EU and Canada begin negotiations on a digital trade agreement

The European Commission and Canada have launched negotiations on a new Digital Trade Agreement to strengthen the rules governing cross-border digital commerce.

The initiative was announced in Toronto by the EU Trade Commissioner Maroš Šefčovič and Canadian International Trade Minister Maninder Sidhu.

An agreement that will expand the digital dimension of the existing Comprehensive Economic and Trade Agreement, which has already increased trade in goods and services between the two partners.

Officials say the new negotiations aim to create clearer rules for businesses and consumers engaging in cross-border digital transactions.

Proposals under discussion include promoting paperless trade systems, recognising electronic signatures and digital contracts, and prohibiting customs duties on electronic transmissions.

The agreement between the EU and Canada will also seek to prevent protectionist practices such as unjustified data localisation requirements or forced transfers of software source code.

European officials argue that the negotiations reflect a broader effort to develop international standards for digital trade governance while preserving governments’ ability to regulate emerging challenges in the digital economy.

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EU Commission’s new guidance to push Cybersecurity Resilience Act

The EU Commission has opened a public consultation on draft guidance to help companies apply the EU’s Cyber Resilience Act (CRA), a regulation that sets baseline cybersecurity requirements for hardware and software ‘products with digital elements’ to reduce vulnerabilities and improve security throughout a product’s life cycle. The guidance is framed as practical help, especially for microenterprises and SMEs, and the consultation runs until 31 March 2026.

The CRA is designed to make ‘secure by design’ the default for connected products people use every day, from consumer devices to business software, while giving users clearer information about a product’s security properties. In timeline terms, the Act entered into force on 10 December 2024. The incident reporting duties start on 11 September 2026, and the main obligations apply from 11 December 2027, giving industry a runway but also a clear countdown.

What the Commission is trying to nail down now are the parts companies have found hardest to interpret: how the rules apply to remote data processing solutions (cloud-linked features), how they treat free and open-source software, what ‘support periods’ mean in practice (i.e. how long security upkeep is expected), and how the CRA fits alongside other EU laws. In other words, this is less about announcing new rules and more about reducing legal grey zones before enforcement ramps up.

The guidance push also lands amid a broader policy drive, as on 20 January 2026, the Commission proposed a new EU cybersecurity package, built around a revised Cybersecurity Act and targeted NIS2 amendments. The package aims to harden ICT supply chains, including a framework to jointly identify and mitigate risks across 18 critical sectors, and would enable mandatory ‘de-risking’ of EU mobile telecom networks away from high‑risk third‑country suppliers. It also proposes a revamped EU cybersecurity certification system with simpler procedures, giving a default 12‑month timeline to develop certification schemes, while cutting red tape for tens of thousands of firms and strengthening ENISA’s role, including early warnings, ransomware support, and a major budget boost.

Taken together, the EU is moving from strategy documents to operational details, product security on one side (CRA) and ecosystem-level resilience on the other (supply chains, certification, incident reporting and supervision). For companies, that can be both reassuring and demanding: clearer guidance should reduce uncertainty, but the compliance reality may still be layered, especially for businesses spanning devices, software, cloud features, and cross-border operations. The Commission’s stakeholder feedback window is essentially a test of whether these rules can be made workable without diluting their bite.

Why does it matter?

Beyond technical risk, this is increasingly about sovereignty: who sets the rules for digital products, who can be trusted in supply chains, and how much dependency is acceptable in critical infrastructure. Digital governance expert Jovan Kurbalija argues that full ‘stack’ digital sovereignty, that is to say control over infrastructure, services, data, and AI knowledge, is concentrated in very few states, while most countries must balance openness with autonomy. The EU’s current wave of cybersecurity governance fits that pattern: it’s an attempt to turn security standards, certification, and supply-chain choices into a practical form of strategic control, not just to prevent hacks, but to protect democratic institutions, economic competitiveness, and trust in the digital tools people rely on.

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EU competition scrutiny pushes Meta to reopen WhatsApp AI access

Meta has announced that third-party AI chatbots will again be allowed to operate through WhatsApp in Europe, reversing restrictions introduced earlier this year.

The decision follows pressure from the European Commission, which had warned it could impose interim competition measures.

Earlier in 2026, Meta limited access to rival chatbot services on the messaging platform, prompting regulators to examine whether the move unfairly restricted competition in the rapidly expanding AI market.

WhatsApp remains one of the most widely used messaging applications across European countries, making platform access critical for emerging AI services.

Under the new arrangement, companies will be able to distribute general-purpose AI chatbots via the WhatsApp Business API for 12 months.

The change is intended to give European regulators time to complete their investigation while allowing competing AI services to operate within the platform ecosystem.

Meta has also indicated that businesses offering chatbots through WhatsApp will be required to pay fees to access the system.

The European Commission is now assessing whether these adjustments sufficiently address competition concerns surrounding the integration of AI services inside major digital platforms.

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Calls grow to strengthen New Zealand privacy law

Pressure is growing in New Zealand to strengthen the Privacy Act following several high-profile data breaches. Debate in New Zealand intensified after a cyberattack exposed medical records from the Manage My Health patient portal.

The breach in New Zealand affected about 120,000 patients and involved threats to release documents on the dark web. Another incident forced the MediMap medication platform offline after unauthorised changes were detected in patient records.

Privacy specialists argue that current enforcement powers are too weak to deter serious failures. The Privacy Act allows only limited financial penalties, with fines generally capped at NZD10,000.

Officials are now considering reforms, including stronger penalties for privacy violations. Policymakers also warn that failure to strengthen the law could threaten the country’s EU data adequacy status.

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EU launches panel on child safety online and social media age rules

The European Commission has convened a new expert panel tasked with examining how children can be better protected across digital platforms, including social media, gaming environments and AI tools.

The initiative reflects growing concern across Europe regarding the psychological and safety risks associated with young users’ online behaviour.

Announced during the 2025 State of the Union Address by Commission President Ursula von der Leyen, the panel will evaluate evidence on both the opportunities and harms linked to children’s digital engagement.

Specialists from health, computer science, child rights and digital literacy will work alongside youth representatives to assess current research and policy responses.

Discussions during the first meeting centred on platform responsibility, including age-appropriate safety-by-design features, algorithmic amplification and addictive product design.

An initiative that also addresses digital literacy for children, parents and educators, while considering how regulatory measures can reduce risks without undermining the benefits of online participation.

The panel’s work complements the enforcement of the Digital Services Act and related European policies designed to strengthen protections for minors online.

Among the tools under development is an EU age-verification application currently tested in several member states, intended to support privacy-preserving checks compatible with the future EU digital identity framework.

The panel is expected to deliver policy recommendations to the Commission by summer 2026.

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EU watchdog urges limits on US data access

The European Union’s data protection watchdog has urged stronger safeguards as negotiations continue with the US over access to biometric databases. European Data Protection Supervisor Wojciech Wiewiórowski said limits must ensure Europeans’ data is used only for agreed purposes.

Talks between the EU and the US involve potential arrangements that would allow US authorities to query national biometric systems. Databases across the EU contain sensitive information, including fingerprints and facial recognition data.

Past transatlantic data-sharing agreements between the two have faced legal challenges due to insufficient safeguards. European regulators are closely monitoring the Data Privacy Framework amid ongoing concerns about oversight.

Officials also warned that emerging AI technologies could create new surveillance risks linked to US data access. European authorities said they must negotiate as a unified bloc when dealing with the US.

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EU citizens propose public social media network under new initiative

The European Commission has registered a European Citizens’ Initiative proposing the creation of a public social media platform operating at the European level, rather than relying exclusively on private technology companies.

An initiative titled the European Public Social Network calls for legislation establishing a publicly funded digital platform designed to serve societal interests.

Organisers argue that a publicly owned network could function independently from commercial incentives and political pressure while guaranteeing equal rights for users across the EU. The proposed platform would operate as a public service overseen by society rather than private corporations.

Registration confirms that the proposal meets the legal requirements of the European Citizens’ Initiative framework. The Commission has not yet assessed the substance of the idea, and registration does not imply support for the proposal.

Supporters must now gather 1 million signatures from citizens across at least 7 EU member states within 12 months. If the threshold is reached, the Commission will be required to formally examine the initiative and decide whether legislative action is appropriate.

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EU considers placing Roblox under strict Digital Services Act rules

European regulators are examining whether Roblox should fall under the Digital Services Act’s most stringent obligations rather than remain outside the bloc’s most demanding platform rules.

The European Commission began analysing the gaming platform’s reported user figures after the company disclosed roughly 48 million monthly users across the EU.

Numbers above the threshold could qualify Roblox as a Very Large Online Platform under the DSA. Such a designation would mark the first time a gaming platform enters the category alongside social media services already subject to heightened oversight.

Platforms receiving the label must conduct regular risk assessments, submit mitigation reports and demonstrate stronger safeguards for minors.

Regulatory pressure has already begun at the national level. The Dutch Authority for Consumers and Markets launched an investigation in January after concerns that children could encounter violent or sexually explicit content within Roblox games or interact with harmful actors through online features.

Designation at the EU level would transfer supervisory authority to the European Commission, enabling wider investigations and potential fines if violations occur. Officials are still verifying user data before making a formal decision, and no deadline has been announced for the process.

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EU prepares tougher rules for older data centres

The European Commission is preparing more stringent requirements for ageing data centres rather than allowing legacy infrastructure to operate under looser rules.

A draft strategy tied to the EU’s tech sovereignty package signals that older sites will face higher efficiency expectations and stricter sustainability checks as part of an effort to modernise the digital backbone of the EU.

The proposal outlines minimum performance standards for new data centres by 2030, aiming to align the entire sector with the bloc’s climate and resilience goals. Officials want to reduce energy waste and improve monitoring across facilities that have long operated without uniform benchmarks.

The draft points to an expanded role for the Cloud and AI Development Act, which is expected to frame future obligations for cloud providers instead of relying on fragmented national measures.

Brussels sees consistent rules as essential for supporting secure cloud services, AI infrastructure and cross-border digital operations.

The strategy underscores that modernisation is central to the EU’s vision of tech sovereignty. Older centres would need upgrades to maintain compliance, ensuring that Europe’s digital infrastructure remains competitive, efficient and less dependent on external providers.

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EU pushes federated cloud plan to reduce dependence on foreign tech

Europe is building a federated cloud and AI infrastructure intended to reduce reliance on US and Chinese technology providers and avoid ongoing strategic vulnerability.

The project, known as EURO-3C, was announced in Barcelona by Telefónica and is backed by the European Commission. More than seventy organisations across telecommunications, technology and emerging companies have joined the effort.

Architects of the scheme argue that linking national infrastructures into a shared network of nodes offers a realistic path forward, particularly as Europe cannot easily create a hyperscale cloud provider from scratch.

The initiative follows a series of US cloud outages that exposed the risks of excessive dependence on external infrastructure and raised questions about sovereignty, resilience and long-term competitiveness.

Commission officials described the programme as a way to build a secure cross-border digital ecosystem that supports industries such as automotive, e-health, public administration and sovereign government cloud.

Telefónica stressed that agentic AI, capable of taking autonomous actions, will play a central role in enabling Europe to develop technology rather than import it.

The partners view the project as a foundation for a unified and independent digital environment that strengthens industrial supply chains and prepares European sectors for the next phase of cloud and AI adoption.

They present the initiative as a significant step toward reducing strategic exposure while stimulating domestic innovation.

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