Economic Archives | Digital Watch Observatory

EU funding platform drives competitiveness in strategic technologies

The European Commission has highlighted the growing impact of the Strategic Technologies for Europe Platform (STEP), which has mobilised €29 billion to strengthen innovation and competitiveness across key sectors.

An initiative that supports the development and manufacturing of critical technologies, reinforcing the Union’s strategic autonomy.

Funding has been directed toward digital and deep-tech innovation, clean technologies, biotechnology and defence, combining resources from EU programmes and Member States.

Such a coordinated approach reflects efforts to reduce strategic dependencies instead of relying on fragmented investment strategies.

The platform has also improved access to funding, with hundreds of calls and projects supported across all Member States. Tools such as the STEP Seal and the planned AI-based access systems aim to simplify processes and attract further public and private investment into high-potential projects.

Looking ahead, the initiative is shaping broader reforms, including proposals for a European Competitiveness Fund. These developments signal a continued focus on streamlining funding mechanisms while supporting innovation ecosystems and long-term economic growth across Europe.

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New quantum threat could weaken cryptocurrency encryption systems

A new warning from Google says advances in quantum computing could weaken widely used cryptographic systems protecting cryptocurrencies and digital infrastructure. A new whitepaper suggests future quantum machines may need fewer resources than previously estimated to break elliptic curve cryptography.

The research focuses on the elliptic curve discrete logarithm problem, which underpins much of today’s blockchain security. Findings suggest quantum algorithms like Shor’s could run with fewer qubits and gates, increasing concerns about cryptographic resilience.

To address the risk, the paper recommends a transition to post-quantum cryptography, which is designed to resist quantum attacks. It also outlines short-term blockchain measures, including avoiding reuse of vulnerable wallet addresses and preparing digital asset migration strategies.

Google also introduced a responsible disclosure approach using zero-knowledge proofs to communicate vulnerabilities without exposing exploitable details.

The company says this balances transparency and security, supporting coordinated efforts across crypto and research communities to prepare for quantum threats.

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EPO strengthens industry collaboration on European patent innovation

The European Patent Office (EPO) has reinforced cooperation with industry stakeholders through discussions with the German Association of Industry IP Experts, focusing on strengthening the European patent system and supporting innovation.

A meeting that brought together representatives from major industrial actors to align priorities and explore future collaboration.

Discussions between the EPO and the stakeholders centred on enhancing technology transfer, empowering startups and fostering economic growth across Europe.

Participants emphasised the importance of inclusive engagement among patent system users instead of fragmented approaches, ensuring that innovation strategies reflect both industrial and societal needs.

The Unitary Patent system was highlighted as gaining traction, particularly among smaller entities such as SMEs, individual inventors and research organisations. Such a trend reflects broader efforts to improve accessibility and scalability within the European innovation ecosystem.

AI also featured prominently, with both sides recognising its growing role in improving efficiency and quality in patent processes.

A human-centric approach remains essential, ensuring that AI deployment supports responsible innovation while maintaining high standards in patent examination and services.

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Italy fines major bank over data protection failures

The Italian Data Protection Authority has imposed a €31.8 million fine on Intesa Sanpaolo following serious shortcomings in its handling of personal data.

The case stems from unauthorised access by an employee to thousands of customer accounts, raising concerns about internal oversight and data protection safeguards.

Investigations revealed that monitoring systems failed to detect repeated unjustified access to sensitive financial information over an extended period. The breach also involved high-risk individuals, highlighting weaknesses in risk-based controls instead of robust, targeted protection measures.

Authorities in Italy identified violations of core data protection principles, including integrity, confidentiality and accountability. Additional concerns arose from delays in notifying both regulators and affected individuals, limiting the ability to respond effectively to the incident.

The case of Intesa Sanpaolo underscores increasing regulatory scrutiny of data governance practices in the financial sector. Strengthening internal controls and ensuring timely breach reporting remain essential for maintaining trust and compliance in data-driven banking environments.

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Malta launches SMART Food project with AI and blockchain

Malta is advancing the SMART Food project to strengthen the agri-food sector. The initiative is a Malta-Italy partnership funded under the Interreg programme.

Minister Anton Refalo said the project aims to create a reliable and technologically advanced food system. A digital platform using AI and blockchain will provide real-time information on products from production to consumption.

The project seeks to meet consumer demand for clarity on food origin, safety, and sustainability. It will also support farmers and industry operators in adopting more efficient practices.

Minister Refalo added that the initiative strengthens trust across the food chain and empowers consumers. Malta’s scale allows it to adopt innovative solutions and take a leading role in modernising the sector.

The Malta Food Agency manages the project, including development, management, and training. Chief Executive Brian Vella said it safeguards product quality, improves traceability, and reinforces confidence in local produce.

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New China rules broaden 2026 agricultural census and tighten data controls

China has revised its regulation on the national agricultural census ahead of the country’s fourth such survey, with the updated rules due to take effect on 1 May 2026. According to the reported summary, Premier Li Qiang signed a State Council decree publishing the revised regulation.

The changes expand the scope of the agricultural census to include rural industrial development and village construction, alongside more traditional measures of agricultural activity. New data-collection methods, including remote sensing, have also been added to the framework.

Stronger data-quality controls form another part of the revision. The updated regulation introduces a post-census spot-check system and sets out confidentiality obligations for census personnel involved in the process.

Penalties for data falsification have also been tightened. The revised rules say people found to have fabricated or manipulated statistics may face heavier sanctions, including higher fines and possible criminal prosecution.

The fourth national agricultural census aims to provide an updated picture of agricultural development, rural construction, farmers’ living standards, and the outcomes of rural reform in China. Areas listed for coverage include agricultural production conditions, grain output, new quality productive forces in agriculture, rural development, and the living conditions of rural residents.

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Ofcom proposes tougher rules on scam mobile messages

New proposals from Ofcom aim to reduce scam activity on mobile messaging services across the UK. The measures are designed to strengthen protections for users and businesses affected by large-scale fraud campaigns.

Scammers often combine mobile messages with other channels such as calls, emails, social media and online adverts to trick victims into revealing personal information or making payments.

While telecom operators have introduced safeguards in recent years, regulators say current efforts do not go far enough.

The proposed framework would require mobile operators and messaging aggregators to prevent scammers from accessing messaging systems and to detect and disrupt malicious activity where it occurs.

The goal is to close existing gaps in industry defences and reduce the volume of scam messages reaching users. Ofcom plans to finalise its decision in summer 2026, following completion of its consultation process.

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Brazil study maps age assurance practices across 25 digital services

A new study by CGI.br and NIC.br examines how digital services in Brazil implement age assurance measures. Presented in Brasília during an event on the Digital Child and Adolescent Statute (ECA Digital), the study reviewed 25 popular online services used by children and adolescents.

The study found that most of the services analysed do not apply age checks at the point of registration, including some platforms aimed at adults. According to the release, age assurance usually appears later, when users try to access specific features such as livestreaming or monetisation.

Titled ‘Age assurance practices in 25 digital services used by children in Brazil’, the study analysed governance documents published before the ECA Digital entered into force. From 18 March, the law requires information-society services aimed at children and adolescents in Brazil, or likely to be accessed by them, to adopt effective age-assurance measures and parental supervision.

The study found that 11 of the 25 platforms relied on third-party age-assurance services, particularly social media and generative AI platforms. Official identity document submission was the most common verification method, while selfie-based checks were the most common age-estimation tool. Differences were also found between the minimum ages stated by services and those listed in app stores, and some adult-oriented platforms could still be accessed by younger users with parental consent.

Parental supervision tools were available in 15 of the 25 services, but activation was usually optional and depended on parents or guardians. Transparency also emerged as a weakness: only six services published Brazil-specific reports, and only one explained how its minimum-age policy was applied. Policies were often spread across multiple pages, averaging 22 pages per service, and around 40% of the services provided related information in other languages.

Fábio Senne, General Research Coordinator at Cetic.br | NIC.br, said: ‘One of the study’s central aims was to verify the integrity of the information made available by digital services in Brazil. It is essential that data on age protection be communicated clearly and accessibly, allowing more informed and effective parental supervision.’

Juliana Cunha, manager of the Digital Public Policy Advisory Office at CGI.br | NIC.br, said: ‘This survey was developed to support the debate on implementation of the ECA Digital and to offer a clear understanding of the current landscape. This initiative forms part of a broader set of actions by CGI.br and NIC.br aimed at providing technical evidence to support effective enforcement of the law. Our commitment is to foster a safer and more responsible digital ecosystem for children and adolescents in Brazil.’

The release says the study used as a methodological reference the OECD technical paper ‘Age assurance practices of 50 online services used by children’, published in 2025. Information was collected between 10 and 30 January 2026 from public documents made available by the services in Brazil, totalling 550 pages analysed. The event also marked the launch of TIC Kids Online Brazil 2025, a publication on internet use by children and adolescents aged 9 to 17 in Brazil.

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ILO and World Bank paper says GenAI may deepen labour-market divides

A joint working paper by the International Labour Organization (ILO) and the World Bank says generative AI is likely to reshape labour markets globally, but not in the same way across countries.

The paper finds that advanced economies face greater overall exposure, while developing economies may see disruption arrive faster than productivity gains due to weaker digital infrastructure and differences in how work is organised.

Prepared as a background study for the World Development Report 2026, the paper examines labour-market exposure to GenAI across 135 countries, covering about two-thirds of global employment. According to the study, digital infrastructure and job-task composition are among the main factors shaping the distribution of risks and opportunities between advanced and developing economies.

Exposure is highest in advanced economies, especially in clerical and professional occupations. Lower-income countries are less exposed overall, but the paper says structural constraints reduce their ability to benefit from the technology. A central concern is that workers in jobs vulnerable to automation are often already online, even in poorer settings, meaning displacement could happen relatively quickly.

The paper also says many of the jobs most exposed to automation in developing economies are relatively higher-quality roles, including clerical and administrative work that has often provided a route into decent employment, especially for women and young workers. AI-driven automation, the study warns, could narrow those pathways.

Potential gains are also uneven. Many workers in jobs that could benefit from GenAI lack reliable internet access in lower-income settings. The paper adds that the same occupation title can involve different tasks depending on the country, with workers in poorer economies often carrying out fewer non-routine analytical tasks, relying less on computers, and doing more routine or manual work. Such differences reduce the scope for productivity gains from GenAI deployment.

ILO and the World Bank conclude in the paper that GenAI’s labour-market effects will depend not only on the technology itself, but also on digital connectivity, skills, task organisation, labour-market institutions, and social protection. Expanded digital access, stronger skills policies, and better labour protections are presented as necessary if the gains from GenAI are to be shared more broadly.

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Campaign highlights risks of profit-driven digital platforms

A global campaign led by the Norwegian Consumer Council (NCC) has drawn attention to the decline in quality across digital platforms, a phenomenon widely referred to as ‘enshitification’, in which services deteriorate over time as companies prioritise monetisation over user experience.

The initiative has gained momentum through a viral video and coordinated advocacy efforts across multiple regions.

Inshitification is a term coined by journalist Cory Doctorow that describes a pattern in which platforms initially serve users well, then shift towards extracting value from both users and business partners.

In practice, it often results in increased advertising, paywalls, and reduced functionality, with platforms leveraging user dependence to introduce less favourable conditions.

More than 70 advocacy groups across the EU, the US and Norway have urged policymakers to take stronger action, arguing that declining competition and market concentration allow platforms to degrade services without losing users.

Network effects and high switching costs further limit consumer choice, making it difficult to move to alternative platforms even when dissatisfaction grows.

Existing frameworks, such as the Digital Markets Act and the Digital Services Act, aim to address some of these issues by promoting interoperability, transparency, and accountability.

However, experts argue that enforcement remains too slow and insufficient to deter harmful practices, suggesting that stronger regulatory intervention will be necessary to restore balance between consumers, platforms, and competition in the digital economy.

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