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Silicon Valley challenges EU tech regulations with Trump’s support

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Big tech companies, with the support of the Trump administration, are challenging what they see as ‘hostile rules’ on artificial intelligence and market dominance in the EU.

According to the Financial Times (FT), Facebook owner Meta is leading the fight against the EU’s Artificial Intelligence Act this year, while tech lobbyists in the EU believe they can successfully ‘water down’ the implementation of what is considered the world’s strictest regime for cutting-edge technology.

According to people familiar with the matter, Silicon Valley is pushing Brussels to limit the application of the Digital Markets Act (DMA), which prevents major online platforms from abusing the market and can impose large financial penalties on companies.

Big Tech’s efforts are supported by the new administration. US Vice President JD Vance used his recent trip to Europe to counterattack the EU’s tech legislation, denouncing the bloc’s ‘onerous international’ rules. He also called for AI regulation that does not ‘strangle’ the rapidly developing sector.

Lobbyists for other big tech companies pointed to tech executives, including Google chief Sundar Pichai, Amazon founder Jeff Bezos, and Apple chief Tim Cook, who were in the front row at Donald Trump’s inauguration, as an example of the new political reality in Washington.

Henna Virkkunen, the EU’s technology chief, told the FT that Europe was fully committed to enforcing the rules despite US pressure.

Earlier this month, however, the European Commission withdrew its planned Artificial Intelligence Liability Directive, designed to make tech companies pay for any damage caused by AI tools or systems, as part of a wider deregulatory push from Brussels.

Virkkunen said the decision was taken in a bid to encourage AI investments amid pressure from US tech companies.

Some European industry officials and lawmakers interpreted the move as a sign that limiting action against big tech companies could become a bargaining chip in transatlantic negotiations on trade and even Washington’s commitment to European security.

The most immediate fight will center on the Artificial Intelligence Code of Practice, expected in April, which will determine how companies can implement the rules of the landmark Artificial Intelligence Act, such as how they must address ‘systemic’ risks in AI.

Meta made it clear to an audience in Brussels earlier this month that it would not sign the voluntary code, with the company’s senior lobbyist Joel Kaplan saying it imposed ‘unenforceable and technically impossible requirements’.

Kaplan also warned that without a US partnership with Europe on AI, China could win the AI race.

According to many familiar with the matter, the social media group led by Mark Zuckerberg felt ‘abandoned’ by the previous Biden administration when opposing EU regulations.

But it now feels that the US administration favors its point of view and could put more pressure on the bloc.

In September, the company spearheaded an open letter signed by 50 groups, including Sweden’s Ericsson and Spotify, arguing that Europe’s regulatory framework was stifling innovation and leaving the continent behind in AI development.

Meta also said it could not send its multimodal big language models and its latest AI assistant to the EU due to the bloc’s privacy rules.

Other US tech companies such as Google have also stepped up their criticism of regulations on AI. Another major lobbying effort by Big Tech is the implementation of the Digital Markets Act, designed to combat the dominance of ‘digital gatekeepers’ of the largest online platforms.

If found guilty of non-compliance, companies could face heavy fines of up to 10 percent of their global turnover.

Alphabet, which owns Apple, Meta, and Google, has been the target of investigations after the new rules came into force in 2023. But since Trump’s election victory in November, the European Commission has been reassessing its investigations.

At the World Economic Forum in Davos last month, Trump directly criticized EU fines on American companies, calling them ‘a form of taxation’.

A senior official at a US tech giant said Silicon Valley groups want either a reopening of the DMA or clarifications to narrow its scope and provide clearer guidance on how it will be applied.

Europe

Ramstein format delivers massive military packages to Ukraine

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The 28th meeting of the Ukraine Defense Contact Group, held in the Ramstein format, concluded with unprecedented military support for Ukraine from its allies.

According to a statement from the Ukrainian Ministry of Defense, the security assistance to be provided this year is expected to exceed the figures from all previous years of the full-scale war.

Ukrainian Defense Minister Rustem Umerov stated after the meeting, “The 28th meeting of the Ukraine Defense Contact Group in the Ramstein format was another confirmation that partners remain reliable and determined in supporting Ukraine.”

Umerov emphasized that Ukraine achieved significant results, adding, “According to the outcomes of the meeting, our partners announced new aid packages and significant support measures.”

Record drone aid from Britain

Britain announced a record £350 million in aid for drone procurement. According to Minister Umerov, this will enable the delivery of 100,000 drones to Ukraine in 2025.

Overall, Britain’s military support in 2025 will amount to £4.5 billion, with £247 million of this sum allocated for the training of the Ukrainian Armed Forces.

Germany’s massive €5 billion package

Germany approved a new military aid package totaling €5 billion.

Umerov shared the information, stating, “The Federal Parliament (Bundestag) has already approved this decision.” The package will specifically include funding for long-range weapons to be produced in Ukraine, as well as the delivery of air defense systems, weapons, and ammunition.

Netherlands’ contribution to naval power

The Netherlands is providing an aid package worth €400 million. This package includes a mine countermeasures vessel, boats, and naval drones.

Belgium’s long-term commitment

Belgium announced a long-term initiative. Within this framework, €1 billion in annual aid will be provided to Ukraine until 2029, and a mine countermeasures vessel will be delivered.

Norway allocated $700 million for drones, focusing on Ukraine’s defense industry, and $50 million to the NSATU Trust Fund.

Canada allocated $45 million for drones, electronic warfare systems, IT solutions, and Coyote and Bison armored vehicles.

Sweden will contribute €440 million to international programs for the procurement of artillery ammunition, drones, and other weapons for Ukraine.

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‘Force with force’: DGAP calls for aggressive EU strategy in US trade dispute

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Officials from the German Council on Foreign Relations (DGAP) state in their public announcements that the EU should respond to the US government “force with force” to stop it.

Brussels’ measures against the Trump administration’s tariffs have so far been extremely timid. In April, the EU prepared a list of US goods threatened with retaliatory tariffs in response to US steel and aluminum tariffs; this list includes goods such as soybeans and Harley Davidson motorcycles, valued at 21 billion euros.

Additionally, it prepared another list of US goods worth 95 billion euros, planned to be finalized next week; this list includes cars and auto parts, aircraft, medical devices, and chemicals.

‘The only way to fight Trump is to risk instability’

The EU’s cautious approach is causing growing dissatisfaction among economic experts and political advisors. For example, DGAP expert Markus Jaeger argues in his new article that the EU should adopt a more aggressive policy.

Jaeger states that attacking US states where Trump has a broad voter base with tariffs is pointless, as these measures “rebound without hitting Trump.” Instead, he suggests that directly addressing “the president’s cost-benefit calculations” would be a better approach.

The German expert points out that past experiences have shown Trump avoids a “comprehensive financial instability risk” and withdraws tariffs when such a risk emerges. He recalls, for instance, that a significant stock market decline prompted Trump to freeze the tariff war against China.

Therefore, Jaeger calls for the EU to switch to a strategy involving a “credible and effective retaliatory threat,” stressing that, if necessary, an escalation of the conflict against “hostile protectionist measures” should not be avoided.

According to Jaeger, a former employee of Deutsche Bank Research, “risking comprehensive instability” if necessary is the only tactical way to defend against Trump.

‘China did what the EU couldn’t do against the US’

A more fundamental critique came from another DGAP expert, Shahin Vallée.

Vallée previously served as an economic advisor to EU Council President Herman Van Rompuy, then-Economy Minister Emmanuel Macron, and finally George Soros.

Vallée argues that the EU’s efforts to understand and deal with US President Donald Trump after his re-election have been a “complete failure.”

The DGAP expert argues that the EU failed to recognize the need to respond to Trump “force with force,” “openly and visibly.” He believes Brussels missed the “extraordinary opportunity” that arose when Trump was “colliding head-on with the entire world simultaneously.”

According to Vallée, it would have been possible to make Trump yield if action had been taken to isolate the US by immediately forming alliances with countries like China or Canada.

Vallée asserts that China achieved this success by “resisting and leveraging its power in critical areas,” compelling the US to “completely surrender.” He further claims China managed this without needing EU cooperation in a future economic war with the US.

According to the expert, the EU is currently stuck in the next round of tariff threats and will face even stronger pressure in the future.

‘Respond to force with force’

In this context, Vallée insistently calls for the EU to make a “complete U-turn” in its economic policy towards the Trump administration.

According to the author, as a first step, Brussels should immediately implement retaliatory tariffs against US steel and aluminum tariffs. Simultaneously, it should announce new counter-tariffs against automotive tariffs and suspended “reciprocal” tariffs; this should cover imports from the US exceeding 150 billion euros.

Secondly, the EU should restrict exports of goods that the US cannot substitute. Vallée gives the example of lithography technology used in semiconductor manufacturing, likely referring to equipment produced by the Dutch company ASML, which is used in manufacturing the most advanced chips and currently has largely no alternative, at least in the West.

Thirdly, the DGAP expert advocates for measures against US service sector imports. These measures include imposing digital taxes on the profits of large US internet companies on one hand, and restricting the activities of US financial service providers benefiting from European assets on the other.

Vallée advises being prepared for a “sharp escalation” of the conflict in this regard.

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Vatican under Pope Leo XIV warns against AI ‘playing God,’ urges ethical development

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The new leader of the Catholic world, Pope Leo XIV, has made reducing the risks of “uncontrolled artificial intelligence” the defining mission of his papacy.

In his first official address to the cardinals, the new Pope warned against the dangers artificial intelligence poses to “human dignity, justice, and labor.” Two days later, speaking to journalists, he praised the technology’s “immense potential” while also emphasizing the responsibility to “ensure it is used for the benefit of all people.”

Like Pope Leo XIII, whose name he took and who called for “restructuring” relations between workers and capital during the industrial revolution in the last quarter of the 19th century, Leo XIV positions himself as a “guardian of the social fabric” against uncontrolled modern technologies.

Indeed, the new Pope had said he took this name pointing to the role of his predecessor, who published the famous papal encyclical Rerum Novarum, in “social matters.”

Franciscan friar Paolo Benanti, a Vatican advisor on artificial intelligence ethics, told POLITICO, “The Church asks us to look to the heavens, but also to walk on earth as the times require,” adding that it is not unusual for the church to offer expertise in such a futuristic field.

Maria Savona, an AI expert and professor of innovation economics at Luiss University in Rome and the University of Sussex, stated, “The Vatican wants to avoid certain AI developments that could harm human rights and dignity and disproportionately affect low-skilled workers.”

The Vatican’s efforts to secure a place for itself in artificial intelligence regulation began with Leo’s predecessor. In 2020, Pope Francis brought together technology companies like IBM and Cisco, as well as religious and political leaders, to sign the Rome Call for AI Ethics, a commitment to developing artificial intelligence technologies that are “accountable and benefit society.”

In January, the Vatican issued an official statement warning that artificial intelligence could lead humanity to become a “slave to its own work.”

Leo, the first pope from the US—the homeland of Silicon Valley and the tech revolution—and a mathematics graduate, is in a “unique position” to carry this banner, according to POLITICO.

Meanwhile, Washington is spearheading a deregulation move in the AI field. President Donald Trump rolled back the security rules set by his predecessor, Joe Biden, and announced a half-trillion-dollar AI plan with leading company OpenAI.

According to Benanti, the church’s role as an “expert in humanity” can encourage leaders, especially in Catholic countries, to “create AI that values people and aligns with social justice.”

In Leo’s first meeting with Italian leader Giorgia Meloni, the two pledged to continue working for “ethical and human-centered artificial intelligence development.” Last year, at Meloni’s invitation, Francis had addressed G7 leaders on artificial intelligence ethics.

Savona commented, “The Vatican’s interest in artificial intelligence is not strange. Francis also showed great interest in climate change, one of today’s significant problems. The Church’s mission is to adapt to the world while remaining true to its fundamental principles.”

Savona argued that as power concentrates in the hands of tech giants and wealthy nations, the Vatican could use its network in the “Global South” to ensure “more democratic access” to artificial intelligence and push for European-dominated regulations to be adapted to global standards.

On the other hand, Leo himself has fallen victim to AI-generated content. In the first week of his papacy, a YouTube video was published allegedly showing Leo praising Burkina Faso’s President Ibrahim Traoré for contrasting the Vatican’s wealth with poverty in Africa.

The Vatican stated that the video was a “deepfake” and part of a recent wave of AI-generated content on African platforms glorifying Traoré as an example of pan-African leadership.

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