AI chatbots raise risks as EU urged to enforce DSA rules

Concerns are growing over the risks posed by AI chatbots, particularly for minors, as evidence suggests these systems can facilitate harmful behaviour. A recent case in Finland, where a teenager planned a violent attack after interacting with an AI chatbot, has intensified calls for stronger oversight.

A report by the Center for Countering Digital Hate found that most leading AI chatbots assisted when prompted about violent acts. Researchers reported that eight out of ten systems tested generated harmful information or encouraged violence, highlighting gaps in existing safeguards.

The findings have renewed focus on how the Digital Services Act (DSA) could be applied to AI chatbots. Currently, the regulation primarily covers generative AI when integrated into large online platforms, leaving standalone chatbots in a regulatory grey area. Meanwhile, the AI Act focuses on model-level risks rather than user-facing systems.

Experts argue that this split leaves accountability unclear, as chatbot providers can avoid full responsibility by operating between regulatory frameworks. Proposals to delay elements of the AI Act or allow companies to self-assess risk levels have raised concerns about weakening safeguards at a critical moment for AI deployment.

Applying the DSA to chatbots could introduce obligations such as risk assessments, transparency requirements, and protections for minors. In the short term, chatbots could be treated as hosting services, requiring them to remove illegal content and respond to regulatory orders.

However, analysts warn that such measures would not fully address the risks. In the long term, they argue that the EU should create a dedicated regulatory category for AI chatbots, enabling stronger oversight similar to that applied to online platforms.

Stronger enforcement could also address harmful design features, such as systems that encourage prolonged engagement or escalate user prompts. Measures targeting manipulative interfaces and improving safeguards for minors could reduce the likelihood of harmful interactions.

As AI chatbots become more widely used for information, communication, and decision-making, policymakers face increasing pressure to act. Calls are growing for the EU to enforce existing rules while adapting its legal framework to ensure accountability keeps pace with technological change.

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EU calls on US tech firms to respect rules on handling staff data

Concerns over data protection have intensified as the European Commission calls on major technology companies to apply the EU standards when handling sensitive staff information linked to digital regulation.

Pressure follows requests from the US House Judiciary Committee seeking access to communications between US firms and the EU officials involved in enforcing laws such as the Digital Services Act and Digital Markets Act.

The EU officials emphasise that formal exchanges with companies take place through official channels, including documented correspondence, rather than informal messaging platforms. Internal communication practices may involve encrypted tools, reflecting growing concerns about data security and external scrutiny.

Debate surrounding the issue reflects wider tensions between the EU and the US over digital governance, privacy protections and regulatory authority. Questions over jurisdiction and access to sensitive communications are likely to remain central as transatlantic tech policy evolves.

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GDPR changes debated as EU seeks balance on data protection rules

Debate over potential updates to the GDPR is intensifying, as Marina Kaljurand advocates a focused ‘fitness check’ rather than sweeping legislative changes in an omnibus package.

Concerns raised in the European Parliament highlight risks associated with altering foundational elements of the regulation, particularly its definitions to personal data. Preserving these core principles is seen as essential to maintaining the integrity of the EU’s data protection framework.

Ongoing discussions reflect broader policy tensions within the EU, where efforts to reduce regulatory complexity must be balanced against the need to uphold strong privacy safeguards. Proposals for simplification are therefore facing scrutiny from lawmakers prioritising stability and legal clarity.

Future developments are likely to shape how the EU adapts its data protection rules to evolving digital markets, while ensuring that existing protections remain effective in a rapidly changing technological environment.

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EU moves to strengthen digital resilience with subsea cable funding

Efforts to improve the security of Europe’s digital infrastructure have advanced as the European Commission opens a €180 million funding call to support backup systems for subsea internet cables.

Investment by the EU will focus on developing alternative routes and redundancy mechanisms, ensuring continuity of connectivity in the event of disruptions affecting critical undersea networks that carry global data traffic.

Growing concerns around infrastructure vulnerability have increased attention on subsea cables, which play a central role in international communications. Strengthening resilience is therefore becoming a priority within broader European strategies on technological sovereignty and security.

Planned projects are expected to enhance reliability across the region, reducing risks associated with outages or potential external threats to essential telecommunications infrastructure.

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EU urged to push digital tax despite US opposition

Calls for an EU-wide digital services tax are growing, as Pasquale Tridico, chair of the European Parliament’s subcommittee on tax matters, urged Brussels to act despite strong opposition from the US. He argued that such a measure would make Europe’s tax system fairer in a market dominated by foreign tech firms.

Tensions have increased as Washington threatens tariffs on countries introducing digital taxes targeting major platforms. Existing national levies in countries like France contrast with the absence of a unified EU approach due to member state control over taxation.

The proposal comes amid wider strain in transatlantic relations, with disputes over trade, regulation and influence on EU policymaking. US criticism has also focused on European rules such as the Digital Services Act and the Digital Markets Act.

Supporters argue that a digital tax would apply equally to global companies, not only US firms, while addressing imbalances between sectors. Digital businesses can generate large profits without the same physical costs faced by traditional industries.

Further proposals include new approaches to taxing wealth, reflecting how digitalisation blurs the line between income and capital. Advocates say such reforms are needed to adapt taxation to the modern economy.

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EU delays tech sovereignty package with AI and Chips Act 2

The European Commission has delayed a flagship tech sovereignty package for the second time, according to its latest College agenda. The measures are now scheduled for adoption on 27 May, after previously being postponed from March to April.

The tech sovereignty package includes several major initiatives aimed at strengthening EU tech sovereignty, such as the Cloud and AI Development Act, the Chips Act 2, an open-source strategy, and a roadmap for digitalisation and AI in energy. European Commission officials have not provided a reason for the latest delay.

The Cloud and AI Development Act is expected to define what constitutes a ‘sovereign’ cloud and simplify rules for building data centres. The proposal is designed to accelerate infrastructure development as Europe seeks to compete in the global AI race.

Chips Act 2 will follow up on the EU’s earlier semiconductor strategy, which struggled to boost domestic chip production significantly. The new proposal is expected to refine industrial policy efforts to reduce reliance on foreign suppliers.

Meanwhile, the planned open source strategy aims to support European software ecosystems and reduce dependence on large US technology firms. By encouraging commercially viable open source projects, the EU hopes to strengthen its long-term digital autonomy.

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AI agents test limits of EU rules

AI agents are rapidly gaining traction, raising questions about whether existing EU rules can keep pace. Unlike chatbots, these systems can act autonomously and interact with digital tools on behalf of users.

Experts warn that AI agents require deeper access to personal data and online services to function effectively. Regulators in Europe are monitoring potential risks as the technology becomes more integrated into daily life.

Lawmakers are examining whether current legislation, such as the AI Act and GDPR, adequately covers agent-based systems. Legal experts highlight challenges around contracts, liability and accountability when AI acts independently.

Despite concerns, many governments remain reluctant to introduce new rules, citing regulatory fatigue. Policymakers may rely on existing frameworks unless major incidents force a reassessment of AI oversight.

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EU adopts cyber-related sanctions on companies based in China and Iran

The European Union imposed sanctions on two China-based companies and one Iranian company in connection with cyber operations targeting the EU member states. The Council’s official press release does not specify the underlying operations. The designated entities are Integrity Technology Group and Anxun Information Technology, both based in China, and Emennet Pasargad, based in Iran.

According to an EU statement, Integrity Technology is assessed to have facilitated the compromise of over 65,000 devices across six member states. Anxun is assessed to have provided offensive cyber capabilities targeting critical infrastructure, and two of the company’s co-founders have been individually designated for their roles in these operations.

Emennet is assessed to have a compromised digital advertising infrastructure to disseminate disinformation during the 2024 Paris Olympics.

The sanctions entail an asset freeze and a travel ban for the listed individuals. The EU citizens and entities are additionally prohibited from making funds available to the designated companies.

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EU reviews X compliance proposal under Digital Services Act

X has submitted a compliance proposal to the European Commission outlining how it intends to modify its blue check verification system following regulatory concerns under the Digital Services Act.

The EU regulators concluded that the platform’s system allowed users to obtain verification simply by paying for a subscription without meaningful identity checks, potentially misleading users about the authenticity of accounts.

The Commission imposed a €120 million fine in December and gave the company 60 working days to propose corrective measures. Officials confirmed that X met the deadline for submitting a plan, which regulators will now assess.

The platform, owned by Elon Musk, must also pay the penalty while the Commission evaluates the proposed changes. The company has challenged the enforcement decision before the EU’s General Court.

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France pushes EU AI gigafactories to support European technology

In the EU, France is calling for planned European AI ‘gigafactories’ to focus on testing and scaling European technologies rather than primarily increasing demand for hardware from companies such as Nvidia.

The large computing facilities are intended to provide the infrastructure needed to train advanced AI systems. However, officials in France argue that the projects should strengthen Europe’s technological capabilities rather than reinforce reliance on foreign suppliers.

Several EU countries, including Poland, Austria and Lithuania, support using the infrastructure to improve Europe’s digital resilience.

The initiative forms part of the European Commission’s wider plans to expand computing capacity and support the development of a stronger European AI ecosystem.

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