EU Considers Pausing Parts of Landmark AI Act Amid Pressure from U.S. and Big Tech

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The European Commission is considering pausing parts of its landmark Artificial Intelligence Act, following growing pressure from U.S. officials and major tech companies such as Meta and Alphabet, the Financial Times reported on Friday.

According to the report, the move comes after months of lobbying from Silicon Valley giants and warnings from the Trump administration that strict EU regulations could strain transatlantic trade relations.

A senior EU official told the FT that Brussels has been “engaging” with Washington on potential adjustments to the AI Act and related digital regulations as part of a broader simplification effort, which is expected to be adopted on November 19.

The AI Act, which became law in August 2024, is the world’s first comprehensive framework to regulate artificial intelligence technologies. It categorizes AI systems by risk level — from minimal to unacceptable — and imposes restrictions on areas like facial recognition, biometric surveillance, and generative AI transparency.

While a European Commission spokesperson had previously dismissed calls for delays, officials are now reportedly weighing temporary pauses for specific provisions, particularly those affecting companies developing large AI models.

An EU spokesperson told the FT that “various options” are being discussed but emphasized that the bloc remains “fully behind the AI Act and its objectives.”

The proposal reflects Europe’s balancing act between maintaining AI safety and innovation leadership while addressing geopolitical and trade pressures from the United States and industry stakeholders.

Vodafone and AST SpaceMobile to Build Europe-Led Satellite Constellation for Secure Connectivity

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Vodafone and AST SpaceMobile announced plans on Friday to develop a Europe-led satellite constellation designed to provide direct satellite-to-smartphone connectivity for both commercial and government applications.

The joint venture will establish its European operational headquarters in Germany, with potential sites near Munich or Hannover under consideration. The new system will serve as a “sovereign satellite solution”, providing secure communications to European mobile network operators, public agencies, and emergency services.

According to the companies, the constellation will feature a “command switch” to ensure European oversight, with built-in encryption and control systems for secure communication and satellite management.

The initiative aims to enhance broadband access and improve disaster relief capabilities across the continent, particularly in underserved regions. Industry analysts estimate the satellite-to-phone connectivity market could surpass $10 billion by 2033, reflecting growing demand for broadband in remote areas.

The announcement follows Elon Musk’s Starlink striking a deal with Veon on Thursday to deliver direct-to-cell connectivity to up to 150 million users across its markets. SpaceX also expanded its U.S. spectrum holdings, signaling intensified competition in the satellite communications sector.

AST SpaceMobile, which currently operates six satellites and plans to expand to 60 by 2026, is positioning itself as Europe’s alternative to U.S.-based Starlink. Vodafone, a major investor in AST, said that operators in 21 EU member states have expressed interest in joining the project, which is slated for commercial launch in 2026.

Vodafone CEO Margherita Della Valle said the initiative will provide Europe with secure, sovereign satellite communications that complement terrestrial networks, strengthening the continent’s digital autonomy.

Netherlands May Drop Control of Nexperia If China Resumes Chip Exports

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The Dutch government is reportedly prepared to end its control over Nexperia if China resumes exports of the company’s chips, potentially easing tensions that have rattled global supply chains, Bloomberg News reported on Friday.

Citing people familiar with the matter, Bloomberg said authorities in the Netherlands could suspend the ministerial order as soon as next week, provided shipments from China resume and are verified. The order, imposed on September 30, gave The Hague temporary veto powers over Nexperia’s corporate decisions amid concerns about Chinese influence over the semiconductor maker.

Dutch Economy Minister Vincent Karremans said on Thursday he expected Nexperia chips to reach European and global customers “in the coming days.” He added that the government would “support these developments, and take appropriate steps where necessary.”

A spokesperson for Karremans declined to clarify whether those steps could include lifting the intervention, which was initially designed to safeguard Dutch strategic interests in the semiconductor sector.

The dispute erupted after the Chinese government blocked exports of Nexperia’s products from the country in early October, following the Dutch seizure of control. The move sparked a global shortage of Nexperia chips, which are widely used in automotive, industrial, computing, and consumer electronics.

The disruption forced several European carmakers to scale back production and furlough workers. Industry analysts say restoring chip flows is critical to stabilizing supply chains and preventing further economic fallout.

Nexperia, which was acquired by China’s Wingtech Technology, has yet to comment on the Dutch government’s latest position.