EU Commission Plans to Reduce Overlap in Tech Regulations, Says Virkkunen

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The European Commission is exploring ways to streamline its digital regulations in response to concerns from businesses about regulatory complexity, EU digital chief Henna Virkkunen stated on Thursday. However, she emphasized that key laws like the Digital Services Act (DSA), Digital Markets Act (DMA), and AI Act will not be weakened.

Addressing Business Concerns

Speaking outside a meeting in Amsterdam, Virkkunen acknowledged that companies often struggle with compliance due to overlapping regulations. “It’s often the same company that has to comply with different rules,” she said. The Commission aims to reduce unnecessary bureaucracy, particularly reporting obligations, without compromising the effectiveness of the regulations.

No Compromise on Compliance

Virkkunen reaffirmed that all companies operating in the EU—whether European, American, or Chinese—must adhere to the bloc’s digital laws. She also stressed the importance of consistent enforcement across EU member states rather than introducing additional directives.

Balancing Regulation and Competitiveness

The EU’s strong regulatory stance on tech has faced criticism from both U.S. officials, including former President Donald Trump, and European businesses concerned about over-regulation. Earlier this month, the Commission delayed adopting new climate and sustainability rules amid similar complaints about regulatory burdens affecting the EU’s competitiveness against the U.S. and China.

Virkkunen’s comments signal a potential shift towards simplifying compliance processes while maintaining the EU’s leadership in tech regulation.

JSR’s Incoming CEO to Prioritize Financial Recovery, Shifts Away from M&A Plans

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Tetsuro Hori, the incoming CEO of Japanese chip materials maker JSR, has signaled a strategic shift in focus toward financial recovery rather than industry consolidation. Hori, who will assume his role on April 1, emphasized that JSR’s current financial struggles make it unprepared for acquisitions.

Key Priorities and Potential Divestment

Hori highlighted the urgent need to improve JSR’s life sciences business, which has suffered losses and impacted overall performance. Industry speculation has grown regarding a possible sale of the division, a scenario Hori has not ruled out. “JSR might not be the best owner of the life science business,” he admitted, though he stressed that any decision would depend on improved financial performance.

Change in Strategy from Previous Leadership

Under outgoing CEO Eric Johnson, JSR was taken private last year in a $6 billion buyout by Japan Investment Corp (JIC). Johnson had argued that being privately held would enable JSR to pursue mergers and acquisitions more freely. However, this approach has faced skepticism within the industry, and Hori now indicates a more cautious stance.

“M&A must be supported by customers and create value,” Hori stated, implying that large-scale acquisitions are not currently on the agenda.

Industry Partnerships and Financial Outlook

While Hori acknowledged the possibility of collaborations, he noted that there have been no discussions with Resonac, another chip materials maker, despite industry speculation about potential synergies when JIC eventually exits JSR.

Financially, JSR reported a net loss of 22.2 billion yen ($148 million) for the six-month period ending September 30. Hori aims to restore profitability by the fiscal year ending March 2026.

UK Watchdog Fines OnlyFans $1.4 Million Over Age-Check Disclosure Failures

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Britain’s media and telecommunications regulator, Ofcom, has fined OnlyFans £1.05 million ($1.4 million) for failing to accurately disclose information related to its age verification measures. The fine follows an investigation into the platform’s methods of checking user age, specifically its use of third-party facial estimation technology.

Investigation Findings

OnlyFans’ operator, Fenix International Limited, was found to have misrepresented the effectiveness of its age verification technology. The platform claimed that its facial recognition system, which uses live selfies submitted by users, had a “challenger age” threshold of 23 years. However, the threshold was actually set at 20 years, a discrepancy that Fenix International reported to Ofcom last year.

In response to the error, Fenix announced plans to raise the threshold to 23 years in January 2025. However, the company later lowered it to 21 years within a few days. Despite this correction, the failure to provide accurate and complete information led to the fine.

Ofcom’s Role and Future Actions

Ofcom emphasized the importance of receiving accurate information to fulfill its regulatory responsibilities. Suzanne Cater, the enforcement director at Ofcom, stated, “We will hold platforms to high standards and will not hesitate to take enforcement action where we find failings.”

Although Ofcom closed its investigation into whether minors were accessing the platform, it continues to monitor the accuracy of the information provided by OnlyFans.

Platform’s Response

OnlyFans, which has over 300 million users and generates $1.3 billion in revenue, welcomed the conclusion of the investigation related to UK onboarding. A spokesperson for the platform acknowledged the importance of providing accurate and timely information to the regulator.