Brussels Prepares a Regulatory Gauntlet for Big Tech

On July 13, the Commission’s social media panel will deliver recommendations to President Ursula von der Leyen regarding the protection of minors. With Germany advocating for a blanket ban on social media for users under 13, the pressure to restrict platform access is mounting. Such a move would signal a significant escalation in transatlantic tensions, given that the primary platforms in question are U.S.-owned.

August 2 brings the implementation of key provisions under the EU AI Act. Regulators will gain the authority to demand internal documentation, conduct model evaluations, and potentially force the removal of non-compliant general-purpose AI models like ChatGPT, Claude, and Mistral from the market. The financial stakes are substantial, with non-compliance fines reaching up to 3% of global turnover. Jimmy Farrell, an EU AI policy lead at Pour Demain, noted that while removing a model would be an extreme measure, the sheer size of the European market makes compliance a more likely path for companies than exit.

Beyond these milestones, the regulatory environment is expanding. The European Commission is currently reviewing merger guidelines and weighing whether to bring cloud giants like Amazon Web Services and Microsoft Azure under the scope of the Digital Markets Act. Combined with ongoing investigations into companies like Temu, these actions suggest that European regulators are moving to solidify a more aggressive oversight framework.