Economic Archives | Page 3 of 677 | Digital Watch Observatory

Italy fines major bank over data protection failures

The Italian Data Protection Authority has imposed a €31.8 million fine on Intesa Sanpaolo following serious shortcomings in its handling of personal data.

The case stems from unauthorised access by an employee to thousands of customer accounts, raising concerns about internal oversight and data protection safeguards.

Investigations revealed that monitoring systems failed to detect repeated unjustified access to sensitive financial information over an extended period. The breach also involved high-risk individuals, highlighting weaknesses in risk-based controls instead of robust, targeted protection measures.

Authorities in Italy identified violations of core data protection principles, including integrity, confidentiality and accountability. Additional concerns arose from delays in notifying both regulators and affected individuals, limiting the ability to respond effectively to the incident.

The case of Intesa Sanpaolo underscores increasing regulatory scrutiny of data governance practices in the financial sector. Strengthening internal controls and ensuring timely breach reporting remain essential for maintaining trust and compliance in data-driven banking environments.

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Malta launches SMART Food project with AI and blockchain

Malta is advancing the SMART Food project to strengthen the agri-food sector. The initiative is a Malta-Italy partnership funded under the Interreg programme.

Minister Anton Refalo said the project aims to create a reliable and technologically advanced food system. A digital platform using AI and blockchain will provide real-time information on products from production to consumption.

The project seeks to meet consumer demand for clarity on food origin, safety, and sustainability. It will also support farmers and industry operators in adopting more efficient practices.

Minister Refalo added that the initiative strengthens trust across the food chain and empowers consumers. Malta’s scale allows it to adopt innovative solutions and take a leading role in modernising the sector.

The Malta Food Agency manages the project, including development, management, and training. Chief Executive Brian Vella said it safeguards product quality, improves traceability, and reinforces confidence in local produce.

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Ofcom proposes tougher rules on scam mobile messages

New proposals from Ofcom aim to reduce scam activity on mobile messaging services across the UK. The measures are designed to strengthen protections for users and businesses affected by large-scale fraud campaigns.

Scammers often combine mobile messages with other channels such as calls, emails, social media and online adverts to trick victims into revealing personal information or making payments.

While telecom operators have introduced safeguards in recent years, regulators say current efforts do not go far enough.

The proposed framework would require mobile operators and messaging aggregators to prevent scammers from accessing messaging systems and to detect and disrupt malicious activity where it occurs.

The goal is to close existing gaps in industry defences and reduce the volume of scam messages reaching users. Ofcom plans to finalise its decision in summer 2026, following completion of its consultation process.

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Brazil study maps age assurance practices across 25 digital services

A new study by CGI.br and NIC.br examines how digital services in Brazil implement age assurance measures. Presented in Brasília during an event on the Digital Child and Adolescent Statute (ECA Digital), the study reviewed 25 popular online services used by children and adolescents.

The study found that most of the services analysed do not apply age checks at the point of registration, including some platforms aimed at adults. According to the release, age assurance usually appears later, when users try to access specific features such as livestreaming or monetisation.

Titled ‘Age assurance practices in 25 digital services used by children in Brazil’, the study analysed governance documents published before the ECA Digital entered into force. From 18 March, the law requires information-society services aimed at children and adolescents in Brazil, or likely to be accessed by them, to adopt effective age-assurance measures and parental supervision.

The study found that 11 of the 25 platforms relied on third-party age-assurance services, particularly social media and generative AI platforms. Official identity document submission was the most common verification method, while selfie-based checks were the most common age-estimation tool. Differences were also found between the minimum ages stated by services and those listed in app stores, and some adult-oriented platforms could still be accessed by younger users with parental consent.

Parental supervision tools were available in 15 of the 25 services, but activation was usually optional and depended on parents or guardians. Transparency also emerged as a weakness: only six services published Brazil-specific reports, and only one explained how its minimum-age policy was applied. Policies were often spread across multiple pages, averaging 22 pages per service, and around 40% of the services provided related information in other languages.

Fábio Senne, General Research Coordinator at Cetic.br | NIC.br, said: ‘One of the study’s central aims was to verify the integrity of the information made available by digital services in Brazil. It is essential that data on age protection be communicated clearly and accessibly, allowing more informed and effective parental supervision.’

Juliana Cunha, manager of the Digital Public Policy Advisory Office at CGI.br | NIC.br, said: ‘This survey was developed to support the debate on implementation of the ECA Digital and to offer a clear understanding of the current landscape. This initiative forms part of a broader set of actions by CGI.br and NIC.br aimed at providing technical evidence to support effective enforcement of the law. Our commitment is to foster a safer and more responsible digital ecosystem for children and adolescents in Brazil.’

The release says the study used as a methodological reference the OECD technical paper ‘Age assurance practices of 50 online services used by children’, published in 2025. Information was collected between 10 and 30 January 2026 from public documents made available by the services in Brazil, totalling 550 pages analysed. The event also marked the launch of TIC Kids Online Brazil 2025, a publication on internet use by children and adolescents aged 9 to 17 in Brazil.

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ILO and World Bank paper says GenAI may deepen labour-market divides

A joint working paper by the International Labour Organization (ILO) and the World Bank says generative AI is likely to reshape labour markets globally, but not in the same way across countries.

The paper finds that advanced economies face greater overall exposure, while developing economies may see disruption arrive faster than productivity gains due to weaker digital infrastructure and differences in how work is organised.

Prepared as a background study for the World Development Report 2026, the paper examines labour-market exposure to GenAI across 135 countries, covering about two-thirds of global employment. According to the study, digital infrastructure and job-task composition are among the main factors shaping the distribution of risks and opportunities between advanced and developing economies.

Exposure is highest in advanced economies, especially in clerical and professional occupations. Lower-income countries are less exposed overall, but the paper says structural constraints reduce their ability to benefit from the technology. A central concern is that workers in jobs vulnerable to automation are often already online, even in poorer settings, meaning displacement could happen relatively quickly.

The paper also says many of the jobs most exposed to automation in developing economies are relatively higher-quality roles, including clerical and administrative work that has often provided a route into decent employment, especially for women and young workers. AI-driven automation, the study warns, could narrow those pathways.

Potential gains are also uneven. Many workers in jobs that could benefit from GenAI lack reliable internet access in lower-income settings. The paper adds that the same occupation title can involve different tasks depending on the country, with workers in poorer economies often carrying out fewer non-routine analytical tasks, relying less on computers, and doing more routine or manual work. Such differences reduce the scope for productivity gains from GenAI deployment.

ILO and the World Bank conclude in the paper that GenAI’s labour-market effects will depend not only on the technology itself, but also on digital connectivity, skills, task organisation, labour-market institutions, and social protection. Expanded digital access, stronger skills policies, and better labour protections are presented as necessary if the gains from GenAI are to be shared more broadly.

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Campaign highlights risks of profit-driven digital platforms

A global campaign led by the Norwegian Consumer Council (NCC) has drawn attention to the decline in quality across digital platforms, a phenomenon widely referred to as ‘enshitification’, in which services deteriorate over time as companies prioritise monetisation over user experience.

The initiative has gained momentum through a viral video and coordinated advocacy efforts across multiple regions.

Inshitification is a term coined by journalist Cory Doctorow that describes a pattern in which platforms initially serve users well, then shift towards extracting value from both users and business partners.

In practice, it often results in increased advertising, paywalls, and reduced functionality, with platforms leveraging user dependence to introduce less favourable conditions.

More than 70 advocacy groups across the EU, the US and Norway have urged policymakers to take stronger action, arguing that declining competition and market concentration allow platforms to degrade services without losing users.

Network effects and high switching costs further limit consumer choice, making it difficult to move to alternative platforms even when dissatisfaction grows.

Existing frameworks, such as the Digital Markets Act and the Digital Services Act, aim to address some of these issues by promoting interoperability, transparency, and accountability.

However, experts argue that enforcement remains too slow and insufficient to deter harmful practices, suggesting that stronger regulatory intervention will be necessary to restore balance between consumers, platforms, and competition in the digital economy.

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Ofcom tightens online safety enforcement across major platforms

Enforcement of the Online Safety Act intensifies in 2026, with regulators pushing stronger age verification across social media, gaming, messaging, and adult platforms. Significant progress has been reported in the adult sector, with most major pornography services now using age assurance or restricting UK access.

Ofcom has issued new expectations for major children’s platforms, including stricter age verification, stronger protections against grooming, safer feeds, and tighter product testing. The regulator has warned that further enforcement action may follow if compliance is not met.

New obligations are also being introduced, including a requirement from April 2026 for services to report child sexual exploitation and abuse content to the National Crime Agency.

Providers are being instructed to keep risk assessments up to date and adapt to evolving regulatory guidance, including upcoming consultations and expanded reporting duties.

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EU investigates cyber attack targeting Commission websites

The European Commission has confirmed a cyber-attack targeting its cloud infrastructure hosting the Europa.eu services, with authorities acting swiftly to contain the incident and prevent disruption to public access.

The attack was identified on 24 March, prompting immediate mitigation measures to secure systems and maintain service continuity.

Preliminary findings indicate that some data may have been accessed from affected websites, although the full scope of the incident remains under investigation.

The Commission has begun notifying the relevant EU entities that may be affected, while continuing efforts to assess the extent of the breach and strengthen safeguards.

Officials confirmed that internal systems were not affected, limiting the overall impact of the attack.

Monitoring efforts remain ongoing, with additional security measures being implemented to protect data and infrastructure, rather than relying solely on existing defences. The Commission has also committed to analysing the incident to improve its cybersecurity capabilities.

The attack comes amid growing cyber and hybrid threats targeting European institutions and critical services.

Existing frameworks, including the NIS2 Directive and the Cyber Solidarity Act, aim to strengthen resilience and coordination across member states, supporting a more unified response to large-scale cyber incidents across the EU.

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Cryptocurrency political donations banned under new Canada bill

Canada’s Liberal government has introduced Bill C-25 to prohibit cryptocurrency and other non-cash instruments from being used as political donations. The measure covers all registered parties, candidates, leadership, and nomination contests, and third-party advertisers, tightening campaign finance rules.

The proposal reverses a 2019 framework that had allowed limited crypto contributions under strict conditions, though uptake remained minimal and no major party reported receiving such donations in recent federal elections.

Authorities argue that pseudo-anonymous blockchain transactions make it difficult to verify the true source of funds, raising concerns about traceability and foreign interference risks.

Under the new rules, any prohibited donation must be returned, destroyed, or converted and forwarded to the Receiver General within 30 days. Enforcement includes fines of up to twice the illegal contribution’s value, reaching CA$25,000 for individuals and CA$100,000 for corporations.

Bill C-25 also revives provisions from the earlier Bill C-65, which collapsed in 2025 after Parliament was prorogued. The updated law aligns with UK restrictions and expands election oversight powers, including measures against deepfakes and foreign interference.

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UK regulator targets misleading online reviews in new crackdown

The Competition and Markets Authority has launched new investigations into five companies as part of a wider crackdown on fake and misleading online reviews, targeting practices that shape consumer decisions rather than reflect genuine customer experiences.

The cases involve Autotrader, Feefo, Dignity, Just Eat and Pasta Evangelists across sectors, including car sales, food delivery and funeral services.

CMA is examining whether negative reviews were suppressed, ratings inflated, or incentives offered in exchange for positive feedback without disclosure.

Concerns also extend to moderation practices and whether review systems provide a complete and accurate picture of customer experiences, rather than favouring reputational or commercial interests. No conclusions have yet been reached on whether consumer law has been breached.

Online reviews play a central role in consumer behaviour, influencing significant levels of spending across the UK economy.

Research indicates that a large majority of consumers rely on reviews when making purchasing decisions, raising concerns that misleading content can distort markets and undermine trust, particularly as AI makes it harder to detect fabricated reviews.

The investigations form part of a broader enforcement effort under the Digital Markets Competition and Consumers Act 2024, which introduced stricter rules on fake and misleading reviews.

Authorities aim to improve transparency and accountability across digital platforms, with potential penalties reaching up to 10% of global turnover for companies found to have breached consumer protection laws.

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