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European Union unveils tech sovereignty plan to boost digital independence

The European Commission has presented a European Technological Sovereignty Package aimed at strengthening Europe’s capacity in semiconductors, AI, cloud infrastructure, and open source technologies.

The package includes two legislative proposals, the Chips Act 2.0 and the Cloud and AI Development Act, alongside an Open Source Strategy and a Strategic Roadmap for Digitalisation and AI in Energy.

The Commission said the measures are designed to support Europe’s ambition to become an AI continent, strengthen digital autonomy, build a more sustainable digital future, and widen choice in core technologies for businesses, citizens, and public administrations.

Rising global demand for computing capacity, driven by the spread of AI, has intensified concerns over Europe’s dependence on non-EU suppliers for core digital technologies. The Commission said the package is intended to reduce structural dependencies and ensure Europe can develop, deploy, and secure the technologies it relies on.

The proposed Chips Act 2.0 aims to strengthen Europe’s semiconductor capabilities, while the Cloud and AI Development Act focuses on expanding cloud and AI infrastructure. The Open Source Strategy is intended to support Europe’s software ecosystem, and the energy roadmap links digitalisation and AI to a more sustainable energy system.

Commission President Ursula von der Leyen said Europe cannot afford to depend on others for technologies that keep hospitals running, energy grids stable, and services secure. She said the package is about protecting citizens, defending European interests, and making independent technological choices.

Why does it matter?

The package brings several major EU technology priorities under one sovereignty agenda. By linking chips, cloud, AI infrastructure, open source, and energy digitalisation, the Commission is trying to reduce structural dependencies while strengthening Europe’s capacity to build, deploy, and secure critical technologies. The key test will be whether legislative proposals and strategies translate into investment, infrastructure, and industrial scale.

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Hong Kong details rules on online advertisements

Hong Kong’s government has said existing laws cover deceptive online advertisements, including scam-related content, misleading trade practices, and false claims in regulated sectors.

The written reply was issued in the Legislative Council on 3 June in response to a question about pop-up advertisements, programmatic advertising, and AI deepfake scams.

The government said the Trade Descriptions Ordinance prohibits false or misleading descriptions of goods or services, including in advertisements and on online platforms. Traders engaging in bait advertising or other prohibited conduct can face up to five years in prison and a fine of HK$500,000.

The reply also said online advertisements involving deception may fall under the Theft Ordinance. Fraud carries a maximum penalty of 14 years in prison, while obtaining property by deception carries a maximum penalty of 10 years.

Advertisements for specific sectors, including real estate, education, securities, and banking, are also subject to separate laws prohibiting false or misleading claims.

Hong Kong police have been working with online platform operators and conducting regular online patrols. In 2025, police asked social media platforms to remove or review more than 116,000 scam-related pages or accounts.

The government also pointed to Scameter and Scameter+, its scam and pitfall search tools. New features introduced in October 2025 use AI to analyse suspicious website links and web page screenshots reported by the public, and to detect potential scam domain names. Within five months, the tools proactively identified more than 900 fraudulent webpages, while Scameter+ issued more than 320,000 alerts in the first quarter of 2026.

Why does it matter?

The reply shows how Hong Kong is using existing consumer protection, fraud, and sector-specific laws to address online advertising risks, rather than introducing a dedicated online advertising regime for now. The inclusion of AI deepfake scams and AI-assisted Scameter+ detection also highlights how online advertising, platform governance, fraud prevention, and automated enforcement tools are increasingly interconnected.

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Armenia expands AI ecosystem through research, infrastructure and investment

Armenian Prime Minister Nikol Pashinyan said government initiatives have helped position Armenia as an emerging centre for technology and AI, according to remarks reported by state news agency Armenpress. Speaking during the election campaign, Pashinyan highlighted several projects that he said demonstrate the government’s efforts to strengthen Armenia’s technology sector.

Pashinyan highlighted agreements signed with US President Donald Trump last year, including cooperation on AI. He argued that subsequent developments in the sector have validated the government’s approach.

As examples of progress, the Prime Minister cited the establishment of an AI centre at Yerevan State University and the launch of the Eleveight AI data centre. He also linked developments in the sector to increased public investment in science and higher salaries for researchers.

Pashinyan said investment in the defence sector has supported technological development and stated that Armenian defence companies are exporting products internationally. He made the remarks during campaigning ahead of Armenia’s parliamentary elections.

Why does it matter?

Armenia is seeking to expand its role in emerging technologies at a time when countries are increasingly investing in AI infrastructure, research capacity and digital innovation as drivers of economic growth and competitiveness.

The government’s focus on AI cooperation, research institutions and data centre infrastructure reflects broader efforts to strengthen domestic technological capabilities and attract investment in the digital economy.

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UK CMA targets AI search content use in new Google conduct requirements

The UK’s Competition and Markets Authority (CMA) has imposed a new conduct requirement on Google Search under the country’s digital markets competition regime. The measure is designed to give publishers greater control over how their content is used and to improve transparency for users.

Under the new requirement, publishers will be able to prevent their content from being used in Google’s AI-powered search features, including AI Overviews. The CMA said the measure is intended to strengthen publishers’ ability to negotiate content licensing and usage agreements with Google.

Google will also be required to provide clearer attribution for publisher content used in AI-generated search results through prominently visible links. Following consultation feedback, publishers will also be able to opt out of having their content used to fine-tune Google’s AI models.

The CMA said it will continue monitoring Google’s AI-related changes to search and may introduce additional measures if competition concerns persist. Google will have up to nine months to implement the requirements and must publish regular compliance reports as the rollout progresses in the UK.

Why does it matter?

The decision highlights growing regulatory scrutiny of how AI-powered search systems use third-party content. As search engines increasingly generate answers directly within search results, publishers have raised concerns about attribution, traffic losses and the use of their content for AI training.

The UK’s approach could influence broader debates about the relationship between AI platforms, publishers and competition policy, particularly as regulators seek to balance innovation with transparency and fair commercial practices.

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ILO chief calls for human-centred AI governance at labour conference

International Labour Organization (ILO) Director-General Gilbert F. Houngbo has called for a human-centred approach to AI at the opening of the 114th International Labour Conference in Geneva. He said the future of work would depend not only on technological advances, but also on the policies, institutions and social dialogue shaping their impact on people’s lives.

Drawing on his report ‘A Moment of Choice: Harnessing Artificial Intelligence for Decent Work‘, Houngbo outlined an agenda focused on rights, employment and skills, social protection, and social dialogue. He argued that productivity gains generated by AI should be shared through higher wages, stronger labour protections and more inclusive economic growth.

Houngbo warned that decisions taken today would determine whether AI expands opportunity and shared prosperity or contributes to greater inequality and insecurity. He also situated AI governance within a broader context of economic uncertainty, citing ILO estimates that a prolonged oil-price shock could reduce global working hours by the equivalent of millions of full-time jobs and lead to significant labour income losses by 2027.

Delegates will also hold a second discussion on decent work in the platform economy, with the aim of developing new international labour standards. The draft Convention and Recommendation cover employment promotion, protections for digital platform workers, and provisions relating to automated systems used by digital labour platforms.

Delegates from governments, employers, and workers will also address gender equality, social dialogue, tripartism, and the application of labour standards. The conference, which brings together representatives from the ILO’s 187 Member States, will run until 12 June.

Why does it matter?

As AI becomes increasingly integrated into workplaces, governments, employers and workers are debating how productivity gains, skills requirements and labour protections should evolve. The ILO’s focus on human-centred AI reflects growing international efforts to ensure that technological change supports decent work rather than exacerbating inequality.

The discussions are also significant because they could influence future international labour standards for platform work and the use of automated systems in employment, helping shape how AI affects workers worldwide.

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Georgia launches crackdown on unlawful crypto mining

The Georgian government has announced new measures to combat illegal cryptocurrency mining in Mestia, citing concerns over pressure on the country’s electricity network.

Vice Prime Minister Mamuka Mdinaradze said unauthorised mining activity in the municipality has placed sustained pressure on local power supplies, worsened supply quality, overloaded the grid and transmission lines, and contributed to outages affecting residents, businesses, and tourism.

According to Mdinaradze, electricity consumption in Mestia reached 133 million kilowatt-hours in 2025, while a municipality of comparable size would normally not exceed 10 million kilowatt-hours. Authorities estimate the resulting damage to the electricity system and financial losses at at least 20 to 25 million lari.

To address the issue, the government will begin installing electricity meters in Mestia. Officials said the purpose of the process is to identify illegal and hidden electricity consumption while preserving free electricity access for ordinary users up to a maximum quantity required for their needs.

Consumption above that limit will be subject to a tariff. Metering will be carried out locally and across villages and settlements to help identify the sources of excessive electricity use.

Law enforcement agencies have been tasked with supporting and overseeing the rollout. Officials said large-scale illegal electricity consumption will be investigated and prosecuted, and warned that attempts to obstruct the process or continue unlawful activity will face legal consequences.

Why does it matter?

The case shows how cryptocurrency mining can become an energy governance issue when high electricity consumption strains local infrastructure. Georgia’s response focuses less on crypto regulation itself and more on identifying unlawful electricity use, protecting grid stability, and balancing subsidised or free household electricity with enforcement against commercial-scale mining activity.

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NVIDIA expands global AI Cloud network to support sovereign and agentic AI

NVIDIA has announced a major expansion of its AI Cloud ecosystem, supporting the rapid global deployment of AI factory infrastructure designed to meet growing demand for agentic AI, physical AI, sovereign AI and large-scale inference workloads.

The initiative aims to expand access to high-performance computing resources for enterprises, startups, governments, researchers and AI developers worldwide.

According to NVIDIA, the ecosystem now spans six continents, with new partners expanding AI Cloud infrastructure across multiple regions. The company said the expansion is intended to bring AI computing resources closer to users, industries and national AI initiatives while supporting regional and sovereign AI requirements.

Several cloud providers are expanding infrastructure to support advanced AI applications, including model training, fine-tuning, inference and AI agent development. Companies including CoreWeave, Firmus, Nebius and others are deploying new AI factories capable of supporting model training, fine-tuning, inference and AI agent development.

The expansion also includes support for emerging physical AI and robotics workloads through platforms such as NVIDIA Cosmos and Isaac.

NVIDIA also highlighted growing adoption of its DSX platform, which is designed to help cloud providers deploy and manage AI factories more efficiently. The company said AI infrastructure is increasingly being assessed using metrics such as cost per token, energy efficiency and infrastructure utilisation, rather than raw computing capacity alone.

Why does it matter?

The expansion highlights the growing importance of AI infrastructure as governments and companies compete to secure the computing resources needed for advanced AI systems. Access to large-scale computing capacity is increasingly viewed as a strategic asset, particularly as countries pursue sovereign AI initiatives and seek greater control over critical digital infrastructure.

The announcement also reflects a broader shift in the AI industry, where demand is expanding beyond model training to include inference, autonomous agents and robotics applications, placing new emphasis on infrastructure efficiency, energy use and geographic distribution of computing resources.

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France secures a €75 billion SoftBank investment for AI data centres

SoftBank Group has announced plans to develop and operate 5 GW of AI data centre capacity in France, representing an investment of up to €75 billion.

The commitment was announced at the 2026 Choose France summit and marks SoftBank Group’s largest AI infrastructure investment in Europe. The company said the project is designed to expand access to high-performance computing capacity and strengthen France’s role as a European hub for AI infrastructure.

The first phase includes an initial €45 billion investment to deliver 3.1 GW of AI data centre capacity in the Hauts-de-France region by 2031. Planned sites include Dunkirk, Bosquel, and Bouchain, with additional projects expected elsewhere in France.

The infrastructure is intended to support demand for high-performance computing from AI companies, cloud providers, enterprises, public institutions, and research organisations.

A major component of the initiative is a strategic industrial partnership with Schneider Electric. The companies will establish a large-scale industrial production cluster at the Port of Dunkirk focused on data centre infrastructure.

The cluster will include two facilities: one operated by SoftBank Group to manufacture enclosures, and one operated by Schneider Electric to integrate data centre power modules. The partnership will combine SoftBank’s robotics and automation capabilities with Schneider Electric’s energy technology expertise and local supply chain network.

SoftBank said the project is expected to create thousands of high-skilled jobs across data centre development, engineering, energy systems, robotics, operations, maintenance, and advanced manufacturing. The company also plans to support regional research and development through partnerships with universities, engineering schools, and training institutions.

Why does it matter?

SoftBank’s project would significantly expand Europe’s AI compute capacity at a time when data centres, energy infrastructure, and advanced manufacturing are becoming central to AI competitiveness. The investment also links digital sovereignty with industrial policy: France is not only seeking more AI computing infrastructure, but also a localised supply chain for data centre equipment, power systems, robotics, and technical skills.

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Japan finalises rules for cryptoasset service intermediaries

Japan’s Financial Services Agency has finalised regulatory amendments linked to the 2025 revision of the Payment Services Act, creating a new intermediary category for electronic payment instruments and cryptoasset services.

The amendments, which enter into force on 1 June 2026, establish rules for the newly created electronic payment instrument and cryptoasset service intermediary business. The framework sets out registration application requirements, information that must be clearly explained or provided to users, prohibited conduct, user protection measures, and record-keeping obligations.

The new category allows intermediaries to provide certain electronic payment instruments and cryptoasset-related services without operating as full electronic payment instrument service providers or cryptoasset exchange service providers. The structure is intended to support intermediary activity while maintaining user protection and oversight requirements.

The wider amendment package also develops rules for electronic payment instruments and cryptoassets, including the scope of assets that may be subject to domestic holding orders for electronic payment instrument service providers and cryptoasset exchange service providers.

The FSA also finalised related provisions on funds transfer services, banks, insurance companies and their subsidiaries, and other required amendments. Public consultation on the relevant cabinet orders, cabinet office orders, notices and guidelines drew 259 comments from 62 individuals and organisations.

The amendments form part of Japan’s ongoing effort to refine its digital finance framework as cryptoassets, stablecoin-related services, payment intermediaries, and traditional financial institutions become increasingly interconnected.

Why does it matter?

Japan’s new intermediary category shows how regulators are creating more tailored frameworks for different roles in digital asset services. Rather than treating every participant as a full exchange or electronic payment instrument service provider, the framework gives intermediaries a defined route into the market while preserving registration, conduct, disclosure, and user protection requirements.

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Brazil raises compliance bar for virtual asset companies

Brazil’s Central Bank has introduced a new requirement for virtual asset service providers seeking authorisation to operate in the country.

From 1 June 2026, companies applying to operate as sociedades prestadoras de serviços de ativos virtuais, or SPSAVs, must submit a reasonable assurance report issued by an independent auditor registered with Brazil’s securities regulator, the Comissão de Valores Mobiliários.

The audit requirement is intended to assess whether applicants have adequate compliance and control structures in place. Reviews will focus on anti-money laundering and counter-terrorist financing measures, including governance arrangements, client verification procedures, internal risk controls, and mechanisms to prevent misuse of virtual asset services.

The measure builds on Brazil’s broader virtual asset regulatory framework, established under Law No. 14,478 of 2022 and further developed through Central Bank resolutions issued in 2025. Those rules created a dedicated category for virtual asset service providers and placed their authorisation and supervision under the Central Bank.

The Central Bank said the new audit requirement is designed to strengthen security and efficiency in Brazil’s financial system while supporting the development of the country’s virtual asset market. The measure is also intended to align supervision with stronger standards for governance, transparency, internal controls, and financial crime prevention.

The additional requirement is expected to increase compliance costs for applicants, but it also signals that Brazil is moving towards more structured and bank-like oversight of crypto service providers.

Why does it matter?

Brazil’s move shows how crypto regulation is shifting from basic registration towards deeper supervisory checks. By requiring independent assurance over compliance controls before authorisation, the Central Bank is placing greater emphasis on AML/CFT, governance, client protection, and operational integrity. For virtual asset firms, market access will increasingly depend not only on business activity but also on whether internal controls can withstand external review.

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