Spain’s government has approved a bill imposing heavy fines on companies that fail to label AI-generated content, aiming to combat the spread of deepfakes.
The legislation, which aligns with the European Union’s AI Act, classifies non-compliance as a serious offence, with penalties reaching up to €35 million or 7% of a company’s global revenue.
Digital Transformation Minister Oscar Lopez stressed that AI can be a force for good but also a tool for misinformation and threats to democracy.
The bill also bans manipulative AI techniques, such as subliminal messaging targeting vulnerable groups, and restricts the use of AI-driven biometric profiling, except in cases of national security.
Spain is one of the first EU nations to implement these strict AI regulations, going beyond the looser US approach, which relies on voluntary compliance.
A newly established AI supervisory agency, AESIA, will oversee enforcement, alongside sector-specific regulators handling privacy, financial markets, and law enforcement concerns.
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The Digital Markets Act (DMA) and the Digital Services Act (DSA) are two major regulatory frameworks introduced by the EU to create a fairer and safer digital environment. While both fall under the broader Digital Services Act package, they serve distinct purposes.
The DMA focuses on ensuring fair competition by regulating large online platforms, known as gatekeepers, which have a dominant influence on digital markets. It prevents these companies from engaging in monopolistic practices, such as self-preferencing their own services, restricting interoperability, or using business data unfairly. The goal is to create a more competitive landscape where smaller businesses and consumers have more choices.
On the other hand, the DSA is designed to make online spaces safer by holding platforms accountable for illegal content, misinformation, and harmful activities. It imposes stricter content moderation rules, enhances transparency in digital advertising, and ensures better user rights protection. Larger platforms with significant user bases face even greater responsibilities under this act.
The key difference in regulation is that the DMA follows an ex-ante approach, meaning it imposes strict rules on gatekeepers before unfair practices occur. The DSA takes an ex-post approach, requiring platforms to monitor risks and take corrective action after problems arise. This means the DMA enforces competition while the DSA ensures online safety and accountability.
A key component of the DSA Act package is its emphasis on transparency and user rights. Platforms must explain how their algorithms curate content, prevent the use of sensitive data for targeted advertising, and prohibit manipulative design practices such as misleading cookie banners. The most powerful platforms, classified as Very Large Online Platforms (VLOPs) or Very Large Online Search Engines (VLOSEs), are also required to assess and report on ‘systemic risks’ linked to their services, including threats to public safety, democratic discourse, and mental well-being. However, these reports often lack meaningful detail, as illustrated by TikTok’s inadequate assessment of its role in election-related misinformation.
Enforcement is critical to the success of the DSA. While the European Commission directly oversees the largest platforms, national regulators, known as Digital Services Coordinators (DSCs), play a key role in monitoring compliance. However, enforcement challenges remain, particularly in countries like Germany, where understaffing raises concerns about effective regulation. Across the EU, over 60 enforcement actions have already been launched against major tech firms, yet Silicon Valley’s biggest players are actively working to undermine European rules.
Together, the DMA and the DSA reshape how Big Tech companies operate in the EU, fostering competition and ensuring a safer and more transparent digital ecosystem for users.
Trump and Silicon Valley’s fight against EU regulations
The close relationship between Donald Trump and the Silicon Valley tech elite has significantly influenced US policy towards European digital regulations. Since Trump’s return to office, Big Tech executives have actively lobbied against these regulations and have urged the new administration to defend tech firms from what he calls EU ‘censorship.’
Joel Kaplan, Meta’s chief lobbyist, has gone as far as to equate EU regulations with tariffs, a stance that aligns with the Trump administration’s broader trade war strategy. The administration sees these regulations as barriers to US technological dominance, arguing that the EU is trying to tax and control American innovation rather than foster its own competitive tech sector.
Figures like Elon Musk and Mark Zuckerberg have aligned themselves with Trump, leveraging their influence to oppose EU legislation such as the DSA. Meta’s controversial policy changes and Musk’s X platform’s lax approach to content moderation illustrate how major tech firms are resisting regulatory oversight while benefiting from Trump’s protectionist stance.
The White House and the House Judiciary Committee have raised concerns that these laws unfairly target American technology companies, restricting their ability to operate in the European market.
Brendan Carr, chairman of the FCC, has recently voiced strong concerns regarding the DSA, which he argues could clash with America’s free speech values. Speaking at the Mobile World Congress in Barcelona, Carr warned that its approach to content moderation might excessively limit freedom of expression. His remarks reflect a broader criticism from US officials, as Vice President JD Vance had also denounced European content moderation at a recent AI summit in Paris, labelling it as ‘authoritarian censorship.’
These officials argue that the DMA and the DSA create barriers that limit American companies’ innovations and undermine free trade. In response, the House Judiciary Committee has formally challenged the European Commission, stating that certain US products and services may no longer be available in Europe due to these regulations. Keep in mind that the Biden administration also directed its trade and commerce departments to investigate whether these EU laws restrict free speech and recommend countermeasures.
Recently, US President Donald Trump has escalated tensions with the EU threatening tariffs in retaliation for what he calls ‘overseas extortion.’ The memorandum signed by Trump on 21 February 2025, directs the administration to review EU and UK policies that might force US tech companies to develop or use products that ‘undermine free speech or foster censorship.’ The memo also aims at Digital Services Taxes (DSTs), claiming that foreign governments unfairly tax US firms ‘simply because they operate in foreign markets.’
EU’s response: Digital sovereignty at stake
However, the European Commission insists that these taxes are applied equally to all large digital companies, regardless of their country of origin, ensuring fair contributions from businesses profiting within the EU. It has also defended its regulations, arguing that they promote fair competition and protect consumer rights.
EU officials see these policies as fundamental to Europe’s digital sovereignty, ensuring that powerful tech firms operate transparently and fairly in the region. As they push back against what they see as US interference and tensions rise, the dispute over how to regulate Big Tech could shape the future of digital markets and transatlantic trade relations.
Eventually, this clash could lead to a new wave of trade conflicts between the USA and the EU, with potential economic and geopolitical consequences for the global tech industry. With figures like JD Vance and Jim Jordan also attacking the DSA and the DMA, and Trump himself framing EU regulations as economic warfare, Europe faces mounting pressure to weaken its tech laws. Additionally, the withdrawal of the EU Artificial Intelligence Liability Directive (AILD) following the Paris AI Summit and JD Vance’s refusal to sign a joint AI statement raised more concerns about Europe’s ability to resist external pushback. The risk that Trump will use economic and security threats, including NATO involvement, as leverage against EU enforcement underscores the urgency of a strong European response.
Another major battleground is the AI regulation. The EU’s AI Act is one of the world’s first comprehensive AI laws, setting strict guidelines for AI transparency, risk assessment, and data usage. Meanwhile, the USA has taken a more industry-led approach, with minimal government intervention.
This regulatory gap could create further tensions as European lawmakers demand compliance from American AI firms. The recent withdrawal of the EU Artificial Intelligence Liability Directive (AILD) under US pressure highlights how external lobbying can influence European policymaking.
However, if the EU successfully enforces its AI rules, it could set a global precedent, forcing US firms to comply with European standards if they want to operate in the region. This scenario mirrors what happened with the GDPR (General Data Protection Regulation), which led to global changes in privacy policies.
To counter the growing pressure, the EU remains steadfast – as we speak – in enforcing the DSA, the DMA, and the AI Act, ensuring that regulatory frameworks are not compromised under US influence. Beyond regulation, Europe must also bolster its digital industrial capabilities to keep pace. The EUR 200 billion AI investment is a step in the right direction, but Europe requires more resilient digital infrastructures, stronger back-end technologies, and better support for its tech companies.
Currently, the EU is doubling down on its push for digital sovereignty by investing in:
Cloud computing infrastructure to reduce reliance on US providers (e.g., AWS, Microsoft Azure)
AI development and semiconductor manufacturing (through the European Chips Act)
These efforts aim to lessen European dependence on US Big Tech and create a more self-sufficient digital ecosystem.
The future of digital regulations
Despite the escalating tensions, both the EU and the USA recognise the importance of transatlantic tech cooperation. While their regulatory approaches differ significantly, there are areas where collaboration could still prevail. Cybersecurity remains a crucial issue, as both sides face growing threats from several countries. Strengthening cybersecurity partnerships could provide a shared framework for protecting critical infrastructure and digital ecosystems. Another potential area for collaboration is the development of joint AI safety standards, ensuring that emerging technologies are regulated responsibly without stifling innovation. Additionally, data-sharing agreements remain essential to maintaining smooth digital trade and cross-border business operations.
Past agreements, such as the EU-US Data Privacy Framework, have demonstrated that cooperation is possible. However, whether similar compromises can be reached regarding the DMA, the DSA, and the AI Act remains uncertain. Fundamental differences in regulatory philosophy continue to create obstacles, with the EU prioritising consumer protection and market fairness while the USA maintains a more business-friendly, innovation-driven stance.
Looking ahead, the future of digital regulations between the EU and the USA is likely to remain contentious. The European Union appears determined to enforce stricter rules on Big Tech, while the United States—particularly under the Trump administration—is expected to push back against what it perceives as excessive European regulatory influence. Unless meaningful compromises are reached, the global internet may further fragment into distinct regulatory zones. The European model would emphasise strict digital oversight, strong privacy protections, and policies designed to ensure fair competition. The USA, in contrast, would continue to prioritise a more business-led approach, favouring self-regulation and innovation-driven policies.
As the digital landscape evolves, the coming months and years will be crucial in determining whether the EU and the USA can find common ground on tech regulation or whether their differences will lead to deeper division. The stakes are high, affecting not only businesses but also consumers, policymakers, and the broader future of the global internet. The path forward remains uncertain, but the decisions made today will shape the structure of the digital world for generations to come.
Ultimately, the outcome of this ongoing transatlantic dispute could have wide-reaching implications, not only for the future of digital regulation but also for global trade relations. While the US government and the Silicon Valley tech elite are likely to continue their pushback, the EU appears steadfast in its determination to ensure that its digital regulations are enforced to maintain a fair and safe digital ecosystem for all users. As this global battle unfolds, the world will be watching as the EU and USA navigate the evolving landscape of digital governance.
A new report has revealed significant gender imbalances across the EU’s tech ecosystem, from education to executive positions. The GENDEX index, funded by the European Innovation Council, found that women remain underrepresented in STEM fields, with only 42% of graduates in 2022 being women.
The imbalance is particularly evident in the information and communication technology (ICT) sector, where just 24% of graduates are women.
However, this discrepancy leads to fewer women founders in deep tech startups, with only one in five European tech companies being led by women over the past decade.
Women’s representation in academia is also limited, comprising just 31% of researchers and scientists in deep tech. Furthermore, only 24% of patent applications are submitted by women.
The report suggests that a narrowing funnel of opportunities negatively impacts the entire tech sector, as talented women are lost along the way. Men continue to dominate leadership positions, with women holding only about 30% of roles in European companies.
The gender gap is most evident at the board level, particularly in male-founded companies.
The study also highlighted the challenges female entrepreneurs face in securing funding. Female-led teams receive just 1% of venture capital funding, and when they do secure investments, they often face less favourable terms and longer waits compared to male-led teams.
The report recommends that investors require gender diversity reporting before providing funding and prioritise women-led companies to address these disparities.
Additionally, experts argue that structural changes are necessary to create a more balanced and effective tech ecosystem, pointing out that gender diversity can lead to better results for companies and the industry as a whole.
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The European Union has reached an agreement to finally implement the long-awaited Entry/Exit System (EES), which will modernise border checks for short-stay travellers.
After several delays due to technical issues and a lack of readiness, the system is now set to begin operations in autumn, though a specific launch date has yet to be determined.
Member states will have the option to introduce the system all at once or in phases over a six-month transition period, with the full implementation to be completed by the end of the transition.
The EES, which was first proposed in 2016, aims to replace traditional passport stamping by collecting biometric data from non-EU visitors, including photos and fingerprints.
This data will be recorded each time visitors enter or exit the Schengen Area. The system is designed to improve border control, help authorities identify overstayers, and prevent identity fraud.
While Cyprus and Ireland will not participate in the new system, all other EU member states and four Schengen-associated countries will be involved.
Poland, which currently holds the EU Council’s rotating presidency, will lead negotiations with the European Parliament to finalise the law.
Tomasz Siemoniak, Poland’s Minister for Internal Affairs, indicated that a final agreement should be reached smoothly, with October set as the target for full implementation.
The EES is expected to provide authorities with new tools to enhance security and better manage borders within the Schengen Area.
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Speaking at the Mobile World Congress in Barcelona, Brendan Carr argued that the European Union‘s content moderation law is incompatible with America’s free speech tradition and puts undue pressure on US tech firms operating in Europe.
Carr’s comments reflect growing tensions between the United States and Europe over digital regulation. The FCC chairman accused the DSA of promoting censorship, echoing concerns raised by US Vice President JD Vance at an AI summit in Paris.
The Trump administration has made free speech a key policy focus, with President Trump vowing to combat online censorship and warning of scrutiny over the DSA’s impact on US businesses.
Tech giants such as Apple, Meta, and Alphabet have been asked to explain how they plan to comply with both the DSA and US free speech principles.
Some companies are considering geofencing to create separate platforms for different regions, though Carr questioned whether this would be practical.
The European Commission defended the law, stating it aims to protect fundamental rights and ensure a safer online environment.
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Twenty-three industry groups across Europe have urged EU officials to approve a draft cybersecurity certification for cloud services.
The certification scheme, which was introduced in 2020 by the European Union Agency for Cybersecurity (ENISA), aims to provide governments and businesses with reliable, secure cloud service providers.
It has been under revision since last year, with changes that favour major tech firms such as Microsoft, Google, and Amazon.
The groups, including the American Chamber of Commerce and various EU trade associations, argue that the updated draft, which will be finalised in March 2024, strikes a balance between robust security standards and an open market.
These revisions removed political provisions, such as requirements for US tech companies to partner with EU firms for data storage, focusing instead on technical security criteria.
Despite this, concerns linger about the European Commission potentially delaying or even scrapping the certification scheme altogether. The groups have strongly urged the EU to push forward with its adoption, believing it will support Europe’s digital economy while promoting secure cloud computing solutions.
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The Clean Industrial Deal aims to help energy-intensive industries tackle high costs and complex regulations while competing with global rivals.
The plan includes new guarantee schemes, developed in partnership with the European Investment Bank, to lower costs for long-term renewable energy contracts and provide financial support for grid manufacturers.
A proposed EU Critical Raw Material Centre would coordinate the joint purchase of essential metals and minerals needed for the green transition.
Brussels’ initiative is part of a wider effort to streamline bureaucracy, adjust carbon duties, and create a more business-friendly environment for clean industries.
The proposal now awaits approval from the European Parliament and a reinforced majority of EU member states before it can take effect.
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Deutsche Telekom CEO Tim Hoettges has urged Germany and Europe to invest more in artificial intelligence and data centres to stay competitive with the US and Asia. Speaking after the release of the company’s annual results, Hoettges stressed the need for Europe to increase its computing power, citing a growing demand for data centres that he expects to rise by at least 30%. Deutsche Telekom is already expanding its infrastructure with plans to build four new data centres in Europe, aiming to create one gigawatt of capacity.
Hoettges also emphasised the importance of AI for Europe’s economic growth and sovereignty in the digital age. His comments come as Europe strives to catch up with major AI investments made by the US, with the European Commission pledging to mobilise 200 billion euros for AI development. This contrasts with the US, where private companies have committed up to $500 billion to AI infrastructure.
The call for greater AI investment follows a wave of AI advancements, such as China’s DeepSeek model, which has begun to challenge Western competitors. Hoettges warned that Germany must act quickly or risk falling behind in the global AI race.
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The European Commission has approved Nokia’s $2.3 billion acquisition of US-based Infinera, confirming the deal raises no competition concerns.
The approval was granted unconditionally, as the combined company will hold only a moderate share of the optical transport equipment market.
Nokia’s takeover of Infinera, announced last June, will make it the second-largest player in optical networking with a 20% market share, trailing Huawei.
Western firms have struggled to compete in China, giving Huawei a dominant position in the sector.
Estonia has launched a new initiative aimed at preparing students and teachers for the age of AI. The ‘AI Leap’ programme will provide access to popular AI chatbots, including an educational version of ChatGPT, to help build digital skills. Starting in September 2025, the programme will involve 20,000 high school students and 3,000 teachers, with plans to expand to vocational schools and an additional 38,000 students and 3,000 teachers in 2026.
Education Minister Kristina Kallas emphasised that Estonia’s economic competitiveness depends on how well the country adapts to AI, ensuring young people are equipped for the future. As part of the initiative, Estonia will also invest in teacher training to support the integration of AI in classrooms.
The programme is a public-private partnership, with negotiations underway with major AI companies, including OpenAI and Anthropic. OpenAI has expressed its pride in collaborating with Estonia to bring ChatGPT Edu to the education system, aiming to better prepare students for the workforce. Estonia’s use of AI in education is seen as a model that other countries may follow as the EU pushes to increase digital skills across Europe by 2030.
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