The regulatory insider

The European Commission is staying silent on whether the Audiovisual Media Services Directive (AVMSD) should be revised or not, but MEPs have started to speak against a revision, notably Nela Riehl, Chair of the CULT Committee in the European Parliament, pushing against a rushed revision. In a letter from 4 June 2025 answering MEPs asking on the Commission's position, Ursula von der Leyen only reminded the directive's importance “to promote European works” and that the “upcoming AVMSD evaluation will provide a timely opportunity to assess its objectives of safeguarding cultural diversity”. She also wrote that the “Commission welcomes the efforts made in recent years by global audiovisual players to integrate themselves into the European media ecosystem and abide by our rules”, even though Netflix recently introduced proceedings on those obligations (Art 13 AVMSD) in Belgium.

On June 19, 2025, the European Commission announced that Apple and Meta will not face immediate financial penalties despite missing the June 26 deadline for complying with the Digital Markets Act (DMA). Both companies were fined earlier this year—Apple €500 million and Meta €200 million—and now face a review-based process before any periodic sanctions could be imposed. The decision reflects a priority on dialogue and compliance rather than immediate punishment, with penalties applied only after an ongoing assessment.

On 13 June 2025, the UK Competition and Markets Authority (CMA) is officially starting to phase out its oversight of Google’s Privacy Sandbox. After previously negotiating significant competition and privacy commitments with Google, the CMA now feels its objectives have been met and that those commitments are no longer necessary. This marks a shift from active regulatory involvement to the CMA stepping back now that Google has paused third‑party cookie deprecation, though it warned it could reopen the case if needed.

MEP Christel Schaldemose released a draft report urging stronger EU protections for children online, feeding into the upcoming Digital Fairness Act. Key proposals include banning harmful influencer marketing targeting minors, extending the DSA ad profiling ban to all digital services, and explicitly outlawing dark patterns. She calls for effective age verification standards and legislation against addictive platform features. The report also proposes rapid alert systems for dangerous online trends affecting children. MEPs can suggest amendments until 2 July, with a final committee vote set for 16 October.

The UK government has delayed its ban on junk food ads targeting children until January 2026, after lobbying by the food industry led to legal exemptions for brand-only advertising. Health campaigners condemned the move as a major setback, warning it undermines efforts to protect children’s health amid rising obesity and diet-related illnesses, accusing industry pressure for the delay reflects industry.

Donald Trump fired Director of the U.S. Copyright Office Shira Perlmutter shortly after the publication of a report about AI raising concerns and questioning fair use for large-scale AI training, thus refusing to back Elon Musk’s use of copyrighted content to train AI. The report instead rather suggested that licensing systems are needed to balance innovation with creator rights This prompted accusations of political interference, with some labelling it as an illegal power grab.

Tech lobbies, including DigitalEurope, EUTA and CCIA, are pushing back against the proposed Digital Fairness Act (DFA), urging a delay in its process, with the upcoming consultation on the DFA expecting early June and the Consumer Summit on 20/05. They argue that current laws should first and foremost be better understood and implemented before adopting another text. DigitalEurope argues that practices targeted by the DFA (i.e. targeted ads or online influencing) are already regulated, and warn of regulatory overlap, when the EC should rather focus on an updated implementation strategy.

The U.S. Department of Justice’s proposal to break up Google’s ad tech business could influencer the EU’s ongoing antitrust investigation. The DOJ proposed remedies notably include asking Google to divest its AdX ad exchange and DoubleClick for Publishers ad server. The Google advertising antitrust remedies trial set for 22 September 2025.

Google has reversed its plan to phase out third-party cookies in Chrome (the ‘Privacy Sandbox’), allowing ad tech companies to continue using them for targeting without a new prompt for users to disable cookies. Users can still manage their preferences through Chrome's existing privacy settings. While this decision provides short-term relief to advertisers, it has raised concerns over privacy and the future of privacy-focused solutions.

Meta is challenging the €200 million fine from the European Commission on its "Consent or Pay" advertising model. Meta introduced a revised model offering fewer personalized ads without a subscription, which the Commission is assessing for compliance. Both Meta and Apple (fined €500 million) plan to appeal the sanctions within two months and may seek to suspend the penalties during the appeal. The U.S. government has expressed concerns over the fines, with White House officials criticizing them as economic extortion, and Meta has sought support from the U.S. to challenge the European Commission's actions.

Ahead of the UK's new junk food advertising restrictions, major food brands increased ad spending by 26% in 2024, aiming to boost sales before the rules take effect in October 2025. These regulations will limit TV and online ads for unhealthy foods but leave some loopholes, including brand-only ads and influencer promotions. Critics warn that such tactics undermine the regulations, which may still miss many unhealthy products and disproportionately target lower-income areas.

Ireland’s Data Protection Commission has launched a formal investigation into X over the legality of using users’ personal data to train its AI model, Grok, under EU privacy laws. Triggered by complaints in 2024, the probe follows X’s suspension of AI training with EU data.

According to a report by the European Audiovisual Observatory, the top 10 advertising entities in Europe—including both European broadcasters and non-European video-sharing platforms (VSPs)—collectively secured 95% of TV and OTT advertising revenues. This substantial share underscores the dominant position of these players in the European advertising market. While U.S. entities like Comcast, Netflix, and YouTube dominate the OTT segment, European broadcasters maintain a strong presence in traditional AV sectors, such as Pay-TV and linear advertising.

Several countries (e.g. Norway, Denmark, Bulgaria) are tightening restrictions on junk food advertising aimed at children, to address the rise of childhood obesity across Europe. Critics are pointing at industry self-regulation as being not effective enough. Brussels is thus under increasing pressure to move beyond voluntary pledges toward legally binding rules at the EU level, with health advocates arguing that Europe needs uniform legislation to curb children's exposure to HFSS food marketing.

WhatsApp plans to introduce targeted advertising and a subscription model globally in the coming months, leveraging data from linked Facebook and Instagram accounts. WhatsApp will begin showing ads globally in the “Updates” tab—where users check Status posts and Channels—while keeping private chats free and encrypted. However, the Irish Data Protection Commission has confirmed these ads won’t launch in the EU until 2026, pending further discussions with European regulators to address privacy concerns.

The European Commission has preliminarily found that TikTok breached the EU’s Digital Services Act (DSA) by failing to provide sufficient transparency in its advertising practices. TikTok did not disclose adequate information about ad content, targeted users, and sponsors, nor did it offer a publicly searchable ad library, as required under the DSA. If these findings are confirmed, TikTok could face fines of up to 6% of its global annual revenue.

At the Cannes Film Festival, ARCOM (French Media Regulator) head Martin Ajdari called for a review and harmonisation of advertising rules under the AVMS Directive, especially regarding video-sharing platforms. He stressed the need for fair treatment across TV, streaming services, and platforms. Alongside French Culture Minister Rachida Dati, he insisted the AVMS Directive must however not evolve into a regulation.

On 21 May 2025, the European Commission published its proposal to extend GDPR register exemptions to a category called "small midcaps" — companies with up to 750 employees and €150 million turnover. This is a broader definition than the previously proposed 500-employee limit. This new defintiion could apply to around 38,000 firms. The proposal will need to be reviewed by Parliament and Member States.

Google has agreed to pay $1.4 billion to settle two lawsuits in Texas over using deceptive interfaces (dark patterns) to unlawfully collected user data (e.g. location, web searches biometric information) without proper consent. Texas Attorney General Ken Paxton called it a major win for privacy and a warning to companies misusing personal information.

The EDPS and EDPB gave their ‘preliminary’ support to the simplification GDPR rules with a letter sent to Commissioner McGrath on 8 May. The two bodies however want an analysis on how many businesses would be affected as a result. The EC’s proposed change would notably raise the exemption threshold for keeping data processing records from 250 to 500 employees. Exceptions would remain for high-risk or sensitive data processing, with further clarification expected in the upcoming May 21 omnibus. This GDPR simplification should form part of the next omnibus on ‘small midcaps’, expected on 21 May 2025.

Perplexity CEO Aravind Srinivas revealed that the company's upcoming browser, Comet, aims to track users' online activities beyond its app to deliver "hyper personalized" ads. Srinivas believes that understanding users' browsing habits, purchases, and locations will enable more targeted advertising. The browser is scheduled for release in May.

A U.S. District Court ruled that Google unlawfully maintained monopolies in the publisher ad server and ad exchange markets, violating antitrust laws. Judge Leonie Brinkema's decision could lead to structural remedies, including the forced sale of assets like Google Ad Manager. Google plans to appeal, arguing its tools benefit publishers. The hearing to discuss remedies to this lawsuit will be held on 2 May 2025.

On 23 April 2025, the European Commission found Apple and Meta in breach of the Digital Markets Act (DMA). Apple was fined €500 million for violating its anti-steering obligations by restricting app developers from informing users about alternative offers outside the App Store. Meta was fined €200 million for its "Consent or Pay" model, which was established as not providing users with a genuine choice to opt for a less personalized service, as required by the DMA. Both companies have 60 days to comply with the Commission's decisions to avoid further penalties.

Sarah Wynn-Williams, a former director of Global Public Policy at Meta, testified before U.S. senators that the company targeted advertisements to teenagers based on their emotional states. Meta's algorithms allegedly identified when teens felt insecure or depressed, sharing this data with advertisers to promote products during these vulnerable moments. Meta has denied these allegations.

European Commission President Ursula von der Leyen reaffirmed that EU tech regulations like the Digital Services Act and Digital Markets Act are non-negotiable, despite U.S. pressure. She indicated considering introducing a tax on digital advertising revenues that would hit tech groups such as Meta and Google, though its implementation would depend on ongoing trade talks with Washington. With U.S. tariffs paused for 90 days, EU leaders remain united in defending their digital rules, which they say protect core European values like data privacy and online safety.