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Europe Squares Up to Big Tech, Risking Ire of Washington

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European governments are intensifying scrutiny of major social media platforms, responding to mounting public concerns over child safety and harmful online content. The move reflects a broader push to regulate digital platforms but risks escalating tensions with the United States, where many of these companies are headquartered.

Spain recently ordered prosecutors to investigate Meta, X and TikTok over the alleged spread of AI-generated child sexual images. Ireland has also opened an inquiry into X’s AI chatbot Grok over its handling of personal data and potential to generate harmful sexualised content.

Several European countries including France, Spain, Greece, Denmark, Slovenia and the Czech Republic are now considering restrictions on social media use by adolescents. Germany and the United Kingdom are exploring similar measures, citing growing worries about online addiction, abuse and declining academic performance.

These national initiatives highlight frustration among policymakers who believe EU-level responses may be too slow. Under the Digital Services Act, platforms can face fines of up to 6% of global annual turnover if they fail to tackle illegal content. However, enforcement remains politically sensitive.

U.S. President Donald Trump has warned of potential tariffs or sanctions if European regulations disproportionately affect American technology firms. Meanwhile, EU officials maintain that the bloc is acting to safeguard democratic systems and ensure responsible technology use.

Some European leaders have framed the regulatory push as part of a broader effort to reduce digital dependence on foreign platforms and strengthen regional technological sovereignty.

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.

Amazon Sues Perplexity Over AI Shopping Agent That Secretly Accessed Customer Accounts

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Amazon has filed a lawsuit against Perplexity AI, accusing the fast-growing startup of illegally accessing Amazon customer accounts through its automated “agentic” shopping feature. The complaint, filed Tuesday in a U.S. District Court in California, claims Perplexity’s Comet browser and AI agent disguised automated activity as human browsing to place orders on behalf of users.

The dispute marks a major flashpoint in the debate over regulating AI “agents” — autonomous digital assistants that can navigate websites, make purchases, and perform other online tasks on users’ behalf. Amazon said Perplexity’s technology posed security risks and had repeatedly ignored requests to stop unauthorized activity on its platform.

“Perplexity’s misconduct must end,” Amazon said in its filing, adding that the startup’s software “purposely disguised its automated activity” and that its actions were “no less unlawful” than a physical break-in.

Perplexity, whose AI tools have surged in popularity amid the rise of conversational assistants, previously dismissed Amazon’s complaints, calling them an attempt to stifle innovation and protect its ad-driven business model. “Bullying is when large corporations use legal threats to block innovation,” the startup said in an earlier blog post.

Amazon argued that Perplexity’s AI agent interfered with its ability to deliver a personalized shopping experience, undermining systems built over decades. The company added that third-party apps making purchases for users must act transparently and respect site policies.

Perplexity said its Comet AI assistant allows users to shop and compare products autonomously, while keeping login credentials stored locally, not on company servers. It argued that consumers have the right to choose their own AI shopping tools — a stance that could shape future legal battles over the limits of AI automation in e-commerce.