London Daily

Focus on the big picture.
Thursday, Jul 31, 2025

Europe unveils a new plan to compete with Silicon Valley

Europe knows it fell behind the United States and China on the technologies that dominated the past decade. Now it has a plan to catch up.
On Wednesday, the European Union unveiled plans to create a single market for data that will help its companies compete on the next round of tech innovations and curb the power of data giants such as Facebook (FB) and Google (GOOGL). Officials also released a paper on artificial intelligence, proposing first-of-their-kind rules to govern the technology's use.

"Whoever does business [here] needs to respect our rules and values," Margrethe Vestager, the EU commissioner leading the charge on tech issues, said at a press conference.

By leveraging the massive amounts of data generated within its borders, the European Union hopes to foster a fresh wave of development in industries such as transportation and health care, while leveling the playing field for the smaller companies currently unable to compete with large US and Chinese firms.

"We recognize that we missed the first wave or the first battle," Commissioner Thierry Breton told reporters. But Europe has the tools required to "win" the next phase, since the region hosts "the strongest and largest industrial base," he continued.

Plus, Europe has regulatory teeth. It's already investigating how Google, Facebook and Amazon (AMZN) use data and has fined Google €8.2 billion ($8.9 billion) since 2017 for antitrust violations. Its data protection rules enacted in 2018 have set a new global standard.

The European Union also intends to jumpstart a debate on regulating AI. The bloc said that it intends to scrutinize AI applications that are deemed to be high risk in the same way it ensures cars, toys and cosmetics meet certain standards.

The paper stopped short of proposing a temporary ban on facial recognition technology in public spaces. But the European Union did pledge to launch a "broad" debate on what circumstances, if any, justify the use of AI that processes biometric data in public. The paper suggests that companies operating in Europe will need to ensure their AI systems aren't biased and involve human oversight.

The announcements come just days after Mark Zuckerberg visited Brussels to meet with EU leaders. The Facebook CEO said he supported increased regulations from governments on data use, privacy and managing content.

But the question of who is legally accountable for the content posted on tech platforms remains contentious. In a paper released this week, Facebook said it does not support laws that seek to hold platforms liable for content posted by users.
That could set the company on a collision course with the European Union, which plans to roll out legislation by the end of the year compelling US tech giants to better address issues such as hate speech and election interference.

"It is very clear that we have the ambition to say you have a responsibility when you are a content provider, one way or another," Vestager said Wednesday.

Guntram Wolff, the director of Bruegel, an economic think tank based in Brussels, said the challenge for the European Union will be to move beyond regulation into the industrial policy space. With no spare room in the bloc's budget, it will need to rely on coordinated action from member states, he said.

"I have no doubt the European Union can deliver on regulation," he said. "But I think that's only part of the story. There is the investment side. There is the enforcement side. There is the entrepreneurship side." These areas, Wolff said, are "not the traditional strengths of the European Union."
Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×