The regulatory insider

Nevertheless, it should be noted that the European Commission is aiming to impose minimal fines on Apple and Meta under the Digital Markets Act, choosing to focus on compliance rather than heavy penalties to avoid straining transatlantic relations amid U.S. President Donald Trump's threats of retaliation. Fines will likely remain well below the potential 10% of global turnover, as EU officials weigh enforcement against broader geopolitical considerations, including defence and trade relations. Moreover, while decisions against Apple’s App Store “anti-steering” rules and Meta’s “pay or consent” model will move forward, the investigations into Apple’s iOS default services and choice screens are expected to be closed without sanctions.

MEPs have raised concerns over the third version of the code of practice for general-purpose AI (GPAI), warning that it weakens risk assessments by making them entirely voluntary for providers of AI models with systemic risks. In a letter to the Commission, key negotiators, such as Axel Voss and Svenja Hahn, argue that risks to health, safety, human rights, and democracy must be classified as systemic and assessed accordingly. They also warn that this current version could weaken the law's enforcement, sparing foreign big tech firms like Google and Meta from core obligations.

The European Commission will impose its first fines under the Digital Markets Act against Apple and Meta this week, namely on Apple’s restrictions on developer communications on its AppStore and Meta’s data usage policies (pay or consent) after year-long investigations. Amid escalating U.S. criticism, President Donald Trump has threatened retaliatory tariffs, and American officials argue the DMA unfairly targets U.S. tech firms. Despite these tensions, EU officials stress that enforcement against Big Tech remains a shared priority, with ongoing U.S. legal actions against Apple and Meta reinforcing this stance. High-level discussions between EU and U.S. officials continue as both sides navigate the intersection of competition policy and trade disputes.

Media Matters for America has filed a lawsuit against Elon Musk's X, formerly known as Twitter, alleging that X engaged in "abusive" and meritless legal actions across multiple countries in retaliation for Media Matters' reporting on the platform's ad placements next to extremist content. X has accused Media Matters of fabricating images and defaming the platform, while Media Matters maintains that its reporting is truthful and in compliance with X's terms. Media Matter said that it has spent millions of dollars defending itself from X's claims, which again showcases the type of attack X conducts on detractors.

Industry representatives have expressed significant concerns regarding the latest draft of the European Union's Code of Practice on General-Purpose Artificial Intelligence (GPAI). The draft, released by an expert group appointed by the European Commission, proposes rules for GPAI providers, including models like ChatGPT and Google Gemini. Industry stakeholders argue that certain provisions may hinder innovation and competitiveness. They have until March 30th 2025 to provide feedback, with the final code expected in May.

Major tech companies like Google, Amazon, and Microsoft unknowingly funded a website hosting child sexual abuse material (CSAM) through their ad networks, exposing flaws in digital advertising. Ad researcher Krzysztof Franaszek discovered CSAM on ImgBB with ads from major corporations and the U.S. government, prompting authorities to act. While the site was banned from ad systems, the incident highlights the lack of oversight in automated advertising, which often funds harmful content. Lawmakers are demanding accountability, and experts argue that without stricter regulations and legal consequences, such issues will continue.

Europe is set to ease AI regulations to boost innovation and competitiveness, with French President Emmanuel Macron and EU digital chief Henna Virkkunen advocating for a more business-friendly approach. Macron emphasized the need to "resynchronize with the world," citing the swift reconstruction of Notre-Dame as a model for AI development. The AI summit in Paris saw calls for increased investment, with France securing €109 billion in private sector commitments, including Mistral’s new data centre. Meanwhile, the launch of Current AI, a public-interest initiative backed by France, Germany, and tech giants, aims to foster AI growth with an initial $400 million investment. However, concerns remain about AI’s impact on jobs and potential regulatory weakening under U.S. influence.

The German Competition Authority has charged Apple of abuse of market power through their use of the ATTF (Apple’s App Tracking Transparency Framework). The Bundeskartellamt is accusing Google of preferential treatment after conducting a 3-year investigation on this service designed to allow users to block advertisers from tracking them across different applications. The Cartel Office also indicated that the ATTF “makes it far more difficult for competing app publishers to access user data relevant for advertising”. This tool has been criticised for a number of years and several groups filed complaints against it.

Channel 4 CEO Alex Mahon has called for regulatory measures to ensure that young people can easily access verified and independent news on social media. Speaking at a Channel 4 and Royal Television Society event, she criticized social platforms for their “wanton abandonment of the pursuit of truth”. Mahon outlined key threats to reliable information such as the brevity of short-form content which reduces detail, the speed of distribution which diminishes context, the algorithms that prioritize sensational content, and solo consumption which limits exposure to diverse. She also presented three main solutions to counter false information online: Trustmark; algorithmic prominence on social media; regulation that supports PSM to shape AI.

Czech public media is facing threats of political influence with the upcoming elections this year, where Andrej Babiš,  who is regarded as a frontrunner, is advocating for direct state funding of broadcasters. The reforms he is proposing resemble those in Hungary and Slovakia and risk to introduce heavy political influence on public media and compromise editorial independence. While the current government has proposed an increase in the monthly licence fees for Czech Television and Czech Radio, Babiš would prefer to see the latter merge into a single organisation funded directly from the state budget.

With Musk’s recent interventions to back far-right figures in Germany and in Britain, the EU Commission announced that it would be adding new steps to the investigation on X started in December 2023 through the DSA. X must notably inform about their recent and future tweaks to its systems serving content by February 15. The Commission also issuing a retention order on the info up until the end of the year or until the probe is closed. Preliminary findings from last July already indicated DSA breaches such as a lack of advertising transparency.

The EU Commission is reevaluating its probes into tech giants, namely Apple, Meta and Alphabet (Google). This comes right after the latter urged Donald Trump to challenge the EU’s regulatory scrutiny imposed against them. This review will cover all cases launched since March 2024 under the DMA.

The U.S. Congress ultimatum for ByteDance to sell TikTok or face a ban remains unresolved, with TikTok restoring its services in the U.S. only 12 hours after going offline, through a political play alongside Donald Trump who promised to issue an executive order to delay the ban, even adding that he would like to see the App ultimately restored.

The BBC has scrapped plans to sell adverts on its UK podcasts via platforms like Spotify after backlash from the commercial radio and podcasting industry, which feared unfair competition. The decision highlights the broadcaster’s struggle to find new revenue streams as it prepares for talks on its future funding model ahead of its charter renewal in 2027. With the licence fee income under pressure, BBC turned to solutions to improve commercial revenues, but industry rivals opposed its advertising expansion. The U-turn, set to be outlined in the BBC’s annual plan, reflects the ongoing debate over the corporation’s financial sustainability.

France’s antitrust regulator has fined Apple €150 million for abusing its dominance in mobile app advertising on iOS and iPadOS through its ATT privacy tool between 2021 and 2023. The watchdog also ordered Apple to publish the decision on its website for seven days. This will likely play a role in the ongoing proceedings from the Bundeskartellamt on the same issue.

Robert F. Kennedy Jr., the newly appointed Secretary of Health and Human Services under President Donald Trump, has proposed banning direct-to-consumer pharmaceutical advertisements on television. This initiative aims to reduce prescription drug consumption and address concerns about the influence of pharmaceutical companies on public health. The U.S. is one of only two countries that permit such advertising, which constitutes approximately 10-12% of total TV ad spending. If implemented, this ban could significantly impact the advertising industry, prompting pharmaceutical companies to redirect their marketing budgets toward digital platforms, content partnerships, and influencer marketing.

The U.S. Department of Justice (DOJ) has revised its antitrust remedies against Google's parent company, Alphabet, maintaining the requirement for Google to divest its Chrome browser while retracting the earlier proposal to force the sale of its artificial intelligence (AI) investments. This decision follows a ruling that declared Google's dominance in the search market illegal. The DOJ's updated stance reflects a more lenient approach toward AI, aligning with the Trump administration's deregulatory policies, while still addressing concerns over Google's control of search-related technologies. It demonstrates that Trump’s Justice Department Isn’t Easing Up on Big Tech, with still a very much hands-on approach to antitrust issues.

A coalition of over 80 European tech companies and organizations, including Airbus, OVHCloud, and Proton, has urged the European Union to take decisive action to achieve digital sovereignty. In an open letter to EU leaders, they advocate for the establishment of a "Sovereign Infrastructure Fund" to support public investments in European digital infrastructure, particularly in capital-intensive areas like chips and quantum computing. The coalition also recommends a "buy European" policy in government procurement to stimulate demand for local tech solutions, reducing reliance on foreign-owned digital services and enhancing the bloc's economic resilience and security.

The EU's plan to implement voluntary AI rules for advanced models is facing strong opposition from Google and Meta, with executives calling the proposed code of practice unworkable and a threat to Europe's competitiveness. The code, intended to clarify aspects of the AI Act, addresses issues like data transparency and systemic risks but is seen by Big Tech as overly burdensome. With Meta signalling it won’t sign in its current form and Google undecided, EU leaders will have to convince them as they are trying to balance regulation with attracting investment.

The Code of Practice on Disinformation will be formalised under the Digital Services Act (DSA) by July. Online platforms expressed their voluntary efforts back in 2022 to counter disinformation online. The Code was signed by 42 companies including Google, Meta, Microsoft and TikTok. Its formalisation will help the Commission ensure the platforms’ compliance with the DSA. However, the platforms’ promises since its first elaboration seem to be waning, with X having left the code in 2022 when Musk bought the platform and Meta announcing last month that it would drop its fact checkers in the US to instead rely on community notes.

The Audience Measurement Coalition (AMC) has officially been formed last week. Made of European Joint Industry Committees (JICs), Media Owner Committees (MOCs) and professional research companies, their aim will be to maintain a dialogue with European Regulators on policy matters relating to audience measurement. They will be focusing on the implementation and enforcement of the European Media Freedom Act, the first piece of EU legislation dealing with audience measurement, which will enter into force on August 8th 2025.

The X vs GARM legal saga continues to evolve as X is now suing more advertisers based on an alleged antitrust laws infringement. The lawsuit was first filed in August 2024 against WFA’s GARM, which was shortly discontinued afterwards, but X has since added other advertisers as defendants, the latest being, among others: Lego, Nestlé, Pinterest, Shell. X argues that WFA organized an advertiser boycott and harmed X’s advertising revenues.

February 2nd 2025 marked the first compliance deadline of the EU’s AI Act, which entered into force back in August 2024. EU regulators can now ban the use of AI systems posing an unacceptable risk or harm as described in Article 5 of the regulation. As a reminder, the text provides 4 risk levels, including the aforementioned unacceptable risk applications which are entirely prohibited. Additional guidelines are expected from the European Commission in ‘early 2025’.

Google has notified the EU that it will not integrate work from fact-checking organizations, thus withdrawing its previous commitments to support ‘fact-checking’ in the EU as part of the EU Code of Practice Disinformation. This Code is currently being converted into a code of conduct to be enforced via the DSA. The withdrawal includes Google’s search engine and YouTube. Alongside other big tech CEO, Sundar Pichai (Google CEO) has also been courting Donal Trump to combat EU regulatory enforcement.

TikTok’s shenanigans are however not deprived of consequences, with TikTok’s rival platforms benefitting significantly from this crisis and wooing advertisers with discounts and incentives. As advertisers rely substantially on TikTok, and despite this temporary reprieve, losing or even potentially losing this app calls for a drastic change in their strategies, as it implies losing its 170 millions users in the U.S.