Key Internet developments Archives | Digital Watch Observatory

EIB backs digital upgrade of Spain’s electricity grid with €870 million

The European Investment Bank (EIB) and Spain’s Ministry of Economy, Trade and Business have announced €870 million in financing to modernise, reinforce and digitalise Spain’s electricity distribution network, supporting the country’s energy transition and digital infrastructure.

The package combines a €520 million loan from Spain’s Regional Resilience Fund, backed by NextGenerationEU, with a €350 million EIB loan, €200 million of which has already been signed. The investment will support electricity infrastructure across Andalusia, Castilla-La Mancha, Castile and León, Galicia and Madrid.

The financing will support the construction and reinforcement of approximately 2,300 kilometres of electricity networks, improving grid resilience, strengthening security of supply and enabling greater integration of renewable energy.

Planned investments include grid automation, remote-control technologies, digitalisation, enhanced cybersecurity, underground power lines, reduced network losses and increased capacity to connect new users as electricity demand grows.

According to the EIB, the project will strengthen Naturgy’s distribution network of more than 116,000 kilometres of power lines while addressing the challenges of electrification, expanding renewable generation and more frequent extreme weather events.

More than 80% of the investment will be directed to EU cohesion regions, supporting both territorial development and the clean energy transition.

The operation supports Spain’s Recovery, Transformation and Resilience Plan, the EIB’s Climate Bank Roadmap and the REPowerEU initiative.

The EIB also noted that it provided a record €11.6 billion for electricity grids and energy storage projects globally in 2025, including €1.9 billion for electricity grid investments in Spain.

Why does it matter?

Electricity grids are increasingly becoming critical digital infrastructure as countries expand renewable energy, electrify transport and industry, and deploy more connected technologies. Modernising distribution networks with automation, digital controls and cybersecurity measures improves reliability while creating the foundation for smarter and more resilient energy systems.

The investment also reflects a broader European policy trend in which electricity infrastructure is viewed not only as an energy asset but as a strategic enabler of digital transformation, economic resilience and future AI-driven energy management.

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Spain promotes national cybersecurity support helpline

Spain’s National Cybersecurity Institute (INCIBE) has highlighted its free and confidential 017 helpline, which provides specialist advice on digital security issues for citizens, businesses, professionals and educational institutions.

The helpline provides guidance on scams, phishing, identity theft, compromised accounts, social media privacy, cyberbullying, device security and protecting personal information. It also advises on parental controls, online child safety, digital identity management and the safe use of apps and social media platforms.

INCIBE stressed that 017 is a cybersecurity advisory service rather than a reporting channel or technical support line. Specialists explain appropriate reporting procedures, direct users to the relevant authorities where necessary and assess each case individually.

The service is available daily from 8:00 to 23:00 via telephone, WhatsApp, Telegram, an online form and, by appointment, in person at INCIBE’s headquarters in León.

Why does it matter?

As cyber threats become more common, many users need trusted advice before or after an incident rather than only technical assistance or law enforcement support. Services such as INCIBE’s 017 helpline can help individuals and organisations respond more effectively while improving awareness of everyday cyber risks.

The initiative also reflects a broader shift towards strengthening national cyber resilience through public support services. By combining technical, legal and practical guidance in a single point of contact, governments can encourage earlier reporting, better cyber hygiene and more effective responses to digital security incidents.

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UNCTAD warns that strategic investment is becoming more concentrated

Investment in strategic sectors, including AI infrastructure, semiconductors, critical minerals and energy transition technologies, has surged over the past five years. According to UN Trade and Development’s (UNCTAD) World Investment Report 2026, these sectors accounted for 44% of global greenfield investment in 2025, up from 16% in 2020.

The report also highlights a growing concentration of investment among advanced economies. The three largest investor economies accounted for 72% of strategic sector project values in 2025, while the three biggest recipient economies attracted 56%. Low-income and lower-middle-income countries received just 10% of global greenfield investment in strategic sectors between 2020 and 2025, compared with more than 20% in other industries.

At the same time, manufacturing investment outside strategic sectors is declining. The value of announced greenfield manufacturing investment beyond these industries fell by 17% between 2021 and 2025 compared with the 2015–2019 period. The decline was particularly pronounced in developing and least-developed countries, where manufacturing has traditionally played a key role in building productive capacity and creating jobs.

The report also highlights widening differences in technological capabilities. The United States leads outward investment in AI and advanced technologies, while the EU has become the largest destination for those investments. China remains a major investor in critical minerals and downstream supply chains. Between 2016 and 2024, developed economies provided an estimated US$174 billion in industrial subsidies, compared with just US$19 billion in developing economies.

Why does it matter?

The report points to a structural shift in global investment that could deepen the divide between advanced and developing economies. Countries lacking the capital, infrastructure and skills needed to compete in strategic sectors risk missing out on the industries expected to drive future growth and productivity.

Rather than competing directly with the large subsidy programmes of major economies, UNCTAD argues that developing countries should identify targeted opportunities within strategic value chains, such as critical minerals processing, data infrastructure or regional manufacturing networks. Without stronger international cooperation and investment partnerships, the report warns that technological and economic disparities are likely to widen, with implications for global development and geopolitical stability.

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Portugal presents AMALIA as open European Portuguese language model

Portugal has presented AMALIA, its first open language model developed in European Portuguese, as part of a wider effort to strengthen national AI capacity and modernise the public sector.

Prime Minister Luís Montenegro said the project shows Portugal’s ability to develop advanced technology and contribute to Europe’s strategic autonomy.

AMALIA, short for Automatic Artificial Intelligence Multimodal Language Assistant, was developed by a consortium of Portuguese universities and research centres.

The project received an initial €5.5 million through Portugal’s Recovery and Resilience Facility, with a further €1.5 million planned for a new development phase in 2027.

Available as open code, AMALIA is intended to allow public administration bodies, companies, universities and research centres to develop their own applications.

The government says the model can support customer service, administrative process automation, knowledge management and decision-making across public services.

The AMALIA website says the project is designed to promote European Portuguese, preserve Portuguese cultural representation and support data sovereignty by enabling AI use in public administration without sensitive data leaving national territory.

The model is also expected to support use cases in education, culture and museums, media and science.

Why does it matter?

AMALIA addresses a gap in AI language infrastructure by focusing specifically on European Portuguese, a language variety often underrepresented or conflated with Brazilian Portuguese in multilingual AI systems. Open access also matters because it allows public bodies, universities and companies to adapt the model rather than relying only on closed commercial tools. The project fits a broader European debate on AI sovereignty, where governments are seeking domestic or regional capabilities in language models, data governance and public-sector AI infrastructure.

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South Korea plans $518 billion semiconductor hub for AI demand

Samsung Electronics and SK Hynix have announced plans to invest a combined 800 trillion won, about $518 billion, in a new semiconductor manufacturing hub in South Korea’s southwest.

The two companies, which together produce around two-thirds of the world’s memory chips, will each build two new fabrication plants outside their existing manufacturing base in Gyeonggi Province.

Samsung’s new facilities are planned for the city of Gwangju, with several possible sites under consideration, including land linked to a military air base planned for relocation.

The investment responds to rising demand for memory chips used in AI data centres, industrial robotics and autonomous vehicles. Existing semiconductor facilities in Gyeonggi Province are expected to face capacity pressure sooner than previously projected.

South Korea’s government is also linking the project to a broader strategy to build a nationwide semiconductor ecosystem. Existing hubs in the Southeast are expected to expand chip component and material production. At the same time, the central Chungcheong region will focus on chip packaging, and data centres will be developed across the country.

The project also supports the government’s goal of spreading major technology investment beyond the Seoul metropolitan area, where much of the country’s semiconductor industry has historically been concentrated.

Why does it matter?

The planned investment shows how AI demand is driving long-term semiconductor capacity expansion at a national scale. Memory chips are central to AI data centres and high-performance computing, and Samsung and SK Hynix remain two of the most important suppliers in the global market. South Korea’s decision to link new chip fabrication with regional development also shows how AI infrastructure is becoming part of broader industrial and economic planning, not only technology strategy.

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Microsoft and Europol disrupt Amadey and StealC malware infrastructure

Microsoft has disrupted more than 200 command-and-control servers linked to Amadey and StealC, two widely used cybercrime tools that support credential theft, fraud and ransomware attacks.

The company’s Digital Crimes Unit said the action targeted the shared infrastructure behind the two tools rather than treating them as separate threats. In the first two weeks of May, Amadey and StealC were linked to more than 140,000 infected computers worldwide.

Amadey is often used to gain access to devices, while StealC is used to steal passwords and sensitive information. Microsoft said the tools form part of a wider cybercrime supply chain in which specialised malware services help attackers turn initial access into fraud, ransomware, espionage or other operations.

Microsoft said investigators used AI, including Copilot, to analyse malware and identify connections between the two tools more quickly. The company said the analysis helped its legal team treat both malware families as part of a single conspiracy under the US Racketeer Influenced and Corrupt Organizations Act.

The action was carried out with Europol and industry partners, including ESET, BitSight, Lumen and Mitsui Bussan Secure Directions. Europol’s European Cybercrime Centre also investigated StealC as part of Operation Endgame, alongside European law enforcement partners and cybersecurity companies, including IBM X-Force and Proofpoint.

Microsoft said it has identified more than 18,000 victim computers since the start of the operation and is working with telecommunications providers to help protect affected users.

The company said findings from the case will feed into its Statutory Automated Disruption programme, which accelerates the removal of malicious domains and infrastructure.

Why does it matter?

The operation reflects a shift in cybercrime disruption strategy. Instead of targeting one malware family or service at a time, Microsoft and its partners focused on the shared infrastructure that allows criminal tools to work together. That matters because modern cybercrime increasingly operates as a modular supply chain: one tool gains access, another steals credentials, and other actors monetise that access through fraud, ransomware or espionage. The use of AI to accelerate malware analysis also points to how defenders are trying to match the speed and scale of cybercriminal operations.

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EU drops browser-based cookie consent proposal from Digital Omnibus

The European Commission had proposed replacing cookie banners with an automated browser-based privacy signal as part of its ‘Digital Omnibus’ package, a move that would have allowed devices to communicate users’ tracking preferences directly to websites. The plan, outlined in Article 88b of the GDPR, was intended to cut red tape and reduce the burden on consumers navigating consent requests across the web.

According to digital rights organisation noyb, cookie banners were not created by data protection law but emerged as a mechanism for the online advertising industry to obtain users’ consent for data sharing with third parties. Studies suggest only 3 to 10 per cent of users actually wish to be tracked, yet so-called dark patterns, such as hidden ‘no’ buttons and pre-ticked boxes, allow the industry to achieve consent rates of up to 90 per cent. Across more than 450 million EU citizens, this results in billions of unnecessary clicks each year.

According to noyb, a lobbying document submitted by Google argued that removing cookie banners would effectively halt all online advertising, citing figures that the European Commission has since described as highly exaggerated. The Commission had made clear that consent would still be possible on a per-website and per-purpose basis, meaning users could grant access to specific outlets while withholding it from others. Google’s paper also claimed that media outlets would be harmed, despite the fact that they are explicitly exempt from the proposed provision.

According to noyb, the lobbying campaign appears to have influenced the legislative process. In the Council’s position paper of 18 June 2026, Article 88b was removed entirely from the Digital Omnibus. Noyb added that Germany, France, and Poland were among the member states supporting the article’s removal following lobbying by the online advertising industry.

The outcome is particularly striking given that many of the same member states have long called on the EU to simplify regulation and cut red tape. noyb, the European digital rights organisation, has described the result as a victory for lobbying over public interest, noting that the majority of EU citizens have consistently expressed frustration with cookie banners.

The European Parliament has not yet taken a position on Article 88b, and negotiations between the Parliament and the Council are ongoing. Noyb has urged the European Parliament to support reinstating Article 88b during the next stage of negotiations.

Why does it matter?

The debate highlights the growing tension between digital simplification efforts, privacy protection and the economic interests of the online advertising ecosystem. Browser-based privacy signals have long been discussed as a way to reduce repetitive consent requests while preserving users’ ability to decide when and how their personal data may be used.

The proposal’s removal also illustrates the influence that industry stakeholders can have during the EU legislative process. Whether Article 88b is reinstated during negotiations with the European Parliament could shape the future of online consent management in Europe, affecting digital advertising, user experience and the practical implementation of data protection rules.

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Google highlights rising online scam threats

Google has warned that online scams remain a major global challenge, citing estimates that fraud losses could reach nearly $580 billion in 2025.

In its latest fraud and scams advisory, the company said phishing attacks are becoming more sophisticated, with criminals using adversary-in-the-middle techniques and QR code phishing, also known as quishing, to steal credentials and bypass security measures.

The advisory also highlighted risks linked to cryptocurrency investment scams, malicious finance applications and police impersonation schemes. According to Google, scammers are using AI, social engineering and trusted digital services to deceive users, obtain money and collect sensitive information.

Google said its Trust & Safety teams are using AI tools, predictive analytics and policy enforcement to detect and disrupt fraudulent activity across its services. The company also pointed to measures such as stronger protections for session cookies, enforcement against deceptive crypto ads, monitoring of post-installation app behaviour and developer identity verification for apps installed on certified Android devices.

The company urged users to be cautious of unsolicited communications, unrealistic investment promises, unexpected QR codes and requests for personal or financial information.

Why does it matter?

The advisory shows how online fraud is becoming a cross-platform governance problem rather than a narrow cybersecurity issue. Scams now rely on trusted cloud services, mobile apps, messaging platforms, crypto infrastructure and impersonation of public authorities. That creates pressure on major technology companies to strengthen detection, app accountability and policy enforcement, while raising broader questions about consumer protection, platform responsibility and digital trust.

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Greece marks six years of gov.gr and unveils public service CRM

The Greek government has marked the sixth anniversary of gov.gr by presenting new figures on the platform’s use and outlining the next phase of public sector digitalisation.

At an event organised by the Ministry of Digital Governance and Artificial Intelligence, officials highlighted the expansion of Greece’s digital public services. They presented a new unified customer relationship management system for citizens and businesses.

According to the ministry, gov.gr now offers more than 2,257 digital services and has been used by over 9 million citizens. More than 431 million documents and certificates have been issued through the platform since its launch. At the same time, the digitisation and simplification of 20 selected procedures is estimated to generate annual savings of €312 million.

The new CRM infrastructure is intended to consolidate interactions between citizens, businesses and public services into a single environment. Requests and cases submitted through gov.gr, Citizens’ Service Centres and call centres will be tracked in one place, allowing users to follow their status and receive updates on the service handling the case and its expected completion.

The CRM project is being implemented under Greece’s National Recovery and Resilience Plan, ‘Greece 2.0’, with financing from the EU’s NextGenerationEU programme. Officials said the system is intended to reduce bureaucracy, improve transparency and make public administration more consistent across different service channels.

Why does it matter?

The move points to a shift in digital government from putting individual services online towards building an integrated public service infrastructure. If implemented effectively, a unified CRM system could make interactions with the state more traceable and coordinated, while also raising important questions about interoperability, data governance, service accountability and citizens’ access to public administration across digital and non-digital channels.

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French CNIL hosts global privacy talks in Paris

The French Commission Nationale de l’Informatique et des Libertés will host the G7 roundtable of data protection and privacy authorities in June 2026. The meeting aims to strengthen international cooperation amid rapid digital and AI developments.

The roundtable, created in 2021, brings together data protection authorities from G7 countries and the EU. It focuses on sharing legal and technological developments and encouraging coordinated approaches to common challenges.

Key areas of work for 2026 include emerging technologies, enforcement cooperation and the free flow of data. The discussions are expected to address growing concerns about data protection amid expanding AI use.

The CNIL stated that the French presidency will prioritise dialogue and practical cooperation, aiming to support global governance that respects fundamental rights, and that the event will take place in Paris.

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