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.
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.
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.
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.
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 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.
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.
ByteDance’s TikTok has agreed to permanently withdraw its TikTok Lite rewards program from the EU to comply with the Digital Services Act (DSA), according to the European Commission. The TikTok Lite rewards program allowed users to earn points by engaging in activities like watching videos and inviting friends.
In April, the EU demanded a risk assessment from TikTok on the app shortly after its launch in France and Spain, citing concerns about its potential impact on children and users’ mental health. Under the DSA, large online platforms must report potential risks of new features to the EU before launching and adopting measures to address these risks.
The available brain time of young Europeans is not a currency for social media—and it never will be ⏳🧠
We have obtained the permanent withdrawal of #TikTokLite “rewards”program, which could have had very addictive consequences.
TikTok has made legally binding commitments to withdraw the rewards program from the EU and not to launch any similar program that would bypass this decision. Breaching these commitments would violate the DSA and could lead to fines. Additionally, an investigation into whether TikTok breached online content rules aimed at protecting children and ensuring transparent advertising is ongoing, putting the platform at risk of further penalties.
The European Commission has initiated a public consultation to gather feedback on draft guidelines addressing exclusionary abuses of dominance. These guidelines cover predatory pricing, margin squeeze, exclusive dealing, and refusal to supply.
According to the Commission, these guidelines aim to enhance legal certainty, benefiting consumers, businesses, national competition authorities, and courts.
The world’s first comprehensive AI law, known as the EU AI Act, officially came into force on 1 August 2024, marking a significant step in regulating AI. This landmark legislation aims to ensure AI’s safe and trustworthy deployment across Europe by setting clear rules and guidelines. While the AI Act is now in effect, it will be fully applicable in two years, with specific provisions, such as bans on prohibited practices, taking effect sooner.
The AI Act establishes a legal framework to address the risks associated with AI while promoting innovation and investment in the technology. It gives AI developers precise requirements, especially for high-risk applications like critical infrastructure, education, and law enforcement. The regulation also includes measures to reduce administrative burdens for small and medium-sized enterprises, encouraging their participation in the AI sector.
Today, the Artificial Intelligence Act comes into force.
Europe's pioneering framework for innovative and safe AI.
It will drive AI development that Europeans can trust.
And provide support to European SMEs and startups to bring cutting-edge AI solutions to market. pic.twitter.com/cRoVoRtEy0
A central aspect of the AI Act is its risk-based approach, categorising AI systems into different risk levels, from minimal to unacceptable. High-risk systems, such as those used in healthcare and law enforcement, face stringent obligations to ensure safety and compliance. Additionally, the Act mandates transparency for general-purpose AI models and requires robust risk management and oversight.
The European AI Office has been established to oversee the enforcement and implementation of the AI Act. This office will work with member states to create an environment that respects human rights and fosters AI innovation. As AI evolves, the regulation is designed to adapt to technological changes, ensuring that AI applications remain trustworthy and beneficial for society.
