AI firms fall short of EU transparency rules on training data

Several major AI companies appear slow to meet EU transparency obligations, raising concerns over compliance with the AI Act.

Under the regulation, developers of large foundation models must disclose information about training data sources, allowing creators to assess whether copyrighted material has been used.

Such disclosures are intended to offer a minimal baseline of transparency, covering the use of public datasets, licensed material and scraped websites.

While open-source providers such as Hugging Face have already published detailed templates, leading commercial developers have so far provided only broad descriptions of data usage instead of specific sources.

Formal enforcement of the rules will not begin until later in the year, extending a grace period for companies that released models after August 2025.

The European Commission has indicated willingness to impose fines if necessary, although it continues to assess whether newer models fall under immediate obligations.

The issue is likely to become politically sensitive, as stricter enforcement could affect US-based technology firms and intensify transatlantic tensions over digital regulation.

Transparency under the AI Act may therefore test both regulatory resolve and international relations as implementation moves closer.

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EU revises Cybersecurity Act to streamline certification

The European Commission plans to revise the Cybersecurity Act to expand certification schemes beyond ICT products and services. Future assessments would also cover companies’ overall risk-management posture, including governance and supply-chain practices.

Only one EU-wide scheme, the Common Criteria framework, has been formally adopted since 2019. Cloud, 5G, and digital identity certifications remain stalled due to procedural complexity and limited transparency under the current Cybersecurity Act framework.

The reforms aim to introduce clearer rules and a rolling work programme to support long-term planning. Managed security services, including incident response and penetration testing, would become eligible for EU certification.

ENISA would take on a stronger role as the central technical coordinator across member states. Additional funding and staff would be required to support its expanding mandate under the newer cybersecurity laws.

Stakeholders broadly support harmonisation to reduce administrative burden and regulatory fragmentation. The European Commission says organisational certification would assess cybersecurity maturity alongside technical product compliance.

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SRB GDPR case withdrawn from EU court

A high-profile EU court case on pseudonymised data has ended without a final ruling. The dispute involved the Single Resolution Board and the European Data Protection Supervisor.

The case focused on whether pseudonymised opinions qualify as personal data under the GDPR. Judges were also asked to assess reidentification risks and notification duties.

After intervention by the Court of Justice of the European Union, the matter returned to the General Court. Both parties later withdrew the case, leaving no binding judgement.

Legal experts say the CJEU’s guidance continues to shape enforcement practice. Regulators are expected to reflect those principles in updated EU pseudonymisation guidelines.

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EU lawmakers push limits on AI nudity apps

More than 50 EU lawmakers have called on the European Commission to clarify whether AI-powered applications for nudity are prohibited under existing EU legislation, citing concerns about online harm and legal uncertainty.

The request follows public scrutiny of the Grok, owned by xAI, which was found to generate manipulated intimate images involving women and minors.

Lawmakers argue that such systems enable gender-based online violence and the production of child sexual abuse material instead of legitimate creative uses.

In their letter, lawmakers questioned whether current provisions under the EU AI Act sufficiently address nudification tools or whether additional prohibitions are required. They also warned that enforcement focused only on substantial online platforms risks leaving similar applications operating elsewhere.

While EU authorities have taken steps under the Digital Services Act to assess platform responsibilities, lawmakers stressed the need for broader regulatory clarity and consistent application across the digital market.

Further political debate on the issue is expected in the coming days.

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EU reaffirms commitment to Digital Markets Act enforcement

European Commission Executive Vice President Teresa Ribera has stated that the EU has a constitutional obligation under its treaties to uphold its digital rulebook, including the Digital Markets Act (DMA).

Speaking at a competition law conference, Ribera framed enforcement as a duty to protect fair competition and market balance across the bloc.

Her comments arrive amid growing criticism from US technology companies and political pressure from Washington, where enforcement of EU digital rules has been portrayed as discriminatory towards American firms.

Several designated gatekeepers have argued that the DMA restricts innovation and challenges existing business models.

Ribera acknowledged the right of companies to challenge enforcement through the courts, while emphasising that designation decisions are based on lengthy and open consultation processes. The Commission, she said, remains committed to applying the law effectively rather than retreating under external pressure.

Apple and Meta have already announced plans to appeal fines imposed in 2025 for alleged breaches of DMA obligations, reinforcing expectations that legal disputes around EU digital regulation will continue in parallel with enforcement efforts.

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Billions in data protection fines remain unpaid

Ireland’s Data Protection Commission is owed more than €4 billion in fines imposed on companies, primarily Big Tech firms. Most of the penalties remain unpaid due to ongoing legal challenges.

Figures released under Freedom of Information laws show the watchdog collected only €125,000 from over €530 million in fines issued last year. Similar patterns have persisted across several previous years.

Since 2020, the commission has levied €4.04 billion in data protection penalties. Just €20 million has been paid, while the remaining balance is tied up in appeals before Irish and EU courts.

The regulator states that legislation prevents enforcement until the court proceedings conclude. Several cases hinge on a landmark WhatsApp ruling at the EU’s top court, expected to shape future collections.

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EU warns X over Grok AI image abuse

The European Commission has warned X to address issues related to its Grok AI tool. Regulators say new features enabled the creation of sexualised images, including those of children.

EU Tech Sovereignty Commissioner Henna Virkkunen has stated that investigators have already taken action under the Digital Services Act. Failure to comply could result in enforcement measures being taken against the platform.

X recently restricted Grok’s image editing functions to paying users after criticism from regulators and campaigners. Irish and EU media watchdogs are now engaging with Brussels on the issue.

UK ministers also plan laws banning non-consensual intimate images and tools enabling their creation. Several digital rights groups argue that existing laws already permit criminal investigations and fines.

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Concerns grow over planned EU-US biometrics deal

The EU has agreed to open talks with the US on sharing sensitive traveller data. The discussions aim to preserve visa-free travel for European citizens.

The proposal is called ‘Enhanced Border Security Partnership‘, and it could allow transfers of biometric data and other sensitive personal information. Legal experts warn that unclear limits may widen access beyond travellers alone.

EU governments have authorised the European Commission to negotiate a shared framework. Member states would later settle details through bilateral agreements with Washington.

Academics and privacy advocates are calling for stronger safeguards and transparency. EU officials insist data protection limits will form part of any final agreement.

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Cyber Fortress strengthens European cyber resilience

Luxembourg has hosted its largest national cyber defence exercise, Cyber Fortress, bringing together military and civilian specialists to practise responding to real-time cyberattacks on digital systems.

Since its launch in 2021, Cyber Fortress has evolved beyond a purely technical drill. The exercise now includes a realistic fictional scenario supported by media injections, creating a more immersive and practical training environment for participants.

This year’s edition expanded its international reach, with teams joining from Belgium, Latvia, Malta and the EU Cyber Rapid Response Teams. Around 100 participants also took part from a parallel site in Latvia, working alongside Luxembourg-based teams.

The exercise focuses on interoperability during cyber crises. Participants respond to multiple simulated attacks while protecting critical services, including systems linked to drone operations and other sensitive infrastructure.

Cyber Fortress now covers technical, procedural and management aspects of cyber defence. A new emphasis on disinformation, deepfakes and fake news reflects the growing importance of information warfare.

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EU instructs X to keep all Grok chatbot records

The European Commission has ordered X to retain all internal documents and data on its AI chatbot Grok until the end of 2026. The order falls under the Digital Services Act after concerns Grok’s ‘spicy’ mode enabled sexualised deepfakes of minors.

The move continues EU oversight, recalling a January 2025 order to preserve X’s recommender system documents amid claims it amplified far-right content during German elections. EU regulators emphasised that platforms must manage the content generated by their AI responsibly.

Earlier this week, X submitted responses to the Commission regarding Grok’s outputs following concerns over Holocaust denial content. While the deepfake scandal has prompted calls for further action, the Commission has not launched a formal investigation into Grok.

Regulators reiterated that it remains X’s responsibility to ensure the chatbot’s outputs meet European standards, and retention of all internal records is crucial for ongoing monitoring and accountability.

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