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Elon Musk’s X Agrees to Adjust EU Verification System After €120 Million Fine

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Elon Musk’s social media platform X has agreed to modify its user verification system in the European Union following a €120 million fine imposed last year, a European Commission spokesperson confirmed. Bloomberg reported that the company has proposed solutions to address concerns over the blue checkmark, which verifies accounts on the platform.

The fine, levied in December, found that X’s paid verification system, introduced after Musk acquired Twitter in 2022, could mislead users by implying that verified accounts were more trustworthy. The European Commission also raised concerns that users and authorities lacked access to an updated advertiser registry, which could complicate transparency during elections and obscure the origins of online claims.

According to Thomas Regnier, the Commission spokesperson, the company must either pay the fine or provide a financial guarantee to comply with the Digital Services Act. The agreement to change the verification system is part of X’s efforts to meet regulatory requirements and avoid further penalties.

The European Commission’s decision prompted a diplomatic dispute between Brussels and Washington. Representatives of the Donald Trump administration criticised the move, framing it as a form of censorship targeting a major American social media company.

The European Union has increasingly scrutinised tech platforms to ensure compliance with rules on transparency, accountability, and user protection. The Digital Services Act, which came into force in 2024, aims to hold social media companies responsible for the content shared on their platforms and to provide regulators with access to key operational information, particularly during elections.

The blue checkmark system had become a central feature of X’s strategy under Musk, with users paying for verification status. While intended to signal authenticity, regulators said the program risked creating a false sense of reliability for paying users while leaving ordinary users and election authorities in the dark about advertising and messaging practices.

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Euronews Next contacted X and the European Commission for comment but did not receive responses before publication.

Analysts say the case highlights the growing tension between European regulators and major US tech companies, which are increasingly expected to comply with stricter rules on digital platforms while balancing commercial strategies and user engagement. For X, implementing changes to the verification system will be key to operating smoothly in the EU market and avoiding additional fines or regulatory action.

The dispute also underscores the broader geopolitical dimensions of tech regulation, as enforcement actions in Europe can attract attention and criticism from US policymakers and companies, reflecting the global influence of digital platforms.

With the new adjustments to the blue checkmark system, X aims to address regulatory concerns while maintaining user trust in the European market.

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Sweden’s ‘W’ Platform Joins Europe’s Push to Build Big Tech Alternative

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A new Sweden-based social media platform called “W” has entered the growing field of European tech initiatives seeking to challenge the dominance of US-based Big Tech companies, as the European Commission announced its participation on Wednesday.

The platform, which was first introduced at the World Economic Forum in January, promotes itself as a digital space built on “verified human users, transparency, privacy and free speech.” It has now launched a beta version, with access limited to users who pass a vetting process before being allowed to post content.

European Commission President Ursula von der Leyen and European Council President Antonio Costa are among the early official users of the platform, signalling political support for the initiative. Users are required to verify their identity either by registering their real name or by using “W Identity,” a separate verification tool that scans passports or national identity documents directly on a user’s device.

According to the company, W was developed by a group of entrepreneurs working across media, technology and artificial intelligence. The platform states that it plans to host data exclusively on European servers operated by European companies, aligning its infrastructure with EU data protection standards.

CEO Anna Zeiter has said the platform intends to rely on European service providers, including Switzerland-based encrypted email company Proton and Finland’s cloud computing firm UpCloud, as part of its commitment to privacy-focused operations within Europe.

The launch comes amid a broader push across the continent to reduce dependence on US technology giants and strengthen what policymakers describe as “digital sovereignty.” Governments in France, Germany and the Netherlands have previously raised concerns that reliance on foreign-owned platforms could expose Europe to security risks and limit control over sensitive data.

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W is part of a wider wave of European alternatives to mainstream social media networks. Other emerging platforms include Bulle in France, Eurosky, Monnett and eYou, all aiming to offer regionally governed digital ecosystems.

Some of these platforms recently signed a declaration supporting the development of Europe’s “social stack,” a shared digital infrastructure intended to provide a more diverse and resilient online environment. The initiative argues for reducing reliance on dominant global platforms and promoting alternatives with governance structures rooted in Europe.

However, analysts have noted that competing with established social media giants presents significant challenges. Experts have pointed out that new platforms often struggle to maintain large user bases, as they typically lack the scale, engagement features and convenience that have made existing networks dominant in global digital communication.

Despite these challenges, supporters of W and similar projects say the push reflects a broader effort to reshape Europe’s digital landscape and assert greater control over data, privacy and online governance in an increasingly competitive global tech environment.

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European Governments Move to Cut Dependence on Palantir Amid Rising Security and Privacy Concerns

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European governments are increasingly seeking to reduce their reliance on US data analytics firm Palantir, as political scrutiny grows over the company’s role in defence, policing and intelligence operations across the continent. Officials in several countries have raised concerns about digital sovereignty, privacy risks and the long-term dependence on foreign technology providers in sensitive state systems.

In the Netherlands, State Secretary for Defence Derk Boswijk told parliament this week that the country aims to have a “fully fledged alternative” to Palantir within two years. He said the company has been used in a “very limited, compartmentalised, and small scale” capacity since 2010, but added that the government is now pursuing a “two-track policy” to reduce dependency and ensure independent capability in data-driven defence systems.

Dutch lawmakers are also examining broader concerns about the company’s role in government infrastructure. One politician, Michelle Jagtenberg, questioned Palantir’s suitability for public contracts, citing allegations of “racist and anti-democratic ideology.” The discussion follows a parliamentary motion passed in 2025 calling for reduced reliance on the firm and greater use of European-developed alternatives.

Similar concerns are emerging across Europe. A UK parliamentary report described Palantir’s systems as creating an “unacceptable point of weakness” in national infrastructure, while Switzerland has reportedly rejected at least nine bids from the company due to security considerations. Denmark is also working to identify domestic alternatives to replace its existing systems.

Palantir’s platforms are widely used for analysing large datasets in defence and intelligence operations. Its Gotham software has been linked to military targeting systems, which the company describes as supporting an “AI-powered kill chain” for decision-making. Critics, however, argue that such tools raise serious ethical and transparency concerns, particularly when deployed in conflict zones or law enforcement.

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The company’s leadership has also drawn controversy. Co-founder Peter Thiel and CEO Alex Karp have both faced criticism for remarks about the use of military technology. Karp has previously described Palantir’s software as a tool intended to “disrupt” and, when necessary, be used in lethal operations, comments that have intensified public debate over the company’s role in modern warfare.

Human rights organisations, including Amnesty International, have raised concerns about Palantir’s handling of sensitive data, including healthcare information processed through contracts with the UK’s National Health Service. The group has warned about risks related to privacy, transparency and the scale of data access granted under government agreements.

Despite growing opposition, Palantir continues to hold contracts across Europe. The United Kingdom remains a major client, including defence agreements worth hundreds of millions of pounds. Germany, Spain and Denmark also continue to use the company’s systems in varying capacities, although several governments are now actively exploring alternatives from European technology providers.

As debates intensify over digital sovereignty and national security, European policymakers appear increasingly divided between maintaining existing systems and building independent data infrastructure free from reliance on US defence technology firms.

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Microsoft Unveils In-House AI Models and Quantum Breakthrough as Tech Giant Moves to Reduce External Dependence

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Microsoft has taken a major step toward reducing its reliance on external artificial intelligence partners, unveiling seven in-house AI models at its Build 2026 developer conference in San Francisco. The move signals a strategic shift as the company seeks greater control over its AI stack while its key investee firms prepare for high-profile public listings.

Satya Nadella, Microsoft’s chief executive, told attendees that the industry is entering a new phase in which companies must do more than simply consume frontier AI systems. “We believe the time has come for every company to move from consuming a frontier model to fully participating at the frontier,” he said.

At the centre of the announcement is MAI-Thinking-1, Microsoft’s first reasoning model built entirely from scratch using commercially licensed data and without distillation from external systems. The model includes 35 billion active parameters and a 256,000-token context window, designed for complex reasoning tasks, coding, and long-form instruction handling.

Microsoft also introduced MAI-Code-1-Flash, a coding-focused model integrated into GitHub Copilot and Visual Studio Code, aimed at converting natural language prompts into functional software code. The company said these tools will run on Azure infrastructure, allowing it to reduce costs currently paid to external model providers and potentially offer cheaper services to developers.

Mustafa Suleyman, chief executive of Microsoft AI, said internal testing suggested strong performance gains. After optimisation for consulting firm McKinsey, he said the new models outperformed OpenAI’s GPT-5.5 in quality while offering what Microsoft estimates as up to ten times better cost efficiency, based on scaled public pricing comparisons.

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In independent evaluations conducted by Surge, Microsoft’s third-party rating partner, MAI-Thinking-1 was reportedly preferred over Anthropic’s Claude Sonnet 4.6, while matching Claude Opus 4.6 on coding benchmarks.

Alongside its AI announcements, Microsoft revealed progress in quantum computing. The company’s new Majorana 2 chip is said to be 1,000 times more stable than its predecessor, extending qubit lifespan from milliseconds to an average of 20 seconds. While still far from practical deployment, Microsoft believes this marks a meaningful step toward scalable quantum machines.

Zulfi Alam, corporate vice president of Microsoft Quantum, said the company aims to deliver a commercially useful quantum system by 2029, though current prototypes contain only 12 qubits, far short of the millions required for full-scale systems.

The announcements come as Microsoft’s AI partners move toward public markets. Anthropic has filed confidentially for an IPO following a major funding round valuing it at $965 billion, while OpenAI is also preparing a filing. Microsoft has invested heavily in both companies, committing billions of dollars while integrating their models into Azure.

The new direction suggests Microsoft is positioning itself to compete directly with its own partners, as the race for dominance in advanced AI and next-generation computing intensifies.

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