EU reviews Microsoft 365 data compliance

The European Data Protection Supervisor (EDPS) is reviewing the European Commission‘s response to a March ruling that its use of Microsoft 365 violated the bloc’s data protection laws. Monday marked the deadline for the Commission to address the EDPS order to halt unlawful data flows and renegotiate its contracts with Microsoft.

On Tuesday, EDPS Wojciech Wiewiórowski confirmed receipt of the Commission’s report, emphasising the complexity of the case and hinting that a detailed analysis will take time. Both the Commission and Microsoft are appealing the EDPS decision, with related cases set to progress through the courts in 2025.

The outcome could have significant implications for the Commission’s use of tech platforms and broader data privacy enforcement in the EU. For now, all parties remain tight-lipped, extending the uncertainty over the resolution of this high-profile dispute.

Norway’s Vipps challenges Apple Pay on iOS

Apple Pay has faced its first real competition on iPhones, thanks to Norway’s mobile payment app, Vipps. Leveraging new EU regulations, Vipps now allows iPhone users to make tap-to-pay transactions, shop online, and even set it as their default payment app. This is a significant milestone as Apple, under pressure from EU regulators, has opened its NFC chip to third-party developers with the release of iOS 18.1.

For a decade, Apple Pay was the exclusive method for tap-to-pay functionality on iPhones. That changed after EU rulings deemed Apple’s practices anti-competitive, prompting the company to commit to a more open ecosystem. In addition to enabling NFC access, Apple has also introduced RCS messaging support and expanded app deletion options in response to regulatory pressure.

Vipps’ debut as Apple Pay’s first competitor signals a shift toward a more diverse iPhone experience. While this development could usher in innovative payment solutions, it also raises concerns about potential fragmentation in mobile payment systems. For now, Norway is leading the charge in this new era of digital payments.

Google and Meta under European scrutiny over teen ad partnership

European regulators are investigating a previously undisclosed advertising partnership between Google and Meta that targeted teenagers on YouTube and Instagram, the Financial Times reports. The now-cancelled initiative aimed at promoting Instagram to users aged 13 to 17 allegedly bypassed Google’s policies restricting ad personalisation for minors.

The partnership, initially launched in the US with plans for global expansion, has drawn the attention of the European Commission, which has requested extensive internal records from Google, including emails and presentations, to evaluate potential violations. Google, defending its practices, stated that its safeguards for minors remain industry-leading and emphasised recent internal training to reinforce policy compliance.

This inquiry comes amid heightened concerns about the impact of social media on young users. Earlier this year, Meta introduced enhanced privacy features for teenagers on Instagram, reflecting the growing demand for stricter online protections for minors. Neither Meta nor the European Commission has commented on the investigation so far.

EU probes Nvidia’s sales practices amid antitrust concerns

The European Union is investigating Nvidia’s business practices, focusing on whether the AI chip leader ties its GPU products to other hardware like networking equipment. Nvidia, which dominates the GPU market with an 84% share, has faced increasing global scrutiny due to its role in the AI and accelerated computing sectors.

Regulators recently distributed questionnaires to Nvidia’s competitors and customers as part of their preliminary fact-finding process. If proven, antitrust violations could result in fines up to 10% of the company’s annual global turnover.

Nvidia has denied any wrongdoing, asserting its products compete on merit and support customer choice. The inquiry coincides with a separate investigation by France‘s antitrust authority, which may soon press charges.

EU orders TikTok to freeze election-related data in Romania

The European Union has directed TikTok to retain data related to Romania’s elections under the Digital Services Act, citing concerns over foreign interference. The move follows pro-Russia ultranationalist Calin Georgescu’s unexpected success in the presidential race’s first round, raising alarm about coordinated social media promotion.

Declassified documents revealed TikTok’s role in amplifying Georgescu’s profile via coordinated accounts and paid algorithms, despite his claim of no campaign spending. Romania‘s security agencies have flagged these efforts as ‘hybrid Russian attacks,’ accusations Russia denies.

TikTok stated its cooperation with the EU in addressing concerns and pledged to establish facts amid allegations. Romania’s runoff presidential vote is seen as pivotal for the country’s EU alignment.

EU scrutinises Nvidia’s $700 million Run:ai acquisition

European Union antitrust regulators are investigating whether Nvidia’s proposed $700 million acquisition of Run:ai could strengthen its dominant position in graphics processing units (GPUs). Nvidia currently holds 84% of the GPU market, far outpacing competitors Intel and AMD. Regulators are questioning Nvidia customers about potential bundling practices that might offer discounts for purchasing both its GPUs and software.

The European Commission is exploring whether such bundling provides Nvidia with a competitive edge and whether these practices could harm market competition. The Commission has set a preliminary review deadline of 20 December. Customers have also been asked how an open-source approach to Run:ai’s operations might impact their businesses. Nvidia has yet to comment on the inquiry.

GPUs are critical for data centres, gaming, and cryptocurrency mining, making this deal significant for the technology sector. The investigation could influence how Nvidia integrates Run:ai into its portfolio.

EU nations push for stronger battery sector

France, Germany, and Sweden have urged the next European Commission to bolster Europe’s battery production to meet green transition goals without becoming reliant on Chinese imports. In a joint paper, the countries emphasised the need for streamlined regulations, faster project approvals, increased funding, and alternative sources for raw materials like lithium.

The call comes as Sweden’s Northvolt faces financial difficulties, with fears that Europe’s dependence on Chinese manufacturing could mirror its earlier reliance on Russian gas. Leaders stressed the urgency of securing the region’s competitiveness.

Incoming EU leadership is expected to outline strategies for sustainable economic growth and climate goals within its first 100 days, focusing on policies that support scaling up European battery initiatives.

SEMI calls for stronger EU semiconductor policy

Industry group SEMI Europe has urged the incoming European Commission to adopt a more unified industrial strategy and expand on the existing European Chips Act. The group highlighted the importance of Mario Draghi’s recommendations, including a centralised EU budget and expedited approvals for strategic high-tech initiatives, to maintain competitiveness against the US and China.

SEMI emphasised the need for additional funding to bolster Europe’s semiconductor ecosystem, particularly in light of global export restrictions on chip technology and critical minerals. Quick action on EU export policies is vital to protect strategic interests and strengthen Europe’s global influence, the group said.

While the Chips Act focuses on attracting new manufacturing, SEMI and other industry voices, like ESIA, have called for broader support. This includes incentives for ‘legacy and foundational’ chip production and innovations essential for Europe’s green transition. Together, SEMI and ESIA represent leading players such as ASML, Infineon, and STMicroelectronics.

A revamped Chips Act would not only counter state-subsidised competition from China but also enhance Europe’s semiconductor supply chain resilience, crucial for its economic and technological independence.

EU ends tax aid probes into major companies

The European Commission announced the closure of its state aid investigations into tax rulings granted to Amazon, Fiat, and Starbucks by Luxembourg and the Netherlands. Initially, the Commission had ruled in 2015 and 2017 that these nations provided the companies with selective tax advantages that breached EU state aid rules. The allegations were part of broader efforts to address unfair tax practices within the European Union.

EU courts, however, annulled the Commission’s decisions in subsequent legal challenges, ruling that the tax arrangements did not constitute illegal state aid. As a result, the Commission concluded that the companies had not violated EU rules and formally ended the investigations.

The cases underscore the complexities of enforcing tax harmonisation across EU member states. Critics of the initial rulings argued that such cases reflect the challenges of balancing national tax sovereignty with EU-wide competition regulations. The closures may also influence future policies on corporate taxation in Europe.

Privacy battle brings WhatsApp to highest EU court

WhatsApp has taken its legal dispute over a €225 million fine to the Court of Justice of the European Union (CJEU). The fine, issued by Ireland’s data protection authority in 2021, stemmed from complaints about the company’s handling of personal data. The penalty increased after intervention by the European Data Protection Board (EDPB).

An earlier challenge to the fine was dismissed by the General Court, the EU’s second-highest tribunal, which ruled that WhatsApp was not directly affected by the EDPB’s decision. The court also noted that the Irish watchdog retained some discretion over the final ruling. WhatsApp has now appealed, arguing that the EDPB’s decisions have direct legal consequences.

Hans-Georg Kamann, representing WhatsApp, told the CJEU that the current framework is flawed and could affect future administrative processes across the EU. The appeal is seen as a critical test of how much influence EU bodies can wield over national regulators in privacy matters.

The CJEU is expected to issue a decision on the case, formally known as C-97/23 P WhatsApp Ireland v European Data Protection Board, in 2024.