MLex Europe's Top Stories

Howdy, folks! Welcome to this week’s edition of MLex Europe's Top Stories, where we bring you the hottest news straight from our reporters in Brussels and London.

Whether you follow tech and artificial intelligence policy, trade defense or financial services, we've got you covered with the latest insights and analysis on the EU and UK policies and litigation shaping industry today.

Click the subscribe button to stay informed when this newsletter comes out. Now, let’s dive into this week’s highlights.

Generative AI continues to spark debate, with Italy and Portugal being the only EU countries to respond to a questionnaire on how copyright rules should apply to this emerging technology, comments which Luca Bertuzzi got his hands on. Both nations side with copyright holders, raising key issues around AI model transparency, training, and liability. Meanwhile, the European Commission has clarified the role of fundamental rights supervisors under the EU's AI Act. These authorities will have significant powers to ensure AI systems do not violate human rights.

On trade policy, the EU's trade regulator is engaging in negotiations with Chinese electric vehicle makers to explore alternatives to duties, Joanna Sopinska reports. These talks are part of the bloc's countervailing investigation into Chinese EVs, in an effort to show the Commission’s willingness to strike direct deals with producers to avoid trade barriers.

Environmental policy is also taking center stage in Brussels policy negotiations, as a delay in the EU’s deforestation law raises concerns about potential risks of renegotiating it. óscar Pandiello and Laine Cibulskis take a look at the legislation, as industries now face increasing uncertainty complicating their efforts to meet the planned environmental goals.

There is more news coming out of Brussels in the run-up to the hearings for the commissioners-designate in front of the European Parliament . On the climate file, calls to review and change the EU zero-emission car policy should be resisted, the climate action staff of the EU regulator have suggested in a 121-page briefing seen by Stefano Porciello .?It is “extremely important to continue providing certainty to the market and investors,” the document says. Meanwhile, copyright and AI remain contentious topics, as Inbar Preiss reports that EU Commissioner-designate Henna Virkkunen is fielding tough questions from lawmakers on balancing innovation with intellectual property protections.

In financial services, Spain is advocating for smaller groups of EU countries to push forward Capital Markets Union projects. As Jean Comte explains, while this initiative could reduce delays, it also poses legal and political challenges that might disrupt unity within the EU. Across the Channel, regulators are focusing on a shift toward faster trade settlements. Sofia G. reports that a taskforce recommends excluding ETFs from the UK’s move to a one-day settlement cycle—especially if the EU takes longer to make similar adjustments. This divergence risks creating a rift between the UK and EU financial markets. There's also growing pressures on UK payment providers, who face increased compliance costs as new fraud reimbursement rules take effect, forcing businesses to adapt rapidly to avoid penalties, Phoebe Seers writes in.

On the tech front, Patrícia Figueiredo and Sara Brandst?tter take a look at the EU’s Digital Services Act and its 'trusted flaggers' program, which helps certified organizations to report illegal content on social media platforms. However, with slow approval rates and limited funding, questions arise about the program's effectiveness in curbing harmful online content. In the UK, compliance issues continue to escalate as Jakub Krupa details how companies face increasing pressure to pay overdue data protection fees. This forms part of broader reforms aimed at bolstering privacy law compliance across industries.

It's been a busy week in sports. As legal risks are mounting for UK football clubs and the Premier League, Simon Zekaria examines a recent court ruling on sponsorship agreements, which could significantly alter financial dynamics in the sport. In governance, pressure on FIFA is building, as Lewis Crofts and Tono Gil Folgado report on a new antitrust complaint filed with the European Commission over the congested players’ calendar, following last year’s Super League clash.

Telecom mergers are also under the spotlight. Reporting from Matthew Newman , Natalie McNelis , and Luca Bertuzzi reveals that EU governments largely back a market-driven approach to consolidation. However, some nations remain skeptical about whether more mergers will truly boost investment in the sector. In other news, Andrew Boyce reports on a milestone under the EU’s Foreign Subsidies Regulation: CD&R and Permira ’s merger involving Exclusive Networks marks the first such notification disclosed by the Commission, signaling a shift in transparency for foreign-backed mergers.

Regulatory scrutiny intensifies as the UK investigates suspected breaches of Russian oil sanctions. Martin Coyle highlights that authorities are stepping up enforcement, reflecting the UK's strong commitment to its sanctions regime amidst geopolitical tensions.

That’s all for this week's edition. Stay tuned for more in-depth coverage of the regulatory developments shaping Europe.

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Until next time,