EU

EU Commission accuses Temu of failing DSA checks

The European Commission has accused Temu of breaching the Digital Services Act by failing to assess and address the sale of illegal or dangerous products.

The accusation follows months of investigation and a review of a required risk report submitted by Temu, which the Commission found too vague.

A mystery shopping exercise by the EU uncovered unsafe toys and electronics on the platform, raising concerns over consumer safety.

Additional parts of the probe are ongoing, including scrutiny of Temu’s use of addictive designs, algorithmic transparency and product recommendations.

Temu now has a few weeks to respond to the preliminary findings, though no final deadline has been given. Under the DSA, confirmed violations could result in fines of up to 6% of a company’s global turnover.

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EU clears Microsoft deal after privacy changes

The European Data Protection Supervisor (EDPS) has ended its enforcement action against the European Commission over its use of Microsoft, following improvements to data protection practices. The decision came after the Commission revised its contract with Microsoft to improve privacy standards.

Under the updated terms, Microsoft must clarify the reasons for data transfers outside the European Economic Area and name the recipients. Transfers are only allowed to countries with EU-recognised protections or in public interest cases.

Microsoft must also inform the Commission if a foreign government requests access to EU data, unless the request comes from within the EU or a country with equivalent safeguards. The EDPS urged other EU institutions to adopt similar contractual protections if using Microsoft 365.

Despite the EDPS’ clearance, the Commission remains concerned about relying too heavily on a non-EU tech provider for essential digital services. It continues to support the current EU-US data adequacy deal, though recent political changes in the US have cast doubt on its long-term stability.

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DeepSeek and others gain traction in US and EU

A recent survey has found that most US and the EU users are open to using Chinese large language models, even amid ongoing political and cybersecurity scrutiny.

According to the report, 71 percent of respondents in the US and 87 percent in the EU would consider adopting models developed in China.

The findings highlight increasing international curiosity about the capabilities of Chinese AI firms such as DeepSeek, which have recently attracted global attention.

While the technology is gaining credibility, many Western users remain cautious about data privacy and infrastructure control.

More than half of those surveyed said they would only use Chinese AI models if hosted outside China. However, this suggests that while trust in the models’ performance is growing, concerns over data governance remain a significant barrier to adoption.

The results come amid heightened global competition in the AI race, with Chinese developers rapidly advancing to challenge US-based leaders. DeepSeek and similar firms now face balancing global outreach with geopolitical limitations.

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EU and Japan deepen AI cooperation under new digital pact

In May 2025, the European Union and Japan formally reaffirmed their long-standing EU‑Japan Digital Partnership during the third Digital Partnership Council in Tokyo. Delegations agreed to deepen collaboration in pivotal digital technologies, most notably artificial intelligence, quantum computing, 5G/6G networks, semiconductors, cloud, and cybersecurity.

A joint statement committed to signing an administrative agreement on AI, aligned with principles from the Hiroshima AI Process. Shared initiatives include a €4 million EU-supported quantum R&D project named Q‑NEKO and the 6G MIRAI‑HARMONY research effort.

Both parties pledge to enhance data governance, digital identity interoperability, regulatory coordination across platforms, and secure connectivity via submarine cables and Arctic routes. The accord builds on the Strategic Partnership Agreement activated in January 2025, reinforcing their mutual platform for rules-based, value-driven digital and innovation cooperation.

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Italy challenges tech giants over VAT on user data

Meta, LinkedIn and X have filed appeals against a sweeping VAT claim by Italy, marking the first time the country has failed to settle such cases with major tech firms. Italy is demanding nearly €1 billion combined over the value of user data exchanged during free account registrations.

Italian authorities argue that providing platform access in exchange for personal data constitutes a taxable service, which if upheld, could have far-reaching implications across the EU. The case marks a significant legal shift as it challenges traditional definitions of taxable transactions in the digital economy.

Meta strongly disagreed with the concept, saying it should not be liable for VAT on free platform access. While LinkedIn offered no public comment, X did not respond to media inquiries.

Italy is now preparing to refer the issue to the EU Commission’s VAT Committee for advisory input. Though the committee’s opinion will not be binding, a rejection could derail Italy’s efforts and lead to a withdrawal of the tax claims.

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Meta pushes back on EU AI framework

Meta has refused to endorse the European Union’s new voluntary Code of Practice for general-purpose AI, citing legal overreach and risks to innovation.

The company warns that the framework could slow development and deter investment by imposing expectations beyond upcoming AI laws.

In a LinkedIn post, Joel Kaplan, Meta’s chief global affairs officer, called the code confusing and burdensome, criticising its requirements for reporting, risk assessments and data transparency.

He argued that such rules could limit the open release of AI models and harm Europe’s competitiveness in the field.

The code, published by the European Commission, is intended to help companies prepare for the binding AI Act, set to take effect from August 2025. It encourages firms to adopt best practices on safety and ethics while building and deploying general-purpose AI systems.

While firms like Microsoft are expected to sign on, Meta’s refusal could influence other developers to resist what they view as Brussels overstepping. The move highlights ongoing friction between Big Tech and regulators as global efforts to govern AI rapidly evolve.

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EU helps Vietnam prepare for cyber emergencies

The European Union and Vietnam have conducted specialised cyber‑defence training to enhance the resilience of key infrastructure sectors such as power, transportation, telecoms and finance.

Participants, including government officials, network operators and technology experts, engaged in interactive threat-hunting exercises and incident simulation drills designed to equip teams with practical cyber‑response skills.

This effort builds on existing international partnerships, including collaboration with the US Cybersecurity and Infrastructure Security Agency, to align Vietnam’s security posture with global standards.

Vietnam faces an alarming shortfall of more than 700,000 cyber professionals, with over half of organisations reporting at least one breach in recent years.

The training initiative addresses critical skills gaps and contributes to national digital security resilience.

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How cultural heritage can go green through digital preservation

A Europe-wide survey has exposed how cultural heritage institutions (CHIs) protect humanity’s legacy digitally while unintentionally harming the environment.

Instead of focusing only on efficiency, the Europeana Climate Action Community recommends a shift towards environmentally sustainable and regenerative digital preservation.

Led by the Environmental Sustainability Practice Task Force, the survey collected input from 108 organisations across 24 EU countries. While 80% of CHIs recognise environmental responsibility, just 42% follow formal environmental strategies and a mere 14% measure carbon footprints.

Many maintain redundant data backups without assessing the ecological cost, and most lack policies for retiring digital assets responsibly.

The report suggests CHIs develop community-powered archives, adopt hardware recycling and repair, and prioritise sufficiency instead of maximising digital volume. Interviews with institutions such as the National Library of Finland and the POLIN Museum revealed good practices alongside common challenges.

With digital preservation increasingly essential, the Europeana Initiative calls for immediate action. By moving from isolated efficiency efforts to collective regeneration strategies, CHIs can protect cultural memory while reducing environmental impact for future generations.

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EU confirms AI Act rollout and releases GPAI Code of Practice

The European Commission has confirmed it will move forward with the EU AI Act exactly as scheduled, instead of granting delays requested by tech giants and businesses.

On 10 July 2025, it published the final General-Purpose AI (GPAI) Code of Practice alongside FAQs to guide organisations aiming to comply with the new law.

Rather than opting for a more flexible timetable, the Commission is standing firm on its regulatory goals. The GPAI Code of Practice, now in its final form, sets out voluntary but strongly recommended steps for companies that want reduced administrative burdens and clearer legal certainty under the AI Act.

The document covers transparency, copyright, and safety standards for advanced AI models, including a model documentation form for providers.

Key dates have already been set. From 2 August 2025, rules covering notifications, governance, and penalties will come into force. By February 2026, official guidelines on classifying high-risk AI systems are expected.

The remaining parts of the legislation will take effect by August 2026, instead of being postponed further.

With the publication of the GPAI Code of Practice, the EU takes another step towards building a unified ethical framework for AI development and deployment across Europe, focusing on transparency, accountability, and respect for fundamental rights.

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Meta faces fresh EU backlash over Digital Markets Act non-compliance

Meta is again under EU scrutiny after failing to fully comply with the bloc’s Digital Markets Act (DMA), despite a €200 million fine earlier this year.

The European Commission says Meta’s current ‘pay or consent’ model still falls short and could trigger further penalties. A formal warning is expected, with recurring fines likely if the company does not adjust its approach.

The DMA imposes strict rules on major tech platforms to reduce market dominance and protect digital fairness. While Meta claims its model meets legal standards, the Commission says progress has been minimal.

Over the past year, Meta has faced nearly €1 billion in EU fines, including €798 million for linking Facebook Marketplace to its central platform. The new case adds to years of tension over data practices and user consent.

The ‘pay or consent’ model offers users a choice between paying for privacy or accepting targeted ads. Regulators argue this does not meet the threshold for genuine consent and mirrors Meta’s past GDPR tactics.

Privacy advocates have long criticised Meta’s approach, saying users are left with no meaningful alternatives. Internal documents show Meta lobbied against privacy reforms and warned governments about reduced investment.

The Commission now holds greater power under the DMA than it did with GDPR, allowing for faster, centralised enforcement and fines of up to 10% of global turnover.

Apple has already been fined €500 million, and Google is also under investigation. The EU’s rapid action signals a stricter stance on platform accountability. The message for Meta and other tech giants is clear: partial compliance is no longer enough to avoid serious regulatory consequences.

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