France appeals porn site ruling based on EU legal grounds

The French government is challenging a recent decision by the Administrative Court of Paris that temporarily halted the enforcement of mandatory age verification on pornographic websites based in the EU. The court found France’s current approach potentially inconsistent with the EU law—specifically the 2002 E-Commerce Directive—which upholds the ‘country-of-origin’ principle.

That rule limits an EU country’s authority to regulate online services hosted in another member state unless it follows a formal process involving both the host country and the European Commission. The dispute’s heart is whether France correctly followed the required legal steps.

While French authorities say they notified the host countries of porn companies like Hammy Media (Xhamster) and Aylo (owner of Pornhub and others) and waited the mandated three months, legal experts argue that notifying the Commission is also essential. So far, there is no confirmation that this additional step was taken, which may weaken France’s legal standing.

Digital Minister Clara Chappaz reaffirmed the government’s commitment to enforcing age checks, calling it a ‘priority’ in a public statement. The ministry insists its rules align with the EU’s Audiovisual Media Services Directive.

However, the court’s ruling highlights broader tensions between France’s national digital regulations and overarching the EU law. Similar legal challenges have already forced France to adjust parts of its digital, influencer, and cloud regulation frameworks in the past two years.

The appeal could have significant implications for age restrictions on adult content and how France asserts digital sovereignty within the EU. If the court upholds the suspension, other digital regulations based on national initiatives may also be vulnerable to legal scrutiny under the EU principles.

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

EU AI Act challenges 68% of European businesses, AWS report finds

As AI becomes integral to digital transformation, European businesses struggle to adapt to new regulations like the EU AI Act.

A report commissioned by AWS and Strand Partners revealed that 68% of surveyed companies find the EU AI Act difficult to interpret, with compliance absorbing around 40% of IT budgets.

Businesses unsure of regulatory obligations are expected to invest nearly 30% less in AI over the coming year, risking a slowdown in innovation across the continent.

The EU AI Act, effective since August 2024, introduces a phased risk-based framework to regulate AI in the EU. Some key provisions, including banned practices and AI literacy rules, are already enforceable.

Over the next year, further requirements will roll out, affecting AI system providers, users, distributors, and non-EU companies operating within the EU. The law prohibits exploitative AI applications and imposes strict rules on high-risk systems while promoting transparency in low-risk deployments.

AWS has reaffirmed its commitment to responsible AI, which is aligned with the EU AI Act. The company supports customers through initiatives like AI Service Cards, its Responsible AI Guide, and Bedrock Guardrails.

AWS was the first primary cloud provider to receive ISO/IEC 42001 certification for its AI offerings and continues to engage with the EU institutions to align on best practices. Amazon’s AI Ready Commitment also offers free education on responsible AI development.

Despite the regulatory complexity, AWS encourages its customers to assess how their AI usage fits within the EU AI Act and adopt safeguards accordingly.

As compliance remains a shared responsibility, AWS provides tools and guidance, but customers must ensure their applications meet the legal requirements. The company updates customers as enforcement advances and new guidance is issued.

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

TikTok ban delayed for the third time by Trump order

US President Donald Trump has announced a 90-day extension for TikTok’s Chinese parent company, ByteDance, to secure a US buyer, effectively postponing a nationwide ban of the popular video-sharing app. The move comes in the wake of a bipartisan law passed in 2024, requiring the platform to be sold to a non-Chinese entity due to national security concerns.

Trump is expected to formalise this decision with an executive order later this week, ensuring the platform remains available to its approximately 170 million American users. White House Press Secretary Karoline Leavitt emphasised that Trump is determined to keep TikTok operational, stating that the president ‘does not want TikTok to go dark.’

The latest extension follows a series of delays since Trump returned to office, including an initial 75-day grace period granted in January and an extension in April when no buyer had emerged. The situation remains unresolved despite optimism from Vice President JD Vance earlier this year that a deal would materialise in time.

President Trump has acknowledged that any sale would likely require Chinese government approval but expressed confidence in reaching a solution, citing a potentially cooperative stance from President Xi Jinping.

Interestingly, while Trump previously sought to ban TikTok during his first term, citing national security risks, he now appears to be more pragmatic. The president himself joined TikTok as a user just over a year ago, underscoring the app’s enduring popularity and the complex political and economic dynamics surrounding its future in the US.

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

OpenAI considers antitrust action against Microsoft over AI hosting control

OpenAI reportedly tries to reduce Microsoft’s exclusive control over hosting its AI models, signalling growing friction between the two companies.

According to the Wall Street Journal, OpenAI leadership has considered filing an antitrust complaint against Microsoft, alleging anti-competitive behaviour in their ongoing collaboration. The move could trigger federal regulatory scrutiny.

The tension comes amid ongoing talks over OpenAI’s corporate restructuring. A report by The Information suggests that OpenAI is negotiating to grant Microsoft a 33% stake in its reorganized for-profit unit. In exchange, Microsoft would give up rights to future profits.

OpenAI also wants to revise its existing contract with Microsoft, particularly clauses that grant exclusive Azure hosting rights. The company reportedly aims to exclude its planned $3 billion acquisition of AI startup Windsurf from the agreement, which otherwise gives Microsoft access to OpenAI’s intellectual property.

This developing rift could reshape one of the most influential alliances in AI. Microsoft has invested heavily in OpenAI since 2019 and integrates its models into Microsoft 365 Copilot and Azure services. However, both firms are diversifying.

OpenAI is turning to Google Cloud and Oracle for additional computing power, while Microsoft has begun integrating alternative AI models into its products.

Industry experts warn that regulatory scrutiny or contract changes could impact enterprise customers relying on tightly integrated AI solutions, particularly in sectors like healthcare and finance. Companies may face service disruptions, higher costs, or compatibility challenges if major players shift strategy or infrastructure.

Analysts suggest that the era of single-model reliance may be ending. As innovation from rivals like DeepSeek accelerates, enterprises and cloud providers are moving toward multi-model support, aiming for modular, scalable, and use-case-specific AI deployments.

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

Workplace deepfake abuse: What employers must know

Deepfake technology—AI-generated videos, images, and audio—has entered the workplace in alarming ways.

Once difficult to produce, deepfakes are now widely accessible and are being used to harass, impersonate, or intimidate employees. These synthetic media attacks can cause deep psychological harm, damage reputations, and expose employers to serious legal risks.

While US federal law hasn’t yet caught up, new legislation like the Take It Down Act and Florida’s Brooke’s Law require platforms to remove non-consensual deepfake content within 48 hours.

Meanwhile, employers could face claims under existing workplace laws if they fail to act on deepfake harassment. Inaction may lead to lawsuits for creating a hostile environment or for negligent oversight.

Most workplace policies still don’t mention synthetic media and something like this creates blind spots, especially during investigations, where fake images or audio could wrongly influence decisions.

Employers need to shift how they assess evidence and protect both accused and accuser fairly. It’s time to update handbooks, train staff, and build clear response plans that include digital impersonation and deepfake abuse.

By treating deepfakes as a modern form of harassment instead of just a tech issue, organisations can respond faster, protect staff, and maintain trust. Proactive training, updated policies, and legal awareness will be crucial to workplace safety in the age of AI.

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

EU strikes deal to streamline cross-border GDPR enforcement

The EU Council and European Parliament have reached a political agreement to strengthen cross-border enforcement of the General Data Protection Regulation (GDPR). The new regulation, once adopted, will simplify and speed up how national data protection authorities cooperate on cases involving data processing across EU borders.

That move seeks to protect citizens’ rights better and make enforcement more efficient. Key improvements include harmonising the criteria for assessing complaints, regardless of where in the EU they’re filed, and ensuring both complainants and companies under investigation are given the right to be heard throughout the process. The regulation introduces deadlines to avoid drawn-out investigations — 15 months for complex cases (with a possible 12-month extension) and 12 months for simpler ones.

The agreement also creates an ‘early resolution’ option to settle straightforward complaints without triggering lengthy cross-border procedures. It adds a simplified cooperation track for less contentious cases and encourages authorities to share key case information early to build consensus more quickly among EU partners.

The deal now awaits formal approval from both institutions. Once passed, the new rules will enter into force, marking a significant evolution in how the GDPR is enforced across Europe.

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

Cyberattack on Nova Scotia Power exposes sensitive data of 280,000 customers

Canada’s top cyber-defence official has spoken out following the ransomware attack that compromised the personal data of 280,000 Nova Scotia Power customers.

The breach, which occurred on 19 March but went undetected until 25 April, affected over half of the utility’s customer base. Stolen data included names, addresses, birthdates, driver’s licences, social insurance numbers, and banking details.

Rajiv Gupta, head of the Canadian Centre for Cyber Security, confirmed that Nova Scotia Power had contacted the agency following the incident.

While he refrained from discussing operational details or attributing blame, he highlighted the rising frequency of ransomware attacks against critical infrastructure across Canada.

He explained how criminal groups use double extortion tactics — stealing data and locking systems — to pressure organisations into paying ransoms, often without guaranteeing system restoration or data confidentiality.

Although the utility declined to pay the ransom, the fallout has led to a wave of scrutiny. Gupta warned that interconnectivity and integrating legacy systems with internet-facing platforms have increased vulnerability.

He urged utilities and other infrastructure operators to build defences based on worst-case scenarios and to adopt recommended cyber hygiene practices and the Centre’s ransomware playbook.

In response to the breach, the Nova Scotia Energy Board has approved a $1.8 million investment in cybersecurity upgrades.

The Canadian cyber agency, although lacking regulatory authority, continues to provide support and share lessons from such incidents with other organisations to raise national resilience.

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

Taiwan tightens rules on chip shipments to China

Taiwan has officially banned the export of chips and chiplets to China’s Huawei and SMIC, joining the US in tightening restrictions on advanced semiconductor transfers.

The decision follows reports that TSMC, the world’s largest contract chipmaker, was unknowingly misled into supplying chiplets used in Huawei’s Ascend 910B AI accelerator. The US Commerce Department had reportedly considered a fine of over $1 billion against TSMC for that incident.

Taiwan’s new rules aim to prevent further breaches by requiring export permits for any transactions with Huawei or SMIC.

The distinction between chips and chiplets is key to the case. Traditional chips are built as single-die monoliths using the same process node, while chiplets are modular and can combine various specialised components, such as CPU or AI cores.

Huawei allegedly used shell companies to acquire chiplets from TSMC, bypassing existing US restrictions. If TSMC had known the true customer, it likely would have withheld the order. Taiwan’s new export controls are designed to ensure stricter oversight of future transactions and prevent repeat deceptions.

The broader geopolitical stakes are clear. Taiwan views the transfer of advanced chips to China as a national security threat, given Beijing’s ambitions to reunify with Taiwan and the potential militarisation of high-end semiconductors.

With Huawei claiming its processors are nearly on par with Western chips—though analysts argue they lag two to three generations behind—the export ban could further isolate China’s chipmakers.

Speculation persists that Taiwan’s move was partly influenced by negotiations with the US to avoid the proposed fine on TSMC, bringing both countries into closer alignment on chip sanctions.

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

Denmark moves to replace Microsoft software as part of digital sovereignty strategy

Prior to the Danish government’s formal decision, the cities of Copenhagen and Aarhus had already announced plans to reduce reliance on Microsoft software and cloud services. The national government has now followed suit.

Caroline Stage, Denmark’s Minister of Digitalisation, confirmed that the government will begin transitioning from Microsoft Office to the open-source alternative, LibreOffice. The decision aligns with broader European Union efforts to enhance digital sovereignty—a concept referring to the ability of states to maintain control over their digital infrastructure, data, and technologies.

EU member states have increasingly prioritised digital sovereignty in response to a range of concerns, including security, economic resilience, regulatory control, and the geopolitical implications of dependency on non-European technology providers.

Among the considerations are questions about data governance, operational autonomy, and the risks associated with potential service disruptions in times of political tension. For example, reports following US sanctions against the International Criminal Court (ICC) suggest that Microsoft temporarily restricted access to email services for the ICC’s Chief Prosecutor, Karim Khan, highlighting the potential vulnerabilities linked to foreign service providers.

Denmark’s move is part of a wider trend within the EU aimed at diversifying digital service providers and strengthening domestic or European alternatives. LibreOffice is developed by The Document Foundation (TDF), an independent, non-profit organisation based in Germany.

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

UK National Cyber Security Centre calls for strategic cybersecurity policy agenda

The United Kingdom’s National Cyber Security Centre (NCSC), part of GCHQ, has called for the adoption of a long-term, strategic policy agenda to address increasing cybersecurity risks. That appeal follows prolonged delays in the introduction of updated cybersecurity legislation by the UK government.

In a blog post, co-authored by Ollie Whitehouse, NCSC’s Chief Technology Officer, and Paul W., the Principal Technical Director, the agency underscored the need for more political engagement in shaping the country’s cybersecurity landscape. Although the NCSC does not possess policymaking powers, its latest message highlights its growing concern over the UK’s limited progress in implementing comprehensive cybersecurity reforms.

Whitehouse has previously argued that the current technology market fails to incentivise the development and maintenance of secure digital products. He asserts that while the technical community knows how to build secure systems, commercial pressures and market conditions often favour speed, cost-cutting, and short-term gains over security. That, he notes, is a structural issue that cannot be resolved through voluntary best practices alone and likely requires legislative and regulatory measures.

The UK government has yet to introduce the long-anticipated Cyber Security and Resilience Bill to Parliament. Initially described by its predecessor as a step toward modernising the country’s cyber legislation, the bill remains unpublished. Another delayed effort is a consultation led by the Home Office on ransomware response policy, which was postponed due to the snap election and is still awaiting an official government response.

The agency’s call mirrors similar debates in the United States, where former Cybersecurity and Infrastructure Security Agency (CISA) Director Jen Easterly advocated for holding software vendors accountable for product security. The Biden administration’s national cybersecurity strategy introduced early steps toward vendor liability, a concept that has gained traction among experts like Whitehouse.

However, the current US administration under President Trump has since rolled back some of these requirements, most notably through a recent executive order eliminating obligations for government contractors to attest to their products’ security.

By contrast, the European Union has advanced several legislative initiatives aimed at strengthening digital security, including the Cyber Resilience Act. Yet, these efforts face challenges of their own, such as reconciling economic priorities with cybersecurity requirements and adapting EU-wide standards to national legal systems.

In its blog post, the NCSC reiterated that the financial and societal burden of cybersecurity failures is currently borne by consumers, governments, insurers, and other downstream actors. The agency argues that addressing these issues requires a reassessment of underlying market dynamics—particularly those that do not reward secure development practices or long-term resilience.

While the NCSC lacks the authority to enforce regulations, its increasingly direct communications reflect a broader shift within parts of the UK’s cybersecurity community toward advocating for more comprehensive policy intervention.

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