EU

EU to make Europe the most connected continent by 2030

The EU aims to make Europe the most connected region by 2030 as part of its Digital Decade framework. The project focuses on enhancing connectivity, digital skills, and public services to ensure all citizens benefit from the digital transition.

A central element of this strategy is the WiFi4EU initiative, which provides free Wi-Fi access in public spaces like parks and libraries. With over 90,000 access points established, this initiative has improved internet access, especially in remote areas such as Patmos, Greece, and Guadeloupe, enhancing connectivity for residents and visitors alike.

To achieve its connectivity goals, the EU has set targets for high-speed internet access for all households by 2025 and gigabit connectivity by 2030. The deployment of advanced fibre and 5G networks is crucial for fostering economic growth and innovation, supported by the Connecting Europe Facility (CEF Digital), which funds strategic infrastructure projects.

Moreover, the EU’s initiatives promote digital inclusion by empowering citizens and businesses. The initiatives include developing digital skills and supporting small and medium-sized enterprises (SMEs) adopting digital technologies. Together, these efforts aim to create a digitally resilient society, driving economic growth and improving the quality of life for all European citizens.

Apple to update browser and app settings in EU

Apple is set to make significant changes to how users in the European Union select default apps and browsers on their devices, responding to pressure from regulators under the new Digital Markets Act (DMA). Starting later this year, iPhone and iPad users will be able to choose a default browser from a ‘choice screen’ when they first open Safari. This screen will display a randomly ordered list of 12 browsers, allowing users to easily download and set their preferred option.

These updates come after criticism that Apple’s initial response to the DMA, implemented in March, did not fully comply with the new regulations. In addition to browser choices, Apple will introduce a dedicated section for setting default apps for functions like messaging, phone calls, and password management. The company will also allow users to delete more pre-installed Apple apps, such as App Store, Messages, and Safari, leaving only the Settings and Phone apps as non-deletable.

Apple has been in discussions with the European Commission and believes these updates will address regulatory concerns. The Commission, however, will continue to monitor the situation to ensure the changes meet the objectives of the DMA and will decide on further action as necessary.

Trump’s NATO threats boost EU defence technology startups’ investments

The potential return of Donald Trump to the White House has sparked a surge in investments in the EU defence technology startups. Industry leaders and investors attribute this trend to Trump’s threats to withdraw the US from NATO and his insistence that allies increase their defence budgets. These facts and ongoing global tensions have pushed military spending to a record $2.4 trillion in 2023.

In response, Europe has seen significant initiatives to bolster its defence capabilities. In June, the NATO Innovation Fund (NIF) announced partnerships with venture capital firms and defence startups across Europe, backed by $1.1 billion to enhance continental security. Similarly, the EU unveiled its first defence industrial strategy earlier this year, committing over $1 billion towards military innovation.

Prominent investors have noted that Trump’s unpredictable foreign policy has driven the EU states to invest more in their defence, fostering growth in robotics, drones, and quantum computing. Munich-based Vsquared Ventures, a leading deep-tech investor, emphasised that the urgency created by Trump’s rhetoric has accelerated investments in these areas.

Why does this matter?

While Russia’s invasion of Ukraine remains the primary driver of increased defence spending, Trump’s approach has also led to a shift in Europe, where leaders are seeking greater self-sufficiency in defence. These circumstances have resulted in a 16% rise in defence and security spending across Europe in 2023, with further investments expected as concerns over future US support persist.

Despite a broader downturn in venture capital funding, investments in defence technology startups have remained relatively resilient, with only a modest decline compared to other sectors. The EU companies like Quantum Systems and ARX Robotics have directly benefited from this shift as governments prioritise strengthening their military capabilities in light of global uncertainties.

EU probes subsidy advantage of Chinese electric vehicle

As a part of its ongoing investigation, the European Commission has imposed a final duty of 36.3% on imported electric vehicles manufactured in China. Some specified companies who have cooperated with the EU in the process of the investigation will, however, be subjected to a reduced tariff rate of 21.3%.

The EU launched the investigation in October 2023 against the backdrop of a witnessed spike in low-cost electric vehicle export from China to the EU and is expected to conclude by November this year. It seeks to examine whether Chinese clean tech products are dumping subsidised goods in the EU market and if Chinese-owned entities operating within the EU avail of any other unfair subsidy advantages.

The final duty needs further approval from EU’s 27 countries and will take effect unless a majority of 15 countries representing 65% of the EU population vote against it. These duties are expected to be confirmed by 30 October and typically last for five years. Meanwhile, talks between Europe and China could also lead to a compromise to mitigate or avoid the tariffs altogether.

Europe’s digital strategy targets MENA region

The European Union is deepening its involvement in the Middle East and North Africa (MENA) region, with a particular focus on digital transformation. Ursula von der Leyen, recently re-elected as European Commission president, has outlined plans to establish a portfolio dedicated to the Mediterranean, which will address investment, partnerships, and economic stability. This initiative follows significant financial support for countries like Egypt and Lebanon, aiming to stabilise these nations and bolster EU-MENA relations through the Southern Neighbourhood partnership.

A key element of the EU’s strategy is advancing digital infrastructure across the region. Projects like the MEDUSA Submarine Cable, which aims to connect several MENA countries with high-speed internet, exemplify Europe’s commitment to digital development. With over 4.5 million students expected to benefit from increased connectivity, the EU is prioritising educational and economic growth in the region. However, significant digital divides still exist, particularly between urban and rural areas and along gender lines, underscoring the need for expanded efforts.

Europe’s digital investments are expected to yield considerable benefits, including access to a skilled ICT workforce and strengthened political influence in the region. By supporting digital transformation, the EU aims to stabilise the MENA region economically, reduce irregular migration, and counter external influences such as China’s Belt and Road Initiative. Furthermore, digital advancements are seen as crucial in enhancing climate resilience, particularly through technologies like smart grids.

To fully realise these goals, the EU must expand its digital programmes and improve coordination with Southern Neighbourhood countries. Initiatives focusing on digital skills, entrepreneurship, and infrastructure need broader implementation to ensure inclusive growth. Enhanced data analysis and reporting on digital development are also essential for effectively targeting resources and measuring progress. The EU’s commitment to integrating digital elements into its broader strategy for the Mediterranean could serve as a blueprint for future cooperation in the region.

EU nations divided over regulation of high-risk 5G telecom suppliers

The EU is facing a significant divide among its member states regarding the regulation of high-risk telecom suppliers, particularly Huawei and ZTE, in the context of 5G network infrastructure. Eleven of the 27 EU countries have enacted legal measures to restrict these suppliers following the European Commission’s adoption of the 5G Cybersecurity Toolbox in 2020.

The following divide reflects varying levels of concern about national security, economic interests, and diplomatic relations. Scepticism surrounding Huawei and ZTE intensified in 2018 when numerous countries, including the US and Japan, began excluding these companies from public tenders due to allegations of espionage and their ties to the Chinese government.

Sweden was among the first EU nations to ban Huawei, mandating the removal of its equipment from 5G networks by 1 January 2025. Despite Huawei’s denials of wrongdoing, distrust persists within the EU. Responses to these security concerns vary significantly. Germany has announced that components from Huawei and ZTE must be removed from its 5G core networks by the end of 2026, aligning with its National Security Strategy.

In contrast, Italy has taken a more cautious approach, evaluating cases involving Huawei individually. Despite signing a 5G security declaration with the US, Slovenia rejected a bill to exclude high-risk manufacturers, indicating a more lenient stance.

Ransomware group dismantled by global authorities

An international operation has dismantled the criminal ransomware group Radar/Dispossessor, which had been targeting companies across various sectors, including healthcare and transport. Authorities from the United States and Germany led the effort to bring down the group, which was founded in August 2023 and initially focused on the US before expanding its attacks globally.

The investigation has identified 43 companies as victims, spanning countries such as the UK, Germany, Brazil, and Australia. The group, led by an individual using the alias ‘Brain’, primarily targeted small to medium-sized enterprises. Many more companies are believed to have been affected, with some cases still under investigation.

Radar/Dispossessor exploited vulnerable computer systems, often through weak passwords and the absence of two-factor authentication, to hold data for ransom. Authorities successfully dismantled servers and domains associated with the group in Germany, the US, and Britain.

Twelve suspects have been identified, hailing from various countries, including Germany, Russia, Ukraine, and Kenya. Investigations are ongoing to identify further suspects and uncover more companies that may have been victimised.

X agrees to pause EU data use for AI amid legal dispute

Elon Musk’s social media platform, X, has agreed to pause using data from European Union users to train its AI systems until further court decisions are made. The agreement comes after Ireland’s Data Protection Commission (DPC) sought to suspend X’s processing of user data for AI development, arguing that the platform had started using this data without user consent.

X, formerly known as Twitter, introduced an option for users to opt out of data usage for AI training. However, this was only available from 16 July, despite data processing beginning on 7 May. This delay led the DPC to take legal action, with a court hearing revealing that X would refrain from using data collected between 7 May and 1 August until the issue is resolved.

X’s legal team is expected to file opposition papers against the DPC’s suspension order by 4 September. The platform defended its actions, calling the regulator’s order unwarranted and unjustified. This case follows similar scrutiny faced by other tech giants like Meta and Google, which have also faced regulatory challenges in the EU over their AI systems.

Apple adjusts EU policies amid regulatory pressure

Apple has revised its policies in the European Union, allowing app developers to communicate with customers outside of its App Store. This move follows the European Commission‘s accusations that the tech giant was breaching the bloc’s technology rules. Previously, Apple permitted developers to direct users to a web page for transactions but did not allow broader communication or promotion from within the app.

Under the new policy, developers can promote offers that are available anywhere, not just on their websites. However, Apple has introduced two new fees: a 5% acquisition fee for new users and a 10% store services fee for sales made within 12 months of app installation on any platform. These fees will replace the reduced commission for digital goods and services sold through the App Store.

Spotify, a longtime critic of Apple’s in-app link policies, expressed concern over the new fees, suggesting they could undermine the Digital Markets Act (DMA), which aims to curb the power of big tech companies like Apple. The European Commission had previously criticised Apple’s fees, arguing they were excessive and unnecessary for fair remuneration.

The Commission will review Apple’s policy changes to ensure compliance with the DMA, which could impose fines of up to 10% of a company’s global annual revenue for violations. This charge against Apple marks the first under the new Digital Markets Act, highlighting the ongoing regulatory scrutiny on European tech giants.

DORA law tightens grip, banks and suppliers rush to meet EU regulations

Financial services firms across the European Union are preparing for new regulations under the Digital Operational Resilience Act (DORA). The law, which aims to enhance cybersecurity, will require banks and their technology suppliers to significantly strengthen their IT infrastructure by January 2025. The regulation mandates robust risk management, incident response, and resilience testing to ensure that financial institutions can withstand cyberattacks and other disruptions.

DORA’s scope extends beyond banks, placing stringent requirements on third-party technology providers. These suppliers must now undergo rigorous testing and reporting processes, as the regulation seeks to uncover dependencies within the digital supply chain. The new law represents a shift in focus towards the security of external tech partners, reflecting the growing reliance of financial institutions on digital services.

Non-compliance with DORA will result in severe penalties, with fines reaching up to 2% of global revenues for financial firms and 1% for IT providers. Individual managers could also face significant fines, further intensifying the pressure on firms to meet the new standards. Despite progress, many in the industry are concerned that not all companies will achieve full compliance by the deadline.

The European Union’s emphasis on cyber resilience highlights the evolving challenges faced by the financial sector. As banks and their suppliers scramble to meet the stringent requirements of DORA, the regulation underscores the critical importance of safeguarding digital infrastructure in an increasingly technology-dependent industry.