Coinbase announced on Friday that it will delist certain stablecoins in the European Economic Area (EEA) by the end of the year as the cryptocurrency industry prepares for stricter regulations in the region. The EU‘s new Markets in Crypto-Assets (MiCA) regulation, introduced in early 2023, will be fully implemented by December. This framework mandates that stablecoin issuers adhere to stringent transparency, liquidity, and consumer protection standards.
In line with its commitment to compliance, Coinbase intends to restrict services for EEA users concerning stablecoins that do not comply with MiCA requirements by 30 December 2024. The exchange will provide affected customers with options to switch to authorised stablecoins, including USDC and EURC from fintech firm Circle, which are pegged to the US dollar and euro, respectively.
Stablecoins have gained significant popularity in recent years, particularly as major financial institutions like PayPal adopt them. This growth reflects the increasing integration of the once-nascent digital assets sector into mainstream finance.
Ireland’s Data Protection Commissioner (DPC) launched an EU-wide investigation into Ryanair’s use of facial recognition technology for customers booking through some third-party websites. The probe aims to determine if this practice violates EU privacy laws. The DPC’s action follows complaints from Ryanair customers across Europe regarding the airline’s additional verification process for bookings made through online travel agents (OTAs) rather than directly with Ryanair.
Ryanair, the largest airline in Europe by passenger numbers, welcomes the investigation, emphasising that the verification process protects customers from unverified online travel agents (OTAs) that may provide inaccurate contact or payment information. According to the airline’s website, these additional identity checks are part of its safety and security protocols. Passengers who wish to avoid facial recognition can either arrive at the airport two hours before departure or undergo a manual verification process, which may take up to seven days to complete.
Ryanair stated that verification is not required for bookings made directly on its website, mobile app, or through OTAs that have entered into commercial agreements with the airline. Since the beginning of the year, Ryanair has established 14 such partnerships. The airline asserts that both its biometric and manual verification methods are fully compliant with the EU’s General Data Protection Regulation (GDPR).
The Federation of European Risk Management Associations (FERMA) has called on European institutions to simplify cyber reporting requirements and consider the insurance implications of cyber legislation. This appeal follows the release of the Cyber Reporting Stack report, developed in collaboration with WTW, which offers risk managers vital guidance on navigating the landscape of cyber policy and reporting obligations.
Charlotte Hedemark, President of FERMA, highlighted the growing burden of cyber reporting and added that FERMA believes companies need a streamlined and consistent set of requirements for reporting cyber incidents. The report recommends establishing a ‘single point of entry’ for cyber incident notifications and guides EU member states to streamline their processes and participant involvement.
Philippe Cotelle, Chair of FERMA’s Digital Committee, emphasised there currently needs to be regulations specifying the necessary risk management measures or considering their insurance implications.
Chinese companies have invested over $100 billion in overseas clean energy technology projects since 2023, aiming to bypass growing trade barriers, according to a report by Australian research group Climate Energy Finance (CEF). China, the world’s largest producer of solar panels, lithium batteries, and electric vehicles, has seen its exports face steep tariffs, particularly from the US and Canada. The European Union is also considering similar tariffs to protect domestic industries from an influx of cheaper Chinese-made products.
Chinese firms like electric vehicle giant BYD and battery maker CATL have responded by expanding production abroad, with BYD building a $1 billion plant in Turkey and CATL planning factories across Europe. These investments are largely driven by the need to avoid punitive tariffs, including a proposed 40% EU tariff on Chinese electric vehicles. Despite China’s dominance in clean energy, concerns have emerged that it could oversupply the global market, driving down prices and undercutting competitors.
The surge in Chinese investment comes as the country faces increasing pushback from Western nations, who argue that Chinese products are unfairly flooding their markets. Beijing, however, insists that such restrictions will slow global efforts to combat climate change, emphasising the importance of affordable clean energy solutions. With China expected to have surplus production capacity by 2030, these overseas investments will play a critical role in finding new markets.
The European Union has chosen a team of AI experts to help shape the guidelines for compliance with its upcoming AI Act. On 30 September 2024, the European Commission convened the first meeting of working groups responsible for drafting a ‘code of practice’ to guide how companies should meet the law’s requirements. The selected experts include figures like AI pioneer Yoshua Bengio, former UK policy adviser Nitarshan Rajkumar, and Marietje Schaake from Stanford University.
These working groups, which also feature representatives from major tech companies such as Google and Microsoft, will address issues like copyright and risk management. Although the code of practice won’t be legally binding, it will serve as a checklist for companies to prove compliance with the AI Act, which takes full effect in 2025. Firms that claim to follow the law but ignore the code may face legal challenges.
A key focus will be on the transparency of AI training data, a contentious issue in the industry. Some AI companies resist sharing details about the data used to train their models, citing trade secrets. The code of practice is expected to clarify how much information companies will need to disclose, with the potential for increased legal scrutiny over the use of copyrighted content.
The European Commission’s Competition Directorate (DG COMP) and the Connectivity Directorate (DG CNECT) are at the centre of a critical debate over the future of the EU telecom regulations. That discussion highlights the struggle within the EU to balance regulatory harmonisation with market fragmentation.
DG CNECT advocates for increased consolidation in the telecom sector, arguing that the current fragmented landscape hampers competitiveness and investment compared to the more integrated markets of the US and China. In contrast, DG COMP warns that excessive national consolidation could lead to higher consumer prices and undermine the competition necessary for innovation.
As these discussions progress, DG COMP and DG CNECT are examining the implications of indirect deregulation in the telecom sector. Specifically, DG COMP has raised concerns that eliminating regulated sub-markets could increase the bureaucratic burden on national regulators, thereby reducing the effectiveness of oversight across the EU. That shift would transfer more responsibility to individual member states, potentially leading to inconsistencies hindering the EU’s telecom objectives. Meanwhile, while DG CNECT supports deregulation, it must consider the potential impacts on market dynamics and consumer protection.
DG COMP and DG CNECT are committed to fostering innovation within the telecommunications sector through strategic investments in future technologies. DG COMP emphasises the importance of competitive markets in driving advancements like edge computing and OpenRAN. At the same time, DG CNECT argues for regulatory frameworks and consolidation to facilitate these investments. Ultimately, their shared focus on innovation aims to enhance the EU’s telecommunications infrastructure and maintain its competitiveness in the global market.
Hungary plans to emphasise competition as the primary driver for investment in telecom infrastructure in its upcoming draft of the Council conclusions. This shift reflects a growing reluctance among the EU member states to adopt the European Commission’s deregulation proposals, highlighting the complexities within the telecom sector as member states consider the potential impacts on market dynamics and investment.
Prompted by the Commission’s February white paper advocating for consolidation, Hungary initially aimed to reconcile diverse stakeholder views in its draft. However, it faced criticism for being overly prescriptive, leading to revision plans. Moreover, Hungary is expected to clarify that the review of the EU’s telecom law, particularly the European Electronic Communications Code (EECC), must precede any consideration of transitioning from ex-ante regulation, designed to prevent monopolistic practices, to ex-post regulation, which addresses violations only after they occur.
That clarification highlights the critical need to uphold regulatory safeguards within the telecom sector. Additionally, Hungary is under pressure from fellow member states to ensure that the Commission publishes a new telecom strategy before allocating the EU funds to enhance submarine cable infrastructure’s security and resilience. Such an approach aligns with the broader objective of ensuring that funding mechanisms support robust and secure telecom networks throughout the EU.
Finally, Hungary has set a timeline for revisions, with member states given until 30 September to respond. A revised text is expected on 9 October, before the working group meeting on 15 October. That underscores the urgency of these discussions for the EU telecom policy.
Meta, Facebook’s owner, has been fined €91 million ($101.5 million) by the EU’s privacy regulator for mishandling user passwords. The issue, which surfaced five years ago, involved Meta storing certain users’ passwords in plaintext, a format lacking encryption or security protection. Ireland’s Data Protection Commission (DPC), which oversees GDPR compliance for many US tech firms operating in the EU, launched an investigation after Meta reported the incident.
Meta admitted the error, emphasising that third parties had not accessed the exposed passwords. However, storing passwords in an unprotected format is considered a major security flaw, as it exposes users to significant risks if unauthorised individuals access the data. Deputy Commissioner Graham Doyle underscored that storing passwords without encryption is widely unacceptable due to potential abuse.
This fine adds to Meta’s growing list of penalties under the EU’s General Data Protection Regulation (GDPR). To date, Meta has been fined a total of 2.5 billion euros for various data breaches, including a record €1.2 billion fine in 2023, which Meta is currently appealing. These repeated infractions highlight ongoing concerns about how the company handles sensitive user data.
Meta Platforms has announced it will not immediately join the European Union‘s voluntary AI Pact, which is a temporary initiative ahead of the AI Act coming into force. The company is currently focusing on compliance with the forthcoming regulations set out in the act, but may sign the pact at a later stage.
The EU’s AI Act, agreed in May and adopted by the European Council, will introduce strict rules governing the development and use of artificial intelligence. Under these regulations, companies must provide detailed summaries of the data used to train their AI models. The majority of the law’s provisions will take effect from August 2026.
In the interim, the AI Pact encourages companies to voluntarily adopt some of the key requirements of the forthcoming act. Meta has expressed its support for harmonised EU regulations but is prioritising work on meeting the obligations of the AI Act.
Google has filed a formal complaint with the European Commission over Microsoft’s cloud business practices. The tech giant argues that Microsoft uses its dominant position with Windows Server to stifle competition and lock customers into its Azure platform. Specifically, Google claims Microsoft enforces heavy mark-ups on users of rival cloud services and restricts access to essential security updates.
The dispute follows a recent settlement where Microsoft paid €20 million to resolve concerns raised by European cloud providers. However, the agreement excluded key rivals like Google and Amazon Web Services (AWS), fuelling further criticism. Google insists only regulatory action will halt what it sees as Microsoft’s monopolistic approach, urging the EU to step in and ensure fair competition.
Microsoft denies the accusations, stating they have settled similar issues amicably with other European providers. A Microsoft spokesperson expressed confidence that Google would fail to persuade the European Commission, as it had failed with EU businesses.
Google believes immediate intervention is necessary to prevent the cloud market from becoming increasingly restrictive. They warn that Microsoft’s influence over the European cloud sector, which is growing rapidly, could limit options for customers and hurt competitors.
