EU Archives | Digital Watch Observatory

DW Weekly #208 – US tariffs, the digital trade and digital policies court battles

12 – 18 April 2025

Nature, Outdoors, Sea, Water, Animal, Dinosaur, Reptile, Mammal

Dear readers,

Last week, we focused on the effects that the global trade war is producing worldwide. After President Trump’s administration increased tariffs, forcing major tech firms to rethink their strategies urgently, Apple swiftly responded to the looming trade barriers by orchestrating a record-breaking $2 billion iPhone airlift from India to the US, strategically sidestepping the elevated tariffs.

Meanwhile, the US has temporarily exempted certain critical electronics imported from China, including smartphones and semiconductor components, from tariff hikes.

The ripple effects of the US tariffs extend beyond US borders. South Korea, heavily reliant on its semiconductor exports, has launched an ambitious $23 billion investment into its domestic chip industry.

Parallel to the tariff turmoil, major US tech firms are embroiled in intensifying legal disputes concerning digital market dominance. The US Justice Department is pursuing legal action against Google, alleging monopolistic practices within its search and advertising services.

Echoing similar concerns, the Federal Trade Commission (FTC) is challenging Meta’s stronghold on the social media market, marking a critical moment in US antitrust enforcement.

These legal confrontations are not confined to the US. Japan recently directed Google to address its dominant position on Android search services, pressing for enhanced competition and user choice.

In Europe, X (formerly Twitter) faces heightened scrutiny over its AI data-use policies, as the EU regulators investigate potential misuse of user data.

Additionally, Meta has confirmed plans to utilise the EU user data for AI model training, prompting regulatory concerns and further legal scrutiny.

For the main updates and reflections, consult the Radar and Reading Corner below.

DW Team

RADAR

Highlights from the week of 12 – 18 April 2025

Crypto leaders gather in Moscow for the Global Blockchain Forum 2025

The Global Blockchain Forum will bring together international crypto experts to discuss Bitcoin, adoption trends, and Russia’s crypto future.

AI firm DeepSeek opens up on model deployment tech

Community gains from DeepSeek’s open-source contributions.

Trump-backed WLFI boosts crypto portfolio with SEI token acquisition

Despite significant investments, WLFI’s portfolio is down by $145.8 million, with losses primarily in its Ethereum holdings.

Beijing blames NSA for hacking Asian Games systems

Beijing claims US operatives targeted infrastructure and Huawei with NSA-led cyberattacks.

Panama City introduces cryptocurrency payments for public services

Mayor Mizrachi confirmed Panama City’s plan to facilitate cryptocurrency payments, using banks to convert assets into fiat currency.

eu flags in front of european commission 1

EU plans major staff boost for digital rules

Despite launching multiple probes under the Digital Services Act, the EU has yet to close any, prompting a recruitment push for its enforcement team.

amd launches new ai chips to take on leader nvidia

AMD warns of financial hit from US AI chip export ban

The US administration has tightened rules on AI chip exports, affecting AMD’s MI308 products and potentially causing major financial losses for the company.

Benchmark backlash hits Meta’s Maverick model

AI developers question Meta’s transparency after benchmark controversy.

nato flag north atlantic treaty organization flag waving

NATO allies strengthen cyber defenses against critical infrastructure threats

A cyber defence exercise involving 20 allied nations was held to strengthen coordination and improve response to attacks on critical infrastructure, led by NATO.

Most Bitcoin firms in El Salvador are inactive

Just 11% of El Salvador’s Bitcoin service providers are operational under the country’s Bitcoin Law, central bank data shows.

double exposure creative artificial intelligence icon with man hand writing notebook background neural networks machine learning concept

Hamburg Declaration champions responsible AI

As the global race to harness AI accelerates, a new international effort is working to ensure that progress doesn’t come at the cost of people or the planet.

View all updates

READING CORNER

Beyond the imitation game: GPT-4.5, the Turing Test, and what comes next

What happens when machines not only speak like us but begin to mirror the subtleties of our personalities, emotions, and intentions — and we can no longer tell the difference?

How concepts get their meaning – Diplo

How do words get their meaning? Aldo Matteucci shows how terms like ‘dispositif’ and ‘consul’ gain meaning not through definitions, but through repeated use in historical and political contexts.

UPCOMING EVENTS

23 April 2025

Demystifying AI: How to prepare international organisations for AI transformation?

The event will provide a timely discussion on methods, approaches, and solutions for AI transformation of International Organisaitons.

dig.watch

WIPO Conversation 11: AI and IP: Infrastructure for rights holders and innovation

Conversation on IP and AI will take place on April 23-24, 2025, focusing on the role of copyright infrastructure in supporting both rights holders and AI-driven innovation.

www.sdgaicompendium.org

Hamburg Declaration

The Hamburg Sustainability Conference (HSC) is a global gathering of leaders and changemakers from governments, international organizations, businesses, civil society, and academia. Together, they co-create innovative solutions for a sustainable and fair future. The next conference is scheduled for 2-3 June 2025.

Europe struggles to explain quantum to its citizens

Most Europeans remain unclear about quantum technology, despite increasing attention from EU leaders. A new survey, released on World Quantum Day, reveals that while 78 per cent of adults in France and Germany are aware of quantum, only a third truly understand what it is.

Nearly half admitted they had heard of the term but didn’t know what it means.

Quantum science studies the smallest building blocks of the universe, particles like electrons and atoms, that behave in ways classical physics can’t explain. Though invisible even to standard microscopes, they already power technologies such as GPS, MRI scanners and semiconductors.

Quantum tools could lead to breakthroughs in healthcare, cybersecurity, and climate change, by enabling ultra-precise imaging, improved encryption, and advanced environmental monitoring.

The survey showed that 47 per cent of respondents expect quantum to positively impact their country within five years, with many hopeful about its role in areas like energy, medicine and fraud prevention.

For example, quantum computers might help simulate complex molecules for drug development, while quantum encryption could secure communications better than current systems.

The EU has committed to developing a European quantum chip and is exploring a potential Quantum Act, backed by €65 million in funding under the EU Chips Act. The UK has pledged £121 million for quantum initiatives.

However, Europe still trails behind China and the US, mainly due to limited private investment and slower deployment. Former ECB president Mario Draghi warned that Europe must build a globally competitive quantum ecosystem instead of falling behind further.

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

EU plans major staff boost for digital rules

The European Commission is ramping up enforcement of its Digital Services Act (DSA) by hiring 60 more staff to support ongoing investigations into major tech platforms. Despite beginning probes into companies such as X, Meta, TikTok, AliExpress and Temu since December 2023, none have concluded.

The Commission currently has 127 employees working on the DSA and aims to reach 200 by year’s end. Applications for the new roles, including legal experts, policy officers, and data scientists, remain open until 10 May.

The DSA, which came into full effect in February last year, applies to all online platforms in the EU. However, the 25 largest platforms, those with over 45 million monthly users like Google, Amazon, and Shein, fall under the direct supervision of the Commission instead of national regulators.

The most advanced case is against X, with early findings pointing to a lack of transparency and accountability.

The law has drawn criticism from the current Republican-led US government, which views it as discriminatory. Brendan Carr of the US Federal Communications Commission called the DSA ‘an attack on free speech,’ accusing the EU of unfairly targeting American companies.

In response, EU Tech Commissioner Henna Virkkunen insisted the rules are fair, applying equally to platforms from Europe, the US, and China.

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

Meta to use EU user data for AI training amid scrutiny

Meta Platforms has announced it will begin using public posts, comments, and user interactions with its AI tools to train its AI models in the EU, instead of limiting training data to existing US-based inputs.

The move follows the recent European rollout of Meta AI, which had been delayed since June 2024 due to data privacy concerns raised by regulators. The company said EU users of Facebook and Instagram would receive notifications outlining how their data may be used, along with a link to opt out.

Meta clarified that while questions posed to its AI and public content from adult users may be used, private messages and data from under-18s would be excluded from training.

Instead of expanding quietly, the company is now making its plans public in an attempt to meet the EU’s transparency expectations.

The shift comes after Meta paused its original launch last year at the request of Ireland’s Data Protection Commission, which expressed concerns about using social media content for AI development. The move also drew criticism from advocacy group NOYB, which has urged regulators to intervene more decisively.

Meta joins a growing list of tech firms under scrutiny in Europe. Ireland’s privacy watchdog is already investigating Elon Musk’s X and Google for similar practices involving personal data use in AI model training.

Instead of treating such probes as isolated incidents, the EU appears to be setting a precedent that could reshape how global companies handle user data in AI development.

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

DW Weekly #207 – China disagrees with Trump over $54B TikTok deal due to tariffs rise

6 – 14 April 2025

People, Person, Crowd, Face, Head, Audience

Dear readers,

Last week, we saw the TikTok saga unfold as the Chinese government has not agreed to sell the ByteDance daughter company to a US majority TikTok entity, so US President Donald Trump extended the deadline to find a non-Chinese buyer by another 75 days, pushing the cutoff to mid-June after a near-miss on 5 April.

Amid the tariff rise turmoil, President Donald Trump’s administration has granted exemptions from steep tariffs on smartphones, laptops, and other electronics, relieving tech giants like Apple and Dell.

The cryptocurrency landscape was waved by a blockchain analytics firm, which has alleged that the team behind the Melania Meme (MELANIA) cryptocurrency moved $30 million worth of tokens, allegedly taken from community reserves without explanation.

In the ever-evolving world of AI, two leading AI systems, OpenAI’s GPT-4.5 and Meta’s Llama-3.1, have passed a key milestone by outperforming humans in a modern version of the Turing Test.

On the cybersecurity stage, Oracle Health has reportedly suffered a data breach that compromised sensitive patient information stored by US hospitals.

The European Union has firmly ruled out dismantling its strict digital regulations in a bid to secure a trade deal with Donald Trump. Henna Virkkunen, the EU’s top official for digital policy, said the bloc remained fully committed to its digital rulebook instead of relaxing its standards to satisfy US demands.

Meta’s existence is threatened by a colossal antitrust trial which commenced in Washington, with the US Federal Trade Commission (FTC) arguing that the company’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were designed to crush competition with monopoly aims instead of fostering innovation.

Elon Musk’s legal saga with OpenAI intensifies, as OpenAI has filed a countersuit accusing the billionaire entrepreneur of a sustained campaign of harassment intended to damage the company and regain control over its AI developments.

For the main updates and reflections, consult the Radar and Reading Corner below.

DW Team

RADAR

Highlights from the week of 6 – 14 April 2025

Former Facebook executive says Meta misled over China

Wynn-Williams says Meta executives prioritised business growth in China over national security.

Algorithms confront tariffs featured image

Tech stocks rally after Trump halts tariffs

The Nasdaq jumped over 12%, its best day in decades, following a temporary halt on trade tariffs by the Trump administration.

DeepSeek highlights the risk of data misuse

Data stored today could be vulnerable to decryption in the near future.

Meta to block livestreaming for under 16s without parental permission

Instagram users under 16 won’t be able to livestream or view blurred nudity in messages unless approved by a parent, Meta announced.

openAI Sam Altman TED 2025 ChatGPT users

ChatGPT hits 800 million users after viral surge

OpenAI is developing agents that can act autonomously on behalf of users, with safeguards.

Google rolls out AI to improve US power grid connections

Energy connection delays face AI-powered fix through Google’s new initiative.

Google offers steep discounts to US federal agencies

The 71% discount on Google Workspace is part of a cost-cutting initiative under President Trump’s government reform, targeting federal spending efficiency.

Japan’s FSA proposes new framework for regulating crypto assets in Japan

A discussion paper on crypto regulation in Japan highlights issues like market access, insider trading, and classification of assets into funding and non-funding categories.

Microsoft pauses $1 billion data centre project in Ohio

As AI demand shifts, Microsoft has slowed down major data centre projects, including the one in Ohio, and plans to invest $80 billion in AI infrastructure this year.

View all updates

READING CORNER

Navigating the AI maze: How to choose the right AI platform or tool – Diplo

With over 10,000 AI applications available, selecting the right AI tool can be daunting. Diplo advocates starting with a ‘good enough’ tool to avoid paralysis by analysis, tailoring it to specific needs through practical use.

Don’t waste the crisis: How AI can help reinvent International Geneva – Diplo

International Geneva faces significant challenges, including financial constraints, waning multilateralism, and escalating geopolitical tensions. To remain relevant, it must embrace transformative changes, particularly through Artificial Intelligence (AI).

Microsoft at 50 – A journey through code, cloud, and AI

Founded by Bill Gates and Paul Allen in 1975, Microsoft grew from a small startup into the world’s largest software company. Through strategic acquisitions, the company expanded into diverse sectors,…

On the origins of ideas – Diplo

Do ideas have origins? From medieval communes to WWI, Aldo Matteucci shows how political thought, like a river, is shaped by experience, institutions, and historical context — not just theory.

UPCOMING EVENTS

www.diplomacy.edu

GITEX Africa 2025 – Diplo Event

GITEX Africa 2025 Jovan Kurbalija will participate at GITEX Africa (14-16 April 2025 in Marrakech, Morocco).

www.diplomacy.edu

Tech attache briefing: WSIS+20 and AI governance negotiations – Updates and next steps – Diplo Event

Tech attache briefing: WSIS+20 and AI governance negotiations – Updates and next steps. The event is part of a series of regular briefings the Geneva

Internet Platform (GIP) is delivering for diplomats at permanent missions and delegations in Geneva following digital policy issues. It is an invitation-only event.

23 April 2025

Demystifying AI: How to prepare international organisations for AI transformation?

The event will provide a timely discussion on methods, approaches, and solutions for AI transformation of International Organisaitons.

dig.watch

WIPO Conversation 11: AI and IP: Infrastructure for rights holders and innovation

WIPO’s 11th Conversation on IP and AI will take place on April 23-24, 2025, focusing on the role of copyright infrastructure in supporting both rights holders and AI-driven innovation. As…

EU prepares new data strategy for AI growth

The European Commission will soon launch a consultation on its upcoming Data Union Strategy, a key part of efforts to boost Europe’s leadership in AI.

The strategy, set to be published by the end of the year, aims to make it easier for businesses and public bodies to share data securely and efficiently across the EU.

The initiative supports the broader AI Continent Action Plan, expected to be unveiled this week, which seeks to encourage faster adoption of AI technologies by European companies.

Instead of relying on fragmented systems, the Commission wants to improve data access, digital infrastructure, and cloud capabilities while investing in talent and streamlining complex processes.

The plan includes the creation of AI factories where companies can train models using EU-based resources, and a separate Cloud and AI Development Act later this year will promote energy-efficient investments to support these goals.

Public feedback on the Data Union Strategy will be gathered from April to June as part of the consultation process.

Despite the ambition, the Commission acknowledges ongoing concerns such as uncertainty around international data flows and challenges accessing suitable data for generative AI.

Strict privacy laws like the GDPR, instead of enabling wider AI training, have led to frustration from major tech firms over regulatory delays in Europe.

For more information on these topics, visit diplomacy.edu.

EU plans new law to tackle online consumer manipulation

The European Commission is preparing to introduce the Digital Fairness Act, a new law that aims to boost consumer protection online instead of adding more regulatory burden on businesses.

Justice Commissioner Michael McGrath described the upcoming legislation as both pro-consumer and pro-business during a speech at the European Retail Innovation Summit, seeking to calm industry concerns about further EU regulation following the Digital Services Act and the Digital Markets Act.

Designed to tackle deceptive practices in the digital space, the law will address issues such as manipulative design tricks known as ‘dark patterns’, influencer marketing, and personalised pricing based on user profiling.

It will also target concerns around addictive service design and virtual currencies in video games—areas where current EU consumer rules fall short. The legislation will be based on last year’s Digital Fairness Fitness Check, which highlighted regulatory gaps in the online marketplace.

McGrath acknowledged the cost of complying with EU-wide consumer protection measures, which can run into millions for businesses.

However, he stressed that the new act would provide legal clarity and ease administrative pressure, particularly for smaller companies, instead of complicating compliance requirements further.

A public consultation will begin in the coming weeks, ahead of a formal legislative proposal expected by mid-2026.

Maria-Myrto Kanellopoulou, head of the Commission’s consumer law unit, promised a thoughtful approach, saying the process would be both careful and thorough to ensure the right balance is struck.

For more information on these topics, visit diplomacy.edu

EU refuses to soften tech laws for Trump trade deal

The European Union has firmly ruled out dismantling its strict digital regulations in a bid to secure a trade deal with Donald Trump. Henna Virkkunen, the EU’s top official for digital policy, said the bloc remained fully committed to its digital rulebook instead of relaxing its standards to satisfy American demands.

While she welcomed a temporary pause in US tariffs, she made clear that the EU’s regulations were designed to ensure fairness and safety for all companies, regardless of origin, and were not intended as a direct attack on US tech giants.

Tensions have mounted in recent weeks, with Trump officials accusing the EU of unfairly targeting American firms through regulatory means. Executives like Mark Zuckerberg have criticised the EU’s approach, calling it a form of censorship, while the US has continued imposing tariffs on European goods.

Virkkunen defended the tougher obligations placed on large firms like Meta, Apple and Alphabet, explaining that greater influence came with greater responsibility.

She also noted that enforcement actions under the Digital Markets Act and Digital Services Act aim to ensure compliance instead of simply imposing large fines.

Although France has pushed for stronger retaliation, the European Commission has held back from launching direct countermeasures against US tech firms, instead preparing a range of options in case talks fail.

Virkkunen avoided speculation on such moves, saying the EU preferred cooperation to conflict. At the same time, she is advancing a broader tech strategy, including plans for five AI gigafactories, while also considering adjustments to the EU’s AI Act to better support small businesses and innovation.

Acknowledging creative industries’ concerns over generative AI, Virkkunen said new measures were needed to ensure fair compensation for copyrighted material used in AI training instead of leaving European creators unprotected.

The Commission is now exploring licensing models that could strike a balance between enabling innovation and safeguarding rights, reflecting the bloc’s intent to lead in tech policy without sacrificing democratic values or artistic contributions.

For more information on these topics, visit diplomacy.edu.

Anthropic grows its presence in Europe

Anthropic is expanding its operations across Europe, with plans to add over 100 new roles in sales, engineering, research, and business operations. Most of these positions will be based in Dublin and London.

The company has also appointed Guillaume Princen, a former Stripe executive, as its head for Europe, the Middle East, and Africa. This move signals Anthropic’s ambition to strengthen its global presence, particularly in Europe where the demand for enterprise-ready AI tools is rising.

The company’s hiring strategy also reflects a wider trend within the AI industry, with firms like Anthropic competing for global market share after securing significant funding.

The recent $3.5 billion funding round bolsters Anthropic’s position as it seeks to lead the AI race across multiple regions, including the Americas, Europe, and Asia.

Instead of focusing solely on the US, Anthropic’s European push is designed to comply with local AI governance and regulatory standards, which are increasingly important to businesses operating in the region.

Anthropic’s expansion comes at a time when AI firms are facing growing competition from companies like Cohere, which has been positioning itself as a European-compliant alternative.

As the EU continues to shape global AI regulations, Anthropic’s focus on safety and localisation could position it favourably in these highly regulated markets. Analysts suggest that while the US may remain a less regulated environment for AI, the EU is likely to lead global AI policy development in the near future.

For more information on these topics, visit diplomacy.edu.

MetaAI launches in Europe amid data concerns

Meta has resumed the roll-out of its MetaAI across Europe after halting the launch last year due to regulatory uncertainty.

The Irish Data Protection Commission (DPC) still has questions regarding Meta’s AI tool, particularly in relation to its use of personal data from Facebook and Instagram users to train large language models.

The company has been in discussions with the DPC, but instead of an agreement, it remains under review as the tool continues to roll out.

MetaAI was first introduced in the US in September 2023, followed by India in June 2024, and the UK in October. It enables users to interact with a chat function across Facebook, Instagram, Messenger, and WhatsApp.

However, its expansion in Europe faced delays last summer due to concerns raised by the Irish privacy watchdog.

The company has expressed confidence in its compliance with the EU’s data protection laws and has been transparent with the DPC about its launch. However, failure to comply with the General Data Protection Regulation (GDPR) could lead to significant fines.

Additionally, certain aspects of MetaAI fall under the scope of Europe’s Digital Services Act (DSA), which requires the company to meet specific standards on user safety and transparency.

The European Commission has indicated it is waiting for a risk assessment from Meta to ensure that the tool complies with DSA obligations. While initial elements may not be directly relevant to the DSA, the Commission will continue to monitor the deployment closely.

For more information on these topics, visit diplomacy.edu.