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EU Commission Warns TikTok Over DSA Violations, Threatens Multi-Billion Euro Fine

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The European Commission has issued preliminary findings indicating that TikTok may have violated the Digital Services Act (DSA), potentially exposing the social media platform to a fine of up to 6% of its global annual revenue.

The announcement on Thursday stems from an investigation launched in February 2024, focused on TikTok’s advertising transparency obligations under the DSA — landmark legislation that governs digital services across the EU. The Commission stated that TikTok’s advertising repository fails to meet legal standards required for very large online platforms.

According to the Commission, TikTok has not provided essential details about advertisements running on its platform. Specifically, the repository lacks sufficient information about the content of the ads, the identity of the paying entities, and the demographics or users targeted. Additionally, the repository does not offer robust search capabilities, undermining its utility for researchers and civil society groups aiming to detect disinformation, scams, or influence operations.

These shortcomings limit the public’s ability to scrutinise online advertising and understand how digital platforms influence public discourse,” the Commission said in its statement.

TikTok, owned by Chinese tech firm ByteDance, now has the opportunity to review the Commission’s findings and respond in writing before a final decision is made. If the violations are confirmed, the platform could face a fine amounting to billions of euros.

The DSA, which came into full effect for all online platforms in early 2024, imposes strict transparency, safety, and accountability requirements, particularly for platforms with over 45 million EU users.

This case is one of several ongoing DSA probes. The Commission is continuing to investigate other aspects of TikTok’s operations, including concerns over its algorithmic systems, child safety protocols, age verification measures, and data accessibility for researchers. Another probe launched in December 2024 remains unresolved, focusing on TikTok’s handling of misinformation during Romania’s electoral process.

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The EU has also opened investigations into other major tech companies, including X (formerly Twitter), Meta, and AliExpress, though none have concluded.

Thursday’s development underscores the EU’s commitment to enforcing digital rules amid growing concerns over the power and influence of online platforms in democratic societies.

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Study Says EU Regulations Are Slowing Rollout of Advanced AI Models

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A new study by Governance.AI has found that European Union regulations are delaying the rollout of advanced artificial intelligence models, with technology companies increasingly pointing to the bloc’s regulatory framework as a key obstacle to launching new AI products in Europe.

The report examined 375 large language models (LLMs) released between June 2018 and May 2026, comparing their availability across the United States, the European Union and the United Kingdom. According to the findings, at least 11 percent of advanced AI model releases were either delayed or never launched in the EU compared with the United States. In the UK, the figure stood at 7 percent.

Researchers said they identified 68 cases in which AI models experienced delays or were withheld from specific markets. Regulatory factors were cited as the primary reason in 56 of those cases, making them the most common cause of restricted availability.

The study reviewed releases from major AI developers, including Meta, Google, OpenAI and Anthropic. Meta recorded the highest proportion of delayed or unavailable releases, with 26 percent of its AI models delayed or withheld in the EU and 15 percent in the UK. Anthropic’s Claude 3 Opus was highlighted as one example, with its web application arriving in the EU 71 days later than in the United States.

According to the report, data protection rules have emerged as the biggest regulatory hurdle, particularly for AI systems capable of processing images, audio and real-time video rather than text alone.

The researchers argued that uncertainty surrounding the application of the General Data Protection Regulation (GDPR) to AI model training and deployment has created additional challenges for developers. They also said enforcement of data protection rules has generally been stricter within the EU than in the UK, despite both jurisdictions sharing similar legal foundations following the adoption of the GDPR before Britain’s exit from the bloc.

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The report noted that the full impact of newer legislation, including the Digital Markets Act, which began taking effect in 2023, and the Artificial Intelligence Act, adopted in 2024, has yet to be fully reflected in the data.

At the same time, the European Union is reviewing proposals aimed at making data rules more practical for AI development through its Digital Omnibus initiative. Lawmakers are also considering changes to copyright legislation and the AI Act’s copyright provisions to strengthen protections for creators, measures that researchers say could affect future AI model availability if implemented too strictly.

John Lidiard, a UK AI policy researcher and one of the report’s authors, said policymakers should consider the impact that regulatory barriers can have on businesses and consumers seeking access to the latest AI technologies. He said balancing innovation with effective oversight would remain a key challenge as governments continue to develop AI regulations.

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French Startups Face Political Uncertainty as AI Reshapes Innovation Landscape

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France’s startup ecosystem is undergoing a period of rapid change, driven by the rise of artificial intelligence and growing concerns about the country’s political future, according to new figures released by startup incubator Station F as it marks its ninth anniversary.

The Paris-based campus, regarded as the world’s largest startup incubator, has supported more than 9,000 startups since opening in 2017. Companies that emerged from the hub include Hugging Face, Pasqal and Pollen Robotics.

New data from Station F shows artificial intelligence has become a dominant force among resident startups. This year, the incubator launched its F/AI programme, attracting major AI firms, including Mistral AI.

According to the survey, 77 percent of startups said AI tools have reduced their hiring needs. Despite that, 82 percent reported they are either actively recruiting or expect to hire employees in the coming months.

One of the most widely used AI tools among startups at the campus is Anthropic’s Claude model, now used by 90 percent of teams. The result marks a major shift from last year when OpenAI held the leading position among AI providers at the incubator.

AI-related acquisitions have also become increasingly common. Earlier this year, cloud computing startup Koyeb was acquired by Mistral AI. Previous deals included the acquisition of Pollen Robotics by Hugging Face, reflecting continued consolidation within the sector.

The profile of startup founders is also changing. Station F reported that the average founder is now 36.5 years old, compared with 31 in 2018. Around 20 percent hold doctoral degrees, suggesting that technical expertise is playing a larger role in attracting investment and building companies.

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The report also found that startup ambitions have shifted. Half of founders expect their businesses to end in acquisitions rather than public listings. Only 9 percent believe their companies will eventually launch an initial public offering, down from 16 percent a year earlier.

International talent remains a key feature of the campus. Roughly one-third of residents come from outside France, with more than 60 nationalities represented. After France, the largest foreign groups come from the United States, Morocco, Germany, the United Kingdom, Algeria and India.

Despite continued growth, political uncertainty has emerged as a significant concern. More than half of founders surveyed said France’s upcoming presidential election is among their biggest worries. Nearly half expressed concern about a possible far-right victory, while about a quarter were worried about a far-left outcome.

Many entrepreneurs cited immigration policy as a major issue, warning that tighter visa rules could make it harder to attract global talent and build internationally competitive businesses.

The findings highlight a startup sector that remains innovative and internationally connected, but increasingly focused on the political environment shaping its future.

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AI Security Test Reveals Vulnerabilities in US Government Systems Within Hours

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An advanced artificial intelligence model developed by Anthropic identified vulnerabilities in highly sensitive US government computer systems within hours during a recent cybersecurity testing exercise, highlighting both the capabilities and risks associated with rapidly evolving AI technology.

The testing was conducted through Anthropic’s Project Glasswing initiative, a programme designed to evaluate how powerful AI systems can be used to strengthen cyber defenses while assessing potential threats to national security and critical infrastructure. According to a US official familiar with the exercise, the company worked closely with intelligence agencies to test its restricted-access model known as Mythos.

The official, speaking anonymously, said the AI was able to detect weaknesses across classified government networks in a matter of hours. While the system successfully identified vulnerabilities, officials stressed that finding security flaws does not necessarily mean the model could immediately exploit them.

The exercise attracted public attention after Democratic Senator Mark Warner of Virginia referenced the findings during a Senate Committee on Banking, Housing, and Urban Affairs hearing on June 11. Warner said information provided by the head of the National Security Agency and US Cyber Command indicated that the AI tool had penetrated nearly all classified systems tested, accomplishing in hours what traditionally could take weeks.

The results have intensified debate in Washington over how advanced AI systems should be managed and regulated. Anthropic has maintained a cooperative relationship with US government agencies on security research, but tensions have emerged between the company and the Trump administration over the deployment of its most powerful models.

Earlier this month, the administration issued a directive requiring Anthropic to restrict access to its latest AI systems, known as Fable 5 and Mythos 5, for foreign users. The order followed President Donald Trump’s executive action establishing a framework for reviewing national security risks associated with cutting-edge AI technologies before they are publicly released.

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Anthropic responded by limiting access to certain models, though the company questioned whether the government’s restrictions were necessary. The firm has argued that concerns about cybersecurity risks should be balanced against the benefits AI can provide in strengthening digital defenses.

The directive has also drawn criticism from the technology sector. More than 100 cybersecurity specialists and executives from major technology companies, including Adobe and Nvidia, have signed a letter urging the government to reconsider the restrictions.

The group acknowledged that Anthropic’s models are highly effective at identifying software vulnerabilities and simulating cyberattacks. However, they argued that similar capabilities exist in other advanced AI systems and warned that limiting access to leading defensive technologies could weaken US cybersecurity efforts at a time when rival nations are investing heavily in artificial intelligence.

The debate reflects growing concerns over how governments and technology companies can balance innovation, security and competition as increasingly powerful AI systems reshape the cybersecurity landscape.

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