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EU customs reform targets low-value online imports

The EU has abolished the customs duty exemption for e-commerce parcels worth less than €150, introducing a temporary €3 duty on low-value items imported directly from non-EU countries.

The measure entered into force on 1 July 2026 and forms part of the wider EU Customs Reform. It is intended to create fairer competition between the EU retailers and non-EU online sellers while strengthening controls on unsafe or non-compliant products.

The previous exemption was designed for an earlier period of limited cross-border online shopping. The Commission said 5.9 billion low-value parcels entered the EU in 2025, representing 97% of all imported items but only 2% of their total value.

The EU authorities argue that the exemption distorted competition and created incentives to undervalue or split shipments to remain below the €150 threshold.

Under the new system, consumers should not have to pay the duty at the time of delivery. Businesses involved in selling and transporting imported goods will be responsible for customs payment and compliance.

The €3 duty is a transitional measure and will remain in place until 1 July 2028. After that, low-value imports will be treated under the standard customs framework, with duties based on product classification, origin and value.

The reform also introduces Product Identifiers, which become mandatory from 1 November 2026 to improve traceability and safety checks. A separate handling fee for imported e-commerce goods is also expected by November 2026.

Why does it matter?

The change addresses one of the biggest pressure points in the EU e-commerce: billions of low-value parcels entering the single market with limited customs duties and weak product-level data. Removing the exemption could reduce unfair advantages for non-EU sellers, strengthen enforcement against unsafe products and give customs authorities better tools to manage mass e-commerce imports. It also shows how the EU is treating online retail as a trade, consumer protection and digital platform accountability issue, not only a customs matter.

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Australian watchdog sues Amazon over Prime Video contract terms

Australia’s consumer watchdog has launched legal action against Amazon, alleging the company used unfair contract terms when introducing advertisements to Prime Video.

The Australian Competition and Consumer Commission claims that Amazon’s standard-form contracts allowed the company to make materially adverse changes to Prime services and contract terms without giving annual subscribers a contractual right to refunds or other meaningful redress.

The case concerns contracts with more than one million annual Amazon Prime subscribers between 1 November 2023 and 18 August 2025.

Prime Video had been delivered largely advertisement-free before 2 July 2024. Amazon then introduced advertisements and required subscribers to pay an additional $2.99 per month to keep watching Prime Video content without ads.

According to the ACCC, more than 850,000 annual Prime subscribers had already paid for their subscription when the change took effect. The regulator alleges that those subscribers received degraded service for the remainder of their prepaid term unless they paid extra for the ad-free option.

The ACCC says the relevant contract terms created a significant imbalance between Amazon and consumers, were not reasonably necessary to protect Amazon’s legitimate interests and could cause consumer detriment.

Amazon has since amended some terms to introduce a right to a pro rata refund where annual Prime subscribers cancel their service in response to materially adverse changes.

The case will test how Australian consumer law applies when digital subscription platforms change paid services after customers have already committed to annual plans.

Why does it matter?

The lawsuit raises a broader consumer protection question in the digital economy: how much flexibility should subscription platforms have to change paid services after customers have already paid? As streaming, cloud, gaming and software services increasingly rely on subscription models, regulators are paying closer attention to whether users receive fair notice, real choice and meaningful remedies when platforms alter service quality, pricing or advertising conditions.

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Canada and Germany strengthen semiconductor supply chains

Canada and Germany have signed a joint declaration of intent to strengthen semiconductor supply chains and deepen industrial cooperation, reinforcing collaboration in a technology that underpins AI, advanced computing and the digital economy.

The declaration was signed on the sidelines of the International Energy Agency’s (IEA) Annual Global Conference on Energy Efficiency by Carlos Leitão, Parliamentary Secretary to Canada’s Minister of Industry, and Stefan Rouenhoff, Parliamentary State Secretary at Germany’s Federal Ministry for Economic Affairs and Energy.

Canada said resilient and diversified semiconductor supply chains are becoming increasingly important as global demand grows for AI, advanced computing and connected technologies.

The declaration establishes a framework for policy dialogue and cooperation on investment, industrial development, technology and research. It also aims to support start-ups, scale-ups and small and medium-sized enterprises while building on both countries’ semiconductor expertise to strengthen competitiveness.

Canada described semiconductors as foundational technologies for the digital economy, highlighting their role in enabling AI and other emerging technologies.

The declaration also supports Canada’s National Artificial Intelligence Strategy: AI for All, particularly its focus on infrastructure, international partnerships and long-term competitiveness. It builds on a series of bilateral initiatives launched since late 2025, including the Canada-Germany Digital Alliance, a joint AI declaration, the Sovereign Technology Alliance, and cooperation on automotive manufacturing, batteries and critical minerals.

A separate February 2026 declaration also expanded bilateral industrial cooperation in auto and battery manufacturing and critical minerals. Officials from both countries said stronger semiconductor supply chains can support innovation, economic resilience and long-term prosperity.

The partnership adds semiconductor supply chains to a wider Canada-Germany agenda focused on trusted advanced technologies, economic security and the next generation of AI-enabled digital infrastructure.

Why does it matter?

Semiconductors have become strategic assets that underpin AI, advanced computing, telecommunications and many other digital technologies. By strengthening cooperation on chip supply chains, Canada and Germany aim to reduce supply chain vulnerabilities, encourage investment and support long-term technological competitiveness.

The agreement also reflects a broader trend of trusted technology partnerships among like-minded countries. Rather than focusing solely on trade, governments are increasingly coordinating industrial policy, research and supply chains to strengthen economic security and reduce dependence on concentrated sources of critical technologies.

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Bank of England warns agentic AI threatens financial stability

Bank of England Deputy Governor Sarah Breeden has warned that rapidly advancing AI capabilities, particularly agentic AI systems capable of autonomously carrying out complex sequences of actions, pose growing risks to financial stability.

Breeden noted that open-source AI models may trail the most advanced proprietary models by only four to eight months. She warned that delays in applying security patches can allow attackers to reverse engineer newly disclosed vulnerabilities, echoing the Five Eyes cybersecurity agencies’ assessment that the relevant timeline for AI-enabled cyber threats is measured in months rather than years.

Turning to financial markets, Breeden warned that AI trading agents responding to similar prompts or market signals could reinforce one another during periods of stress, amplifying volatility. She also cautioned that autonomous systems could drift from their original objectives or from broader public policy goals.

She said the Bank of England is working with the Bank for International Settlements Innovation Hub and Germany’s Bundesbank to simulate how different agent designs could contribute to herd behaviour. The work also explores safeguards comparable to market circuit breakers or kill switches that could halt AI-driven trading if faulty models threatened financial stability.

Breeden also highlighted the implications of agentic AI for payments, where autonomous systems could increasingly initiate transactions on behalf of users. She said this raises questions about consent, authorisation, liability for erroneous payments and interoperability as different organisations develop competing technical standards. The Bank is leading a public-private initiative to design the next generation of UK retail payments infrastructure with these emerging use cases in mind.

Breeden concluded by calling for stronger international cooperation, arguing that AI presents cross-border systemic risks comparable to those exposed during the global financial crisis. She suggested that the shared technology dependencies underpinning advanced AI warrant closer international coordination among financial authorities.

Why does it matter?

The speech reflects a growing shift in financial regulation from focusing on AI adoption to preparing for systemic AI risks. By highlighting autonomous decision-making, cyber threats and market dynamics, the Bank of England is signalling that agentic AI presents challenges that extend beyond individual firms to the stability of the financial system as a whole.

It also illustrates how central banks are beginning to rethink financial infrastructure for an AI-enabled economy. Questions around autonomous payments, liability, market safeguards and international coordination suggest that existing regulatory frameworks may need to evolve as AI agents become more capable of acting independently across financial markets and payment systems.

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EU launches three new digital skills academies

The European Commission has launched three new Digital Skills Academies focused on AI, quantum technologies and virtual worlds.

The academies were announced during Digital Skills EU Days, an annual event bringing together digital skills projects, national coalitions, policymakers, industry representatives and education organisations from across the EU.

Funded under the Digital Europe Programme, the academies are intended to establish specialised training in critical technology areas and help the EU meet its Digital Decade targets.

The Commission said Europe’s competitiveness and leadership depend on digital talent, linking the initiative to the Union of Skills, the AI Continent Action Plan, the Apply AI Strategy and the Digital Decade Policy Programme.

The new academies add to wider Digital Europe Programme investments in skilling, upskilling and reskilling. The programme has invested more than €294 million in the EU digital skills initiatives covering areas such as data, cloud, cybersecurity and AI.

During the event, the Commission also presented the 2026 European Digital Skills Awards, recognising projects focused on AI literacy, cybersecurity education, digital inclusion, research data management and women’s participation in ICT.

Why does it matter?

The new academies show that the EU is treating digital skills as part of its strategic technology agenda, alongside regulation, infrastructure and industrial policy. AI, quantum technologies and virtual worlds all require specialised expertise, and shortages in these areas could slow deployment across businesses, research institutions and public services. The initiative also supports the EU’s broader goal of strengthening technological competitiveness and reducing dependence on external talent and capabilities.

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UK CMA consults on Apple and Google app store payment rules

The UK Competition and Markets Authority has opened consultations on new requirements for Apple and Google under the country’s digital markets competition regime.

Proposed steering requirements would allow app developers to direct UK users to payment options outside Apple’s App Store and Google’s Play Store. The CMA said Apple currently bans steering in the UK, while Google restricts it.

According to the regulator, allowing developers to communicate with customers about off-platform options could increase competition, reduce payment costs and support innovation across mobile services.

Consultation proposals also cover principles to ensure that any steering fees charged by Apple and Google are fair and reasonable. The CMA said such fees should be based on evidence and should be lower than current app store charges.

Alongside the steering proposals, officials are seeking views on a potential requirement for Apple to provide developers with access to near-field communication functionality on iOS.

Broader NFC access could allow UK fintechs and developers to support contactless payments from within their own apps. It could also support future payment methods, including account-to-account payments, digital currencies and stablecoins, as well as non-financial uses such as digital ID and car keys.

Responses to the steering conduct requirement are due by 28 July 2026, while views on the potential NFC requirement are due by 21 July 2026. The CMA will decide later this year whether to impose new obligations.

Why does it matter?

The consultations show the UK’s digital markets regime moving into targeted conduct rules for major mobile platforms. If adopted, the measures could weaken Apple and Google’s control over in-app payments and give developers more freedom to offer alternative purchasing channels. The NFC proposal also widens the debate beyond app store commissions, addressing Apple’s control over device functionality that can shape competition in mobile payments, digital identity and other services.

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New UK regime targets systemic stablecoin issuers

The Bank of England and the Financial Conduct Authority have set out how they will jointly regulate stablecoin issuers whose activities could pose risks to UK financial stability.

The joint approach forms part of the UK’s emerging stablecoin regime. Under the planned framework, the FCA will regulate UK-issued qualifying stablecoins, while issuers recognised as systemic by HM Treasury will also be subject to Bank of England oversight.

The authorities said the two-part regime is intended to provide clarity for firms while supporting innovation, consumer protection, market integrity and financial stability.

Stablecoin issuers may become systemic if their coins are widely used in payments and could create risks for the UK financial system. In those cases, the Bank would supervise prudential and financial-stability risks, while the FCA would continue to oversee consumer protection, competition and market integrity issues.

The framework includes transition arrangements for firms moving from FCA-only supervision to joint regulation. The Bank and FCA said this should help issuers scale without facing conflicting or duplicative requirements.

The approach also allows for issuers to be recognised as ‘systemic at launch’ where they are not yet operating at systemic scale but are likely to do so. Such firms could enter a phased supervisory pathway while meeting both FCA and Bank requirements.

The Bank is separately consulting on draft rules for sterling-denominated systemic stablecoin issuers. It intends to finalise its Code of Practice by the end of 2026, with regulated stablecoins expected to operate in the UK from 2027.

Why does it matter?

The UK framework is important because it creates a pathway for stablecoins to move from crypto-market products towards regulated payment instruments. By scaling supervision as issuers grow, the UK aims to support innovation without allowing systemically important stablecoins to develop outside financial stability oversight. The model could influence how other jurisdictions regulate digital money, especially where stablecoins are expected to support retail payments, wholesale settlement or cross-border transactions.

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AUSTRAC warns AI is reshaping financial crime

AUSTRAC has released a new suite of intelligence and risk assessments examining evolving threats, related to money laundering, terrorism financing and proliferation financing.

The Australian financial intelligence agency said advances in AI and other emerging technologies are enabling criminals to exploit vulnerabilities and evade detection. The reports are intended to help organisations strengthen risk-based anti-money laundering and counter-terrorism financing controls.

The package includes the Money laundering update 2026, Terrorism Financing Update 2026, Proliferation Financing Update 2026 and a report on terrorism financing risks in Australia’s non-profit sector. AUSTRAC said the publications show growing reliance on everyday financial services and corporate structures to conceal illicit funds.

While traditional risk channels remain relevant, AUSTRAC said financial crime is becoming more complex and interconnected as technology, globalisation and increasingly sophisticated criminal methods reshape how illicit activity is concealed.

AUSTRAC identified AI and virtual assets, including cryptocurrency, as key technologies reshaping the threat landscape by increasing both the scale and sophistication of financial crime.

The agency said legitimate financial services, trade flows, corporate structures and routine transactions can all be exploited to disguise illicit activity. It also highlighted persistent vulnerabilities in Australia’s non-profit sector, noting that although the overall terrorism financing risk remains stable, charities and not-for-profit organisations continue to face exposure to money laundering and terrorism financing.

Charities and not-for-profit organisations play an important role in supporting communities in Australia and overseas. However, AUSTRAC said they remain vulnerable to money laundering and terrorism financing.

AUSTRAC said the intelligence products are designed to help regulated organisations better understand emerging financial crime threats and strengthen their anti-money laundering and counter-terrorism financing controls.

Why does it matter?

Financial crime is becoming increasingly difficult to detect as criminal networks exploit legitimate financial systems alongside AI, cryptocurrencies and other emerging technologies. AUSTRAC’s latest assessments highlight the need for regulated organisations to strengthen risk-based anti-money laundering and counter-terrorism financing controls in response to a more complex threat environment.

The reports also underscore a broader shift in financial crime prevention. Rather than focusing only on traditionally high-risk transactions, organisations are being encouraged to monitor how ordinary financial services, corporate structures and cross-border activities can be misused, reflecting the growing sophistication of modern illicit finance.

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Central Bank of Azerbaijan submits draft crypto law for review

Azerbaijan has moved closer to regulating its cryptocurrency sector after the Central Bank completed a draft law on virtual assets and crypto markets and submitted it to state authorities for review.

Fidan Tofidi, Director of the Central Bank’s Financial Technologies and Innovations Department, said the legislation could be adopted before the end of the year. She described the framework as a major step for a sector that has so far remained unregulated in the country.

The proposed regime is expected to introduce licensing and supervision for virtual asset service providers operating in Azerbaijan. Regulators have previously said the framework should cover virtual asset markets and the activities of companies providing crypto-related services.

The initiative is part of Azerbaijan’s broader financial-sector development agenda, which includes work on virtual assets, shared know-your-customer mechanisms, supervisory technology and digital financial infrastructure.

Earlier Central Bank discussions on virtual assets focused on regulatory and supervisory approaches, market risks and opportunities, and the experience of countries such as Kazakhstan and Türkiye.

Azerbaijan has also tested crypto-related projects through its regulatory sandbox. One pilot involved a platform for buying, selling, exchanging and storing virtual assets, although the project was suspended after failing to achieve expected test results.

The Central Bank has maintained a cautious stance on a possible central bank digital currency, saying it is monitoring international developments before moving forward.

Why does it matter?

Azerbaijan’s draft law signals a shift from a legal grey area towards formal oversight of crypto markets and virtual asset service providers. Licensing and supervision could give regulators more visibility over market activity, strengthen consumer protection and help address money-laundering and terrorism-financing risks. The move also reflects a wider trend among emerging markets: rather than banning crypto outright, authorities are building frameworks to integrate digital assets into regulated financial systems.

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US SEC reviews framework for crypto and other novel ETFs

The US Securities and Exchange Commission has opened a public consultation on how it should treat exchange-traded funds that invest in innovative asset classes or use novel investment strategies.

The request for comment focuses on so-called Novel ETFs and asks whether existing regulatory tools remain appropriate as the ETF market expands beyond traditional products.

The SEC said examples of Novel ETFs include funds linked to crypto assets, commodity-focused instruments, single-stock strategies, heightened leverage, blockchain-enabled opportunities, private assets and event contracts.

The consultation asks whether such products raise questions about investment company status, ETF listing standards, investor protection, market surveillance, arbitrage mechanisms and registration procedures.

The review comes after rapid growth in the ETF market. The SEC said total ETF net assets increased from more than $4 trillion at the end of 2019 to more than $12 trillion at the end of 2025, while the number of ETFs rose from almost 1,900 to more than 4,600.

The regulator is seeking feedback from funds, advisers, investors and other market participants on whether further action is needed to support innovation while protecting investors and maintaining fair, orderly and efficient markets.

Why does it matter?

The SEC consultation shows how regulators are reassessing ETF rules as products move into more complex and politically sensitive areas, including crypto assets and event-based instruments. Clearer rules could help issuers understand when a product can use existing ETF registration and listing pathways. At the same time, the review reflects concern that faster product launches should not weaken investor protection, market surveillance or the functioning of ETF arbitrage mechanisms.

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