The European Commission has given the green light to Italian state aid for semiconductor manufacturer STMicroelectronics to construct a €5 billion microchip plant in Sicily. This approval comes as Europe seeks to reduce dependence on Asian imports for critical manufacturing components. The plant in Catania will specialise in producing microchips that enhance energy efficiency in electric vehicles and will receive a direct grant of about €2 billion from Rome.
The move comes amidst heightened scrutiny of Europe’s reliance on Asian chip supplies due to pandemic-related disruptions and trade tensions with China. To address these concerns, the EU has introduced its Chips Act, aiming to attract chip manufacturers and secure vital components for hi-tech industries. European antitrust chief Margrethe Vestager emphasised the strategic importance of diversifying chip supply chains and reducing dependencies on single suppliers.
As major shareholders in STMicro, the governments of France and Italy are backing the project. The new plant, STMicro’s second facility in Sicily, will produce silicon carbide chips known for their energy efficiency. This initiative signals a shift towards self-sufficiency in semiconductor production and supports Europe’s digital and green transition objectives. With operations expected to reach full capacity by 2032, the plant aims to bolster regional security of chip supply and meet the growing demand from automakers like Tesla, BMW, and Renault.
The European Commission announced on Tuesday that Meta Platforms has introduced measures to combat disinformation ahead of the EU elections. Meta has launched 27 real-time visual dashboards, one for each EU member state, to enable third-party monitoring of civic discourse and election activities.
This development comes after the European Commission investigated Meta last month for allegedly breaching EU online content regulations. The investigation highlighted concerns over Meta’s Facebook and Instagram platforms failing to address disinformation and deceptive advertising adequately.
While the formal procedures against Meta continue, the European Commission stated that it would closely monitor the implementation of these new features to ensure their effectiveness in curbing disinformation.
Two months after the European Parliament passed the landmark AI Act, the EU Commission office responsible for its implementation remains understaffed and leaderless. Although such a pace is common for public institutions, stakeholders worry it may delay the enactment of the hundreds of pages of the AI Act, especially with some parts coming into effect by the end of the year.
The EU Commission’s Directorate-General for Communication Networks, Content, and Technology (DG Connect), which houses the AI Office, is undergoing a reorganisation. Despite reassurances from officials that preparations are on track, concerns persist about the office’s limited budget, slow hiring process, and the overwhelming workload on the current staff. Three Members of the European Parliament (MEPs) have expressed dissatisfaction with the transparency and progress of the recruitment and leadership processes.
The European Commission has identified 64 deliverables for the AI Office, prohibiting certain AI uses set to take effect by the year’s end. Codes of practice for general-purpose models, such as ChatGPT, will be developed within nine months of the legislation’s enactment. Despite recent recruitment efforts, including two positions opened in March and additional roles for lawyers and AI ethicists soon to be advertised, the hiring process is expected to take several more months.
Why does it matter?
A significant question remains regarding the leadership of the AI Office. The Commission has yet to announce candidates or details of the selection process. Speculation has arisen around MEP Dragoș Tudorache, who has been active in AI policy and is not seeking re-election. However, he has not confirmed any plans post-tenure. The Commission aims to finalise the office’s staffing and leadership to ensure the smooth implementation of the AI Act.
Lobbying groups representing airlines, hotels, and retailers in Europe are urging the EU tech regulators to ensure that Google considers their views, not just those of large intermediaries, when implementing changes to comply with landmark tech regulations. These groups, including Airlines for Europe, Hotrec, EuroCommerce, and Ecommerce Europe, had previously expressed concerns about the potential impact of the EU’s Digital Markets Act (DMA) on their revenues.
The DMA aims to impose rules on tech giants like Google to give users more choice and offer competitors a fairer chance to compete. However, these industry groups fear the proposed adjustments could harm their direct sales revenues and exacerbate discrimination. In a joint letter to EU antitrust chief Margrethe Vestager and EU industry chief Thierry Breton, dated 22 May, they emphasised their mounting concerns regarding the potential consequences of the DMA.
Why does it matter?
Specifically, the groups worry that the proposed changes may give preferential treatment to powerful online intermediaries, resulting in a loss of visibility and traffic for airlines, hotels, merchants, and restaurants.
Despite Google’s acknowledgement in March that changes to search results may impact various businesses, including those in the European market, the company has not provided immediate comment on the recent concerns raised by these lobbying groups. The European Commission, currently investigating Google for possible DMA breaches, has yet to respond to requests for comment on the matter.
The EU’s privacy watchdog task force has raised concerns over OpenAI’s ChatGPT chatbot, stating that the measures taken to ensure transparency are insufficient to comply with data accuracy principles. In a report released on Friday, the task force emphasised that while efforts to prevent misinterpretation of ChatGPT’s output are beneficial, they still need to address concerns regarding data accuracy fully.
The task force was established by Europe’s national privacy watchdogs following concerns raised by authorities in Italy regarding ChatGPT’s usage. Despite ongoing investigations by national regulators, a comprehensive overview of the results has yet to be provided. The findings presented in the report represent a common understanding among national authorities.
Data accuracy is a fundamental principle of the data protection regulations in the EU. The report highlights the probabilistic nature of ChatGPT’s system, which can lead to biassed or false outputs. Furthermore, the report warns that users may perceive ChatGPT’s outputs as factually accurate, regardless of their actual accuracy, posing potential risks, especially concerning information about individuals.
Leading European research labs will receive €2.5 billion under the European Chips Act to establish a pilot line for developing and testing future generations of advanced computer chips, according to Belgium’s IMEC. The initiative is part of the EU’s €43 billion Chips Act, launched in 2023 to bolster domestic chipmaking in response to global shortages during the COVID-19 pandemic.
The pilot line, hosted by Leuven-based research hub IMEC, will focus on sub-2 nanometre chips. This facility aims to provide European industry, academia, and start-ups access to cutting-edge chip manufacturing technology, which would otherwise be prohibitively expensive. Top chipmakers like TSMC, Intel, and Samsung are already advancing 2-nanometre chips in commercial plants, costing up to €20 billion.
The European R&D line will be equipped with technology from European and global firms and is designed to support the development of even more advanced chips in the future. IMEC CEO Luc Van den Hove stated that this investment will double volumes and learning speed, enhancing the European chip ecosystem and driving economic growth across various industries, including automotive, telecommunications, and health.
Funding for this project includes €1.4 billion from several EU programs and the Flanders government, with an additional €1.1 billion from industry players, including equipment maker ASML. Other participating research labs include CEA-Leti from France, Fraunhofer from Germany, VTT from Finland, CSSNT from Romania, and the Tyndall Institute from Ireland. While aid under the EU plan has been slower than other regions, with only STMicroelectronics approved for €2.9 billion in aid from France, Intel and TSMC still await approval for substantial funding to build plants in Germany.
The EU enforcers responsible for overseeing the Digital Services Act (DSA) are intensifying their scrutiny of disinformation campaigns on X, formerly known as Twitter and owned by Elon Musk, in the aftermath of the recent shooting of Slovakia’s prime minister, Robert Fico. X has been under formal investigation since December for disseminating disinformation and the efficacy of its content moderation tools, particularly its ‘Community Notes’ feature. Despite ongoing investigations, no penalties have been imposed thus far.
Elon Musk’s personal involvement in amplifying a post by right-wing influencer Ian Miles Cheong linking the shooting to Robert Fico’s purported rejection of the World Health Organization’s pandemic prevention plan has drawn further attention to X’s role in spreading potentially harmful narratives. In response to inquiries during a press briefing, EU officials confirmed they are closely monitoring content on the platform to assess the effectiveness of X’s measures in combating disinformation.
In addition to disinformation concerns, X’s introduction of its generative AI chatbot, Grok, in the EU has raised regulatory eyebrows. Grok, known for its politically incorrect responses, has been delayed in certain aspects until after the upcoming European Parliament elections due to perceived risks to civic discourse and election integrity. The EU is in close communication with X regarding the rollout of Grok, indicating the regulatory scrutiny surrounding emerging AI technologies and their potential impact on online discourse and democratic processes.
The EU regulators announced on Thursday that Meta Platforms’ social media platforms, Facebook and Instagram, will undergo investigation for potential violations of the EU online content rules about child safety, potentially resulting in significant fines. The scrutiny follows the EU’s implementation of the Digital Services Act (DSA) last year, which places greater responsibility on tech companies to address illegal and harmful content on their platforms.
The European Commission has expressed concerns that Facebook and Instagram have not adequately addressed risks to children, prompting an in-depth investigation. Issues highlighted include the potential for the platforms’ systems and algorithms to promote behavioural addictions among children and facilitate access to inappropriate content, leading to what the Commission refers to as ‘rabbit-hole effects’. Additionally, concerns have been raised regarding Meta’s age assurance and verification methods.
Why does it matter?
Meta, formerly known as Facebook, is already under the EU scrutiny over election disinformation, particularly concerning the upcoming European Parliament elections. Violations of the DSA can result in fines of up to 6% of a company’s annual global turnover, indicating the seriousness with which the EU regulators are approaching these issues. Meta’s response to the investigation and any subsequent actions will be closely monitored as the EU seeks to enforce stricter regulations on tech giants to protect online users, especially children, from harm.
The European Commission announced on Monday that it has classified Booking as a ‘gatekeeper’ under the Digital Markets Act (DMA), signifying its strong market influence. At the same time, the Commission has initiated a market investigation into the regulatory status of social media network X to delve deeper into its market dominance. Despite this, according to the EU, online advertising services such as X Ads and TikTok Ads have not been designated as gatekeepers.
In March, the European Commission identified Elon Musk’s X, TikTok’s parent company ByteDance, and Booking.com as potential candidates for gatekeeper status, subjecting them to stringent tech regulations. While Booking has been officially designated as a gatekeeper, a market investigation has been initiated to address X’s opposition to such a classification. ByteDance was previously labelled as a gatekeeper in July last year, but TikTok has contested this designation at the EU’s second-highest court.
Why does it matter?
The Digital Markets Act (DMA) represents a significant step towards regulating the market dominance of large tech companies. It imposes stricter obligations on these firms, compelling them to moderate content, ensure fair competition, and facilitate consumer choice by making it easier to switch between services. As the EU continues to navigate the complexities of digital market regulation, the classification of gatekeepers and subsequent investigations serve as crucial measures to promote fair competition and protect consumers’ interests in the digital sphere.
The European Commission has taken a significant step in its investigation of company X under the Digital Services Act (DSA). On 8 May 2024, the Commission sent a request for information (RFI) to X, seeking detailed insights into its content moderation practices, particularly in light of a recent Transparency report highlighting a nearly 20% reduction in X’s content moderation team since October 2023. The reduction has diminished linguistic coverage within the EU, from 11 languages to 7.
Furthermore, the European Commission is keen on understanding X’s risk assessments and mitigation strategies concerning generative AI tools, especially their potential impact on electoral processes, dissemination of illegal content, and protection of fundamental rights. The investigation follows formal proceedings initiated against X in December 2023, examining potential breaches of the DSA related to risk management, content moderation, dark patterns, advertising transparency, and data access for researchers.
The request for information is part of an ongoing investigation, building upon prior evidence gathering and analysis, including X’s Transparency report released in March 2024 and its responses to previous information requests. X has been given deadlines to provide the requested information, with 17 May 2024 set for content moderation resources and generative AI-related data and 27 May 2024 for remaining inquiries. Failure to comply could result in fines or penalties imposed by the Commission, as stipulated under Article 74(2) of the DSA.
