How to get tech right in Europe?

As our societies navigate challenging times and undergo widespread digital transformation, fostering growth in our homegrown tech businesses has never been more critical to achieving the wider goals of the European project.

Via EUTA. Kristin Skogen Lund, president, European Tech Alliance; CEO, Schibsted

The European Tech Alliance (EUTA) represents leading tech companies born and bred in Europe. We believe that with the right conditions, EU tech companies can enhance Europe’s resilience, boost our technological autonomy, protect and empower consumers, and promote European values such as transparency, the rule of law and innovation to the rest of the world.

The European Commission’s ambitious targets for 2030 in the Digital Decade program represent a vision for a sustainable and more prosperous digital future. However, more is needed if we are to achieve our goals.

Europe must boost its tech competitiveness over the next five years. To unlock European tech leadership both at home and beyond, we need to have an ambitious EU tech strategy to overcome growth obstacles, to make a political commitment to clear, targeted and risk-based rules, and to pursue consistent enforcement to match the globalized market we are in.

An EU strategy for European tech

We need a strategy for European tech that empowers digital companies to grow and use new innovation tools to deliver the best services and products, including personalized experiences, to their users. European tech companies are valuable assets for Europe. They deserve to be nurtured and supported.

Europe must boost its tech competitiveness over the next five years.

In practice, this could take on several forms. For instance, we need to unlock the power of data as a key lever for innovation while respecting consumer privacy. Privacy-enhancing technologies and pseudonymization should be further promoted by lawmakers and regulators to empower European companies to use data, grow and remain competitive.

A European strategy for talent to enhance European companies’ attractiveness could also be pursued. Developers should be pushing the limits of innovation, using their imaginations to improve the services and products from European companies, rather than focusing their unique talents on compliance tasks.

Lastly, EU tech companies should have a seat at the table when proposed rules affect their ability to invest in Europe and to provide good services, products and experiences. Bringing in expertise from the ground up would facilitate the growth of European champions at global, national and regional level.

Smart rules for a stronger Europe

The digital world is a fully-regulated sector with a wide range of new and updated rules. It is essential to give these rules time to play out before assessing their efficiency and impact on EU tech companies.

For instance, the EU’s consumer protection framework was recently updated with the ‘Omnibus Directive’. These new rules started applying from May 2022 onward only, yet they were up for another partial revision less than a year later. Businesses need time to put rules into practice, and lawmakers need time to analyze their effects in the real world, before amending the rulebook once again.

European, national and regional measures should complement each other, not clash or duplicate efforts. The ink of the Digital Services Act (DSA) was not even dry when some EU countries added extra layers of regulation at national level, such as the French law for online influencers and the proposed bill to secure and regulate the digital space. There must be a strong focus on avoiding national fragmentation where EU laws exist. Otherwise we are moving further away from a truly single market that is the cornerstone of European competitiveness.      

Where EU rules are needed, lawmakers should focus on concrete problems and be mindful of different tech business models, for example, retailers vs. marketplaces; new vs. second-hand goods, streaming vs. social media. Rules should address problems with specific business models instead of a one-size-fits-all approach or dictating specific product designs. Any proposed solution should also be proportionate to the problem identified.

Better enforcement for fairer competition

One of the big problems we face in Europe is ensuring a level playing field for all businesses, to achieve fair competition. The EU has enshrined these values in the Digital Markets Act (DMA). We must not lose sight of this ambition as we turn to the all-important task of enforcement of the DMA.

European, national and regional measures should complement each other, not clash or duplicate efforts.

Better cooperation should be encouraged between regulatory authorities at national level (for example, consumer, competition and data protection) but also among European countries and with the EU to ensure coherent application.

Now that the European Commission takes on the new role of rule enforcer, it’s of paramount importance to place a strong focus on independence, separate from political interests. This will ensure a robust and impartial enforcement mechanism that upholds the integrity of the regulatory framework.

What’s next?

European tech companies in the EUTA believe the EU can take two crucial steps for our competitiveness, so we can continue to invest in Europe’s technological innovation and European consumers.

First, the EU digital single market is incomplete, we need to avoid 27 different interpretations of the same EU rules. A strong harmonization push is needed for EU companies to grow faster across the Continent.

Second, we look toward the EU, national governments and authorities to bring economic competitiveness and innovation to the core of regulation, and then to enforce these rules fairly and equally.

EUTA members are companies born and bred in Europe. The EU is a crucial market and we are deeply committed to European citizens and European values. With our EUTA manifesto, we propose a vision so Europe can succeed, and our own European champions can grow and become global leaders.



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Israel’s appetite for high-tech weapons highlights a Biden policy gap

Within hours of the Hamas attack on Israel last month, a Silicon Valley drone company called Skydio began receiving emails from the Israeli military. The requests were for the company’s short-range reconnaissance drones — small flying vehicles used by the U.S. Army to navigate obstacles autonomously and produce 3D scans of complex structures like buildings.

The company said yes. In the three weeks since the attack, Skydio has sent more than 100 drones to the Israeli Defense Forces, with more to come, according to Mark Valentine, the Skydio executive in charge of government contracts.

Skydio isn’t the only American tech company fielding orders. Israel’s ferocious campaign to eliminate Hamas from the Gaza Strip is creating new demand for cutting-edge defense technology — often supplied directly by newer, smaller manufacturers, outside the traditional nation-to-nation negotiations for military supplies.

Already, Israel is using self-piloting drones from Shield AI for close-quarters indoor combat and has reportedly requested 200 Switchblade 600 kamikaze drones from another U.S. company, according to DefenseScoop. Jon Gruen, CEO of Fortem Technologies, which supplied Ukrainian forces with radar and autonomous anti-drone aircraft, said he was having “early-stage conversations” with Israelis about whether the company’s AI systems could work in the dense, urban environments in Gaza.

This surge of interest echoes the one driven by the even larger conflict in Ukraine, which has been a proving ground for new AI-powered defense technology — much of it ordered by the Ukrainian government directly from U.S. tech companies.

AI ethicists have raised concerns about the Israeli military’s use of AI-driven technologies to target Palestinians, pointing to reports that the army used AI to strike more than 11,000 targets in Gaza since Hamas militants launched a deadly assault on Israel on Oct 7.

The Israeli defense ministry did not elaborate in response to questions about its use of AI.

These sophisticated platforms also pose a new challenge for the Biden administration. On Nov. 13, the U.S. began implementing a new foreign policy to govern the responsible military use of such technologies. The policy, first unveiled in the Hague in February and endorsed by 45 other countries, is an effort to keep the military use of AI and autonomous systems within the international law of war.

But neither Israel nor Ukraine are signatories, leaving a growing hole in the young effort to keep high-tech weapons operating within agreed-upon lines.

Asked about Israel’s compliance with the U.S.-led declaration on military AI, a spokesperson for the State Department said “it is too early” to draw conclusions about why some countries have not endorsed the document, or to suggest that non-endorsing countries disagree with the declaration or will not adhere to its principles.

Mark Cancian, a senior adviser with the CSIS International Security Program, said in an interview that “it’s very difficult” to coordinate international agreement between nations on the military use of AI for two reasons: “One is that the technology is evolving so quickly that the description constraints you put on it today may no longer may not be relevant five years from now because the technology will be so different. The other thing is that so much of this technology is civilian, that it’s hard to restrict military development without also affecting civilian development.”

In Gaza, drones are being largely used for surveillance, scouting locations and looking for militants without risking soldiers’ lives, according to Israeli and U.S. military technology developers and observers interviewed for this story.

Israel discloses few specifics of how it uses this technology, and some worry the Israeli military is using unreliable AI recommendation systems to identify targets for lethal operations.

Ukrainian forces have used experimental AI systems to identify Russian soldiers, weapons and unit positions from social media and satellite feeds.

Observers say that Israel is a particularly fast-moving theater for new weaponry because it has a technically sophisticated military, large budget, and — crucially — close existing ties to the U.S. tech industry.

“The difference, now maybe more than ever, is the speed at which technology can move and the willingness of suppliers of that technology to deal directly with Israel,” said Arun Seraphin, executive director of the National Defense Industrial Association’s Institute for Emerging Technologies.

Though the weapons trade is subject to scrutiny and regulation, autonomous systems also raise special challenges. Unlike traditional military hardware, buyers are able to reconfigure these smart platforms for their own needs, adding a layer of inscrutability to how these systems are used.

While many of the U.S.-built, AI-enabled drones sent to Israel are not armed and not programmed by the manufacturers to identify specific vehicles or people, these airborne robots are designed to leave room for military customers to run their own custom software, which they often prefer to do, multiple manufacturers told POLITICO.

Shield AI co-founder Brandon Tseng confirmed that users are able to customize the Nova 2 drones that the IDF is using to search for barricaded shooters and civilians in buildings targeted by Hamas fighters.

Matt Mahmoudi, who authored Amnesty International’s May report documenting Israel’s use of facial recognition systems in Palestinian territories, told POLITICO that historically, U.S. technology companies contracting with Israeli defense authorities have had little insight or control over how their products are used by the Israeli government, pointing to several instances of the Israeli military running its own AI software on hardware imported from other countries to closely monitor the movement of Palestinians.

Complicating the issue are the blurred lines between military and non-military technology. In the industry, the term is “dual-use” — a system, like a drone-swarm equipped with computer-vision, that might be used for commercial purposes but could also be deployed in combat.

The Technology Policy Lab at the Center for a New American Security writes that “dual-use technologies are more difficult to regulate at both the national and international levels” and notes that in order for the U.S. to best apply export controls, it “requires complementary commitment from technology-leading allies and partners.”

Exportable military-use AI systems can run the gamut from commercial products to autonomous weapons. Even in cases where AI-enabled systems are explicitly designed as weapons, meaning U.S. authorities are required by law to monitor the transfer of these systems to another country, the State Department only recently adopted policies to monitor civilian harm caused by these weapons, in response to Congressional pressure.

But enforcement is still a question mark: Josh Paul, a former State Department official, wrote that a planned report on the policy’s implementation was canceled because the department wanted to avoid any debate on civilian harm risks in Gaza from U.S. weapons transfers to Israel.

A Skydio spokesperson said the company is currently not aware of any users breaching its code of conduct and would “take appropriate measures” to mitigate the misuse of its drones. A Shield AI spokesperson said the company is confident its products are not being used to violate humanitarian norms in Israel and “would not support” the unethical use of its products.

In response to queries about whether the U.S. government is able to closely monitor high-tech defense platforms sent by smaller companies to Israel or Ukraine, a spokesperson for the U.S. State Department said it was restricted from publicly commenting or confirming the details of commercially licensed defense trade activity.

Some observers point out that the Pentagon derives some benefit from watching new systems tested elsewhere.

“The great value for the United States is we’re getting to field test all this new stuff,” said CSIS’s Cancian — a process that takes much longer in peacetime environments and allows the Pentagon to place its bets on novel technologies with more confidence, he added.



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US Supreme Court maintains abortion pill access for now as legal fight continues

Access to a widely used abortion pill will remain at current levels for the time being, the U.S. Supreme Court ruled Friday in a decision staving off sweeping restrictions ordered by lower courts.

The high court’s decision keeps the drug, mifepristone, available for now, but the legal battle over the drug, which has become the most common method of abortion nationwide, could drag on for months if not years to come.

Justices Samuel Alito and Clarence Thomas dissented from the Supreme Court’s action, which prevents earlier rulings from a Texas-based judge and a federal appeals court from taking effect.

Those rulings would have suspended several policies the FDA enacted since 2016 to make mifepristone more accessible — including telemedicine prescription, mail delivery, retail pharmacy dispensing and the approval of a generic version of the drug. The lower-court action also would have scaled back the federally approved use of the drug from 10 weeks of pregnancy to seven weeks — before many patients know they are pregnant.

The Supreme Court’s unsigned order on Friday keeps those rulings blocked while litigation continues — first at the 5th Circuit Court of Appeals and then, perhaps, back at the Supreme Court. As a result, the status quo for access to mifepristone will likely remain in place through the fall and perhaps well into next year.

The case could return to the justices for full briefing, oral arguments and a final decision in the summer of 2024, just as the presidential campaign gets into full swing.

President Joe Biden cheered the brief Friday ruling for “preventing a lower court decision from going into effect that would have undermined FDA’s medical judgment and put women’s health at risk.”

“As a result of the Supreme Court’s stay, mifepristone remains available and approved for safe and effective use while we continue this fight in the courts,” he said.

As is often the case when acting on requests for emergency relief, the court’s majority did not explain its reasons for granting the stay.

Thomas also offered no explanation for opposing the stay, but Alito wrote a four-page opinion detailing his reasons for rejecting it, often echoing arguments made by the anti-abortion challengers in the case.

Alito wrote the majority opinion last June in Dobbs v. Jackson Women’s Health Organization, which ended the federal constitutional right to abortion. But no other justice signed onto his dissent on Friday.

He argued that his colleagues should have allowed an April 12 preliminary ruling from the 5th Circuit to be implemented because the Biden administration and Danco Laboratories, the drug company that makes the brand-name version of mifepristone, didn’t show that they would “suffer irreparable harm” under that ruling.

The restrictions on the drug ordered by the appeals court, Alito wrote, “would not remove mifepristone from the market” but “would simply restore the circumstances that existed (and that the Government defended) from 2000 to 2016 under three Presidential administrations.”

Alito also speculated that, if the high court had allowed the 5th Circuit’s ruling to take effect, the Biden administration might have used “enforcement discretion” to avoid implementing the restrictions.

Danco and another drug company — GenBioPro, which makes the generic version of the drug — had told the Supreme Court that the restrictions ordered by the 5th Circuit could amount to a nationwide ban of the drug, at least temporarily. GenBioPro would lose its federal approval for the generic version, and Danco would have to revise its product labels, recertify providers, apply to the FDA for a new regulatory framework and jump through other time-consuming administrative hoops, potentially cutting off access to the pill for months.

Attorneys for anti-abortion groups dismissed these claims, urging the high court to “restore a modicum of safety for the women and girls who use the drug” by reimposing the FDA’s pre-2016 restrictions.

The fight over mifepristone now returns to the conservative-leaning 5th Circuit, which will review briefs from both sides beginning next week and is set to hear oral arguments on May 17.

Mifepristone has been used for decades as part of a two-drug medication regimen to induce an abortion early in pregnancy. These medication abortions have become increasingly popular, particularly as patients have availed themselves of the newer options for access, including drugs prescribed via telemedicine and sent through the mail. In the wake of the Dobbs decision, which allowed states to ban abortion within their borders, the pills have also become a key way patients have circumvented those laws.

Last year, anti-abortion medical groups sued to revoke the FDA’s original 2000 approval of mifepristone as well as the agency’s policies expanding access to the drug over the past seven years. A federal district judge appointed by former president Donald Trump, Matthew Kacsmaryk, issued a preliminary ruling earlier this month largely siding with the challengers. The 5th Circuit Court of Appeals narrowed Kacmsaryk’s ruling, keeping the drug on the market but suspending the policies that broadened access.

Numerous studies have found mifepristone to be safe and effective — whether dispensed in-person by a doctor or sent by mail. The country’s leading medical groups, including the American Medical Association, have petitioned courts to uphold FDA approval of the pill, vouching for the agency’s rigor and warning that siding with the challengers would open the door to a wave of cases going after everything from vaccines to birth control. The pharmaceutical industry has also cautioned that companies will hesitate to seek approval for new cures if they fear FDA approval could someday be second-guessed and overturned by courts.

While the Supreme Court’s decision maintains access to mifepristone at the federal level for now, Democratic state officials and medical groups are bracing for the possibility that judges could implement restrictions in the months ahead. Legislatures in some red states are also moving to enact state restrictions on the drug, on top of existing laws restricting abortions more generally.

Several blue states have recently moved to stockpile doses of either mifepristone or misoprostol — the second pill commonly used with mifepristone for medication abortions. Misoprostol can also terminate a pregnancy on its own, but it carries a slightly higher rate of complication and more side effects than the two drugs together.

Clinics as well as online vendors are preparing their doctors and nurses to pivot to offering misoprostol-only abortions if necessary. The drug, which is also used to treat stomach ulcers, is subject to fewer FDA restrictions than mifepristone.

The Supreme Court’s order came one week after the case reached the justices on an emergency basis. Alito, who handles emergency requests emerging from the 5th Circuit, acted twice to place temporary holds on the 5th Circuit’s ruling so that the justices could have more time to consider the matter.



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