EU

EU advances ambitious gigafactory programme for AI leadership

The Council has agreed on a significant amendment to the EuroHPC Joint Undertaking regulation, aiming to establish AI gigafactories across Europe alongside a new quantum pillar.

The plan advances earlier efforts to build AI factories and redirects unused EU funds toward larger and more ambitious facilities. Up to five gigafactories are expected, supported through public and private partnerships that promise a stronger technological base for European research and industry.

AI gigafactories will combine high-performance computing, energy-efficient data centres and automated systems to give Europe world-class AI capacity. The regulation sets out firm rules for funding and procurement while protecting start-ups and scale-ups.

It also allows gigafactories to be spread across multiple countries, creating a flexible model that can strengthen European resilience, competitiveness and security instead of relying heavily on American or Chinese infrastructure.

An agreement that updates the governance of EuroHPC and introduces safeguards for participation from partners outside the EU. Quantum research and innovation activities will move from Horizon Europe to EuroHPC in order to consolidate work on critical technologies.

In a shift that aims to widen the impact of supercomputing and quantum infrastructure while supporting the development of essential skills for science and industry.

The next stage involves the European Parliament delivering its opinion on 17 December.

A final Council adoption will follow once legal and linguistic checks have been completed, marking a decisive step towards Europe’s new AI and quantum capability.

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China pushes global leadership on AI governance

Global discussions on artificial intelligence have multiplied, yet the world still lacks a coherent system to manage the technology’s risks. China is attempting to fill that gap by proposing a new World Artificial Intelligence Cooperation Organisation to coordinate regulation internationally.

Countries face mounting concerns over unsafe AI development, with the US relying on fragmented rules and voluntary commitments from tech firms. The EU has introduced binding obligations through its AI Act, although companies continue to push for weaker oversight.

China’s rapid rollout of safety requirements, including pre-deployment checks and watermarking of AI-generated content, is reshaping global standards as many firms overseas adopt Chinese open-weight models.

A coordinated international framework similar to the structure used for nuclear oversight could help governments verify compliance and stabilise the global AI landscape.

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EIB survey shows EU firms lead in investment, innovation and green transition

European firms continue to invest actively despite a volatile global environment, demonstrating resilience, innovation, and commitment to sustainability, according to the European Investment Bank (EIB) Group’s 2025 Investment Survey.

Across the EU, companies are expanding capacity, adopting advanced digital technologies, and pursuing green investment to strengthen competitiveness.

Spanish firms, for example, are optimistic about their sector, prioritising capacity growth, using generative AI, and investing in energy efficiency and climate risk insurance.

Digital transformation is accelerating across the continent. Austrian and Finnish firms stand out for their extensive adoption of generative AI and multiple advanced digital tools, while Belgian companies excel in integrating digital technologies alongside green initiatives.

Czech firms devote a larger share of investment to capacity expansion and innovation, with high engagement in international trade and strategic use of digital solutions. These trends are highlighted in country-level EIB reports and reflect broader European patterns.

The green transition remains central to corporate strategies. Many firms actively reduce emissions, improve energy efficiency, and view sustainability as a business opportunity rather than a regulatory burden.

In Belgium, investments in energy efficiency and waste reduction are among the highest in the EU, while nearly all Finnish companies report taking measures to reduce greenhouse gases.

Across Europe, firms increasingly combine environmental action with innovation to maintain competitiveness and resilience.

Challenges persist, including skills shortages, uncertainty, high energy costs, and regulatory complexity. Despite these obstacles, European businesses continue to innovate, expand, and embrace international trade.

EIB surveys show that firms are leveraging technology and green investments not only to navigate economic uncertainty but also to position themselves for long-term growth and strategic advantage in a changing global landscape.

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EU AI Act changes aim to ease high-risk compliance pressure

The European Commission has proposed a series of amendments to the EU AI Act to ensure a timely, smooth, and proportionate rollout of the bloc’s landmark AI rules.

Set out in the Digital Omnibus on AI published in November, the changes would delay some of the most demanding obligations of the AI Act, particularly for high-risk AI systems, linking compliance deadlines to the availability of supporting standards and guidance.

The proposal also introduces new grace periods for certain transparency requirements, especially for generative AI and deepfake systems, while leaving existing prohibitions on manipulative or exploitative uses of AI fully intact.

Other revisions include removing mandatory AI literacy requirements for providers and deployers and expanding the powers of the European AI Office, allowing it to directly supervise some general-purpose AI systems and AI embedded in large online platforms.

While the package includes simplification measures designed to ease burdens on smaller firms and encourage innovation, the amendments now face a complex legislative process, adding uncertainty for companies preparing to comply with the AI Act’s long-term obligations.

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Mitigated ads personalisation coming to Meta platforms in the EU

Meta has agreed to introduce a less personalised ads option for Facebook and Instagram users in the EU, as part of efforts to comply with the bloc’s Digital Markets Act and address concerns over data use and user consent.

Under the revised model, users will be able to access Meta’s social media platforms without agreeing to extensive personal data processing for fully personalised ads. Instead, they can opt for an alternative experience based on significantly reduced data inputs, resulting in more limited ad targeting.

The option is set to roll out across the EU from January 2026. It marks the first time Meta has offered users a clear choice between highly personalised advertising and a reduced-data model across its core platforms.

The change follows months of engagement between Meta and Brussels after the European Commission ruled in April that the company had breached the DMA. Regulators stated that Meta’s previous approach had failed to provide users with a genuine and effective choice over how their data was used for advertising.

Once implemented, the Commission said it will gather evidence and feedback from Meta, advertisers, publishers, and other stakeholders. The goal is to assess the extent to which the new option is adopted and whether it significantly reshapes competition and data practices in the EU digital advertising market.

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Google faces renewed EU scrutiny over AI competition

The European Commission has opened a formal antitrust investigation into whether AI features embedded in online search are being used to unfairly squeeze competitors in newly emerging digital markets shaped by generative AI.

The probe targets Alphabet-owned Google, focusing on allegations that the company imposes restrictive conditions on publishers and content creators while giving its own AI-driven services preferential placement over rival technologies and alternative search offerings.

Regulators are examining products such as AI Overviews and AI Mode, assessing how publisher content is reused within AI-generated summaries and whether media organisations are compensated in a clear, fair, and transparent manner.

EU competition chief Teresa Ribera said the European Commission’s action reflects a broader effort to protect online media and preserve competitive balance as artificial intelligence increasingly shapes how information is produced, discovered, and monetised.

The case adds to years of scrutiny by the European Commission over Google’s search and advertising businesses, even as the company proposes changes to its ad tech operations and continues to challenge earlier antitrust rulings.

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Canada-EU digital partnership expands cooperation on AI and security

The European Union and Canada have strengthened their digital partnership during the first Digital Partnership Council in Montreal. Both sides outlined a joint plan to enhance competitiveness and innovation, while supporting smaller firms through targeted regulation.

Senior representatives reconfirmed that cooperation with like-minded partners will be essential for economic resilience.

A new Memorandum of Understanding on AI placed a strong emphasis on trustworthy systems, shared standards and wider adoption across strategic sectors.

The two partners will exchange best practices to support sectors such as healthcare, manufacturing, energy, culture and public services.

They also agreed to collaborate on large-scale AI infrastructures and access to computing capacity, while encouraging scientific collaboration on advanced AI models and climate-related research.

A meeting that also led to an agreement on a structured dialogue on data spaces.

A second Memorandum of Understanding covered digital credentials and trust services. The plan includes joint testing of digital identity wallets, pilot projects and new use cases aimed at interoperability.

The EU and Canada also intend to work more closely on the protection of independent media, the promotion of reliable information online and the management of risks created by generative AI.

Both sides underlined their commitment to secure connectivity, with cooperation on 5G, subsea cables and potential new Arctic routes to strengthen global network resilience. Further plans aim to deepen collaboration on quantum technologies, semiconductors and high-performance computing.

A renewed partnership that reflects a shared commitment to resilient supply chains and secure cloud infrastructure as both regions prepare for future technological demands.

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Noyb study points to demand for tracking-free option

A new study commissioned by noyb reports that most users favour a tracking-free advertising option when navigating Pay or Okay systems. Researchers found low genuine support for data collection when participants were asked without pressure.

Consent rates rose sharply when users were presented only with payment or agreement to tracking, leading most to select consent. Findings indicate that the absence of a realistic alternative shapes outcomes more than actual preference.

Introduction of a third option featuring advertising without tracking prompted a strong shift, with most participants choosing that route. Evidence suggests users accept ad-funded models provided their behavioural data remains untouched.

Researchers observed similar patterns on social networks, news sites and other platforms, undermining claims that certain sectors require special treatment. Debate continues as regulators assess whether Pay or Okay complies with EU data protection rules such as the GDPR.

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EU gains stronger ad oversight after TikTok agreement

Regulators in the EU have accepted binding commitments from TikTok aimed at improving advertising transparency under the Digital Services Act.

An agreement that follows months of scrutiny and addresses concerns raised in the Commission’s preliminary findings earlier in the year.

TikTok will now provide complete versions of advertisements exactly as they appear in user feeds, along with associated URLs, targeting criteria and aggregated demographic data.

Researchers will gain clearer insight into how advertisers reach users, rather than relying on partial or delayed information. The platform has also agreed to refresh its advertising repository within 24 hours.

Further improvements include new search functions and filters that make it easier for the public, civil society and regulators to examine advertising content.

These changes are intended to support efforts to detect scams, identify harmful products and analyse coordinated influence operations, especially around elections.

TikTok must implement its commitments to the EU within deadlines ranging from two to twelve months, depending on each measure.

The Commission will closely monitor compliance while continuing broader investigations into algorithmic design, protection of minors, data access and risks connected to elections and civic discourse.

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EU targets X for breaking the Digital Services Act

European regulators have imposed a fine of one hundred and twenty million euros on X after ruling that the platform breached transparency rules under the Digital Services Act.

The Commission concluded that the company misled users with its blue checkmark system, restricted research access and operated an inadequate advertising repository.

Officials found that paid verification on X encouraged users to believe their accounts had been authenticated when, in fact, no meaningful checks were conducted.

EU regulators argued that such practices increased exposure to scams and impersonation fraud, rather than supporting trust in online communication.

The Commission also stated that the platform’s advertising repository lacked essential information and created barriers that prevented researchers and civil society from examining potential threats.

European authorities judged that X failed to offer legitimate access to public data for eligible researchers. Terms of service blocked independent data collection, including scraping, while the company’s internal processes created further obstacles.

Regulators believe such restrictions frustrate efforts to study misinformation, influence campaigns and other systemic risks within the EU.

X must now outline the steps it will take to end the blue checkmark infringement within sixty working days and deliver a wider action plan on data access and advertising transparency within ninety days.

Failure to comply could lead to further penalties as the Commission continues its broader investigation into information manipulation and illegal content across the platform.

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