The European Commission has announced a significant investment in the continent’s digital infrastructure through its second work program under the Connecting Europe Facility (CEF) Digital, allocating €865 million in funding from 2024 to 2027. That initiative will target large-scale projects promoting the rollout of 5G and gigabit networks in key sectors such as healthcare, transport, logistics, and manufacturing.
By focusing on these industries, the EU aims to drive the integration of advanced technologies to meet increasing digital demands. The program also seeks to expand Europe’s digital backbone by strengthening quantum communication networks and laying new submarine cables to enhance connectivity with third countries.
Additionally, it will develop digital platforms for transport and energy, optimising ICT energy use while minimising environmental impact and ensuring seamless integration with existing European data, cloud, and connectivity infrastructures.
That initiative supports the EU’s ambitious 2030 Digital Decade goals, which aim to provide all citizens and businesses access to 5G and gigabit-speed internet. Margrethe Vestager, Executive Vice-President for Europe Fit for the Digital Age, emphasised the importance of enhancing connectivity to foster innovation and connect more citizens and businesses.
With a total budget of €2 billion until 2027, the broader CEF Digital program has already funded 65 projects, including 5G Smart Communities and cross-border 5G corridors. It plans to launch a fourth call for project proposals to accelerate digital transformation further.
Elon Musk’s platform, X (formerly known as Twitter), will not be classified as a ‘gatekeeper’ under the EU’s Digital Markets Act (DMA), a landmark set of tech regulations that impose strict obligations on major digital players. According to sources familiar with the situation, the European Commission, which has been investigating X since May, is expected to confirm this decision in the coming week.
The DMA prevents dominant tech companies from abusing their market power, particularly in messaging apps and pre-installed software. Platforms designated as gatekeepers must comply with rules to promote competition, such as ensuring their messaging systems are interoperable with rival apps and allowing users to choose which apps to install by default on their devices.
Despite meeting the user-base threshold for a gatekeeper, X argued that it does not meet the additional criteria of being a key intermediary between businesses and consumers. This claim led the Commission to launch its investigation to clarify whether the platform should face the extra obligations imposed by the DMA.
As the Commission’s ruling draws near, it highlights the ongoing scrutiny faced by tech giants under EU regulations to curb their influence over the digital economy. For Musk’s X, this is a significant reprieve amid growing regulatory pressure on Big Tech worldwide.
South Korea is preparing to impose foreign exchange rules on cross-border transactions involving stablecoins, especially those tied to the dollar. The Ministry of Economy and Finance revealed plans to ensure the security of stablecoin transactions, focusing on cross-border uses. The Financial Services Commission will address these regulations in the upcoming phase of the country’s Virtual Asset User Protection Act.
The regulatory framework will initially focus on stablecoins tied to South Korea’s won before expanding to include foreign currency-backed tokens. It mirrors recent regulatory moves in Japan and the EU. With a strong emphasis on user protection, South Korea’s new laws will enforce stricter security standards for virtual asset service providers, including insurance mandates and penalties for non-compliance.
A new independent body in Ireland will allow social media users in the European Union to challenge content moderation decisions made by platforms like Facebook, TikTok, and YouTube. Established under the EU Digital Services Act (DSA), this Appeals Centre aims to provide users with an alternative to the courts when disputing content decisions. Supported by Meta’s Oversight Board Trust and certified by Ireland’s media regulator, the centre is expected to begin operations by the end of the year. It will expand to include more platforms over time.
Thomas Hughes, CEO of the Appeals Centre, emphasised the body’s independence from governments and companies, ensuring that social media content policies are applied fairly. The centre’s team of experts will review cases within 90 days to determine if the platforms’ actions align with their stated policies. The European Commission has expressed support for the initiative, with spokesperson Thomas Regnier highlighting the importance of uniform development across the EU to strengthen online user rights.
Located in Dublin, the Appeals Centre will operate on a funding model that charges social media companies fees for each case. At the same time, users will incur a nominal fee that is refundable if their appeal is successful. However, platforms are not obligated to participate, as the centre lacks the power to enforce binding settlements. The centre will be governed by a board of seven non-executive directors.
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.
