regional data centres and capacity-building initiatives.

Meanwhile, the concept of data localisation sparked debate. Vincent Olatunji from the Nigeria Data Protection Commission argued for practical data categorisation over full localisation, which Paul Baker (International Economics Consulting Limited) warned could burden businesses with high costs.

The balance between localisation and cross-border data sharing remains a contentious issue, particularly with the African Continental Free Trade Area (AfCFTA) aiming to boost trade and integration across the continent.

The panellists also highlighted the importance of trust and collaboration between governments and businesses. Transparent data practices and inclusive policy development were essential to fostering confidence in data-sharing initiatives. Paul Baker noted the vital role of cross-border data flows for Micro, Small, and Medium Enterprises (MSMEs), though an audience member pointed out that many countries still rely on manual systems, hampering digital progress.

Ultimately, the discussion underscored the need for a unified approach to data governance, with capacity development, infrastructure investment, and multistakeholder collaboration as key priorities. While challenges like the digital divide and data fragmentation persist, the dialogue demonstrated a collective commitment to advancing Africa’s digital transformation through effective data governance strategies.  

All transcripts from the Internet Governance Forum sessions can be found on dig.watch.