Jurisdiction

EU competition regulators expand scrutiny across the entire AI ecosystem

Competition authorities in the EU are broadening their oversight of the AI sector, examining every layer of the technology’s value chain.

Speaking at a conference in Berlin, Teresa Ribera explained that regulators are analysing the full ‘AI stack’ instead of focusing solely on consumer applications.

According to the competition chief, scrutiny extends beyond visible AI tools to the systems that support them. Investigations are assessing underlying models, the data used to train those models, as well as cloud infrastructure and energy resources that power AI systems.

Regulatory attention has already reached the application layer.

The European Commission opened an investigation in 2025 involving Meta after concerns emerged that the company could restrict competing AI assistants on its messaging platform WhatsApp.

Following regulatory pressure, Meta proposed allowing rival AI chatbots on the platform in exchange for a fee. European regulators are now assessing the proposal to determine whether additional intervention is necessary to preserve fair competition in rapidly evolving digital markets.

Authorities have also examined concentration risks across other parts of the AI ecosystem, including the infrastructure layer dominated by companies such as Nvidia.

Regulators argue that effective competition oversight must address the entire technology stack as AI markets expand quickly.

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EU privacy watchdogs warn over US plans to expand traveller data collection

European privacy authorities have raised concerns about proposed changes to the Electronic System for Travel Authorisation that could require travellers to the US to disclose extensive personal information, including social media activity.

The European Data Protection Board, which coordinates national data protection authorities across the EU, sent a letter to the European Commission asking whether the institution plans to intervene or respond to the updated requirements.

A proposal that would apply to visitors entering the US through the visa-waiver programme for short stays of up to 90 days.

Under the proposed changes, travellers may be required to provide details about their social media accounts covering the previous five years.

Authorities could also request personal data about family members, including addresses, phone numbers and dates of birth, information that privacy regulators argue is unrelated to travel authorisation.

Watchdogs also questioned how EU citizens could exercise their data protection rights once such information is transferred to US authorities, particularly regarding storage periods and potential misuse.

Parallel negotiations between the EU and the US have also attracted attention.

Discussions around a potential Enhanced Border Security Partnerships framework could allow US authorities to seek access to biometric databases held by European countries, including facial scans and fingerprint records.

European privacy regulators warned that such measures could raise significant concerns regarding fundamental rights and personal data protection for travellers from the EU.

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Deepfakes in campaign ads expose limits of Texas election law

AI-generated political advertisements are becoming increasingly visible in Texas election campaigns, highlighting gaps in existing laws designed to regulate deepfakes in political messaging.

Texas was the first state in the United States to adopt legislation restricting the use of deepfakes in campaign advertisements. However, the law applies only to state-level races. It does not cover federal contests, including the US Senate race that has dominated advertising spending in Texas and featured several AI-generated campaign ads.

Some lawmakers and experts warn that the growing use of AI-generated political content could complicate election campaigns. During recent primary contests, campaign advertisements featuring manipulated or synthetic images of political figures circulated widely across media platforms.

State Senator Nathan Johnson, who has proposed legislation to strengthen the state’s rules regarding deepfakes, said the rapid evolution of AI technology makes the issue increasingly urgent. Johnson argues that voters should be able to make decisions based on accurate information rather than manipulated media.

The current Texas law, adopted in 2019, contains several limitations. It only applies to video content, requires proof of intent to deceive or harm a candidate, and covers material distributed within 30 days of an election. Critics say these restrictions make the law difficult to enforce and limit its practical impact.

Lawmakers from both parties attempted to address some of these issues during the most recent legislative session. Proposed reforms included removing the 30-day restriction, requiring clear disclosure when AI is used in political advertising, and allowing candidates to pursue legal action to block misleading ads. Although both chambers of the Texas legislature passed versions of the legislation, the proposals ultimately failed to become law.

Supporters of stricter regulation argue that the rapid advancement of generative AI tools is making it harder to distinguish synthetic media from authentic content. Some political leaders warn that increasingly realistic deepfakes could eventually influence election outcomes.

Others, however, caution that regulating political content raises constitutional concerns. Some lawmakers argue that many AI-generated political ads resemble satire or parody, forms of political speech protected by the First Amendment.

At the federal level, regulation of congressional campaign advertising falls under the Federal Election Commission’s authority. In 2024, the agency declined to begin a formal rulemaking process on AI-generated political ads, leaving states and policymakers to continue debating how to address the emerging issue.

Experts warn that as AI tools continue to improve, distinguishing authentic political messaging from deepfakes and other forms of synthetic content will likely become more complex.

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Anthropic lawsuit gains Big Tech support in AI dispute

Several major US technology companies have backed Anthropic in its lawsuit challenging the US Department of Defence’s decision to label the AI company a national security ‘supply chain risk’.

Google, Amazon, Apple, and Microsoft have filed legal briefs supporting Anthropic’s attempt to overturn the designation issued by Defence Secretary Pete Hegseth. Anthropic argues the decision was retaliation after the company declined to allow its AI systems to be used for mass surveillance or autonomous weapons.

In court filings, the companies warned that the government’s action could have wider consequences for the technology sector. Microsoft said the decision could have ‘broad negative ramifications for the entire technology sector’.

Microsoft, which works closely with the US government and the Department of Defence, said it agreed with Anthropic’s position that AI systems should not be used to conduct domestic mass surveillance or enable autonomous machines to initiate warfare.

A joint amicus brief supporting Anthropic was also submitted by the Chamber of Progress, a technology policy organisation funded by companies including Google, Apple, Amazon and Nvidia. The group said it was concerned about the government penalising a company for its public statements.

The brief described the designation as ‘a potentially ruinous sanction’ for businesses and warned it could create a climate in which companies fear government retaliation for expressing views.

Anthropic’s lawsuit claims the government violated its free speech rights by retaliating against the company for comments made by its leadership. The dispute escalated after Anthropic declined to remove contractual restrictions preventing its AI models from being used for mass surveillance or autonomous weapons.

The company had previously introduced safeguards in government contracts to limit certain uses of its technology. Negotiations over revised contract language continued for several weeks before the disagreement became public.

Former military officials and technology policy advocates have also filed supporting briefs, warning that the decision could discourage companies from participating in national security projects if they fear retaliation for voicing concerns. The case is currently being heard in federal court in San Francisco.

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AI and quantum computing reshape the global cybersecurity landscape

Cybersecurity risks are increasing as digital connectivity expands across governments, businesses and households.

According to Thales Group, a growing number of connected devices and digital services has significantly expanded the potential entry points for cyberattacks.

AI is reshaping the cybersecurity landscape by enabling attackers to identify vulnerabilities at unprecedented speed.

Security specialists increasingly describe the environment as a contest in which defensive systems must deploy AI to counter adversaries using similar technologies to exploit weaknesses in digital infrastructure.

Security concerns also extend beyond large institutions. Connected devices in homes, including smart cameras and speakers, often lack robust security protections, increasing exposure for individuals and networks.

Policymakers in Europe are responding through measures such as the Cyber Resilience Act, which will introduce mandatory security requirements for connected products sold in the EU.

Long-term risks are also emerging from advances in quantum computing.

Experts warn that powerful future machines could eventually break widely used encryption systems that currently protect communications, financial data and government networks, prompting organisations to adopt quantum-resistant security methods.

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EU lawmakers call for stronger copyright safeguards in AI training

The European Parliament has adopted a report urging policymakers to establish a long-term framework protecting copyrighted works used in AI training.

These recommendations aim to ensure that creative industries retain transparency and fair treatment as generative AI technologies expand.

Among the central proposals is the creation of a European register managed by the European Union Intellectual Property Office. The database would list copyrighted works used to train AI systems and identify creators who have chosen to exclude their content from such use.

Lawmakers in the EU are also calling for greater transparency from AI developers, including disclosure of the websites from which training data has been collected. According to the report, failing to meet transparency requirements could raise questions about compliance with existing copyright rules.

The recommendations have received mixed reactions from industry stakeholders.

Organisations representing creators argue that stronger safeguards are necessary to ensure fair remuneration and legal clarity, while technology sector groups caution that additional requirements could create complexity for companies developing AI systems.

The report is not legally binding but signals the political direction of ongoing European discussions on copyright and AI governance.

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Writers publish protest book to challenge AI use of copyrighted works

Thousands of writers have joined a symbolic protest against AI companies by publishing a book that contains no traditional content.

The work, titled “Don’t Steal This Book,” lists only the names of roughly 10,000 contributors who oppose the use of their writing to train AI systems without their permission.

An initiative that was organised by composer and campaigner Ed Newton-Rex and distributed during the London Book Fair. Contributors include prominent authors such as Kazuo Ishiguro, Philippa Gregory and Richard Osman, along with thousands of other writers and creative professionals.

Campaigners argue that generative AI systems are trained on vast collections of copyrighted material gathered from the internet without authorisation or compensation.

According to organisers, such practices allow AI tools to compete with the creators whose works were used to develop them.

The protest arrives as the UK Government prepares an economic assessment of potential copyright reforms related to AI. Proposals under discussion include allowing AI developers to use copyrighted material unless rights holders explicitly opt out.

Many writers and artists oppose that approach and demand stronger copyright protections. In parallel, the publishing sector is preparing a licensing initiative through Publishers’ Licensing Services to provide AI developers with legal access to books while ensuring authors receive compensation.

The dispute reflects a growing global debate over how copyright law should apply to generative AI systems that rely on massive datasets to develop chatbots and other digital tools.

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Sustainable AI discussed by UNESCO and Saudi leaders under Vision 2030

Leaders from government, academia, and industry gathered to emphasise that sustainable AI must shape efficient, inclusive, and environmentally responsible systems. The discussion focused on embedding sustainability, ethics, and human-centred principles throughout the AI lifecycle by adopting a sustainable-by-design approach.

The workshop was built on Saudi Arabia’s expanding role in AI and digital transformation through the Saudi Data & AI Authority (SDAIA) and the National Strategy for Data and AI (NSDAI). The efforts are supported by significant investments in cloud infrastructure and data centres under the Kingdom’s Vision 2030 programme. Participants highlighted that sustainable AI must become a core principle in the development of emerging digital infrastructure and AI-powered services.

Abdulrahman Habib, Director of the International Centre for Artificial Intelligence Research and Ethics (ICAIRE), highlighted Saudi Arabia’s growing leadership in AI ethics and governance. With national AI Ethics Principles and a maturing regulatory landscape, the Kingdom is positioning itself as a global contributor to responsible AI dialogue, translating principles into operational governance systems rather than just policy statements.

Leona Verdadero of UNESCO highlighted two core concepts: Greening with AI, which uses AI to accelerate sustainability, and Greening of AI, which ensures systems are energy-efficient, ethical, and human-centred. She stressed that effective AI governance requires collaboration and industry leadership at every stage of development.

Per Ola Kristensson from the University of Cambridge urged action beyond rhetoric, stressing that true AI sustainability means developing technology to augment, not replace, human potential. Industry presentations reinforced that sustainable AI drives real-world progress. Companies like RECYCLEE optimise resource recovery, Remedium reduces environmental impacts in healthcare and infrastructure, and IDOM strengthens sustainability reporting through AI-enhanced design.

UNESCO supports Saudi Arabia’s drive for inclusive, ethical, and sustainable AI ecosystems, framing sustainable AI as critical in the global transition to green digital transformation.

Faisal Al Azib, Executive Director of the UN Global Compact Network Saudi Arabia, stated: ‘As the Kingdom advances its digital transformation under Vision 2030, we have a responsibility to ensure that innovation advances hand in hand with sustainability and human dignity.’

Al Azib concluded: ‘Sustainable AI is central to building resilient, future-ready businesses. Through partnerships with UNESCO and our local ecosystem, we aim to equip companies with the governance tools to embed responsible, energy-efficient, and human-centred AI into their core strategies.’

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EU explores AI image generation safeguards

The Council of the European Union is examining a compromise proposal that could introduce restrictions on certain AI systems capable of generating sensitive synthetic images.

The discussions form part of ongoing adjustments to the EU AI Act.

A proposed measure that would primarily address AI tools that generate illegal material, particularly content involving the exploitation of minors.

Policymakers are considering ways to prevent the development or deployment of systems that could produce such material while maintaining proportionate rules for legitimate AI applications.

Early indications suggest the proposal may not apply to images depicting people in standard clothing contexts, such as swimwear. The distinction reflects policymakers’ effort to define the scope of restrictions without imposing unnecessary limits on common image-generation uses.

The debate highlights broader regulatory challenges linked to generative AI technologies. European institutions are seeking to strengthen protections against harmful uses of AI while preserving space for innovation and lawful digital services.

Further negotiations among the EU institutions are expected as lawmakers continue refining how these provisions could fit within the broader European framework governing AI.

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Japan expands strategic investment in AI, quantum computing, and drones

Japan has identified dozens of advanced technologies as priority investment targets as part of an economic strategy led by Sanae Takaichi.

The plan aims to channel public and private capital into industries expected to drive long-term economic growth.

Government officials selected 61 technologies and products for support across 17 strategic sectors. The list includes emerging fields such as AI, quantum computing, regenerative medicine and marine drones.

Many of these technologies are still in early development, but are considered important for economic security and global competitiveness.

The strategy forms a central pillar of Takaichi’s broader economic agenda to strengthen Japan’s industrial base and encourage investment in high-growth sectors. Authorities plan to release spending estimates and implementation timelines by summer as part of a detailed investment roadmap.

Japan has also set ambitious market goals in several sectors. Officials aim to secure more than 30% of the global AI robotics market by 2040 while increasing annual sales of domestically produced semiconductors to ¥40 trillion.

Several Japanese technology companies could benefit from the policy direction. Firms such as Fanuc, Yaskawa Electric and Mitsubishi Electric are integrating AI into industrial robots, while Sony Group produces sensors used in robotic systems.

Chipmakers, including Rohm, Kioxia and Renesas Electronics, may also benefit from increased investment in semiconductor manufacturing and related supply chains.

Despite strong investor interest, analysts note uncertainty about how the programme will be financed, particularly as Japan faces rising spending pressures from social security, defence and public debt.

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