Jurisdiction Archives | Page 12 of 129 | Digital Watch Observatory

France proposes EU tools to map foreign tech dependence

France has unveiled a new push to reduce Europe’s dependence on US and Chinese technology suppliers, placing digital sovereignty back at the centre of the EU policy debates.

Speaking in Paris, France’s minister for AI and digital affairs, Anne Le Hénanff, presented initiatives to expose and address the structural reliance on non-EU technologies across public administrations and private companies.

Central to the strategy is the creation of a Digital Sovereignty Observatory, which will map foreign technology dependencies and assess organisational exposure to geopolitical and supply-chain risks.

The body, led by former Europe minister Clément Beaune, is intended to provide the evidence base needed for coordinated action rather than symbolic declarations of autonomy.

France is also advancing a Digital Resilience Index, expected to publish its first findings in early 2026. The index will measure reliance on foreign digital services and products, identifying vulnerabilities linked to cloud infrastructure, AI, cybersecurity and emerging technologies.

Industry data suggests Europe’s dependence on external tech providers costs the continent hundreds of billions of euros annually.

Paris is using the initiative to renew calls for a European preference in public-sector digital procurement and for a standard EU definition of European digital services.

Such proposals remain contentious among member states, yet France argues they are essential for restoring strategic control over critical digital infrastructure.

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Musk’s X under EU Commission scrutiny over Grok sexualised images

The European Commission has opened a new investigation into Elon Musk’s X over Grok, the platform’s AI chatbot, after reports that the tool was used to generate and circulate non-consensual sexualised images, including content that may involve minors. The EU officials say they will examine whether X properly assessed and reduced the risks linked to Grok’s features before rolling them out in the EU.

The case is being pursued under the EU’s Digital Services Act (DSA), which requires very large online platforms to identify and mitigate systemic risks, including the spread of illegal content and harms to fundamental rights. If breaches are confirmed, the Commission can impose fines of up to 6% of a provider’s global annual turnover and, in some cases, require interim measures.

X and xAI have said they introduced restrictions after the backlash, including limiting some image-editing functions and blocking certain image generation in jurisdictions where it is illegal. The EU officials have welcomed steps to tighten safeguards but argue they may not address deeper, systemic risks, particularly if risk assessments and mitigations were not in place before deployment.

The Grok probe lands on top of a broader set of legal pressures already facing X. In the UK, Ofcom has opened a formal investigation under the Online Safety Act into whether X met its duties to protect users from illegal content linked to Grok’s sexualised imagery. Beyond Europe, Malaysia and Indonesia temporarily blocked Grok amid safety concerns, and access was later restored after authorities said additional safeguards had been put in place.

In parallel, the EU regulators have also widened scrutiny of X’s recommender systems, an area already under DSA proceedings, because the platform has moved toward using a Grok-linked system to rank and recommend content. The Commission has argued that recommendation design can amplify harmful material at scale, making it central to whether a platform effectively manages systemic risks.

The investigation also comes amid earlier DSA enforcement. The Commission recently fined X €120 million for transparency-related breaches, underscoring that the EU action is not limited to content moderation alone but extends to how platforms disclose and enable scrutiny of their systems.

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UK banks block large share of crypto transfers, report finds

UK banks are blocking or delaying close to 40% of payments to cryptocurrency exchanges, sharply increasing customer friction and slowing market growth, according to a new industry report.

Around 80% of surveyed exchanges reported rising payment disruptions, while 70% described the banking environment as increasingly hostile, discouraging investment, hiring, and product launches in the UK.

The survey of major platforms, including Coinbase, Kraken, and Gemini, reveals widespread and opaque restrictions across bank transfers and card payments. One exchange reported nearly £1 billion in declined transactions last year, citing unclear rejection reasons despite FCA registration.

Several high-street and digital banks maintain outright blocks, while others impose strict transaction caps. The UK Cryptoasset Business Council warned that blanket debanking practices could breach existing regulations, including those on payment services, consumer protection, and competition.

The council urged the FCA and government to enforce a risk-based approach, expand data sharing, and remove unnecessary barriers as the UK finalises its long-term crypto framework.

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France’s National Assembly backs under-15 social media ban

France’s National Assembly has backed a bill that would bar children under 15 from accessing social media, citing rising concern over cyberbullying and mental-health harms. MPs approved the text late Monday by 116 votes to 23, sending it next to the Senate before it returns to the lower house for a final vote.

As drafted, the proposal would cover both standalone social networks and ‘social networking’ features embedded inside wider platforms, and it would rely on age checks that comply with the EU rules. The same package also extends France’s existing smartphone restrictions in schools to include high schools, and lawmakers have discussed additional guardrails, such as limits on practices deemed harmful to minors (including advertising and recommendation systems).

President Emmanuel Macron has urged lawmakers to move quickly, arguing that platforms are not neutral spaces for adolescents and linking social media to broader concerns about youth violence and well-being. Support for stricter limits is broad across parties, and polling has pointed in the same direction, but the bill still faces the practical question of how reliably platforms can keep underage users out.

Australia set the pace in December 2025, when its world-first ban on under-16s holding accounts on major platforms came into force, an approach now closely watched abroad. Early experience there has highlighted the same tension France faces, between political clarity (‘no accounts under the age line’) and the messy reality of age assurance and workarounds.

France’s debate is also unfolding in a broader European push to tighten child online safety rules. The European Parliament has called for an EU-wide ‘digital minimum age’ of 16 (with parental consent options for 13–16), while the European Commission has issued guidance for platforms and developed a prototype age-verification tool designed to preserve privacy, signalling that Brussels is trying to square protection with data-minimisation.

Why does it matter?

Beyond the child-safety rationale, the move reflects a broader push to curb platform power, with youth protection framed as a test case for stronger state oversight of Big Tech. At the same time, critics warn that strict age-verification regimes can expand online identification and surveillance, raising privacy and rights concerns, and may push teens toward smaller or less regulated spaces rather than offline life.

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Georgia moves to curb AI data centre expansion amid energy concerns

The state of Georgia is emerging as the focal point of a growing backlash against the rapid expansion of data centres powering the US’ AI boom.

Lawmakers in several states are now considering statewide bans, as concerns over energy consumption, water use and local disruption move to the centre of economic and environmental debate.

A bill introduced in Georgia would impose a moratorium on new data centre construction until March next year, giving state and municipal authorities time to establish more explicit regulatory rules.

The proposal arrives after Georgia’s utility regulator approved plans for an additional 10 gigawatts of electricity generation, primarily driven by data centre demand and expected to rely heavily on fossil fuels.

Local resistance has intensified as the Atlanta metropolitan area led the country in data centre construction last year, prompting multiple municipalities to impose their own temporary bans.

Critics argue that rapid development has pushed up electricity bills, strained water supplies and delivered fewer tax benefits than promised. At the same time, utility companies retain incentives to expand generation rather than improve grid efficiency.

The issue has taken on broader political significance as Georgia prepares for key elections that will affect utility oversight.

Supporters of the moratorium frame the pause as a chance for public scrutiny and democratic accountability, while backers of the industry warn that blanket restrictions risk undermining investment, jobs and long-term technological competitiveness.

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Monnett highlights EU digital sovereignty in social media

Monnett is a European-built social media platform designed to give people control over their online feeds. Users can choose exactly what they see, prioritise friends’ posts, and opt out of surveillance-style recommendation systems that dominate other networks.

Unlike mainstream platforms, Monnett places privacy first, with no profiling or sale of user data, and private chats protected without being mined for advertising. The platform also avoids “AI slop” or generative AI content shaping people’s feeds, emphasising human-centred interaction.

Created and built in Luxembourg at the heart of Europe, Monnett’s design reflects a growing push for digital sovereignty in the European Union, where citizens, regulators and developers want more control over how their digital spaces are governed and how personal data is treated.

Core features include full customisation of your algorithm, no shadowbans, strong privacy safeguards, and a focus on genuine social connection. Monnett aims to win users who prefer meaningful online interaction over addictive feeds and opaque data practices.

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Rapid AI growth tests regulation in the Gulf

Gulf states are accelerating AI investment to drive diversification, while regulators struggle to keep pace with rapid technological change. Saudi Arabia, the UAE, and Qatar are deploying AI across key sectors while pursuing regional leadership in digital innovation.

Despite political commitment and large-scale funding, policymakers struggle to balance innovation with risk management. AI’s rapid pace and global reach strain governance, while foreign tech reliance raises sovereignty and security risks.

Corporate influence, intensifying geopolitical competition, and the urgent race to attract foreign capital further complicate oversight efforts, constraining regulators’ ability to impose robust and forward-looking governance frameworks.

With AI increasingly viewed as a source of economic and strategic power, Gulf governments face a narrowing window to establish effective regulatory frameworks before the technology becomes deeply embedded across critical infrastructure.

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Apple accuses the EU of blocking App Store compliance changes

Apple has accused the European Commission of preventing it from implementing App Store changes designed to comply with the Digital Markets Act, following a €500 million fine for breaching the regulation.

The company claims it submitted a formal compliance plan in October and has yet to receive a response from EU officials.

In a statement, Apple argued that the Commission requested delays while gathering market feedback, a process the company says lasted several months and lacked a clear legal basis.

The US tech giant described the enforcement approach as politically motivated and excessively burdensome, accusing the EU of unfairly targeting an American firm.

The Commission has rejected those claims, saying discussions with Apple remain ongoing and emphasising that any compliance measures must support genuinely viable alternative app stores.

Officials pointed to the emergence of multiple competing marketplaces after the DMA entered into force as evidence of market demand.

Scrutiny has increased following the decision by SetApp mobile to shut down its iOS app store in February, with the developer citing complex and evolving business terms.

Questions remain over whether Apple’s proposed shift towards commission-based fees and expanded developer communication rights will satisfy EU regulators.

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AI bot swarms emerge as a new threat to democracy

Researchers and free-speech advocates are warning that coordinated swarms of AI agents could soon be deployed to manipulate public opinion at a scale capable of undermining democratic systems.

According to a consortium of academics from leading universities, advances in generative and agentic AI now enable large numbers of human-like bots to infiltrate online communities and autonomously simulate organic political discourse.

Unlike earlier forms of automated misinformation, AI swarms are designed to adapt to social dynamics, learn community norms and exchange information in pursuit of a shared objective.

By mimicking human behaviour and spreading tailored narratives gradually, such systems could fabricate consensus, amplify doubt around electoral processes and normalise anti-democratic outcomes without triggering immediate detection.

Evidence of early influence operations has already emerged in recent elections across Asia, where AI-driven accounts have engaged users with large volumes of unverifiable information rather than overt propaganda.

Researchers warn that information overload, strategic neutrality and algorithmic amplification may prove more effective than traditional disinformation campaigns.

The authors argue that democratic resilience now depends on global coordination, combining technical safeguards such as watermarking and detection tools with stronger governance of political AI use.

Without collective action, they caution that AI-enabled manipulation risks outpacing existing regulatory and institutional defences.

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Grok faces regulatory scrutiny in South Korea over explicit AI content

South Korea has moved towards regulatory action against Grok, the generative AI chatbot developed by xAI, following allegations that the system was used to generate and distribute sexually exploitative deepfake images.

The country’s Personal Information Protection Commission has launched a preliminary fact-finding review to assess whether violations occurred and whether the matter falls within its legal remit.

The review follows international reports accusing Grok of facilitating the creation of explicit and non-consensual images of real individuals, including minors.

Under the Personal Information Protection Act of South Korea, generating or altering sexual images of identifiable people without consent may constitute unlawful handling of personal data, exposing providers to enforcement action.

Concerns have intensified after civil society groups estimated that millions of explicit images were produced through Grok over a short period, with thousands involving children.

Several governments, including those in the US, Europe and Canada, have opened inquiries, while parts of Southeast Asia have opted to block access to the service altogether.

In response, xAI has introduced technical restrictions preventing users from generating or editing images of real people. Korean regulators have also demanded stronger youth protection measures from X, warning that failure to address criminal content involving minors could result in administrative penalties.

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