TikTok restructures operations for US market

TikTok has finalised a deal allowing the app to continue operating in America by separating its US business from its global operations. The agreement follows years of political pressure in the US over national security concerns.

Under the arrangement, a new entity will manage TikTok’s US operations, with user data and algorithms handled inside the US. The recommendation algorithm has been licensed and will now be trained only on US user data to meet American regulatory requirements.

Ownership of TikTok’s US business is shared among American and international investors, while China-based ByteDance retains a minority stake. Oracle will oversee data security and cloud infrastructure for users in the US.

Analysts say the changes could alter how the app functions for the roughly 200 million users in the US. Questions remain over whether a US-trained algorithm will perform as effectively as the global version.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

EU cyber rules target global tech dependence

The European Union has proposed new cybersecurity rules aimed at reducing reliance on high-risk technology suppliers, particularly from China. In the European Union, policymakers argue existing voluntary measures failed to curb dependence on vendors such as Huawei and ZTE.

The proposal would introduce binding obligations for telecom operators across the European Union to phase out Chinese equipment. At the same time, officials have warned that reliance on US cloud and satellite services also poses security risks for Europe.

Despite increased funding and expanded certification plans, divisions remain within the European Union. Countries including Germany and France support stricter sovereignty rules, while others favour continued partnerships with US technology firms.

Analysts say the lack of consensus in the European Union could weaken the impact of the reforms. Without clear enforcement and investment in European alternatives, Europe may struggle to reduce dependence on both China and the US.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

AI Act strengthens training rules despite 2025 Digital Omnibus reforms

The European AI Regulation reinforces training and awareness as core compliance requirements, even as the EU considers simplifications through the proposed Digital Omnibus. Regulation (EU) 2024/1689 sets a risk-based framework for AI systems under the AI Act.

AI literacy is promoted through a multi-level approach. The EU institutions focus on public awareness, national authorities support voluntary codes of conduct, and organisations are currently required under the AI Act to ensure adequate AI competence among staff and third parties involved in system use.

A proposed amendment to Article 4, submitted in November 2025 under the Digital Omnibus, would replace mandatory internal competence requirements with encouragement-based measures. The change seeks to reduce administrative burden without removing AI Act risk management duties.

Even if adopted, the amendment would not eliminate the practical need for AI training. Competence in AI systems remains essential for governance, transparency, monitoring, and incident handling, particularly for high-risk use cases regulated by the AI Act.

Companies are therefore expected to continue investing in tailored AI training across management, technical, legal, and operational roles. Embedding awareness and competence into risk management frameworks remains critical to compliance and risk mitigation.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Greece selected for Binance’s EU crypto approval

Binance has applied for a pan-European MiCA licence in Greece, positioning the country as a key regulatory gateway into the EU. The MiCA framework harmonises oversight across member states, enabling licensed firms to operate EU-wide under a single approval.

Contrary to expectations that Malta or Latvia would host the filing, the exchange selected Athens, where it has already established a holding company. The Hellenic Capital Market Commission is reportedly fast-tracking the review with support from leading accounting firms.

Company representatives said the MiCA regime offers legal clarity, regulatory certainty, and a framework that supports responsible innovation. Approval could lead to Binance expanding its corporate presence in Greece, including the opening of new offices and local staffing.

Regulatory urgency is intensifying as the July deadline approaches, particularly for firms operating across multiple EU jurisdictions. A successful application would strengthen Binance’s European strategy, expanding market access and reinforcing regulatory compliance.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Ransomware attack on Under Armour leads to massive customer data exposure

Under Armour is facing growing scrutiny following the publication of customer data linked to a ransomware attack disclosed in late 2025.

According to breach verification platform Have I Been Pwned, a dataset associated with the incident appeared on a hacking forum in January, exposing information tied to tens of millions of customers.

The leaked material reportedly includes 72 million email addresses alongside names, dates of birth, location details and purchase histories. Security analysts warn that such datasets pose risks that extend far beyond immediate exposure, particularly when personal identifiers and behavioural data are combined.

Experts note that verified customer information linked to a recognised brand can enable compelling phishing and fraud campaigns powered by AI tools.

Messages referencing real transactions or purchase behaviour can blur the boundary between legitimate communication and malicious activity, increasing the likelihood of delayed victimisation.

The incident has also led to legal action against Under Armour, with plaintiffs alleging failures in safeguarding sensitive customer information. The case highlights how modern data breaches increasingly generate long-term consequences rather than immediate technical disruption.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Snapchat settles social media addiction lawsuit as landmark trial proceeds

Snapchat’s parent company has settled a social media addiction lawsuit in California just days before the first major trial examining platform harms was set to begin.

The agreement removes Snapchat from one of the three bellwether cases consolidating thousands of claims, while Meta, TikTok and YouTube remain defendants.

These lawsuits mark a legal shift away from debates over user content and towards scrutiny of platform design choices, including recommendation systems and engagement mechanics.

A US judge has already ruled that such features may be responsible for harm, opening the door to liability that section 230 protections may not cover.

Legal observers compare the proceedings to historic litigation against tobacco and opioid companies, warning of substantial damages and regulatory consequences.

A ruling against the remaining platforms could force changes in how social media products are designed, particularly in relation to minors and mental health risks.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Hong Kong crypto licensing overhaul draws industry concern

Hong Kong’s proposed crypto licensing overhaul has drawn criticism from industry leaders, who warn it could disrupt compliant firms and deter blockchain exposure.

Under the proposals, the existing allowance enabling firms to allocate up to 10% of fund assets to crypto without additional licensing would be removed. Even minimal exposure would require a full licence, a move the association called disproportionate and harmful to market experimentation.

Concerns also focused on the absence of transitional arrangements. Without a grace period, firms may be forced to suspend operations while licence applications are reviewed.

The association proposed a six- to 12-month transitional window to allow continued activity during regulatory processing.

Further criticism focused on custody rules restricting client assets to SFC-licensed custodians. Industry representatives warned the measure could limit access to early-stage tokens, restrict Web3 investment, and impose unnecessary geographic constraints.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

EU telecoms reform advances in small steps

The European Commission has unveiled the Digital Networks Act, aiming to reduce fragmentation across the EU telecoms sector. Proposals include limited spectrum harmonisation and an EU-wide numbering scheme to support cross-border business services.

Despite years of debate, the plan stops short of creating a fully unified telecoms market. National governments continue to resist deeper integration, particularly around control of 4G, 5G and wi-fi spectrum management.

The proposal reflects a cautious approach from the European Commission, balancing political pressure for reform against opposition from member states. Longstanding calls for consolidation have struggled to gain consensus.

Commission president Ursula von der Leyen has backed greater market integration, though the latest measures represent an incremental step rather than a structural overhaul.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

EU alternative app store Setapp Mobile closes

European users will soon lose access to Setapp Mobile, an alternative app store created under the EU Digital Markets Act. The service will shut down on 16 February 2026.

MacPaw, a Ukrainian software developer known for Mac productivity tools, launched Setapp as a subscription-based app platform. Its mobile store debuted in 2024 to challenge Apple’s App Store in the EU.

Ongoing uncertainty around Apple’s EU fee structure weakened the business case. The Core Technology Fee and frequent commercial changes made planning and sustainable monetisation difficult.

Setapp’s desktop service will continue operating, while the mobile store is discontinued. Other alternative app stores remain available in the EU, including Epic Games Store and the open source AltStore.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

WhatsApp faces growing pressure in Russia

Authorities in Russia are increasing pressure on WhatsApp, one of the country’s most widely used messaging platforms. The service remains popular despite years of tightening digital censorship.

Officials argue that WhatsApp refuses to comply with national laws on data storage and cooperation with law enforcement. Meta has no legal presence in Russia and continues to reject requests for user information.

State backed alternatives such as the national messenger Max are being promoted through institutional pressure. Critics warn that restricting WhatsApp targets private communication rather than crime or security threats.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!