EU pushes for open-source commercialisation to reduce tech dependence

The European Commission is preparing a strategy to commercialise European open-source software in an effort to strengthen digital sovereignty and reduce dependence on foreign technology providers.

The plan follows a consultation highlighting that EU funding has delivered innovation, although commercial scale has often emerged outside Europe instead of within it.

Open-source software plays a strategic role by decentralising development and limiting reliance on dominant technology firms.

Commission officials argue that research funding alone cannot deliver competitive alternatives, particularly when public and private contracts continue to favour proprietary systems operated by non-European companies.

An upcoming strategy, due alongside the Cloud and AI Development Act in early 2026, that will prioritise community upscaling, industrial deployment and market integration.

Governance reforms and stronger supply chain security are expected to address vulnerabilities that can affect widely used open-source components.

Financial sustainability will also feature prominently, with public sector partnerships encouraged to support long-term viability.

Brussels hopes wider public adoption of open-source tools will replace expensive or data-extractive proprietary software, reinforcing Europe’s technological autonomy.

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New UK cyber strategy focuses on trust in online public services

The UK government has announced new measures to strengthen the security and resilience of online public services as more interactions with the state move online. Ministers say public confidence is essential as citizens increasingly rely on digital systems for everyday services.

Backed by more than £210 million, the UK Government Cyber Action Plan outlines how cyber defences and digital resilience will be improved across the public sector. A new Government Cyber Unit will coordinate risk identification, incident response, and action on complex threats spanning multiple departments.

The plan underpins wider efforts to digitise public services, including benefits applications, tax payments, and healthcare access. Officials argue that secure systems can reduce bureaucracy and improve efficiency, but only if users trust that their data is protected.

The announcement coincides with parliamentary debate on the Cyber Security and Resilience Bill, which sets clearer expectations for companies supplying services to the government. The legislation is intended to strengthen cyber resilience across critical supply chains.

Ministers also highlighted new steps to address software supply chain risks, including a Software Security Ambassador Scheme promoting basic security practices. The government says stronger cyber resilience is essential to protect public services and maintain public trust.

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Morgan Stanley files to launch Bitcoin and Solana ETFs as Wall Street embraces crypto

In the US, Morgan Stanley has moved to launch exchange-traded funds linked to Bitcoin and Solana, signalling that major banks are no longer prepared to watch the crypto market from the sidelines.

Filings submitted to the Securities and Exchange Commission show the bank intends to offer funds tied to the prices of both crypto assets, making it the first of the ten biggest US banks by assets to pursue crypto ETFs directly.

Interest from Wall Street has been strengthened by regulatory changes introduced under the Trump administration, which created clearer rules for stablecoins and crypto-related investment products.

BlackRock’s Bitcoin ETFs have already become a major source of revenue, encouraging banks to seek a more active role instead of limiting themselves to custody services.

The trend is expected to have implications for European investors. US-listed crypto ETFs cannot normally be sold to retail investors in the EU because they do not comply with UCITS requirements.

However, Morgan Stanley has been developing an EU-compliant ETF platform and is working with partners to align with both UCITS and the EU’s Markets in Crypto-Assets framework.

The shift suggests crypto has become too commercially significant for Wall Street institutions to ignore, with banks increasingly treating digital assets as part of mainstream financial services rather than a peripheral experiment.

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Chatbots under scrutiny in China over AI ‘boyfriend’ and ‘girlfriend’ services

China’s cyberspace regulator has proposed new limits on AI ‘boyfriend’ and ‘girlfriend’ chatbots, tightening oversight of emotionally interactive artificial intelligence services.

Draft rules released on 27 December would require platforms to intervene when users express suicidal or self-harm tendencies, while strengthening protections for minors and restricting harmful content.

The regulator defines the services as AI systems that simulate human personality traits and emotional interaction. The proposals are open for public consultation until 25 January.

The draft bans chatbots from encouraging suicide, engaging in emotional manipulation, or producing obscene, violent, or gambling-related content. Minors would need guardian consent to access AI companionship.

Platforms would also be required to disclose clearly that users are interacting with AI rather than humans. Legal experts in China warn that enforcement may be challenging, particularly in identifying suicidal intent through language cues alone.

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California launches DROP tool to erase data broker records

Residents in California now have a simpler way to force data brokers to delete their personal information.

The state has launched the Delete Requests and Opt-Out Platform, known as DROP, allowing residents to submit one verified deletion request that applies to every registered data broker instead of contacting each company individually.

A system that follows the Delete Act, passed in 2023, and is intended to create a single control point for consumer data removal.

Once a resident submits a request, the data brokers must begin processing it from August 2026 and will have 90 days to act. If data is not deleted, residents may need to provide extra identifying details.

First-party data collected directly by companies can still be retained, while data from public records, such as voter rolls, remains exempt. Highly sensitive data may fall under separate legal protections such as HIPAA.

The California Privacy Protection Agency argues that broader data deletion could reduce identity theft, AI-driven impersonation, fraud risk and unwanted marketing contact.

Penalties for non-compliance include daily fines for brokers who fail to register or ignore deletion orders. The state hopes the tool will make data rights meaningful instead of purely theoretical.

A launch that comes as regulators worldwide examine how personal data is used, traded and exploited.

California is positioning itself as a leader in consumer privacy enforcement, while questions continue about how effectively DROP will operate when the deadline arrives in 2026.

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Musk says users are liable for the illegal Grok content

Scrutiny has intensified around X after its Grok chatbot was found generating non-consensual explicit images when prompted by users.

Grok had been positioned as a creative AI assistant, yet regulators reacted swiftly once altered photos were linked to content involving minors. Governments and rights groups renewed pressure on platforms to prevent abusive use of generative AI.

India’s Ministry of Electronics and IT issued a notice to X demanding an Action Taken Report within 72 hours, citing failure to restrict unlawful content.

Authorities in France referred similar cases to prosecutors and urged enforcement under the EU’s Digital Services Act, signalling growing international resolve to control AI misuse.

Elon Musk responded by stating users, instead of Grok, would be legally responsible for illegal material generated through prompts. The company said offenders would face permanent bans and cooperation with law enforcement.

Critics argue that transferring liability to users does not remove the platform’s duty to embed stronger safeguards.

Independent reports suggest Grok has previously been involved in deepfake creation, creating a wider debate about accountability in the AI sector. The outcome could shape expectations worldwide regarding how platforms design and police powerful AI tools.

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Musk’s Grok under fire over ‘nudify’ image edits

Grok, the AI chatbot built into Elon Musk’s social platform X, has been used to produce sexualised ‘edited’ images of real people, including material that appeared to involve children. In a statement cited in the report, Grok attributed some of the outputs to gaps in its safeguards that allowed images showing ‘minors in minimal clothing,’ and said changes were being made to prevent repeat incidents.

One case described a Rio de Janeiro musician, Julie Yukari, who posted a New Year’s Eve photo on X and then noticed other users tagging Grok with requests to alter her image into a bikini-style version. She said she assumed the bot would refuse, but AI-generated, near-nude edits of her image later spread on the platform.

The report suggested that the misuse was widespread and rapidly evolving. In a brief midday snapshot of public prompts, it counted more than 100 attempts in 10 minutes to get Grok to swap people’s clothing for bikinis or more revealing outfits. In dozens of cases, the tool complied wholly or partly, including instances involving people who appeared to be minors.

The episode has also drawn attention from officials outside the US. French ministers said they referred the content to prosecutors and also flagged it to the country’s media regulator, asking for an assessment under the EU’s Digital Services Act. India’s IT ministry, meanwhile, wrote to X’s local operation saying the platform had failed to stop the tool being used to generate and circulate obscene, sexually explicit material.

Specialists quoted in the report argued the backlash was predictable: ‘nudification’ tools have existed for years, but placing a powerful image editor inside a significant social network drastically lowers the effort needed to misuse it and helps harmful content spread. They said civil-society and child-safety groups had warned xAI about likely abuse, while Musk reacted online with joking posts about bikini-style AI edits, and xAI previously brushed off related coverage with the phrase ‘Legacy Media Lies.’

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Google sues group behind mass scam texts

Google has filed a lawsuit against a Chinese-speaking cybercriminal network it says is behind a large share of scam text messages targeting people in the United States. The company says the legal action is aimed at disrupting the group’s online infrastructure rather than seeking damages.

According to the complaint, the group, known as Darcula, develops and sells phishing software that allows scammers to send mass text messages posing as trusted organisations such as postal services, government agencies, or online platforms. The tools are designed to be easy to use, enabling people with little technical expertise to run large-scale scams.

Google says the software has been used by hundreds of scam operators to direct victims to fake websites where credit card details are stolen. The company estimates that hundreds of thousands of payment cards have been compromised globally, with tens of thousands linked to victims in the United States.

The lawsuit asks a US court to grant Google the authority to seize and shut down websites connected to the operation, a tactic technology companies increasingly use when criminal networks operate in countries beyond the reach of US law enforcement. Investigations by journalists and cybersecurity researchers suggest the group operates largely in Chinese and has links to individuals based in China and other countries.

The case highlights the growing scale of text-based fraud in the US, where cybercrime losses continue to rise sharply. Google says it will continue combining legal action with technical measures to limit the reach of large scam networks and protect users from increasingly sophisticated phishing campaigns.

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New οffline AI note app promises privacy without subscriptions

Growing concern over data privacy and subscription fatigue has led an independent developer to create WitNote, an AI note-taking tool that runs entirely offline.

The software allows users to process notes locally on Windows and macOS rather than relying on cloud-based services where personal information may be exposed.

WitNote supports lightweight language models such as Qwen2.5-0.5B that can run with limited storage requirements. Users may also connect to external models through API keys if preferred.

Core functions include rewriting, summarising and extending content, while a WYSIWYG Markdown editor provides a familiar workflow without network delays, instead of relying on web-based interfaces.

Another key feature is direct integration with Obsidian Markdown files, allowing notes to be imported instantly and managed in one place.

The developer says the project remains a work in progress but commits to ongoing updates and user-driven improvements, even joining Apple’s developer programme personally to support smoother installation.

For users seeking AI assistance while protecting privacy and avoiding monthly fees, WitNote positions itself as an appealing offline alternative that keeps full control of data on the local machine.

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Belgium’s influencers seek clarity through a new certification scheme

The booming influencer economy of Belgium is colliding with an advertising rulebook that many creators say belongs to another era.

Different obligations across federal, regional and local authorities mean that wording acceptable in one region may trigger a reprimand in another. Some influencers have even faced large fines for administrative breaches such as failing to publish business details on their profiles.

In response, the Influencer Marketing Alliance in Belgium has launched a certification scheme designed to help creators navigate the legal maze instead of risking unintentional violations.

Influencers complete an online course on advertising and consumer law and must pass a final exam before being listed in a public registry monitored by the Jury for Ethical Practices.

Major brands, including L’Oréal and Coca-Cola, already prefer to collaborate with certified creators to ensure compliance and credibility.

Not everyone is convinced.

Some Belgian influencers argue that certification adds more bureaucracy at a time when they already struggle to understand overlapping rules. Others see value as a structured reminder that content creators remain legally responsible for commercial communication shared with followers.

The alliance is also pushing lawmakers to involve influencers more closely when drafting future rules, including taxation and safeguards for child creators.

Consumer groups such as BEUC support clearer definitions and obligations under the forthcoming EU Digital Fairness Act, arguing that influencer advertising should follow the same standards as other media instead of remaining in a grey zone.

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