Consumer protection

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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Taiwan blocks Chinese app RedNote after surge in online scams

Authorities in Taiwan will block the Chinese social media and shopping app RedNote for a year following a surge in online scams linked to the platform. Officials report that more than 1,700 fraud cases have been linked to the app since last year, resulting in losses exceeding NT$247 million.

Regulators report that the company failed to meet required data-security standards and did not respond to requests for a plan to strengthen cybersecurity.

Internet providers have been instructed to restrict access, affecting several million users who now see a security warning message when opening the app.

Concerns over Beijing’s online influence and the spread of disinformation have added pressure on Taiwanese authorities to tighten oversight of Chinese platforms.

RedNote’s operators are also facing scrutiny in mainland China, where regulators have criticised the company over what they labelled ‘negative’ content.

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Ireland and Australia deepen cooperation on online safety

Ireland’s online safety regulator has agreed a new partnership with Australia’s eSafety Commissioner to strengthen global approaches to digital harm. The Memorandum of Understanding (MoU) reinforces shared ambitions to improve online protection for children and adults.

The Irish and Australian plan to exchange data, expertise and methodological insights to advance safer digital platforms. Officials describe the arrangement as a way to enhance oversight of systems used to minimise harmful content and promote responsible design.

Leaders from both organisations emphasised the need for accountability across the tech sector. Their comments highlighted efforts to ensure that platforms embed user protection into their product architecture, rather than relying solely on reactive enforcement.

The MoU also opens avenues for collaborative policy development and joint work on education programs. Officials expect a deeper alignment around age assurance technologies and emerging regulatory challenges as online risks continue to evolve.

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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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Russia blocks Snapchat and FaceTime access

Russia’s state communications watchdog has intensified its campaign against major foreign platforms by blocking Snapchat and restricting FaceTime calls.

The move follows earlier reports of disrupted Apple services inside the country, while users could still connect through VPNs instead of relying on direct access. Roskomnadzor accused Snapchat of enabling criminal activity and repeated earlier claims targeting Apple’s service.

A decision that marks the authorities’ first formal confirmation of limits on both platforms. It arrives as pressure increases on WhatsApp, which remains Russia’s most popular messenger, with officials warning that a whole block is possible.

Meta is accused of failing to meet data-localisation rules and of what the authorities describe as repeated violations linked to terrorism and fraud.

Digital rights groups argue that technical restrictions are designed to push citizens toward Max, a government-backed messenger that activists say grants officials sweeping access to private conversations, rather than protecting user privacy.

These measures coincide with wider crackdowns, including the recent blocking of the Roblox gaming platform over allegations of extremist content and harmful influence on children.

The tightening of controls reflects a broader effort to regulate online communication as Russia seeks stronger oversight of digital platforms. The latest blocks add further uncertainty for millions of users who depend on familiar services instead of switching to state-supported alternatives.

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Porn site fined £1m for ignoring UK child safety age checks

A UK pornographic website has been fined £1m by Ofcom for failing to comply with mandatory age verification under the Online Safety Act. The company, AVS Group Ltd, did not respond to repeated contact from the regulator, prompting an additional £50,000 penalty.

The Act requires websites hosting adult content to implement ‘highly effective age assurance’ to prevent children from accessing explicit material. Ofcom has ordered the company to comply within 72 hours or face further daily fines.

Other tech platforms are also under scrutiny, with one unnamed major social media company undergoing compliance checks. Regulators warn that non-compliance will result in formal action, highlighting the growing enforcement of child safety online.

Critics argue the law must be tougher to ensure real protection, particularly for minors and women online. While age checks have reduced UK traffic to some sites, loopholes like VPNs remain a concern, and regulators are pushing for stricter adherence.

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Japanese high-schooler suspected of hacking net-cafe chain using AI

Authorities in Tokyo have issued an arrest warrant for a 17-year-old boy from Osaka on suspicion of orchestrating a large-scale cyberattack using artificial intelligence. The alleged target was the operator of the Kaikatsu Club internet-café chain (along with related fitness-gym business), which may have exposed the personal data of about 7.3 million customers.

According to investigators, the suspect used a computer programme, reportedly built with help from an AI chatbot, to send unauthorised commands around 7.24 million times to the company’s servers in order to extract membership information. The teenager was previously arrested in November in connection with a separate fraud case involving credit-card misuse.

Police have charged him under Japan’s law against unauthorised computer access and for obstructing business, though so far no evidence has emerged of misuse (for example, resale or public leaks) of the stolen data.

In his statement to investigators, the suspect reportedly said he carried out the hack simply because he found it fun to probe system vulnerabilities.

This case is the latest in a growing pattern of so-called AI-enabled cyber crimes in Japan, from fraudulent subscription schemes to ransomware generation. Experts warn that generative AI is lowering the barrier to entry for complex attacks, enabling individuals with limited technical training to carry out large-scale hacking or fraud.

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Meta begins removing underage users in Australia

Meta has begun removing Australian users under 16 from Facebook, Instagram and Threads ahead of a national ban taking effect on 10 December. Canberra requires major platforms to block younger users or face substantial financial penalties.

Meta says it is deleting accounts it reasonably believes belong to underage teenagers while allowing them to download their data. Authorities expect hundreds of thousands of adolescents to be affected, given Instagram’s large cohort of 13 to 15 year olds.

Regulators argue the law addresses harmful recommendation systems and exploitative content, though YouTube has warned that safety filters will weaken for unregistered viewers. The Australian communications minister has insisted platforms must strengthen their own protections.

Rights groups have challenged the law in court, claiming unjust limits on expression. Officials concede teenagers may try using fake identification or AI-altered images, yet still expect platforms to deploy strong countermeasures.

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