Jurisdiction

EU invests €2.9 billion to drive net-zero industrial transformation

The European Commission has approved €2.9 billion in funding for 61 large-scale net-zero technology projects, marking one of the EU’s most significant investments in clean innovation to date.

Financed through revenues from the EU Emissions Trading System, the initiative aims to accelerate Europe’s path towards climate neutrality by 2050.

The selected projects cover 19 industrial sectors across 18 Member States and target areas such as renewable energy, energy storage, zero-emission mobility, and industrial carbon management.

Collectively, they are expected to cut more than 220 million tonnes of CO₂ over the next decade, reinforcing Europe’s global leadership in sustainable technologies instead of relying on imports.

Funded under the Innovation Fund, which draws on an estimated €40 billion in ETS revenues, the initiative highlights the EU’s industrial readiness for decarbonisation. The latest call attracted 359 applications requesting €21.7 billion in support, underscoring the rapid growth of the continent’s cleantech sector.

Commissioner Wopke Hoekstra described the announcement as proof that the EU is turning its climate ambitions into industrial reality, creating green jobs and strengthening economic resilience. The next round of Innovation Fund calls will open in December 2025.

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EU considers classifying ChatGPT as a search engine under the DSA. What are the implications?

The European Commission is pondering whether OpenAI’s ChatGPT should be designated as a ‘Very Large Online Search Engine’ (VLOSE) under the Digital Services Act (DSA), a move that could reshape how generative AI tools are regulated across Europe.

OpenAI recently reported that ChatGPT’s search feature reached 120.4 million monthly users in the EU over the past six months, well above the 45 million threshold that triggers stricter obligations for major online platforms and search engines. The Commission confirmed it is reviewing the figures and assessing whether ChatGPT meets the criteria for designation.

The key question is whether ChatGPT’s live search function should be treated as an independent service or as part of the chatbot as a whole. Legal experts note that the DSA applies to intermediary services such as hosting platforms or search engines, categories that do not neatly encompass generative AI systems.

Implications for OpenAI

If designated, ChatGPT would be the first AI chatbot formally subject to DSA obligations, including systemic risk assessments, transparency reporting, and independent audits. OpenAI would need to evaluate how ChatGPT affects fundamental rights, democratic processes, and mental health, updating its systems and features based on identified risks.

‘As part of mitigation measures, OpenAI may need to adapt ChatGPT’s design, features, and functionality,’ said Laureline Lemoine of AWO. ‘Compliance could also slow the rollout of new tools in Europe if risk assessments aren’t planned in advance.’

The company could also face new data-sharing obligations under Article 40 of the DSA, allowing vetted researchers to request information about systemic risks and mitigation efforts, potentially extending to model data or training processes.

A test case for AI oversight

Legal scholars say the decision could set a precedent for generative AI regulation across the EU. ‘Classifying ChatGPT as a VLOSE will expand scrutiny beyond what’s currently covered under the AI Act,’ said Natali Helberger, professor of information law at the University of Amsterdam.

Experts warn the DSA would shift OpenAI from voluntary AI-safety frameworks and self-defined benchmarks to binding obligations, moving beyond narrow ‘bias tests’ to audited systemic-risk assessments, transparency and mitigation duties. ‘The DSA’s due diligence regime will be a tough reality check,’ said Mathias Vermeulen, public policy director at AWO.

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NYPD sued over Microsoft-linked surveillance system

The New York Police Department is facing a lawsuit from the Surveillance Technology Oversight Project (S.T.O.P.), which accuses it of running an invasive citywide surveillance network built with Microsoft technology.

The system, known as the Domain Awareness System (DAS), has operated since 2012 and connects more than a dozen surveillance tools, including video cameras, biometric scanners, license plate readers, and financial analytics, into one centralised network. According to court filings, the system collects location data, social media activity, vehicle information, and even banking details to create ‘digital profiles’ of millions of residents.

S.T.O.P. argues that the network captures and stores data on all New Yorkers, including those never suspected of a crime, amounting to a ‘web of surveillance’ that violates constitutional rights. The group says newly obtained records show that DAS integrates citywide cameras, 911 and 311 call logs, police databases, and feeds from drones and helicopters into a single monitoring platform.

Calling DAS ‘an unprecedented violation of American life’, the organisation has asked the US District Court for the Southern District of New York to declare the city’s surveillance practices unconstitutional.

This is not the first time Microsoft’s technology has drawn scrutiny this year over data tracking and storing, its recently announced ‘Recall’ feature also raised alarm over potential privacy issues.

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Former Meta lobbyist’s appointment to Irish data watchdog triggers conflict-of-interest complaint

Rights group the Irish Council for Civil Liberties (ICCL) has asked the European Commission to review Ireland’s appointment of former Meta lobbyist Niamh Sweeney to the Data Protection Commission (DPC), alleging the process breaches EU rules on independent regulators. ICCL argues the law requires authorities to be ‘above any suspicion of partiality’.

Sweeney, appointed on 25 September, is now one of three commissioners. Her profile shows roles at Meta from 2015–2021, including leading WhatsApp public policy across Europe, Africa and the Middle East. Before that, she lobbied for Facebook in Ireland. ICCL also notes that Leo Moore, a lawyer whose clients include major tech and social media firms, and, according to ICCL, the only panellist with data-protection expertise, sat on the five-member panel that selected Sweeney.

The Commission said it is ‘not empowered to take action with respect to appointments’, indicating the complaint may fall outside its remit. This latest development comes amid growing scrutiny of the DPC. In a previous case on Meta’s behavioural advertising practices, the European Data Protection Board overturned the DPC’s decision not to impose a fine and ordered stricter enforcement measures against the tech giant.

This move is the latest in a series of complaints against the independence of the DPC. More than 40 civil society organisations asked the European Commission to investigate Ireland’s privacy regulator earlier this month.

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China outlines plan to expand high-tech industries

China has pledged to expand its high-tech industries over the next decade. Officials said emerging sectors such as quantum computing, hydrogen energy, nuclear fusion, and brain-computer interfaces will receive major investment and policy backing.

Development chief Zheng Shanjie told reporters that the coming decade will redefine China’s technology landscape, describing it as a ‘new scale’ of innovation. The government views breakthroughs in science and AI as key to boosting economic resilience amid a slowing property market and demographic decline.

The plan underscores Beijing’s push to rival Washington in cutting-edge technology, with billions already channelled into state-led innovation programmes. Public opinion in Beijing appears supportive, with many citizens expressing optimism that China could lead the next technological revolution.

Economists warn, however, that sustained progress will require tackling structural issues, including low domestic consumption and reduced investor confidence. Analysts said Beijing’s long-term success will depend on whether it can balance rapid growth with stable governance and transparent regulation.

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Big Tech ramps up Brussels lobbying as EU considers easing digital rules

Tech firms now spend a record €151 million a year on lobbying at EU institutions, up from €113 million in 2023, according to transparency-register analysis by Corporate Europe Observatory and LobbyControl.

Spending is concentrated among US giants. The ten biggest tech companies, including Meta, Microsoft, Apple, Amazon, Qualcomm and Google, together outspend the top ten in pharma, finance and automotive. Meta leads with a budget above €10 million.

Estimates calculate there are 890 full-time lobbyists now working to influence tech policy in Brussels, up from 699 in 2023, with 437 holding European Parliament access badges. In the first half of 2025, companies declared 146 meetings with the Commission and 232 with MEPs, with artificial intelligence regulation and the industry code of practice frequently on the agenda.

As industry pushes back on the Digital Markets Act and Digital Services Act and the Commission explores the ‘simplification’ of EU rulebooks, lobbying transparency campaigners fear a rollback on the progress made to regulate the digital sector. On the contrary, companies argue that lobbying helps lawmakers grasp complex markets and assess impacts on innovation and competitiveness.

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French lawmakers advance plan to double digital services tax on Big Tech

France’s National Assembly has voted to raise its digital services tax on major tech firms such as Google, Apple, Meta and Amazon from 3% to 6%, despite government warnings that the move could trigger US trade retaliation.

Economy Minister Roland Lescure said the increase would be ‘disproportionate’, cautioning that it could invite equally strong countermeasures from Washington. Lawmakers had initially proposed a 15% levy in response to former US President Donald Trump’s tariff threats, but scaled back amid opposition from industry and the government.

The amendment still requires final approval in next week’s budget vote and then in the French Senate. The proposal also raises the global revenue threshold for companies subject to the digital services tax from €750 million to €2 billion, aiming to shield smaller domestic firms.

John Murphy of the US Chamber of Commerce criticised the plan, arguing it solely targets American companies. Lawmaker Charles Sitzenstuhl, from President Emmanuel Macron’s party, stressed that ‘the objective of this tax was not to harm the United States in any way’, addressing US officials following the vote.

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FDA and patent law create dual hurdles for AI-enabled medical technologies

AI reshapes healthcare by powering more precise and adaptive medical devices and diagnostic systems.

Yet, innovators face two significant challenges: navigating the US Food and Drug Administration’s evolving regulatory framework and overcoming legal uncertainty under US patent law.

These two systems, although interconnected, serve different goals. The FDA protects patients, while patent law rewards invention.

The FDA’s latest guidance seeks to adapt oversight for AI-enabled medical technologies that change over time. Its framework for predetermined change control plans allows developers to update AI models without resubmitting complete applications, provided updates stay within approved limits.

An approach that promotes innovation while maintaining transparency, bias control and post-market safety. By clarifying how adaptive AI devices can evolve safely, the FDA aims to balance accountability with progress.

Patent protection remains more complex. US courts continue to exclude non-human inventors, creating tension when AI contributes to discoveries.

Legal precedents such as Thaler vs Vidal and Alice Corp. vs CLS Bank limit patent eligibility for algorithms or diagnostic methods that resemble abstract ideas or natural laws. Companies must show human-led innovation and technical improvement beyond routine computation to secure patents.

Aligning regulatory and intellectual property strategies is now essential. Developers who engage regulators early, design flexible change control plans and coordinate patent claims with development timelines can reduce risk and accelerate market entry.

Integrating these processes helps ensure AI technologies in healthcare advance safely while preserving inventors’ rights and innovation incentives.

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MLK estate pushback prompts new Sora 2 guardrails at OpenAI

OpenAI paused the ability to re-create Martin Luther King Jr. in Sora 2 after Bernice King objected to user videos. Company leaders issued a joint statement with the King estate. New guardrails will govern depictions of historical figures on the app.

OpenAI said families and authorised estates should control how likenesses appear. Representatives can request removal or opt-outs. Free speech was acknowledged, but respectful use and consent were emphasised.

Policy scope remains unsettled, including who counts as a public figure. Case-by-case requests may dominate early enforcement. Transparency commitments arrived without full definitions or timelines.

Industry pressure intensified as major talent agencies opted out of clients. CAA and UTA cited exploitation and legal exposure. Some creators welcomed the tool, showing a split among public figures.

User appetite for realistic cameos continues to test boundaries. Rights of publicity and postmortem controls vary by state. OpenAI promised stronger safeguards while Sora 2 evolves.

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EU MiCA greenlight turns Blockchain.com’s Malta base into hub

Blockchain.com received a MiCA license from Malta’s Financial Services Authority, enabling passported crypto services across all 30 EEA countries under one EU framework. Leaders called it a step toward safer, consistent access.

Malta becomes the hub for scaling operations, citing regulatory clarity and cross-border support. Under the authorisation, teams will expand secure custody and wallets, enterprise treasury tools, and localised products for the EU consumers.

A unified license streamlines go-to-market and accelerates launches in priority jurisdictions. Institutions gain clearer expectations on safeguarding, disclosures, and governance, while retail users benefit from standardised protections and stronger redress.

Fiorentina D’Amore will lead the EU strategy with deep fintech experience. Plans include phased rollouts, supervisor engagement, and controls aligned to MiCA’s conduct and prudential requirements across key markets.

Since 2011, Blockchain.com says it has processed over one trillion dollars and serves more than 90 million wallets. Expansion under MiCA adds scalable infrastructure, robust custody, and clearer disclosures for users and institutions.

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