EU cybersecurity label vote postponed

National cybersecurity experts have postponed a vote on a proposed EU cybersecurity label until May, according to sources familiar with the matter. The EU aims to implement a cybersecurity certification scheme (EUCS) to ensure the security of cloud services, aiding governments and businesses in selecting trustworthy vendors. This delay allows tech giants like Amazon, Google, and Microsoft to continue bidding for sensitive EU cloud computing contracts.

Disagreements have arisen over whether strict requirements should be imposed on major tech companies to qualify for the highest level of the EU cybersecurity label. These disagreements have stalled progress despite recent discussions among experts in Brussels. Holding the rotating EU presidency, Belgium has made adjustments to the draft, reflecting ongoing deliberations.

The most recent version of the draft has eliminated sovereignty requirements that previously mandated US tech giants to collaborate with EU-based companies to handle customer data in the bloc. While major tech firms have welcomed this change, it has drawn criticism from EU-based cloud vendors and businesses like Deutsche Telekom, Orange, and Airbus. They argue that removing these requirements poses a risk of unauthorised data access by non-EU governments under their respective laws.

Following the experts’ postponed vote, the next phase involves the EU countries providing input, with the European Commission making the final decision. The outcome of these discussions will significantly impact the landscape of cybersecurity regulations and the involvement of major tech players in the EU’s cloud computing sector.

EU considers stricter rules for Chinese e-commerce platform Temu

A significant shift in oversight may be on the horizon for the popular Chinese e-commerce platform Temu as it discloses its monthly European user base of 75 million. Temu, an extension of China’s Pinduoduo, has attracted attention for its privacy and cybersecurity practices, facing recent scrutiny in Germany for alleged consumer misrepresentation. Although Temu was already subject to specific Digital Services Act (DSA) regulations, its newly declared scale could trigger more stringent obligations under European Commission supervision.

Online platforms exceeding 45 million users within the EU must undergo external audits and risk assessments, evaluating their efforts to combat illegal content like counterfeit goods or hazardous products. Violations could lead to fines amounting to 6% of their global turnover. The European Commission is tasked with formally designating such major online platforms, providing four months for companies to prepare for intensified regulations. When queried about Temu’s potential designation, the Commission remained non-committal but acknowledged engagement with the platform.

Meanwhile, the European Commission is gearing up to designate Shein, a Chinese fashion platform boasting over 108 million European users, further signalling the EU’s intent to assert regulatory oversight over large-scale digital platforms. The move underscores the EU’s commitment to enforcing stricter content moderation rules and consumer protection measures within the digital sphere, particularly in response to the expansive reach and influence of major online platforms like Temu and Shein.

EU antitrust probe into Microsoft’s OpenAI investment nears conclusion

The EU regulators are swiftly moving to conclude a preliminary investigation into Microsoft’s relationship with OpenAI, according to Margrethe Vestager, the EU’s antitrust chief. The probe, initiated in January, aims to determine whether Microsoft’s substantial investment of $13 billion into OpenAI should undergo scrutiny under the EU merger regulations. Vestager indicated in an interview with Bloomberg TV that a resolution is forthcoming, highlighting ongoing discussions with other regulatory authorities.

Vestager emphasised that the EU authorities closely monitor Microsoft’s investments and the broader trend of large tech companies investing in AI. The scrutiny extends beyond Microsoft to include other significant AI investments from major tech firms like Google, Amazon, and Nvidia. The EU mainly ensures competitiveness and prevents anti-competitive practices in this rapidly evolving AI landscape.

Microsoft’s involvement with OpenAI represents a significant stake, with the tech giant investing in other AI ventures, such as French startup Mistral and acquiring the team from Inflection AI. This investment landscape extends to other major players like Google and Amazon, which have their stakes in AI ventures. Vestager stressed the importance of vigilance in this emerging field, characterising it as a critical area for regulatory oversight to safeguard competition and innovation in the AI sector.

Surge in users for EU independent browsers following DMA implementation

Independent browser companies within the EU are reporting significant increases in user numbers following the implementation of new EU legislation to foster fair competition among tech giants. The Digital Markets Act (DMA), effective on 7 March, requires major players like Google, Microsoft, and Apple to present mobile users with a ‘choice screen’ where they can opt for alternative web browsers. Before this regulation, default browsers like Chrome for Android and Safari for iPhones dominated the market, providing free services in exchange for user tracking and targeted advertising.

Since the new rules came into effect, companies like Cyprus-based Aloha Browser have experienced a 250% surge in the EU users. Aloha, known for its privacy-focused approach, has seen its EU market ranking rise from fourth to second place. Similarly, other companies like Vivaldi from Norway, Ecosia from Germany, and Brave from the US have also noted increased user numbers following the regulatory changes. DuckDuckGo and Opera, with substantial global user bases, are also witnessing growth within the EU due to the choice screen.

Why does it matter?

Under the DMA, mobile device manufacturers are required to present users with a selection of browsers, search engines, and virtual assistants during device setup. Apple, for instance, now displays up to 11 browser options alongside Safari in the choice screens tailored for each EU country, updating them annually. However, companies like Mozilla have criticised the rollout as slow and clunky, hindering the migration of users to alternative browsers. The European Commission has initiated an investigation into Apple’s compliance with the new rules, particularly focusing on whether users have genuine freedom to choose alternative services beyond defaults like Safari.

US and EU advance cooperation on digital ID standards

Following a recent Trade and Technology Council (TTC) meeting, the US and the EU have announced significant progress in aligning technical standards for digital identity. A joint statement released after the meeting outlines plans to identify use cases for transatlantic interoperability and cooperation, paving the way for cross-border digital identity and wallet usage.

This collaboration, which aims to harmonize technology and trade policies, has already yielded tangible results, such as the Digital Identity Mapping Exercise Report, which covers standards for electronic identification and trust services for electronic transactions.

Despite some differences, notably in trust services, both sides are committed to continued information exchange through mechanisms like the Strategic Standardisation Information (SSI).

Why does it matter?

The EU and US share the world’s most integrated economic relationship, with the US remaining the EU’s largest trading partner. While the Digital Identity Mapping Report aims for shared terminology, it’s important to note that the EU member countries aren’t bound by US NIST guidance, and vice versa; harmonizing frameworks between them could streamline cross-border trade and promote secure transatlantic online access.

EU political parties sign election integrity code of conduct

The EU political parties are set to sign a new code of conduct on Tuesday, 9 April 2024, to safeguard the upcoming EU elections from foreign interference and disinformation. The initiative, brokered by the European Commission, is part of a broader effort to protect the integrity of the electoral process.

The code of conduct, overseen by Vice-President Věra Jourová, focuses on preventing the amplification of narratives led by non-EU entities that seek to undermine European values. Parties across the political spectrum, including left, socialists, centre-right, liberals, conservatives, greens, and far-right groups, are committing to proactive measures against spreading misinformation. They pledge to ensure transparency by labelling AI-generated content and not disseminating unfounded accusations or deceptive materials targeting other parties. Although this adds an extra layer of protection to the electoral campaign, the responsibility for implementation and monitoring falls on the European parties rather than national parties conducting the campaign on the ground.

Despite these commitments, the code of conduct lacks independent oversight and enforcement mechanisms instead of relying on the parties to promote compliance among their members and conduct post-election reviews. Commission Vice-President Jourová emphasised the symbolic importance of this collective commitment by European political parties to uphold the integrity of elections, urging them to adhere to ethical and fair campaigning practices in the coming months.

Why does it matter?

The agreement follows recent scandals involving European Parliament members, like Qatargate and Russiagate, and underlines the importance of defending democracy against foreign interference. While the code of conduct does not extend to national parties, it represents a significant step forward in addressing digital risks and maintaining transparency in electoral communications.

India and the EU collaborate on High-Performance Computing

India has initiated action on the Cooperation on High-Performance Computing pact signed with the EU in 2022, inviting proposals from researchers to utilise HPC for various critical applications. The pact, established during a virtual ceremony in November 2022, emphasised technological collaboration on Quantum and High-Performance Computing between India and the EU, focusing on advancing R&D in HPC technologies. However, progress had stalled until February 2024, when the EU activated its part of the pact, aiming to foster collaboration with India in optimising HPC applications across domains of mutual interest.

Europe’s envisioned outcomes from this collaboration include enhancing HPC applications, fostering information sharing to tackle societal challenges, facilitating researcher exchange between India and the EU, and strengthening international cooperation in HPC development. While the EU’s document lacks specifics on the path forward, India’s recent call for proposals delineates a clear roadmap. The Ministry of Electronics and Information Technology seeks proposals to analyse climate change, bioinformatics, and natural hazards using HPC, alongside developing integrated early warning systems for multi-hazard scenarios. Proposals are expected to outline specific application optimisation plans, development timelines, and critical performance indicators demonstrating cooperative benefits. Accepted proposals allow access to HPC facilities in India and the EU.

India’s Supercomputing Mission has commissioned 28 supercomputers, while the EU’s High-Performance Computing Joint Undertaking operates nine machines with substantial computing power. Despite the progress, India and the EU still need to provide a timeframe for implementing approved proposals.

Apple under EU antitrust scrutiny over proposal for Spotify and App Store

The EU antitrust regulators are scrutinising a proposal by Apple to determine if it meets their directive allowing Spotify and other music streaming services to inform users of alternative payment methods outside of Apple’s App Store. This review follows the European Commission‘s recent order and hefty fine imposed on Apple for breaching competition rules. Under Apple’s proposal, services like Spotify can now include links on their apps directing users to their websites to purchase digital content or services, circumventing Apple’s payment system.

However, there’s a catch: any transactions resulting from these links will incur a 27% fee to Apple, including subsequent auto-renewing subscriptions. The European Commission is evaluating whether Apple’s proposal fully aligns with its decision. If there’s suspicion of non-compliance, the Commission may issue a Statement of Objections to address the concerns.

Apple insists that its plan adheres to the Commission’s decision, although Spotify has expressed frustration over Apple’s delay in complying with the EU order, which was issued five weeks ago. Meanwhile, the Commission is conducting a separate investigation into Apple’s App Store rules and its recent measures to comply with the Digital Markets Act (DMA) amid concerns that these could restrict developers from freely communicating and promoting their offerings.

Why does it matter?

The outcome of the EU’s assessment will determine whether Apple faces additional antitrust charges and penalties if its proposal is found to fall short of the Commission’s requirements. The ongoing dispute highlights the broader regulatory scrutiny facing tech giants like Apple over their market practices and dominance in the digital ecosystem, particularly concerning payment systems and app store policies.

EU launches toolkit to combat fake news in history education

The Council of Europe and the EU have collaborated to introduce a new educational tool to empower young people to assess content found online and in the media, discern historical inaccuracies, and engage in critical thinking about the material they come across. Dubbed the ‘Toolkit for History Classes: Debunking Fake News and Fostering Critical Thinking,’ this resource comprises 11 online activities designed to help students analyse various topics and events through historical sources and a multiperspective approach. Accompanying this toolkit is a free online training course for secondary school teachers, offering practical guidance on integrating the toolkit into classroom settings. Scheduled for release to the public in Autumn 2024, this initiative seeks to equip students with essential skills for navigating the digital landscape.

The unveiling of the toolkit will take place during the HISTOLAB European Innovation Days in History Education, scheduled from 3 to 5 April at the Council of Europe headquarters in Strasbourg. The conference, which is focused on history education, will bring together over 150 practitioners from across the EU and beyond to showcase and discuss innovative initiatives and practices in research, academia, and history teaching. Participants will explore diverse educational approaches, from analysing historical narratives through social media to using architecture to teach about totalitarian regimes.

The Innovation Days will feature nine practical workshops demonstrating engaging teaching methods that resonate with young learners. Examples include using LEGO to teach concepts of democracy and leveraging the medium of football to impart historical knowledge. With a focus on interactive and student-centred learning, these workshops aim to bridge the gap between traditional teaching methods and the interests of contemporary youth, fostering a deeper understanding of history in the process.

EU fines Apple €1.8B for Spotify antitrust case, Apple to appeal

The European Commission has imposed a first-time fine of 1.8 billion euros ($1.95 billion) on Apple for restricting Spotify and other music streaming services from offering alternative payment options outside its App Store. This verdict follows Spotify’s 2019 complaint concerning these limitations and Apple’s 30% App Store fees.

The EU competition authority deemed Apple’s restrictions as unfair trading practices. Margrethe Vestager, EU antitrust chief, explained how Apple exploited its market dominance for a decade by limiting developers from suggesting cheaper music services outside the Apple ecosystem, a violation of EU antitrust regulations. Apple is instructed to eliminate App Store constraints, aligning with requirements from the new Digital Markets Act (DMA), which Apple must comply with by March 7.

Apple expressed its intent to contest the EU’s decision in court, stating the ruling disregards the lack of credible proof of consumer harm and overlooks a flourishing and competitive market. The company further remarked that Spotify, the primary proponent and benefactor of this decision, holds the world’s largest music streaming app and has engaged extensively with the European Commission.