Economic

AliExpress agrees to binding EU rules on data and transparency

AliExpress has agreed to legally binding commitments with the European Commission to comply with the Digital Services Act (DSA). These cover six key areas, including recommender systems, advertising transparency, and researcher data access.

The announcement on 18 June marks only the second case where a major platform, following TikTok, has formally committed to specific changes under the DSA.

The platform promised greater transparency in its recommendation algorithms, user opt-out from personalisation, and clearer information on product rankings. It also committed to allowing researchers access to publicly available platform data through APIs and customised requests.

However, the lack of clear definitions around terms such as ‘systemic risk’ and ‘public data’ may limit practical oversight.

AliExpress has also established an internal monitoring team to ensure implementation of these commitments. Yet experts argue that without measurable benchmarks and external verification, internal monitoring may not be enough to guarantee meaningful compliance or accountability.

The Commission, meanwhile, is continuing its investigation into the platform’s role in the distribution of illegal products.

These commitments reflect the EU’s broader enforcement strategy under the DSA, aiming to establish transparency and accountability across digital platforms. The agreement is a positive start but highlights the need for stronger oversight and clearer definitions for lasting impact.

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BT launches cyber training as small businesses struggle with threats

Cyber attacks aren’t just a problem for big-name brands. Small and medium businesses are increasingly in the crosshairs, according to new research from BT and Be the Business.

Two in five SMEs have never provided cyber security training to their staff, despite a sharp increase in attacks. In the past year alone, 42% of small firms and 67% of medium-sized companies reported breaches.

Phishing remains the most common threat, affecting 85% of businesses. But more advanced tactics are spreading fast, including ransomware and ‘quishing’ scams — where fake QR codes are used to steal data.

Recovering from a breach is costly. Micro and small businesses spend nearly £8,000 on average to recover from their most serious incident. The figure excludes reputational damage and long-term disruption.

To help tackle the issue, BT has launched a new training programme with Be the Business. The course offers practical, low-cost cyber advice designed for companies without dedicated IT support.

The programme focuses on real-world threats, including AI-driven scams, and offers guidance on steps like password hygiene, two-factor authentication, and safe software practices.

Although 69% of SME leaders are now exploring AI tools to help defend their systems, 18% also list AI as one of their top cyber threats — a sign of both potential and risk.

Experts warn that basic precautions still matter most. With free and affordable training options now widely available, small firms have more tools than ever to improve their cyber defences.

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Crypto spending in Europe is rising with stablecoins leading

Crypto is gaining traction as a go-to payment method across Europe, with stablecoins playing a leading role. According to a June report from Oobit, more than 75% of crypto purchases made by European users over the past month were settled using stablecoins.

Retail and travel dominate the spending landscape. In countries like Germany, Spain, and Poland, crypto is most commonly used for food, drink, and other retail items. Meanwhile, travel expenses top the list in France, Italy, Greece, and Ireland.

Notably, over half of all crypto transactions were related to everyday shopping, with Poland alone making up a third of those purchases.

Poland, Lithuania, and Estonia are at the forefront of stablecoin adoption. Poland led the region, with over 30% of Oobit’s retail crypto transactions occurring there—most settled in USDC.

Lithuania also showed strong growth, particularly in euro-backed EURR transactions, which have doubled recently. Supportive regulation across these nations, including MiCA-compliant laws, is encouraging the trend.

The findings reflect a wider transition in how crypto is used. Instead of serving purely as an investment, digital currencies are increasingly woven into daily financial activities, showing their value in practical, real-world scenarios.

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TikTok struggles to stop the spread of hateful AI videos

Google’s Veo 3 video generator has enabled a new wave of racist AI content to spread across TikTok, despite both platforms having strict policies banning hate speech.

According to MediaMatters, several TikTok accounts have shared AI-generated videos promoting antisemitic and anti-Black stereotypes, many of which still circulated widely before being removed.

These short, highly realistic videos often included offensive depictions, and the visible ‘Veo’ watermark confirmed their origin from Google’s model.

While both TikTok and Google officially prohibit the creation and distribution of hateful material, enforcement has been patchy. TikTok claims to use both automated systems and human moderators, yet the overwhelming volume of uploads appears to have delayed action.

Although TikTok says it banned over half the accounts before MediaMatters’ findings were published, harmful videos still managed to reach large audiences.

Google also maintains a Prohibited Use Policy banning hate-driven content. However, Veo 3’s advanced realism and difficulty detecting coded prompts make it easier for users to bypass safeguards.

Testing by reporters suggests the model is more permissive than previous iterations, raising concerns about its ability to filter out offensive material before it is created.

With Google planning to integrate Veo 3 into YouTube Shorts, concerns are rising that harmful content may soon flood other platforms. TikTok and Google appear to lack the enforcement capacity to keep pace with the abuse of generative AI.

Despite strict rules on paper, both companies are struggling to prevent their technology from fuelling racist narratives at scale.

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Meta pursues two AI paths with internal tension

Meta’s AI strategy is facing internal friction, with CEO Mark Zuckerberg and Chief AI Scientist Yann LeCun taking sharply different paths toward the company’s future.

While Zuckerberg is doubling down on superintelligence, even launching a new division called Meta Superintelligence Labs, LeCun argues that even ‘cat-level’ intelligence remains a distant goal.

The new lab, led by Scale AI founder Alexandr Wang, marks Zuckerberg’s ambition to accelerate progress in large language models — a move triggered by disappointment in Meta’s recent Llama performance.

Reports suggest the models were tested with customised benchmarks to appear more capable than they were. That prompted frustration at the top, especially after Chinese firm DeepSeek built more advanced tools using Meta’s open-source Llama.

LeCun’s long-standing advocacy for open-source AI now appears at odds with the company’s shifting priorities. While he promotes openness for diversity and democratic access, Zuckerberg’s recent memo did not mention open-source principles.

Internally, executives have even discussed backing away from Llama and turning to closed models like those from OpenAI or Anthropic instead.

Meta is pursuing both visions — supporting LeCun’s research arm, FAIR, and investing in a new, more centralised superintelligence effort. The company has offered massive compensation packages to OpenAI researchers, with some reportedly offered up to $100 million.

Whether Meta continues balancing both philosophies or chooses one outright could determine the direction of its AI legacy.

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OpenAI and Oracle join forces for massive AI data centre expansion

OpenAI had signed a significant cloud computing deal with Oracle worth $30 billion per year, aiming to secure around 4.5GW of capacity through the Stargate joint venture, in which Oracle is a key investor.

Oracle plans to develop several large-scale data centres across the United States, including a potential expansion of its Abilene, Texas, site from 1.2GW to 2GW.

According to reports from Bloomberg and the Financial Times, other locations under consideration include Michigan, Wisconsin, Wyoming, New Mexico, Georgia, Ohio, and Pennsylvania.

In addition to its collaboration with Oracle, OpenAI continues using Microsoft Azure as its primary cloud provider and works with CoreWeave and Google. Notably, OpenAI leverages Google’s custom TPUs in some operations.

Despite the partnerships, OpenAI is pursuing plans to build its data centre infrastructure. The company also intends to construct a Stargate campus in the United Arab Emirates, in collaboration with Oracle, Nvidia, Cisco, SoftBank, and G42, and is scouting global locations for future facilities.

The massive investment underscores OpenAI’s growing compute needs and the global scale of its AI ambitions.

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EU races to catch up in quantum tech amid cybersecurity fears

The European Union is ramping up efforts to lead in quantum computing, but cybersecurity experts warn that the technology could upend digital security as we know it.

In a new strategy published Wednesday, the European Commission admitted that Europe trails the United States and China in commercialising quantum technology, despite its strong academic presence. The bloc is now calling for more private investment to close the gap.

Quantum computing offers revolutionary potential, from drug discovery to defence applications. But its power poses a serious risk: it could break today’s internet encryption.

Current digital security relies on public key cryptography — complex maths that conventional computers can’t solve. But quantum machines could one day easily break these codes, making sensitive data readable to malicious actors.

Experts fear a ‘store now, decrypt later’ scenario, where adversaries collect encrypted data now and crack it once quantum capabilities mature. That could expose government secrets and critical infrastructure.

The EU is also concerned about losing control over homegrown tech companies to foreign investors. While Europe leads in quantum research output, it only receives 5% of global private funding. In contrast, the US and China attract over 90% combined.

European cybersecurity agencies published a roadmap for transitioning to post-quantum cryptography to address the threat. The aim is to secure critical infrastructure by 2030 — a deadline shared by the US, UK, and Australia.

IBM recently said it could release a workable quantum computer by 2029, highlighting the urgency of the challenge. Experts stress that replacing encryption is only part of the task. The broader transition will affect billions of systems, requiring enormous technical and logistical effort.

Governments are already reacting. Some EU states have imposed export restrictions on quantum tech, fearing their communications could be exposed. Despite the risks, European officials say the worst-case scenarios are not inevitable, but doing nothing is not an option.

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DeepSeek gains business traction despite security risks

Chinese AI company DeepSeek is gaining traction in global markets despite growing concerns about national security.

While government bans remain in place across several countries, businesses are turning to DeepSeek’s models for low cost and firm performance, often ranking just behind OpenAI’s ChatGPT and Google’s Gemini in traffic and market share.

DeepSeek’s appeal lies in its efficiency. With advanced engineering techniques like its ‘mixture-of-experts’ system, the company has reduced computing costs by activating fewer parameters without a noticeable drop in performance.

Training costs have reportedly been as low as $5.6 million — a fraction of what rivals like Anthropic spend. As a result, DeepSeek’s models are now available across major platforms, including AWS, Azure, Google Cloud, and even open-source repositories like GitHub and Hugging Face.

However, the way DeepSeek is accessed matters. While companies can safely self-host the models in private environments, using the mobile app or website means sending data to Chinese servers, a key reason for widespread bans on public-sector use.

Individual consumers often lack the technical control enterprises enjoy, making their data more vulnerable to foreign access.

Despite the political tension, demand continues to grow. US firms are exploring DeepSeek as a cost-saving alternative, and its models are being deployed in industries from telecoms to finance.

Even Perplexity, an American AI firm, has used DeepSeek R1 to power a research tool hosted entirely on Western servers. DeepSeek’s open-source edge and rapid technical progress are helping it close the gap with much larger AI competitors — quietly but significantly.

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Brazil sets flat 17.5 percent tax on all crypto gains

Brazil has implemented a significant shift in its approach to digital assets with a new crypto tax law taking effect on 12 June 2025. Under Provisional Measure 1303, a flat 17.5% tax now applies to all cryptocurrency gains, replacing the former progressive regime.

The previous exemption for monthly gains under 35,000 reais has been abolished, placing new pressure on small and casual traders.

The law’s reach is extensive, applying not only to traditional crypto trades but also to decentralised finance (DeFi), NFT transactions, staking rewards, and offshore wallets. Gains are now reported quarterly, with losses deductible over the past five quarters — a period that shortens in 2026.

Smaller investors are the most brutal hit, now fully taxed on previously exempt profits. Meanwhile, high-net-worth individuals could benefit, as gains that once faced a 22.5% rate are now capped at 17.5%.

The reform forms part of Brazil’s 2025 tax overhaul to expand the fiscal base amid record tax levels. Crypto may further integrate into Brazil’s economy, with payroll in digital assets under review and stricter monitoring ahead.

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Meta’s AI chatbots are designed to initiate conversations and enhance user engagement

Meta is training AI-powered chatbots that can remember previous conversations, send personalised follow-up messages, and actively re-engage users without needing a prompt.

Internal documents show that the company aims to keep users interacting longer across platforms like Instagram and Facebook by making bots more proactive and human-like.

Under the project code-named ‘Omni’, contractors from the firm Alignerr are helping train these AI agents using detailed personality profiles and memory-based conversations.

These bots are developed through Meta’s AI Studio — a no-code platform launched in 2024 that lets users build customised digital personas, from chefs and designers to fictional characters. Only after a user initiates a conversation can a bot send one follow-up, and that too within a 14-day window.

Bots must match their assigned personality and reference earlier interactions, offering relevant and light-hearted responses while avoiding emotionally charged or sensitive topics unless the user brings them up. Meta says the feature is being tested and rolled out gradually.

The company hopes it will not only improve user retention but also serve as a response to what CEO Mark Zuckerberg calls the ‘loneliness epidemic’.

With revenue from generative AI tools projected to reach up to $3 billion in 2025, Meta’s focus on more prolonged and engaging chatbot interactions appears to be as strategic as social.

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