Regulators tighten grip on tech giants

Brussels will see increased activity this summer. While European Union officials usually leave for vacations by mid-August, two upcoming deadlines may intensify the bloc’s conflict with major U.S. technology firms.

Social media restrictions and transatlantic relations

On July 13, the European Commission’s social media panel will present recommendations to President Ursula von der Leyen on safeguarding children online. The proposals follow months of growing pressure from member states. Germany recently advocated for an EU-wide prohibition on social media use for those under 13, signaling the direction policymakers intend to take.

A ban at this level would represent a significant shift. Most platforms used in Europe are American-owned, and such restrictions could further strain relations between the EU and the U.S.

AI regulations take force in August

August 2 marks another key date. On that day, core parts of the EU AI Act will apply to large general-purpose models like ChatGPT, Claude, and Mistral. From then on, European regulators can require documentation, perform evaluations, and remove models from the market if companies refuse to cooperate.

Penalties may reach 3% of global revenue. For Anthropic, which expects nearly $50 billion in revenue by 2026, this could result in substantial fines. The AI Office’s strategy remains unclear. Jimmy Farrell, EU AI policy lead at the think tank Pour Demain, noted that compliance costs are minor compared to the European market’s value. “Removing the model would be the last resort,” he stated at a conference in Leuven.

The AI Act’s implementation coincides with other regulatory efforts. The EU is revising merger guidelines that could alter tech policy, while additional investigations under the Digital Services Act (DSA) are expected following May’s action against Temu. Competition Commissioner Teresa Ribera recently indicated that cloud providers like Amazon Web Services and Microsoft Azure might soon be subject to the Digital Markets Act, expanding Brussels’ efforts to counter U.S. tech influence.

These steps align with a broader push for digital independence. The EU’s latest policy package on the subject will likely dominate discussions this summer, regardless of rising temperatures. For large technology companies, the pressure will persist even after the current heatwave ends.