EU strengthens semiconductor strategy through Chips Act dialogue

Executive Vice-President Henna Virkkunen will host a high-level dialogue in Brussels to assess the implementation of the European Chips Act Regulation and gather industry feedback ahead of its planned revision.

Stakeholders from across the semiconductor ecosystem are expected to exchange views and present recommendations to shape future policy direction.

An initiative that forms part of the broader strategy led by the European Commission to reinforce technological sovereignty and competitiveness, rather than relying heavily on external suppliers.

The Chips Act seeks to strengthen Europe’s semiconductor ecosystem, improve supply chain resilience, and reduce strategic dependencies in critical technologies.

The dialogue follows a public consultation and call for evidence conducted in autumn 2025, with findings set to inform the upcoming legislative revision.

Industry representatives will provide direct input through a report outlining challenges, opportunities, and proposed policy adjustments, contributing to a more targeted and effective framework for semiconductor development.

Looking ahead, the revision of the Chips Act will be integrated into a wider Technological Sovereignty package designed to boost the capacity of Europe’s digital industries.

By combining stakeholder engagement with policy reform, the European Commission aims to ensure that semiconductor innovation and production can expand across the EU rather than remain constrained by reliance on external suppliers.

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EU privacy bodies back cybersecurity overhaul

The European Data Protection Board and the European Data Protection Supervisor have backed proposals to strengthen the EU cybersecurity law while safeguarding personal data. Their joint opinion addresses reforms to the Cybersecurity Act and updates to the NIS2 Directive.

Regulators support plans to reinforce the mandate of the European Union Agency for Cybersecurity and expand cybersecurity certification across digital supply chains. Clearer coordination between ENISA and privacy authorities is seen as essential for consistent oversight.

Advice also calls for limits on the processing of personal data and for prior consultation on technical rules affecting privacy. Certification schemes should align with the GDPR and help organisations demonstrate compliance.

Additional recommendations include broader cybersecurity skills training and a single EU entry point for personal data breach notifications. Proposed changes would also classify digital identity wallet providers as essential entities under the EU security rules.

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Luxembourg court overturns major GDPR fine against Amazon

The Administrative Court of Luxembourg has annulled a €746 million GDPR fine imposed on Amazon, citing procedural failings by the national regulator. Judges ruled that authorities did not properly assess the company’s level of fault before setting the penalty.

The sanction was issued in July 2021 by the National Commission for Data Protection over alleged breaches of the GDPR and appealed in March 2025. While violations were upheld, the court found the watchdog failed to determine whether the conduct was intentional or negligent.

Judges said European case law requires a clear evaluation of responsibility before fines are calculated. The ruling concluded that the penalty was imposed in an almost automatic manner without the necessary legal analysis.

The case will now be reassessed by the Luxembourgish regulator. Amazon said it welcomed the decision and maintained it acted in good faith while working with authorities on privacy compliance.

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EDPB summarises conference on cross-regulatory cooperation in the EU

The European Data Protection Board has published a summary of its 17 March conference in Brussels on cross-regulatory interplay and cooperation in the EU from a data protection perspective. According to the EDPB, the event brought together representatives of the EU institutions, European Data Protection Authorities, academia, and industry.

Three panels structured the conference discussion. One focused on data protection and competition, another on the Digital Markets Act and the General Data Protection Regulation (GDPR), and a third on the Digital Services Act and the GDPR.

Discussion in the first panel centred on cooperation between regulatory bodies in data protection and competition, including lessons from the aftermath of the Bundeskartellamt ruling. The EDPB said speakers emphasised the need for regulators to align their approaches and recognise synergies between the two fields. Speakers also said data protection should be considered in competition analysis only when relevant and on a case-by-case basis. The EDPB added that it had recently agreed with the European Commission to develop joint guidelines on the interplay between competition law and data protection.

The second panel focused on joint guidelines on the Digital Markets Act and the GDPR, developed by the European Commission and the EDPB and recently opened to public consultation. According to the EDPB, speakers described the guidelines as an example of regulatory cooperation aimed at developing a coherent and compatible interpretation of the two frameworks while respecting regulatory competences. The Board said participants linked the guidelines to stronger consistency, legal clarity, and easier compliance. Some speakers also suggested changes to the final version, including points related to proportionality and the relationship between DMA obligations and the GDPR.

The final panel examined the interaction between the Digital Services Act and the GDPR. The EDPB said panellists referred to the protection of minors as one example, arguing that age verification should be effective while remaining fully in line with data protection legislation. Speakers also highlighted the need for coordination between the two frameworks, including cooperation involving the EU institutions such as the European Board for Digital Services, the European Commission, the EDPB, and national authorities. Emerging technologies such as AI were also mentioned in the discussion.

The event also featured keynote speeches from European Commission Executive Vice President Henna Virkkunen and European Parliament LIBE Committee Chair Javier Zarzalejos. According to the EDPB, Virkkunen said the Commission remained committed to cooperation between different frameworks and highlighted the need to support compliance through stronger coordination among regulators. Zarzalejos said close cross-regulatory cooperation was essential for consistency, effective enforcement, and trust, and pointed to the intersections among data protection law, competition law, the DMA, and the DSA.

EDPB Chair Anu Talus closed the conference by reiterating that the EDPB and European Data Protection Authorities are committed to supporting stakeholders in navigating what the Board described as a new cross-regulatory landscape. The EDPB said future work will include continued cooperation with the Commission on joint guidelines on the interplay between the AI Act and the GDPR, finalisation of the joint guidelines on the interplay between the DMA and the GDPR, and work on the recently announced Joint Guidelines on the interplay between data protection and competition law.

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Digital Services Act disinformation signatories publish first 2026 reports

Signatories to the EU Code of Conduct on Disinformation have published new transparency reports describing the measures they say they are taking to reduce the spread of disinformation online. According to the European Commission, the reports are the first ones submitted since the Code was recognised as a code of conduct under the Digital Services Act.

The reports are available through the Code’s Transparency Centre and come from a broad group of signatories, including online platforms such as Google, Meta, Microsoft, and TikTok, as well as fact-checkers, research organisations, civil society bodies, and representatives of the advertising industry. The European Commission says the reporting round covers the period from 1 July to 31 December 2025 and marks the first full reporting cycle linked to the Digital Services Act.

Dedicated sections in the reports cover responses to ongoing crises, notably the conflict in Ukraine, as well as measures intended to safeguard the integrity of elections. Data on the implementation of disinformation-related measures is also included, alongside developments in signatories’ policies, tools, and partnerships under the Digital Services Act framework.

Greater significance attaches to the reporting cycle because of the Code’s changed legal and regulatory position. The Commission says the Code was endorsed on 13 February 2025 by the Commission and the European Board for Digital Services, at the request of the signatories, as a code of conduct within the meaning of the Digital Services Act. From 1 July 2025, the Code became part of the co-regulatory framework under the Digital Services Act.

A more formal role now applies to the Code than under its earlier voluntary setup. According to the Commission, signatories’ adherence to its commitments is subject to independent annual auditing, and the Code serves as a relevant benchmark for determining compliance with Article 35 of the Digital Services Act. The Commission also says the Code has become a ‘significant and meaningful benchmark of DSA compliance’ for providers of very large online platforms and very large online search engines that adhere to its commitments under the Digital Services Act.

Reporting obligations differ depending on the type of signatory. Under the Code, providers of very large online platforms and very large online search engines commit to reporting, every six months, on the actions taken by their subscribed services. The Commission lists Google Search, YouTube, Google Ads, Facebook, Instagram, Messenger, WhatsApp, Bing, LinkedIn, and TikTok among the covered services, while other non-platform signatories report once per year under the Digital Services Act structure.

Broader policy relevance lies in the EU’s attempt to connect platform self-reporting to a more formal oversight structure. By placing the disinformation Code inside the Digital Services Act framework, the Commission and the Board are using voluntary commitments, transparency reporting, and auditing as part of a co-regulatory approach to systemic online risks. The reports themselves do not prove compliance, but they now carry greater weight within the wider Digital Services Act architecture for platform governance.

One further point is that the Commission notice focuses on publication of the reports rather than evaluating their quality or effectiveness. The notice says the reports describe measures, data, and policy developments, but it does not assess whether the actions taken by signatories were sufficient. Such a distinction matters in politically sensitive areas such as election integrity and crisis-related disinformation, especially where transparency under the Digital Services Act may shape future scrutiny.

Taken together, the first reporting round shows how the EU is using the Digital Services Act not only to impose direct legal obligations on large platforms and search engines, but also to anchor voluntary commitments within a more structured regulatory environment. Continued reporting, auditing, and review will determine how much practical weight the Code carries within the Digital Services Act and how effectively the Digital Services Act supports oversight of disinformation risks online.

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Canada’s watchdog highlights surge in AI impersonation scams

A growing wave of AI-driven scams is prompting warnings from Competition Bureau Canada, as fraudsters increasingly impersonate government officials through deepfake technology and fake websites.

Authorities report a steady rise in complaints linked to deceptive schemes designed to exploit public trust.

Scammers are using synthetic media to mimic well-known political figures, including senior government officials, to extract personal information and spread misleading narratives.

Such tactics demonstrate how AI tools are being weaponised for social engineering rather than for legitimate communication.

The trend reflects a broader shift in digital fraud, where increasingly sophisticated techniques blur the line between authentic and fabricated content. As synthetic identities become more convincing, individuals find it harder to verify the legitimacy of online interactions and official communications.

In response, authorities in Canada are intensifying awareness efforts during Fraud Prevention Month, offering expert guidance on identifying and avoiding scams.

The development underscores the urgent need for stronger safeguards and public education to counter evolving AI-enabled threats.

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IWF report reveals a rapid growth of synthetic child abuse material online

A surge in AI-generated child sexual abuse material has raised urgent concerns across Europe, with the Internet Watch Foundation reporting record levels of harmful content online.

Findings of the IWF report indicate that AI is accelerating both the scale and severity of abuse, transforming how offenders create and distribute illicit material.

Data from 2025 reveals a sharp increase in AI-generated imagery and video, with over 8,000 cases identified and a dramatic rise in highly severe content.

Synthetic videos have grown at an unprecedented rate, reflecting how emerging tools are being used to produce increasingly realistic and extreme scenarios rather than traditional formats.

Analysis of offender behaviour highlights a disturbing trend toward automation and accessibility.

Discussions on dark web forums suggest that future agentic AI systems may enable the creation of fully produced abusive content with minimal technical skill. The integration of audio and image manipulation further deepens risks, particularly where real children’s likenesses are involved.

Calls for regulatory action are intensifying as policymakers in the EU debate reforms to the Child Sexual Abuse Directive.

Advocacy groups emphasise the need for comprehensive criminalisation, alongside stronger safety-by-design requirements, arguing that technological innovation must not outpace child protection frameworks.

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EU and Australia deepen strategic partnership through trade and security agreements

The European Commission and Australia have announced the adoption of a Security and Defence Partnership alongside the conclusion of negotiations for a free trade agreement.

They have also agreed to launch formal negotiations for Australia’s association with Horizon Europe, the European Union’s research and innovation funding programme.

The Security and Defence Partnership establishes a framework for cooperation on shared strategic priorities. It includes coordination on crisis management, maritime security, cybersecurity, and countering hybrid threats and foreign information manipulation.

A partnership that also includes cooperation on emerging and disruptive technologies, including AI, as well as space security, non-proliferation, and disarmament.

The free trade agreement provides for the removal of over 99% of tariffs on the EU goods exports to Australia and expands access to services, government procurement, and investment opportunities.

It includes provisions on data flows that prohibit data localisation requirements and supports supply chain resilience through improved access to critical raw materials.

The EU exports are expected to increase by up to 33% over the next decade.

The agreement incorporates commitments on trade and sustainable development, including labour rights, environmental standards, and climate obligations aligned with the Paris Agreement.

The negotiated texts will undergo the EU internal procedures before submission to the Council for signature and conclusion, followed by European Parliament consent and ratification by Australia before entry into force.

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Australian regulator warns AI companions expose children to serious online risks

The eSafety Commissioner has reported that AI companion chatbots are failing to adequately protect children from harmful content, following a transparency review of services including Character.AI, Nomi, Chai, and Chub AI.

According to the report, these services did not implement robust safeguards against exposure to sexually explicit material or the generation of child sexual exploitation and abuse content.

The findings also indicate that most platforms relied on self-declared age verification and did not consistently monitor inputs or outputs across all AI models used.

eSafety Commissioner Julie Inman Grant stated that AI companions, often presented as sources of emotional or social support, are increasingly used by children but may expose them to harmful interactions.

She noted that none of the reviewed services had ‘meaningful age checks’ in place and highlighted concerns about the absence of safeguards related to self-harm and suicide content.

The report further identifies that several platforms in Australia did not refer users to crisis or mental health support services when harmful interactions were detected.

It also notes gaps in monitoring for unlawful content and limited investment in trust and safety staffing, with some providers reporting no dedicated moderation personnel.

The findings follow the implementation of Australia’s Age-Restricted Material Codes, which require online services, including AI chatbots, to prevent access to age-inappropriate content and provide appropriate safety measures.

These obligations complement existing Unlawful Material Codes and Standards, with non-compliance potentially leading to civil penalties.

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UK pushes platforms to tackle AI abuse and online violence against women

The Department for Science, Innovation and Technology has called on online service providers to strengthen measures against digital harms targeting women and girls, as part of a commitment to halve such violence within a decade.

In a letter published on 23 March 2026, Liz Kendall outlined expectations for platforms operating under the Online Safety Act.

The letter states that the government has strengthened criminal law and regulatory frameworks, including new offences related to harmful pornographic practices and intimate image abuse.

It confirms that sharing or threatening to share sexually explicit deepfakes without consent constitutes a criminal offence, while the non-consensual creation of such content has also been criminalised and is being designated as a priority offence under the Act.

Further measures include amendments to the Crime and Policing Bill to ban so-called ‘nudification’ tools and extend illegal content duties to AI chatbots.

The government is also introducing a requirement for platforms to remove non-consensual intimate images within 48 hours, with a focus on reducing repeated reporting burdens for victims.

The Secretary of State urged companies to implement recommendations from Ofcom’s guidance on online safety for women and girls, including risk assessments, stronger privacy settings, and limits on the visibility of harmful content.

Platforms are expected to comply by the end of the year, with progress to be monitored.

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