Economic

EU and India deepen digital cooperation through Tech Business Forum

The European Union and India have concluded the first EU-India Tech Business Forum in New Delhi, advancing digital and trade cooperation under the framework of the EU-India Trade and Technology Council (TTC). The forum brought together businesses, policymakers, researchers, think tanks, and civil society to strengthen private-sector collaboration and identify opportunities for joint innovation.

The forum was organised by the EU Delegation to India and Bhutan and India’s Ministry of Electronics and Information Technology, with support from industry organisations including the Federation of European Business in India and the National Association of Software and Service Companies (NASSCOM).

More than 100 European and Indian technology companies participated in discussions covering semiconductors, AI, cybersecurity, data governance and digital public infrastructure.

Participants explored opportunities to strengthen interoperability, advance cooperation on technical standards and improve market access for companies operating in both markets. The forum also aimed to operationalise wider EU-India cooperation, including the recently concluded Free Trade Agreement and the Administrative Arrangement on Advanced Electronic Signatures and Seals signed under the Trade and Technology Council in January 2026.

Speaking at the forum, EU Ambassador to India Hervé Delphin said:

‘In today’s fragmented world, working with trusted partners like India is essential to diversify supply chains and reduce over-reliance on certain sources and geographies.‘

He said Europe brings strengths in advanced technology, innovation, and regulation, while India offers scale, talent, and technological applications.

The forum’s outcomes are expected to shape the next steps in EU-India digital and trade cooperation. The Trade and Technology Council remains the primary framework for EU-India cooperation on strategic technologies, digital governance and connectivity, covering areas such as digital public infrastructure, semiconductors, data governance and emerging technologies.

Why does it matter?

The EU and India are seeking to deepen cooperation on strategic technologies at a time when governments are prioritising supply chain resilience, digital sovereignty and secure technology partnerships. Closer collaboration in areas such as AI, semiconductors and cybersecurity could help both sides reduce dependencies and strengthen innovation ecosystems.

The forum also demonstrates the growing role of technology diplomacy in trade relations, with policymakers and businesses working together to address standards, interoperability and market access challenges that increasingly shape the global digital economy.

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France fines Shein over consumer protection breaches

France’s consumer watchdog has imposed two administrative fines on companies linked to Shein after finding consumer protection and environmental disclosure breaches on the retailer’s French website.

The Directorate General for Competition, Consumer Affairs and Fraud Control said an investigation carried out in 2025 on fr.shein.com found failures linked to the right of withdrawal, environmental product information, and order confirmation requirements.

Infinite Styles Ecommerce Co Limited, the seller of Shein-branded products on the French site, was fined €5.76 million. The investigation found that consumers were unable to cancel purchases under the legally required withdrawal procedures. It also found missing information on product traceability and the presence of plastic microfibres in certain textile products.

The watchdog said consumers must be informed when textiles containing more than 50% synthetic fibres release plastic microfibres into the environment during washing.

A second company, Infinite Styles Services Co Limited, which operates fr.shein.com, was fined €16.73 million for non-compliant order confirmations. The DGCCRF said confirmations sent to consumers were missing mandatory information, including the price of goods, delivery dates or deadlines, seller identity and contact details, legal guarantees, mediation options, and withdrawal forms and rights.

French authorities said the missing information weakened consumer protection by making it harder for customers to exercise rights such as cancelling purchases or seeking refunds.

Why does it matter?

The penalties show how consumer protection enforcement is increasingly targeting cross-border e-commerce platforms over both purchasing rights and environmental transparency. For fast-fashion platforms, compliance is no longer only about prices and delivery terms, but also about product traceability, withdrawal rights, order documentation, and disclosures on environmental impact.

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Unlicensed crypto exchanges to be barred from EU under MiCA rules

Crypto-asset service providers operating under national transitional regimes must obtain MiCA authorisation or stop serving the EU clients when the Markets in Crypto-Assets Regulation transitional period ends on 1 July 2026.

The European Securities and Markets Authority has said the transitional period will expire across the EU on that date. Under MiCA, crypto-asset service providers that were operating legally before 30 December 2024 could continue providing services until 1 July 2026, or until they were granted or refused authorisation, whichever came first.

ESMA has urged firms and national supervisors to ensure an orderly transition, with a focus on timely authorisation, client protection, and market integrity. Providers that do not obtain MiCA authorisation will need to stop unauthorised activities, wind down services, or transfer clients where appropriate.

Applications still under review do not, by themselves, give firms the right to continue operating after the deadline. Firms that continue offering crypto-asset services without authorisation risk enforcement action under national law.

The end of the transition marks a major shift from fragmented national registration regimes towards a single EU-wide licensing framework for crypto-asset service providers. MiCA authorisation allows firms to passport services across the EU, while also subjecting them to common requirements on governance, consumer protection, market integrity, prudential safeguards, and supervision.

Some member states shortened or did not fully apply the transitional regime, meaning certain national markets have already moved more quickly towards MiCA-only authorisation. From 1 July, however, the transitional period ends across the EU.

Why does it matter?

The deadline marks the point at which MiCA becomes the effective gateway to the EU crypto market. Firms that previously operated under national regimes will need full authorisation or lose access to the EU clients. In the short term, that could lead to service disruptions, client migrations, or consolidation among crypto providers. In the longer term, it strengthens the EU’s shift towards a single regulatory framework for digital asset platforms.

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European Central Bank warns banks to strengthen resilience as AI reshapes cyber threats

Europe’s banking sector must strengthen its operational resilience as AI transforms the cyber threat landscape and increases systemic risks, according to the European Central Bank (ECB). Speaking at a financial conference, Executive Board member Frank Elderson warned that technological disruption and geopolitical fragmentation are increasing pressure on financial infrastructure.

The ECB said Europe’s reliance on external providers for technology, energy and financial services creates vulnerabilities that could expose critical functions to operational disruptions. While banks remain financially stable, their ability to maintain critical services during cyberattacks or system failures has become key to long-term competitiveness and stability.

According to the ECB, AI is accelerating cyber risks by lowering barriers to sophisticated attacks, enabling faster identification of vulnerabilities and expanding the range of actors capable of conducting cyber operations. While supervisors have strengthened oversight through measures such as stress testing and the implementation of the Digital Operational Resilience Act (DORA), the ECB warned that cyber and operational risks continue to evolve rapidly.

Authorities are now urging banks to invest more heavily in systems, governance, and third-party risk management to ensure continuity of services under stress. The ECB emphasised that operational resilience should be viewed not only as a technical challenge but as a strategic priority for maintaining trust in financial services and supporting Europe’s wider economic transformation.

Why does it matter?

Financial stability increasingly depends not only on the financial health of banks but also on their ability to maintain critical services during cyber incidents, technology failures and operational disruptions.

As AI enables more sophisticated cyberattacks and financial institutions become more dependent on complex digital infrastructure and third-party providers, regulators are placing greater emphasis on operational resilience as a core component of financial stability, economic competitiveness and public trust.

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US SEC outlines roadmap for market growth, digital assets and investor protection

The US Securities and Exchange Commission (SEC) has released a draft strategic plan outlining its priorities for the coming years, with a focus on investor protection, market efficiency and capital formation.

The agency is seeking public feedback on the proposal, which also highlights the growing importance of digital assets and emerging technologies within the financial system.

Under the plan, the SEC aims to modernise its regulatory framework by supporting innovation while maintaining market integrity. Among its objectives is the development of a clearer and more consistent regulatory approach to digital assets and distributed ledger technologies, with the aim of providing businesses and investors with greater certainty.

The regulator also intends to strengthen engagement with market participants and review existing rules to improve compliance and effectiveness. The draft plan states that enforcement should focus on fraud, market manipulation and violations of existing laws, rather than relying on expansive interpretations of regulatory authority.

Technology modernisation is also a key component of the strategy, including plans to upgrade legacy systems and expand the use of technologies such as AI and blockchain. According to the SEC, these improvements could enhance oversight capabilities, reduce operational costs, and improve efficiency across the agency.

Why does it matter?

The SEC plays a central role in regulating the world’s largest capital market, making its approach to digital assets and emerging technologies influential beyond the United States. Greater regulatory clarity could affect how businesses develop blockchain-based services, how investors engage with digital assets and how other jurisdictions shape their own regulatory frameworks.

The proposal also signals a broader shift towards integrating AI and advanced technologies into financial supervision, reflecting growing efforts by regulators to adapt to increasingly digital and technology-driven markets.

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Australia issues guidance for government use of agentic AI

Australia’s Digital Transformation Agency (DTA) has issued an agentic AI addendum to its AI Technical Standard, providing guidance for government agencies exploring, developing or deploying agentic AI systems. The document provides best-practice guidance for agencies exploring, developing, or using agentic AI and states that existing requirements in the AI technical standard remain applicable.

The addendum says agentic AI systems may autonomously plan tasks, coordinate work, and trigger actions in real-world contexts. The addendum notes that agentic AI could improve the responsiveness, efficiency and consistency of public services, particularly in high-volume administrative environments, while also introducing new risks related to oversight, control and system behaviour.

The guidance defines agentic AI as systems capable of perceiving and interpreting their environment, maintaining an internal state, reasoning about objectives and autonomously executing actions within defined permissions and constraints. Agencies are advised to implement human oversight, operational safeguards, continuous evaluation processes and mechanisms that allow systems to be rolled back when necessary.

The addendum sets out guidance across the AI lifecycle, including governance and safeguards, memory management, workflow design, secure data exchange, technology selection, evaluation, tool integration, monitoring, and decommissioning. It also calls for clear human accountability, human-in-the-loop or human-on-the-loop oversight, auditable decision records, and orchestration layers.

The guidance recommends ongoing monitoring of agent behaviour, tool usage, memory functions, operational costs, latency, authorisations and changes in the operating environment. The addendum also recommends centralised oversight mechanisms, referred to as ‘control towers’, and calls for the secure decommissioning of agentic AI resources, including agents, associated data, memory stores, tools and system logs.

Why does it matter?

Agentic AI represents a shift from AI systems that generate outputs in response to prompts to systems capable of planning, coordinating tasks and taking actions with limited human intervention. While these capabilities could improve efficiency and service delivery, they also create new governance, accountability and security challenges.

Australia’s guidance reflects growing international efforts to establish safeguards for increasingly autonomous AI systems. The emphasis on human oversight, auditability and lifecycle governance highlights concerns that public-sector AI deployments must remain transparent, controllable and accountable as the technology evolves.

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AI and systemic risk analytics focus of Helsinki conference

The Bank of Finland and the European Systemic Risk Board are holding their 11th joint conference on AI and systemic risk analytics in Helsinki on 3 and 4 June.

The event focuses on how AI methods and new data sources can support financial stability analysis, while also creating new challenges for economies and financial markets.

The conference aims to present research on financial stability and systemic risk analysis using AI methods, novel techniques, and new data sources. Topics include the use of large language models and trustworthy AI, changing interdependencies in financial markets, cybersecurity and operational risks, and AI combined with quantum computing as a possible source of new systemic risks.

The programme also covers more traditional systemic risk analytics and macroprudential policy tools, including early-warning indicators, network and contagion analysis, macro stress-testing, big data analytics, market-based finance, and geopolitical risk modelling.

Speakers include Bank of Finland Governor and ESRB First Vice-Chair Olli Rehn, who will address systemic risk, resilience, and competitiveness in a changing technological landscape. Other sessions will examine systemic cyber risk in financial networks, AI and risk-taking in banking, generative AI in economics and finance research, and AI-related financial system interdependencies.

The hybrid conference will include keynotes, panel discussions, presentations, and poster sessions, with online participation available.

Why does it matter?

The conference shows that AI is becoming a financial stability issue, not only a tool for efficiency or market analysis. Central banks and systemic risk authorities are examining how AI can improve risk detection, stress testing, and data analysis, while also creating new vulnerabilities through cyber risk, operational dependencies, market interconnections, and potential herding behaviour.

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India and South Africa deepen cooperation on AI and emerging technologies

India and South Africa have agreed to strengthen bilateral cooperation in emerging technologies, with AI, digital infrastructure and advanced manufacturing identified as key areas for future collaboration.

The agreement was reached during a meeting between India’s Minister of Science and Technology, Dr Jitendra Singh, and South Africa’s Deputy Minister of Science, Technology and Innovation, Dr Nomalungelo Gina. Both sides emphasised the need to expand traditional scientific cooperation into innovation-driven partnerships aimed at delivering economic and societal benefits.

Discussions covered biotechnology, genomics, vaccine development, health technologies, renewable energy, hydrogen, advanced manufacturing and digital innovation. The two countries also explored opportunities to deepen cooperation in quantum technologies, geospatial technologies and digital infrastructure.

The meeting reaffirmed the long-standing scientific relationship between the two countries and concluded with a commitment to strengthen innovation ecosystems through research collaboration, startup partnerships, technology deployment and industry engagement.

Why does it matter?

India and South Africa are among the leading technology and innovation hubs in the Global South. Expanding cooperation in AI, digital infrastructure, healthcare and advanced manufacturing could help accelerate technological development while fostering greater knowledge exchange and investment opportunities.

The partnership also reflects a broader trend of emerging economies seeking to strengthen innovation ecosystems and reduce reliance on technology supply chains and platforms concentrated in a small number of countries.

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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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