EU

EU refuses to soften tech laws for Trump trade deal

The European Union has firmly ruled out dismantling its strict digital regulations in a bid to secure a trade deal with Donald Trump. Henna Virkkunen, the EU’s top official for digital policy, said the bloc remained fully committed to its digital rulebook instead of relaxing its standards to satisfy American demands.

While she welcomed a temporary pause in US tariffs, she made clear that the EU’s regulations were designed to ensure fairness and safety for all companies, regardless of origin, and were not intended as a direct attack on US tech giants.

Tensions have mounted in recent weeks, with Trump officials accusing the EU of unfairly targeting American firms through regulatory means. Executives like Mark Zuckerberg have criticised the EU’s approach, calling it a form of censorship, while the US has continued imposing tariffs on European goods.

Virkkunen defended the tougher obligations placed on large firms like Meta, Apple and Alphabet, explaining that greater influence came with greater responsibility.

She also noted that enforcement actions under the Digital Markets Act and Digital Services Act aim to ensure compliance instead of simply imposing large fines.

Although France has pushed for stronger retaliation, the European Commission has held back from launching direct countermeasures against US tech firms, instead preparing a range of options in case talks fail.

Virkkunen avoided speculation on such moves, saying the EU preferred cooperation to conflict. At the same time, she is advancing a broader tech strategy, including plans for five AI gigafactories, while also considering adjustments to the EU’s AI Act to better support small businesses and innovation.

Acknowledging creative industries’ concerns over generative AI, Virkkunen said new measures were needed to ensure fair compensation for copyrighted material used in AI training instead of leaving European creators unprotected.

The Commission is now exploring licensing models that could strike a balance between enabling innovation and safeguarding rights, reflecting the bloc’s intent to lead in tech policy without sacrificing democratic values or artistic contributions.

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Anthropic grows its presence in Europe

Anthropic is expanding its operations across Europe, with plans to add over 100 new roles in sales, engineering, research, and business operations. Most of these positions will be based in Dublin and London.

The company has also appointed Guillaume Princen, a former Stripe executive, as its head for Europe, the Middle East, and Africa. This move signals Anthropic’s ambition to strengthen its global presence, particularly in Europe where the demand for enterprise-ready AI tools is rising.

The company’s hiring strategy also reflects a wider trend within the AI industry, with firms like Anthropic competing for global market share after securing significant funding.

The recent $3.5 billion funding round bolsters Anthropic’s position as it seeks to lead the AI race across multiple regions, including the Americas, Europe, and Asia.

Instead of focusing solely on the US, Anthropic’s European push is designed to comply with local AI governance and regulatory standards, which are increasingly important to businesses operating in the region.

Anthropic’s expansion comes at a time when AI firms are facing growing competition from companies like Cohere, which has been positioning itself as a European-compliant alternative.

As the EU continues to shape global AI regulations, Anthropic’s focus on safety and localisation could position it favourably in these highly regulated markets. Analysts suggest that while the US may remain a less regulated environment for AI, the EU is likely to lead global AI policy development in the near future.

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MetaAI launches in Europe amid data concerns

Meta has resumed the roll-out of its MetaAI across Europe after halting the launch last year due to regulatory uncertainty.

The Irish Data Protection Commission (DPC) still has questions regarding Meta’s AI tool, particularly in relation to its use of personal data from Facebook and Instagram users to train large language models.

The company has been in discussions with the DPC, but instead of an agreement, it remains under review as the tool continues to roll out.

MetaAI was first introduced in the US in September 2023, followed by India in June 2024, and the UK in October. It enables users to interact with a chat function across Facebook, Instagram, Messenger, and WhatsApp.

However, its expansion in Europe faced delays last summer due to concerns raised by the Irish privacy watchdog.

The company has expressed confidence in its compliance with the EU’s data protection laws and has been transparent with the DPC about its launch. However, failure to comply with the General Data Protection Regulation (GDPR) could lead to significant fines.

Additionally, certain aspects of MetaAI fall under the scope of Europe’s Digital Services Act (DSA), which requires the company to meet specific standards on user safety and transparency.

The European Commission has indicated it is waiting for a risk assessment from Meta to ensure that the tool complies with DSA obligations. While initial elements may not be directly relevant to the DSA, the Commission will continue to monitor the deployment closely.

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European Commission charges €58.2 million in fees for DSA enforcement

The European Commission has charged the largest online platforms in the EU a total of €58.2 million in supervisory fees for their enforcement under the Digital Services Act (DSA).

These fees, which apply to platforms with over 45 million users per month, aim to fund the Commission’s activities for DSA enforcement, including administrative and human resource costs.

Meta, TikTok, and Google have filed five pending court cases against the fees, challenging the charges.

The DSA, designed to increase platform accountability, became fully applicable in February 2024, and the Commission has designated 25 Very Large Online Platforms, including major players like Amazon and LinkedIn.

During the 2024 period, the Commission launched formal proceedings against several platforms and sent over 100 requests for information.

However, instead of these fees fully covering the Commission’s expenses, they led to a deficit of €514,061. Investigations into platforms like X are ongoing, with transparency issues being a key concern.

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French watchdog fines Apple for abuse of app tracking tool

Apple has been fined €150 million ($162.42 million) by French antitrust regulators for allegedly abusing its dominant position in mobile app advertising between 2021 and 2023. The fine is the first to be imposed on Apple over its App Tracking Transparency (ATT) tool.

While the tool, which allows iPhone and iPad users to control app tracking, is not criticised itself, the French competition watchdog claimed its implementation was excessive and not proportional to its goal of protecting personal data.

The French regulators stated that ATT particularly harmed smaller publishers, who rely heavily on third-party data for their business. Despite the fine, Apple was not required to modify the ATT tool.

The decision follows complaints from online advertisers, publishers, and internet networks, who accused Apple of misusing its market power. Apple expressed disappointment with the fine but noted that no changes to the tool were mandated.

The fine comes after a €1.8 billion penalty last year from the EU, which accused Apple of restricting music streaming competitors. Additionally, the German antitrust agency has launched a probe into Apple for allegedly giving itself preferential treatment with the same privacy tool.

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EU to invest €1.3 billion in AI and digital skills

The European Commission has announced plans to invest €1.3 billion in artificial intelligence, cybersecurity, and digital skills development under the Digital Europe Programme for the period 2025 to 2027.

The funding aims to strengthen Europe’s position in advanced technologies and ensure that citizens and businesses can benefit from secure and cutting-edge digital tools.

Henna Virkkunen, the European Commission’s digital chief, emphasised the importance of the initiative, stating that European tech sovereignty depends on both technological innovation and the ability of people to improve their digital competences.

The investment reflects a strategic commitment to ensuring Europe remains competitive in the global digital landscape.

The Digital Europe Programme has been central to the EU’s digital transformation agenda. Through this latest funding round, the EU seeks to further enhance its technological resilience, support innovation, and prepare the workforce for the demands of a fast-evolving digital economy.

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Commission seeks simpler, harmonised telecom rules

EU Tech Commissioner Henna Virkkunen has voiced support for using a Regulation, rather than a Directive, in the upcoming Digital Networks Act.

She says this would ensure consistent implementation across all member states, avoiding the patchwork seen under current telecom rules.

Virkkunen also hinted at easing merger rules and reducing ex-ante regulation within the existing framework, the European Electronic Communications Code.

These changes, she noted, could encourage investment and help the EU meet its goal of full 5G and fibre coverage by 2030.

She criticised slow national efforts to phase out high-risk Chinese components from 5G networks, calling for stronger action.

Her stance follows pressure from MEPs concerned about ongoing cybersecurity risks and lack of enforcement.

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EU softens AI copyright rules

The latest draft of the EU AI Act’s Code of Practice offers a more flexible approach to copyright rules, focusing on proportionate compliance based on a provider’s size and capabilities.

However, this change comes as model providers face looming deadlines under the Act.

AI Developers must still avoid training on pirated content, respect opt-outs like robots.txt, and make reasonable efforts to prevent models from repeating copyrighted material.

However, they are no longer expected to perform exhaustive copyright checks on every dataset.

With potential fines of up to 15 million euros or 3% of global turnover, stakes remain high. Still, stakeholders welcome the clearer, more practical path to compliance, with final feedback on the draft due by the end of this month.

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WhatsApp wins support in EU fine appeal

WhatsApp has gained support from an adviser to the European Court of Justice in its fight against a higher fine imposed by the EU privacy watchdog.

The Irish Data Protection Authority fined WhatsApp 225 million euros ($242.2 million) in 2021 for privacy breaches.

The fine was increased after the European Data Protection Board (EDPB) intervened.

A lower tribunal had rejected WhatsApp’s challenge, saying the company lacked legal standing. However, WhatsApp appealed to the Court of Justice of the European Union (CJEU).

Advocate General Tamara Capeta disagreed with the tribunal, recommending that the case be referred back to the General Court for further review.

The CJEU usually follows the adviser’s recommendations, and a final ruling is expected soon. This case could have significant implications for the fine imposed on WhatsApp.

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EU regulators to drop Apple probe after compliance changes

EU antitrust regulators are preparing to close their year-long investigation into Apple’s web browser options on iPhones.

The inquiry, launched under the Digital Markets Act (DMA), examined whether Apple’s design restricted users from easily switching to rival browsers or search engines.

Changes implemented by the company have addressed the concerns of the European Commission, leading regulators to conclude the case.

The probe, which began in March last year, was part of the EU’s broader effort to ensure fair competition in digital markets.

Apple made modifications to its browser settings to comply with the new regulations, avoiding potential fines or further legal action. These changes align with the goal of the European Union to prevent dominant technology firms from imposing unfair restrictions on users.

Regulators are expected to officially close the investigation soon, marking a significant step in enforcing the DMA. The outcome highlights the EU’s growing influence over global tech policies, compelling major companies like Apple to adjust their practices to meet stricter competition standards.

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