European Commission unveils major clean industry support package

The European Commission has proposed a €100 billion plan to support clean manufacturing across the EU as part of its broader strategy to enhance industrial competitiveness.

The Clean Industrial Deal aims to help energy-intensive industries tackle high costs and complex regulations while competing with global rivals.

The plan includes new guarantee schemes, developed in partnership with the European Investment Bank, to lower costs for long-term renewable energy contracts and provide financial support for grid manufacturers.

A proposed EU Critical Raw Material Centre would coordinate the joint purchase of essential metals and minerals needed for the green transition.

Brussels’ initiative is part of a wider effort to streamline bureaucracy, adjust carbon duties, and create a more business-friendly environment for clean industries.

The proposal now awaits approval from the European Parliament and a reinforced majority of EU member states before it can take effect.

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Europe must step ap AI investment, warns Deutsche Telekom CEO

Deutsche Telekom CEO Tim Hoettges has urged Germany and Europe to invest more in artificial intelligence and data centres to stay competitive with the US and Asia. Speaking after the release of the company’s annual results, Hoettges stressed the need for Europe to increase its computing power, citing a growing demand for data centres that he expects to rise by at least 30%. Deutsche Telekom is already expanding its infrastructure with plans to build four new data centres in Europe, aiming to create one gigawatt of capacity.

Hoettges also emphasised the importance of AI for Europe’s economic growth and sovereignty in the digital age. His comments come as Europe strives to catch up with major AI investments made by the US, with the European Commission pledging to mobilise 200 billion euros for AI development. This contrasts with the US, where private companies have committed up to $500 billion to AI infrastructure.

The call for greater AI investment follows a wave of AI advancements, such as China’s DeepSeek model, which has begun to challenge Western competitors. Hoettges warned that Germany must act quickly or risk falling behind in the global AI race.

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Nokia’s $2.3 billion Infinera deal approved by EU

The European Commission has approved Nokia’s $2.3 billion acquisition of US-based Infinera, confirming the deal raises no competition concerns.

The approval was granted unconditionally, as the combined company will hold only a moderate share of the optical transport equipment market.

Nokia’s takeover of Infinera, announced last June, will make it the second-largest player in optical networking with a 20% market share, trailing Huawei.

Western firms have struggled to compete in China, giving Huawei a dominant position in the sector.

The acquisition is expected to boost Nokia’s ability to sell networking equipment to major tech firms such as Amazon, Alphabet, and Microsoft. These companies are expanding their data centre infrastructure to support the growing demand for AI services.

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Estonia introduces AI Leap programme for education

Estonia has launched a new initiative aimed at preparing students and teachers for the age of AI. The ‘AI Leap’ programme will provide access to popular AI chatbots, including an educational version of ChatGPT, to help build digital skills. Starting in September 2025, the programme will involve 20,000 high school students and 3,000 teachers, with plans to expand to vocational schools and an additional 38,000 students and 3,000 teachers in 2026.

Education Minister Kristina Kallas emphasised that Estonia’s economic competitiveness depends on how well the country adapts to AI, ensuring young people are equipped for the future. As part of the initiative, Estonia will also invest in teacher training to support the integration of AI in classrooms.

The programme is a public-private partnership, with negotiations underway with major AI companies, including OpenAI and Anthropic. OpenAI has expressed its pride in collaborating with Estonia to bring ChatGPT Edu to the education system, aiming to better prepare students for the workforce. Estonia’s use of AI in education is seen as a model that other countries may follow as the EU pushes to increase digital skills across Europe by 2030.

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Italy demands 12.5 million euros from X over tax probe

Italy is demanding 12.5 million euros ($13 million) from Elon Musk’s social network X following a tax probe linked to a broader investigation into Meta. The case, which focuses on value-added tax (VAT) claims for the years 2016 to 2022, is significant as it raises questions about how social networks provide access to their services. Italian tax authorities argue that user registrations on platforms like X, Facebook, and Instagram should be considered taxable transactions, as they involve the exchange of personal data for a membership account.

This case could have major implications for the tech sector in Europe, potentially altering the way business models are structured in the 27-nation European Union, as VAT is a harmonised EU tax. Although the claim of 12.5 million euros is a small amount for X, the outcome of this case could influence future tax policies across the region. Both X and Meta must respond to the tax authority’s observations by late March or early April, with the option to either accept the charges or challenge them in court.

The investigation also comes at a sensitive time, as US President Donald Trump has criticised digital taxes in countries like Italy that target US tech firms. Musk, who has strong ties with Italian Prime Minister Giorgia Meloni, is also keen to expand his Starlink business in the country. If no agreement is reached, Italy’s Revenue Agency may pursue a lengthy judicial review, which could take up to 10 years to resolve.

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Nvidia takes legal action against EU antitrust investigation

Nvidia has filed a lawsuit against the European Commission for accepting a referral from Italy to review its acquisition of AI startup Run:ai. The US chipmaker argues that the Commission violated a recent court ruling that restricts its powers over minor transactions. This case follows growing concerns over the Commission’s use of Article 22, which allows it to review smaller mergers that fall below EU merger thresholds, a move companies have criticised as overreach.

While the case will not impact the approval of the AI‘s deal, which was cleared in December, a ruling in favour of Nvidia could curb the European Commission’s ability to regulate similar transactions in the future. Nvidia argues that the decision breaches legal principles, including proportionality and equal treatment, and undermines legal certainty for businesses operating in the EU.

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EU court sides with Italy in Google antitrust case

The European Court of Justice has backed Italy‘s antitrust authority in a ruling against Google, stating that the tech giant’s refusal to allow Enel’s JuicePass app to work with its Android Auto platform could constitute an abuse of market power. This decision supports a 2021 fine of 102 million euros imposed by the Italian watchdog after Google blocked the e-mobility app. Google had argued that the refusal was due to security concerns and the absence of a specific template for compatibility, but the court disagreed, stating that dominant companies must ensure their platforms are interoperable with third-party apps unless doing so would harm security.

Although Google has since resolved the issue, the ruling sets a precedent for future cases involving platform dominance. The court acknowledged that companies could refuse interoperability if it compromises platform security, but if this is not the case, they must develop a compatible template in a reasonable timeframe. Google claimed the feature was only relevant to a small percentage of cars in Italy at the time, but the ruling now forces the company to comply with the antitrust decision. The case is final and cannot be appealed, and the Italian Council of State will follow the court’s guidance in its future ruling.

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US lawmakers criticise EU’s Digital Markets Act

US House Judiciary Chair Jim Jordan has called on European Union antitrust chief Teresa Ribera to clarify how the EU enforces its Digital Markets Act (DMA), which he believes disproportionately targets American companies. His request follows a memorandum signed by US President Donald Trump, warning that the administration would scrutinise the EU’s new rules regulating how US companies interact with consumers in Europe.

Jordan and his co-signatory, Scott Fitzgerald, criticised the DMA’s hefty fines, which can reach up to 10% of a company’s global revenue for violations. They argue that the rules not only disadvantage US companies but also potentially benefit Chinese firms, stifling innovation and handing over valuable data to adversarial nations. The letter urges Ribera to address these concerns with the judiciary committee by March 10.

The European Commission, where Ribera is the second-highest official, has rejected claims that its laws are aimed at American companies. Ribera defended the DMA in a recent interview, stating that the EU should not be pressured into altering laws that have already been approved by European lawmakers.

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EU approves 10 stablecoin issuers, Tether left out

The European Union has approved ten stablecoin issuers under its Markets in Crypto-Assets (MiCA) framework, allowing them to operate within the region. Notable names include Circle, Crypto.com, and Societe Generale, with issued stablecoins pegged to both the euro and the US dollar. However, Tether, the issuer of USDT and the world’s largest stablecoin, has been left out, raising concerns over regulatory barriers limiting market participation.

With MiCA rules coming into full effect, some crypto platforms have already delisted USDT for EU users, cutting access to non-compliant stablecoins. Tether criticised these moves as premature and unnecessary, arguing that the regulatory framework remains unclear. Critics warn that the EU’s strict approach may discourage foreign firms from entering the market while pushing local crypto businesses to relocate elsewhere.

Regulatory experts suggest that while the MiCA framework provides clarity, it could come at the cost of innovation and competitiveness. Some argue that excessive red tape is hindering economic growth, with firms possibly looking beyond the EU for more favourable conditions. However, uncertainty in the UK’s crypto regulations makes it unclear where companies might seek new opportunities.

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Stricter rules for WhatsApp after EU designation

WhatsApp has officially met the threshold set by the EU’s Digital Services Act (DSA), marking its designation as a Very Large Online Platform.

The messaging app, owned by Meta Platforms, reported an average of 46.8 million monthly users in the EU during the latter half of 2024, surpassing the 45-million-user threshold established by the DSA.

The new classification requires WhatsApp to strengthen efforts in tackling illegal and harmful online content.

The platform must assess system risks related to public security, fundamental rights, and protecting minors within four months to comply with the DSA. Violations could result in fines reaching up to 6% of global annual revenue.

Meta’s Instagram and Facebook are already subject to the same rules. While complying with the stricter regulations, Meta leadership, including Mark Zuckerberg, has expressed concerns about the growing impact of EU tech laws.

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