The European Union and Singapore have finalised a digital trade agreement to facilitate cross-border data flows and establish global rules for digital trade. This new deal, which enhances the existing EU-Singapore free trade agreement from 2019, includes provisions for e-signatures, consumer protection, and limits on spam. It also addresses data access and transfer concerns, particularly regarding technology mandates from countries like China.
The agreement is expected to reduce business costs and boost services trade, benefiting both parties. Singapore, a major player in the EU’s services trade, saw its digital services trade reach 43 billion euros ($47 billion) in 2022. For the EU, this deal aligns with its goal to set global standards for digital trade, particularly in the Asia-Pacific region. The EU already has similar agreements with Britain, Chile, New Zealand, and Japan and is negotiating with South Korea.
The agreement, which must be ratified by Singapore, the EU’s national governments, and the European Parliament, reflects the growing importance of digitally delivered services, which have been rising at an average annual rate of 8.1% globally.
Top competition authorities from the EU, UK, and US have issued a joint statement emphasising the importance of fair, open, and competitive markets in developing and deploying generative AI. Leaders from these regions, including Margrethe Vestager of the European Commission, Sarah Cardell of the UK Competition and Markets Authority, Jonathan Kanter of the US Department of Justice, and Lina M. Khan of the US Federal Trade Commission, highlighted their commitment to ensuring effective competition and protecting consumers and businesses from potential market abuses.
The officials recognise the transformational potential of AI technologies but stress the need to safeguard against risks that could undermine fair competition. These risks include the concentration of control over essential AI development inputs, such as specialised chips and vast amounts of data, and the possibility of large firms using their existing market power to entrench or extend their dominance in AI-related markets. The statement also warns against partnerships and investments that could stifle competition by allowing major firms to co-opt competitive threats.
The joint statement outlines several principles for protecting competition within the AI ecosystem, including fair dealing, interoperability, and maintaining choices for consumers and businesses. The authorities are particularly vigilant about the potential for AI to facilitate anti-competitive behaviours, such as price fixing or unfair exclusion. Additionally, they underscore the importance of consumer protection, ensuring that AI applications do not compromise privacy, security, or autonomy through deceptive or unfair practices.
The EU’s Ecodesign for Sustainable Products Regulation (ESPR) comes into force today, mandating Digital Product Passports (DPPs) for most products (excluding food and medicine) by 2030. These passports will contain unique identifiers and machine-readable features to track a product’s lifecycle and offer recycling advice. This regulation aims to improve information exchange, boost recycling rates, and build trust between consumers and businesses.
An Ecodesign Forum is planned for late 2024 or early 2025 to create a comprehensive implementation plan by March 2025. The first products needing DPP compliance are batteries, which in 2027 must include data carriers like QR codes or barcodes linked to a DPP database. This initiative presents a significant challenge, requiring substantial IT infrastructure and data management to meet the Commission’s deadlines.
Businesses must ensure their systems are DPP-compatible to facilitate smooth information flow throughout the supply chain. Aligning member states and ensuring interoperability will test the DPP’s capabilities, and the transition period is expected to be challenging. However, stakeholders believe the economic and sustainability benefits will outweigh the difficulties.
For consumers, DPPs will encourage informed purchasing by providing detailed information on product disposal and repair, supporting the circular economy. With virgin materials becoming scarcer and more expensive, companies will likely introduce buy-back and reward schemes to improve resource efficiency, similar to initiatives like Apple’s Take Back program.
Meta will withhold its future multimodal AI models from customers in the EU due to a lack of clear regulatory guidance. This decision reflects a growing tension between US tech giants and EU regulators.
Meta plans to release its multimodal Llama model in the coming months, integrating video, audio, images, and text. However, these models will not be available in the EU, impacting both European companies and those offering products in the region.
The company’s larger, text-only Llama 3 model will be available in the EU. Meta’s concerns stem from compliance with the General Data Protection Regulation (GDPR), despite briefings with EU regulators and attempts to address their feedback.
The UK, with data protection laws similar to the EU, will receive the new model without regulatory delays. Meta argues that delays in Europe harm consumers and competitiveness, pointing out that other tech companies already use European data to train their models.
The EU antitrust regulators are investigating a deal between Google and Samsung, where Google’s chatbot, Gemini Nano, is embedded in Samsung’s Galaxy S24 smartphones. The European Commission wants to understand if this multi-year generative AI deal restricts rival chatbots from being installed on Samsung devices, raising concerns about potential anti-competitive practices.
Regulators have sent out a questionnaire to industry participants, asking if the pre-installation of Gemini Nano via the device or the cloud limits the number of other AI systems that can be pre-installed. They are also examining if this arrangement affects the interoperability between Gemini Nano and other pre-installed apps on Samsung smartphones.
The investigation aims to determine if competitors have faced challenges in making deals with device manufacturers for the pre-installation of their chatbots and the reasons behind any rejections. Feedback from industry participants is crucial in shaping the EU’s stance on the matter.
Respondents have until this week to submit their responses to the eight-page questionnaire, which will play a key role in assessing the impact of the Google-Samsung deal on market competition.
ByteDance, the owner of TikTok, lost its challenge against being labeled a gatekeeper under the EU Digital Markets Act (DMA). This ruling strengthens antitrust regulators’ efforts to limit the influence of Big Tech. The DMA requires gatekeepers to make messaging apps interoperable, allow users to choose pre-installed apps, and prevent them from favoring their services.
ByteDance argued that the designation could protect dominant companies from competition, but the Court of Justice of the EU (CJEU) ruled that the company had not substantiated its claims. The court highlighted TikTok’s significant growth, making it comparable to rivals such as Meta Platforms and Alphabet.
Judges noted that ByteDance met the DMA’s thresholds concerning global market value and the number of TikTok users within the EU. ByteDance expressed disappointment but mentioned it had already taken steps to comply with the DMA’s obligations before last March’s deadline.
Other companies designated as gatekeepers include Alphabet, Amazon, Apple, Booking.com, Meta Platforms, and Microsoft. Apple and Meta are also contesting their gatekeeper labels, with Apple arguing against the classification of its App Stores and iOS operating system.
The European Commission intends to study interoperability provisions in the Digital Markets Act (DMA) through a new tender. This study, commissioned by the Directorate General for Communications Networks, Content, and Technology (DG CONNECT), aims to identify technical challenges and solutions for effective interoperability under the DMA, with a review expected by May 2026.
Under the DMA, gatekeepers must ensure their communication services, such as messaging apps, are interoperable with competitors’ platforms. However, this requirement is designed to protect competition by allowing users to switch between services more easily, addressing issues particularly noted with Apple’s App Store and Apple Pay. The commissioned study will evaluate the effectiveness of interoperability for number-independent messaging services like Facebook’s Messenger and WhatsApp, which do not require mobile number registration.
The evaluation will help determine whether these interoperability requirements should extend to online social networking services. The study will consider practical matters such as security, encryption, personal data collection, user interfaces, and content moderation. Companies like Apple have argued that interoperability could compromise privacy.
The tender for the study was published in the EU Official Journal of Tenders on 11 July. The company awarded the contract will play a crucial role in shaping the future of interoperability under the DMA.
The European Union has finalised its AI Act, a significant regulatory framework aimed at governing the use of AI within its member states. Published in the EU’s Official Journal, the law will officially come into effect on 1 August, with a phased implementation set to unfold over the next several years. By mid-2026, all provisions are expected to be fully applicable, marking a gradual rollout to accommodate various deadlines and compliance requirements.
Under the AI Act, different obligations are imposed on AI developers based on the perceived risk of their applications. Low-risk uses of AI will generally remain unregulated, while high-risk applications—such as biometric uses in law enforcement and critical infrastructure—will face stringent requirements around data quality and anti-bias measures. The law also introduces transparency requirements for developers of general-purpose AI models, like OpenAI’s GPT, ensuring that the most powerful AI systems undergo systemic risk assessments.
The phased approach begins with a list of prohibited AI uses becoming effective six months after the law’s enactment in early 2025. That includes bans on practices such as social credit scoring and unrestricted compilation of facial recognition databases. Subsequently, codes of practice for AI developers will be implemented nine months after the law takes effect to guide compliance with the new regulations. Concerns have been raised about the influence of AI industry players in shaping these guidelines, prompting efforts to ensure an inclusive drafting process overseen by the newly established EU AI Office.
By August 2025, transparency requirements will apply to general-purpose AI models, with additional time granted to comply with some high-risk AI systems until 2027. These measures reflect the EU’s proactive stance in balancing innovation with robust regulation to foster a competitive AI landscape while safeguarding societal values and interests.
According to a ruling by the EU tech regulators, Elon Musk’s social media company, X, has breached the EU online content rules. The decision taken by the European Commission follows a seven-month investigation under the Digital Services Act (DSA), which mandates that large online platforms and search engines tackle illegal content and address risks to public security. The European Commission highlighted issues with X’s use of dark patterns, lack of advertising transparency, and restricted data access for researchers.
The investigation also noted that X’s verified accounts, marked with a blue checkmark, do not adhere to industry standards, impairing users’ ability to verify account authenticity. X must also meet the DSA requirement to provide a reliable, searchable advertisement repository. The company has also been accused of obstructing researchers from accessing its public data, violating the DSA.
Why does this matter?
X has several months to respond to these charges. The company could face a fine of up to 6% of its global turnover if found guilty. The EU industry chief, Thierry Breton, stated that if their findings are confirmed, they will impose fines and demand significant operational changes.
The EU Commission has announced that Apple will open its near-field-communication (NFC) technology to third party developers, including competitors. Rival mobile wallet providers will now be able to use this technology as well, giving them access to a new market of users. Companies other than Apple will also be able to access tap-and-go services which use NFC technology. This means they will have access to technologies for things like digital wallets, house and car keys, security badges, loyalty cards, and event tickets.
“We have offered commitments to provide third-party developers in the European Economic Area with an option that will enable their users to make NFC contactless payments from within their iOS apps, separate from Apple Pay and Apple Wallet,” Apple said in an emailed statement to Reuters. EU antitrust chief Margrethe Vestager noted that ‘consumers will have a wider range of safe and innovative mobile wallets to choose from.’
After the EU shared its concerns on Apple’s market dominance in May 2022, Apple decided it would settle the case and determined a first set of commitments. Commission market-tested these commitments between 19 January 2024 and 19 February 2024, consulting all interested third parties to verify whether they would remove its competition concerns. After this process, Apple came up with a second round of commitments which the EU turned into law. This way, Apple avoided a violation of the EU’s antitrust laws and a fine.
Apple’s decision to settle the EU antitrust probe stands out given the company has pushed back against the EU competition watchdog on other occasions. Besides this case, it is currently facing a number of investigations under the Digital Markets Act (DMA) over its business practices. It recently received a €1.8 billion fine, which it is currently appealing.
