Retail News CRM

Tag: EU

  • EU Slaps AliExpress with Record $629 Million Fine Over Counterfeit Goods Crackdown Failure

    EU Slaps AliExpress with Record $629 Million Fine Over Counterfeit Goods Crackdown Failure

    On Monday, AliExpress, Alibaba’s subsidiary, was slapped with a record-breaking €550 million (US$629 million) fine by the European Union for its failure to address sales of illegal, dangerous and counterfeit items on its platform. This penalty is considered to be the largest to date, issued by the European Commission in line with the EU’s Digital Services Act, a prominent law that mandates online platforms of substantial size to augment their efforts in combating harmful and illicit content.

    This penalty is the third of its kind issued by the European Commission, following charges placed on AliExpress in June of the previous year for non-compliance with a Digital Services Act stipulation. This regulation requires platforms to evaluate and reduce the risk of distributing illegal products. AliExpress was given until October 20 to suggest corrective actions. Should the regulatory body determine in December that the company has failed to meet the requirements of the Digital Services Act, further sanctions may be levied.

    The EU’s tech chief, Henna Virkkunen, expressed concern over this issue, describing it as highly risky for consumers and unfair to companies that abide by the rules. She highlighted the vast user base of AliExpress in Europe, standing at 193 million last year, compared to Shein’s 156 million and Temu’s 130 million. Temu has also been subject to fines under the Digital Services Act, and Shein is currently under investigation.

    AliExpress has voiced its intention to contest the fine, deeming it as excessive. “Today’s decision and disproportionate fine disregards our robust risk management structure and the substantial, proactive improvements we’ve implemented,” AliExpress stated via email. The company also indicated its active collaboration with the Commission to satisfy its evolving expectations.

    Assessment and Criticism of AliExpress’s Risk Management Practices

    The Commission criticized AliExpress for not adequately assessing whether it had sufficient personnel to manage risks and for overestimating the efficacy of its system in identifying and removing illicit products. Furthermore, the Commission took issue with the company’s ineffective penalty policy, which allowed penalized businesses to continue selling illegal products on its platform.

    The regulator also noted that AliExpress’s “brand authorisation” system, designed to deter counterfeit sales, was insufficient and easily bypassed by traders selling fraudulent items. There was also criticism of the company’s advertising and recommender systems for contributing to the spread of illicit products and relying on one quantitative indicator to assess the moderation system’s effectiveness in preventing the appearance or re-emergence of illegal products in similar forms.

    However, the regulator did consider the novelty of the Digital Services Act as a mitigating factor when determining the fine, which could have been even larger. This penalty far surpasses the €120 million fine imposed on Elon Musk’s social media platform X and the €200 million fine on Temu, both for Digital Services Act violations.

    Questions & Answers

    What is the significance of the fine imposed on AliExpress by the European Union?

    This penalty, amounting to €550 million (US$629 million), is a record-breaking fine issued by the European Commission under the EU’s Digital Services Act. It highlights the EU’s stance on ensuring large online platforms take more responsibility in preventing the distribution of illegal and harmful content.

    How has AliExpress responded to the fine?

    AliExpress has expressed its intention to appeal the fine, deeming it as excessive. The company asserts that this penalty neglects the robust risk management framework they have established and the proactive enhancements they’ve implemented in their operations.

    What criticisms has the European Commission voiced regarding AliExpress’s operations?

    The Commission has criticized AliExpress for inadequately assessing risks and overestimating its system’s effectiveness in identifying and removing illicit products. Other criticisms include the company’s ineffective penalty policy, its “brand authorisation” system’s shortcomings, and its advertising and recommender systems’ role in spreading illegal products.

  • AirAsia X Eyes Expansion: Unveils Plans for New Long-Haul Routes to Europe

    AirAsia X Eyes Expansion: Unveils Plans for New Long-Haul Routes to Europe

    AirAsia X, a budget airline based in Malaysia, recently commenced operations on its Istanbul route and has intentions to further extend its long-haul services to Europe in the coming year, according to CEO Benyamin Ismail. This move signifies the airline’s return to the European market, following a period of corporate restructuring in response to operational challenges caused by the Covid-19 pandemic.

    Currently, AirAsia X provides four flights weekly, connecting Istanbul and Kuala Lumpur. This service offers over 150,000 seats per year; however, the company has plans to increase this capacity by offering daily flights between the two cities.

    Expanding its airline’s reach beyond Asia, AirAsia X aims to bridge Asian and European cities through its Istanbul hub. The company also has plans to introduce additional long-haul routes to Europe.

    CEO, Benyamin Ismail, indicated that the company aims to add “at least one or two cities in one year”. However, he did not disclose the exact European destinations that the company is exploring.

    Questions & Answers

    What are AirAsia X’s plans for expansion in Europe?
    AirAsia X intends to extend its long-haul services to Europe in the coming year, providing a bridge between Asian and European cities through its Istanbul hub.

    How often does AirAsia X currently operate flights between Istanbul and Kuala Lumpur?
    Presently, AirAsia X operates four flights weekly between Istanbul and Kuala Lumpur.

    What is the company’s strategy to increase its flight capacity?
    AirAsia X plans to increase flight capacity by offering daily flights between Istanbul and Kuala Lumpur, as opposed to the current four flights per week.

  • EU Boosts Imports of Vietnamese Fruits and Nuts, Opening New Doors for Tropical Delights

    EU Boosts Imports of Vietnamese Fruits and Nuts, Opening New Doors for Tropical Delights

    Vietnam is making waves in the European Union, with its fruit and vegetable exports booming in recent months. Leading the charge is the mango, which has become a standout success, raking in $27.6 million—an impressive 54% increase. Not far behind is pistachio, which surged to $17 million, reflecting a staggering 90% rise in demand. Pineapples have soared by a jaw-dropping 200% to reach $11 million, while coconut exports climbed by 41% to $10 million.

    The Netherlands Takes the Lead

    The Netherlands emerged as the largest E.U. importer, snapping up nearly $37 million worth of Vietnamese produce, accounting for 28% of the total exports to the bloc. Other countries are also joining the feast: Poland’s imports doubled compared to last year, and Spain enjoyed an impressive 83% increase, while Germany and France reported solid growth as well. Overall, Vietnamese fruit and vegetable exports soared by one third, totaling $132 million.

    A Sweet Spot for Vietnamese Produce

    According to Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, the increasing popularity of Vietnamese fruits and vegetables in the E.U. can be attributed to the revitalization of consumer demand as the region recovers from the pandemic. Furthermore, a decline in local fruit production in certain E.U. states due to unfavorable weather has created a greater reliance on imports. The advantages of the Vietnam-EU Free Trade Agreement, which has reduced or eliminated tariffs on many fruits, have given Vietnam a crucial competitive edge over countries without similar trade agreements.

    Going Green: A Golden Opportunity

    In 2022, Vietnam’s agricultural exports to the E.U. reached a staggering $4.21 billion, driven primarily by fruits that saw double-digit growth amid strong demand. The Vietnam Sanitary and Phytosanitary Notification Authority highlights a growing trend favoring organic and certified products in E.U. markets, presenting substantial opportunities for Vietnamese farmers. Tropical fruits such as dragon fruit, mangoes, lychees, and longans thrive in Vietnam’s climate—products that simply can’t be produced domestically in the E.U.

    Meeting Stringent Standards

    However, the E.U. has high bars for quality and safety, requiring compliance with strict sanitary and phytosanitary regulations on food safety and pesticide residues. Bui Xuan Hoang Henry, general director of the Hoan Vu Inspection Center, pointed out that cooperation between exporters, testing units, and farmers is crucial for maintaining high-quality agricultural products. “Quality control is a priority this season, allowing our fruits to increasingly align with the rigorous standards of the E.U. market,” he noted. And with that, it looks like Vietnamese produce is ready to take a bite out of the competition!

    Questions & Answers

    What fruit is leading Vietnam’s exports to the E.U.?
    Mango tops the list, with exports valued at $27.6 million, an increase of 54%.

    Which country in the E.U. is the largest importer of Vietnamese produce?
    The Netherlands stands out as the leading importer, purchasing nearly $37 million worth of goods.

    How has Vietnam adapted to meet E.U. quality standards?
    Through close collaboration among exporters, testing units, and farmers, Vietnam ensures that agricultural products meet stringent quality and safety standards required by the E.U.

  • Shein hit with complaint from EU consumer group over ‘dark patterns’

    Shein hit with complaint from EU consumer group over ‘dark patterns’

    The BEUC, a Pan-European consumer organization, has lodged a complaint with the European Commission against Shein, an online fast-fashion retailer. The grievance centers on Shein’s use of “dark patterns”, a series of strategies designed to increase purchases via its app and website.

    Manipulative Tactics

    The tactics employed by Shein, as described by BEUC, include pop-up messages urging customers to stay on the app to avoid missing out on deals, countdown timers creating a sense of urgency to finalize purchases, and an infinite scroll feature on the app. All these methods, BEUC asserts, could fall under the definition of “aggressive commercial practices”. The consumer advocacy group further highlighted Shein’s frequent use of notifications, with one instance showing a single phone receiving 12 alerts from the app in one day.

    Agustin Reyna, BEUC’s director general, commented on the matter, stating that such tactics align with the fast-fashion trend of stimulating mass consumption through volume. The issue, according to Reyna, lies in whether Shein is willing to abolish these “dark patterns”, given their potential impact on sales numbers.

    Shein’s Response and the Role of Gamification

    Shein, in response to the allegations, stated, “We are actively collaborating with national consumer authorities and the EU Commission to demonstrate our commitment to compliance with EU laws and regulations.” The company also mentioned that BEUC declined their request for a meeting.

    Shein and its competitor, Temu, another online discount platform, have experienced a surge in popularity in Europe, partly due to their apps’ gamified features. These apps engage shoppers with games that offer the chance to win discounts and products. One of the games on Shein’s app, “Puppy Keep”, encourages users to log into the app daily, feed a virtual dog, and collect points that can be exchanged for free items. Points can be earned by browsing the app and making purchases.

    Dark Patterns Across the Industry

    The BEUC acknowledged that “dark patterns” are not exclusive to Shein, but are commonly employed by many mass-market clothing retailers. In this line, they’ve called on the consumer protection network to broaden its investigation to include other retailers. BEUC’s complaint was supported by 25 of its member organizations across 21 countries, including France, Germany, and Spain.

    Last month, the European Commission issued a notification to Shein about practices breaching EU consumer law and warned of potential fines should the company fail to address these concerns. The firm is also under review from EU tech regulators regarding its compliance with EU online content rules.

    Questions & Answers

    What exactly are “dark patterns”?
    Dark patterns are tactics used by companies on their websites or apps designed to manipulate users into making purchases or taking certain actions.

    What is the “Puppy Keep” game on Shein’s app?
    “Puppy Keep” is a game on the Shein app where users feed a virtual dog and collect points that can be used to win free items. Users can earn more points by browsing the app and making purchases.

    What actions has the European Commission taken regarding Shein’s practices?
    The European Commission has notified Shein about practices that violate EU consumer law and warned of potential fines if they do not rectify these issues. Additionally, the company is under investigation from EU tech regulators regarding its adherence to EU online content rules.

  • Is the EU’s push for more iPhone openness going too far?

    Is the EU’s push for more iPhone openness going too far?

    Apple’s relationship with the European Union has always been complicated, but the latest set of demands might be the point where the company starts pushing back more aggressively. Under the EU’s Digital Markets Act (DMA), Apple is being asked to open up even more of its famously closed ecosystem—this time targeting features that many would argue are fundamental to the Apple experience itself. And unlike with USB-C or RCS, this doesn’t feel like a consumer win. It feels like regulators are tampering with what makes Apple… Apple.

    Let’s backtrack for a second. The Digital Markets Act is a set of rules meant to keep “gatekeepers”—large tech companies with dominant platforms—from using that power to squash competition. Apple, along with Meta, Google, and others, falls into that category. So far, we’ve seen the EU use that power to get Apple to adopt USB-C on iPhones and begin support for RCS messaging in iOS 18—both reasonable and arguably overdue. But now, the EU wants Apple to take things much further.

    The new requirements include opening up the iPhone’s NFC chip (used for tap-to-pay services) to third-party apps beyond Apple Pay, letting non-Apple smartwatches access the same notification integrations as the Apple Watch, and even allowing non-AirPods to take advantage of features like seamless device switching. There’s also pressure to make AirDrop and AirPlay available to rival platforms.

    These are no longer just tweaks to help with interoperability or convenience. These are foundational elements of the Apple ecosystem—features that have historically been exclusive and are part of the reason many people choose Apple products over Android or other alternatives. Apple didn’t mince words in its response, stating that some of the changes the EU wants “pose very real privacy and data security risks” for users.

    That’s not just PR spin. Apple’s closed ecosystem has long been a double-edged sword—it offers security, consistency, and tight integration between devices, but at the cost of flexibility and openness. Plenty of people criticize Apple for that, and some of that criticism is valid. But forcing Apple to break down those walls entirely starts to feel like regulators trying to re-engineer a product, rather than just leveling the playing field.

    The Digital Markets Act forced Apple to allow third party app stores on the iPhone, to which Apple complied, but only in this region. | Image credit — DMA.

    And while Apple might be complying—at least on paper—it’s already found creative ways to limit how much these new rules actually affect the user experience. For example, in iOS 17.4 (the version tailored to the EU’s DMA requirements), Apple lets third-party app stores and alternative browser engines exist, but the hoops developers need to jump through are significant. And users are hit with scary warnings that could discourage them from straying too far from the Apple-approved path.

    What’s becoming clearer is that Apple may choose to keep restricting or disabling certain features in the EU entirely rather than continue to change the DNA of its products. We’ve already seen this play out with things like Apple Cash and Apple Card—both of which are still unavailable in the EU due to regulatory complications. And it’s not out of the question that some of the seamless device features we’ve gotten used to might eventually be region-locked.

    To be fair, Apple isn’t the only company under the DMA’s microscope. Google is also being asked to give users more choice when setting up Android devices, and Meta is facing scrutiny over how its services are bundled. But Apple is unique in how much of its brand is built around exclusivity and tight integration. Forcing them to open up feels more disruptive than it might be for a company that already plays well with others.

    As someone who generally supports more openness in tech—especially when it helps consumers—I was all for the EU pushing Apple toward USB-C and RCS. Even more so as someone who uses both an iPhone and an Android device as a daily driver. Those are about standardization and making basic tech functions easier for everyone. But this latest round of demands feels like something else entirely. It’s one thing to create fairer conditions for competition; it’s another to dismantle what makes a product distinct in the name of fairness.

    Apple shouldn’t be above regulation, and healthy competition is important. But regulators also need to recognize when they’re crossing from creating opportunity into reshaping products in a way that users didn’t ask for. At this rate, Apple may eventually decide it’s just not worth offering the same iPhone experience in the EU at all.

    Lees ook:

    Lees ook:

    Lees ook:

  • EU slashes tariffs on Chinese-made EVs

    EU slashes tariffs on Chinese-made EVs

    The European Union has slashed its planned extra tariff on Tesla electric vehicles imported from China by more than half, the bloc’s executive said on Tuesday, following further investigations requested by the company.

    The European Commission also revised its proposed punitive duties on imports of Chinese-made EVs in draft findings, in the highest profile EU investigation of alleged Chinese subsidies, which has provoked threats of retaliation from Beijing.

    It set a new reduced extra rate of 9% for Tesla, lower than the 20.8% it had indicated in July, and said some Chinese companies in joint ventures with EU automakers may also receive lower planned punitive duties on Chinese-made EV imports.

    The tariffs are on top of the EU’s standard 10% duty on car imports, a measure the Commission says is aimed at levelling the playing field and countering what it says are unfair subsidies.

    Tesla had requested a recalculation of its rate, to be based on the specific subsidies the company had received. The Commission said on Tuesday it had verified that it received less subsidies from the Chinese government compared with the country’s EV makers which Brussels had investigated.

    The Commission, which sets EU trade policy, said it still believed Chinese EV production has benefited from extensive subsidies and proposed duties on other companies of up to 36.3% – slightly lower than the maximum initial planned duty of 37.6% set in July for companies that did not cooperate with the EU’s anti-subsidy investigation.

    China’s commerce ministry said in response it is “firmly opposed to and highly concerned” about the findings, and vowed to take all necessary measures to protect Chinese firms.

    The draft findings were based on “facts unilaterally determined by the EU side, not on facts mutually agreed upon,” the ministry said in a statement.

    China hopes the EU side will expedite the exploration of proper solutions in a rational and pragmatic manner, and take practical actions to avoid the escalation of trade frictions, it added.

    Beijing launched a challenge at the World Trade Organization earlier this month.

    Lower duties

    Tesla was among the companies classed as cooperating with the EU investigation. It did not respond to a request for comment on Tuesday.

    The Commission said three companies it had sampled would each receive slightly lower provisional duties than indicated in July. China’s BYD would face a rate of 17.0% from 17.4% levied in July, Geely 19.3% versus 19.9% and SAIC 36.3% from 37.6%.

    Chinese firms in joint ventures with EU producers may also be eligible for the lower duties planned for the Chinese companies in which they are integrated, the Commission said.

    Volkswagen’s SEAT subsidiary was now expecting to receive a lower tariff of 21.3% on its Cupra Tavascan, which is produced by a joint venture in China majority-owned by the German automaker, a source close to the matter told Reuters.

    A spokesperson for SEAT said it was working with the VW Group to reduce the impact of the tariffs further.

    BMW said in a statement its joint venture in China which produces the electric Mini was also classed as a “cooperating company”, qualifying it for a lower duty of 21.3%, versus the 37.6% Brussels had indicated last month.

    The planned tariffs could become the EU’s final measure on Chinese-made EVs once its investigation is concluded in about two months.

    Interested parties have until Aug. 30 to submit their comments on the Commission’s findings.

    The proposed final duties will be subject to a vote by the EU’s 27 states. They will be implemented unless a qualified majority of 15 EU members representing 65% of the EU population vote against.

    It is a high hurdle that is rarely reached, although this is a politically charged file.

    In an advisory vote in July, 12 EU members supported the provisional tariffs, four voted against and 11 abstained, sources said.

    Lees ook:

    Lees ook:

  • Apple further loosens grip on iPhone apps in the EU by allowing direct downloads

    Apple further loosens grip on iPhone apps in the EU by allowing direct downloads

    Just recently, Apple rolled out iOS 17.4, introducing big changes to the App Store landscape in the European Union. Why? To comply with the newly adopted Digital Markets Act (DMA). These changes include support for alternative app marketplaces, new business terms, in-app purchase options, and more.

    Now, in response to developers’ feedback, Apple has announced a few additional tweaks. Notably, the Cupertino tech giant will introduce a new Web Distribution feature this spring, allowing developers to offer their apps for direct download from their websites.

    For developers in the EU who have agreed to the Alternative Terms Addendum for Apps, the new options include the ability for app marketplaces to exclusively offer apps from the marketplace developer. This change allows a company to run an app marketplace and provide only its own apps for download.

    Additionally, when guiding users to complete transactions on external web pages, developers can now choose how to design promotions, discounts, and deals, with Apple’s design templates becoming optional.

    As mentioned earlier, Apple is introducing a Web Distribution feature, set to launch later this spring. This feature will allow developers to distribute their iOS apps directly from their websites. iPhone users in the EU will have the freedom to download apps without relying on the App Store or any alternative marketplace.

    However, apps distributed through the web must adhere to Apple’s notarization guidelines, restricting installations to registered website domains in App Store Connect.

    For EU iPhone users, this could mean a broader array of apps to choose from, potentially leading to increased competition and, thus, lower prices. Nonetheless, users may need to pay more attention when downloading apps from sources outside the App Store, and managing these apps and updates might be less convenient.

    The recent changes in digital practices, including those made by Apple, are a response to the EU’s Digital Markets Act. This law targets big tech companies like Apple, Google, Microsoft, Meta, TikTok, and Amazon, instructing them to follow new rules to encourage competition and offer users more options. Apple, adapting to comply with these regulations, is even working on a tool to make it easier for iPhone users to switch to Android.

    Lees ook:

  • Apple attempts to escape EU fine by offering to open its NFC technology for rivals

    Apple attempts to escape EU fine by offering to open its NFC technology for rivals

    In an attempt to avoid a hefty fine and ongoing legal battle with the European Union, Apple is reportedly proposing to open up its near-field communication (NFC) technology, used for tap-and-go payments, to its rivals.

    This move comes after the European Commission launched an antitrust investigation into Apple’s practices surrounding Apple Pay, suspecting that the company was unfairly restricting access to key technology to maintain its dominance in the mobile payment market.

    Despite not holding the majority share of smartphone sales or being the dominant mobile payment service in the EU, Apple Pay has gained significant traction, with over 2,500 banks and more than 250 fintech and challenger banks across Europe using the service.

    Apple’s efforts to address the EU’s concerns come amidst a broader crackdown on the company’s business practices. The EU recently labeled Apple as a “gatekeeper” under the Digital Markets Act (DMA), which empowers the Commission to regulate big tech firms that hold dominant positions in the digital market.

    Earlier this year, Apple acknowledged the possibility of third-party app stores on iPhones but later challenged the EU’s ruling mandating rival app stores. Additionally, it has appealed the inclusion of iMessage in the DMA’s gatekeeper designation, arguing that iMessage’s market share in Europe is too small to warrant regulatory scrutiny, which actually might turn out to be true.

    As Apple navigates these regulatory challenges, it’s clear that the company is facing increasing pressure to address concerns about its competitive practices in the EU. The proposed NFC access could be a step in the right direction. However, it remains to be seen whether it will be enough to appease the Commission and avoid further regulatory scrutiny.

    Lees ook:

    Lees ook:

    Lees ook:

  • Startup e-commerce platform Temu expands to Europe

    Startup e-commerce platform Temu expands to Europe

    Ultra low-cost e-commerce platform Temu, owned by PDD Holdings has started selling to European markets including France, Germany, Italy, The Netherlands, Spain and the United Kingdom.

    The Temu.com website now shows all of these markets on its location drop down menu in addition to the United States, Canada, Australia and New Zealand, where it had previously already been available.

    PDD Holdings did not immediately respond to Reuters request for comment on the expansion.

    Temu, the sister site of Chinese discount e-commerce platform Pinduoduo, has made a big splash since launching in the United States last September, selling shoes, jewelry, beauty accessories and home goods directly from Chinese merchants for very low prices.

    It’s a similar cross-border model to the one that has propelled Shein, which ships to more than 150 countries, to become the world’s biggest fast-fashion brand with annual sales of more than $58.5 billion.

    Temu, which is headquarted in Boston, saw 19 million US downloads in the first quarter of this year, according to mobile intelligence firm Sensor Tower, which also ranks Temu as the most downloaded app on Apple and Google Play stores in the United States.

    The platform’s gross merchandise value – total sales before expenses – grew from $3 million in September to $192 million in January, according to data firm YipitData.

    Lees ook:

    Lees ook:

  • EU Gets First Crypto Rulebook

    EU Gets First Crypto Rulebook

    Switzerland was early to adopt a regulatory framework for digital assets. Now Europe has approved an EU-wide crypto rulebook.

    The European Parliament is adopting the Markets in Cryptoassets (MiCA) regulation, scheduled to come into force from mid 2024 onwards, it said in a statement Thursday.

    The regulation aims to increase customer protection for crypto-assets that are not regulated by existing financial services legislation. It will affect crypto asset issuers, crypto asset service providers including exchanges, custody providers, investment advisors, and stablecoin issuers.

    While MiCA introduces harmonized regulation within the EU, «the Swiss Distributed Ledgter Technology Act goes further and provides additional legal clarity regarding the civil and insolvency law treatment of digital assets which are not present in the MiCA regulation,» Jan Brzezek, CEO and founder of Crypto Finance, an entity belonging to Deutsche Boerse Group, said.

    MiCA’s cap limiting stablecoin transactions to €200 million transactions per day, could impact institutional adoption, Brzezek added.

    EU regulation might draw companies away from the US, where companies, including Coinbase, have criticized the lack of clarity given by the Securities and Exchange Commission.

    By contrast, in Switzerland blockchain companies have benefited from the country’s early regulation of the industry as it helped professionalize the market.

    MiCA is an important step toward «legitimizing the asset class and opening the door for more institutional adoption and innovation,» Zug-based 21Shares wrote in an emailed newsletter ahead of Thursday’s parliament vote.

    Lees ook:

  • EU Demands Quick Fix From U.S. Of Green Subsidy Law

    EU Demands Quick Fix From U.S. Of Green Subsidy Law

    European Union ministers warned on Friday that time was running out to resolve differences with Washington over U.S. plans to give tax credits to consumers buying electric vehicles and other green products as long as they are made in North America.

    The EU argues the $430 billion Inflation Reduction Act, to take effect in January, will make the United States a world leader in the electric vehicle market at its expense.

    Czech industry and trade minister Jozef Sikela said all 27 EU members were concerned. He told reporters before a meeting of national trade ministers that time was running out and expressed hope a solution could be found by Dec. 5 when top U.S. and EU officials will meet.

    Ministers were set to be briefed on the progress made by a joint U.S.-EU task force launched at the start of November to address the issue. Dutch trade minister Liesje Schreinemacher, describing the act as “very worrisome”, said the task force had to “get a move on” and produce results as soon as possible.

    Swedish counterpart Johan Forssell said the time frame was tight.

    “We cannot wait too long until we make a decision… So I think the need for action will be pretty soon,” he said.

    Irish deputy prime minister Leo Varadkar said the EU and the United States would ideally come to an arrangement at the Trade and Technology Council meeting in December, but that, failing that, the EU would have to respond.

    French minister Olivier Becht said the U.S. transition towards a greener economy should be based on fair competition rather than measures that breached World Trade Organization rules.

    He said ministers would discuss persuading the United States to modify its act. Otherwise, the EU would have to consider “other measures”.

    “There is a range of measures that can be put on the table. The objective

    Lees ook:

  • EU Looking to Lock Switzerland Out

    EU Looking to Lock Switzerland Out

    High inflation in the EU area and geopolitical uncertainties are some reasons why Europeans move assets to Switzerland. Yet as the country drifts further away from Brussels, going after these clients could become more complicated.

    Swiss banks are not allowed to proactively solicit clients in Europe unless they have a branch in the respective market.

    However, for many institutions, such as private banks and independent wealth managers, a second branch in Italy or France is, economically speaking, not worthwhile and does not fit with the business models of these institutions.

    The EU countries who have adopted this protectionist stance, do so in favor of their own banks. By contrast, Germany has made a special concession, allowing banks from third countries – such as Switzerland – a so-called exemption.

    The condition for this deal is that financial institutions adhere to certain regulations and are well supervised in their home country. It is precisely this special arrangement, of key importance to several Swiss private banks, that is under threat, as the Neue Zuercher Zeitung.

    The reason being that the EU wants to further harmonize its banking supervision. So far, only Europe’s large financial houses are monitored uniformly, while smaller houses are subject to national supervision; this explains the different practices in Germany and Italy, for example, with regard to banks from third countries.

    The EU project is now aimed at standardization, which would ban special regulations for individual countries. The driving force behind this development is France, which is primarily against the predominance of Anglo-Saxon banks on its own turf.

    Although Switzerland plays only a secondary role in the French market, if such a procedure is rolled out in other countries, it would be a harsh verdict for many Swiss private banks.

    After all, business with German clients is still lucrative and growing strongly. Estimates by the international consulting firm Boston Consulting Group (BCG) suggest that clients from the EU region and Great Britain have a good 1,000 billion Swiss francs managed by Swiss financial institutions, which employs 20,000 people at local banks and generates tax revenues of around 1.5 billion francs, as the Swiss Bankers Association (SBA) recently calculated.

    The prospect of Switzerland obtaining an exclusive arrangement with the EU is also unlikely. Ultimately, any agreement depends on political willingness within the EU and after Switzerland broke off its discussions to forge an over-arching treaty the EU last year, this willingness is not great.

    Although Germany, Spain and Holland were successful in getting France to omit article 21c – which is responsible for stifling foreign banks – from the plan, observers agree that sooner or later the Paris-based European Banking Authority will bring it back to the agenda.

  • Apple suffers a new blow from the EU with the adoption of the Digital Markets Act

    Apple suffers a new blow from the EU with the adoption of the Digital Markets Act

    The EU parliament has successfully approved a major piece of antitrust legislation targeting tech companies – the Digital Markets Act (DMA). The lengthy bill has a number of implications, but there are three in particular that spell trouble for Apple.

    Firstly, the Act is bound to introduce some disturbance in Apple’s famous (or infamous, depending on who you ask) ecosystem. Apple users worldwide have long faced the struggle of sending a text message only to be faced with a green speech bubble.

    Cross OS support for iMessage, one of the most established perks when it comes to using Apple products, has long been a much-requested feature. The DMA might just address that by forcing Apple to implement some form of message interoperability.

    Secondly, the DMA will push Apple to closely incorporate third-party payments methods in iOS apps. Developers should in theory be allowed to choose freely which platform best suits their needs and use it accordingly.

    Thirdly, and perhaps most interestingly, the DMA could result in the App Store losing its monopoly over the choice of users when it comes to downloading apps on their Apple devices. The DMA might well force Apple to tolerate competing app providers to operate side by side with its precious App Store.

    All in all, the EU might turn out to be the biggest hurdle in Apple’s way of preserving the integrity of its business model. After already settling the issue surrounding the USB-C standard (and, by extension, threatening Apple’s proprietary Lighting port standard), the EU has now set its sights on the software aspect of Apple’s ecosystem.

    Even if this results in some pain in Apple’s backside, consumers are bound to rejoice in someone finally challenging some of the American tech giant’s controversial practices. After all, Apple should not be allowed to get away with everything just because it is the biggest tech company in the world. On the contrary – with great power, comes great… legislation

    Lees ook:

    Lees ook:

  • EU Sets Women Boardroom Quota at 40 Percent

    EU Sets Women Boardroom Quota at 40 Percent

    After ten years the EU has reached a landmark decision to achieve corporate gender equality. The move will put pressure on Swiss companies both in the EU and at home.

    The EU is introducing a legally binding 40 percent quota for women in non-executive positions and a 33 percent quota for women in executive roles of companies operating in the European Union from mid-2026, it said in a press statement late Tuesday.

    Currently, only a third of boardroom members in the EU are women and the number of female senior managers is lower, it said. The new directive aims to help companies listed on EU stock exchanges accelerate their progress in reaching gender equality.

    While Swiss companies listed in the EU will have to comply with the new European law, companies listed in Switzerland are being put «indirectly» under pressure to follow suit by this decision, Fabienne Meier partner at executive search firm Knight Gianella & Partner, said.

    Last year Swiss law determined a 30 percent quota for women on the board of directors of Swiss listed companies within five years and a 20 percent quota for women in executive management positions within ten years.

    For Meier, the boardroom targets are realistic, but the pool of female talent for the executive level is too small, as it was not nurtured enough in the past. Some sectors will struggle to close the gender gap as they look for top female executives with (rare) technical profiles, she said.

    The Commission first proposed gender balance on company boards in November 2012, but it has taken ten years for all decision-makers to reach an agreement on the matter with some member states previously opposing binding measures at the EU level.

    Although 60 percent of current university graduates are female, women are underrepresented in high-level positions and progress is very slow. Countries with national quotas have the highest share of women sitting as board members of listed companies, according to the statement.

  • The EU seems almost ready with the bill that would force all phones to use USB-C

    The EU seems almost ready with the bill that would force all phones to use USB-C

    For years we have heard talks about the European Union enforcing a common charging port for all phones, even tablets and headphones. Reuters now reports that those talks are probably about to become reality, citing unnamed sources.

    Oh my – we may finally be witnessing the end of the Lightning port (at least in Europe), if the proposal for a common charging port gets finalized and accepted as law. As you may already imagine, the common charging port will be USB-C.

    On June 7, EU member countries and EU lawmakers are reportedly going to meet and discuss the proposal in question. You may have heard (or you may suppose, rightfully so) that Apple has been criticizing this proposal.

    It may come as a surprise to some, but this single mobile charging port proposal was first introduced by the European Commission more than a decade ago. Its introduction was due to iPhone and Android users complaining about having to use different chargers for their phones.

    And it seems this proposal is on its way to become law. According to Reuters’ sources, next Tuesday will mark the final meeting between EU countries and EU lawmakers on this topic. One of the issues is whether or not to include laptops to this proposal. If this happens, it may impact Samsung and other device makers as well.

    On top of that, EU lawmakers are striving to include wireless charging systems to be ‘harmonised’ by 2025, but some EU countries and the European Commission demand a longer period for technical reasons.

    As for Apple, the company has previously criticized this proposal, underlining that if the proposal becomes law, it could cause more electronic waste. Why? Well, such a law could cause iPhone users to ditch their current Lightning accessories. Additionally, forcing users to change to new chargers would also create a mountain of e-waste.

    But Apple may actually be moving towards USB-C connector anyway. Recent rumors about the iPhone 15 (yes, the iPhone 14 is not yet out, but nothing stops rumors about the iPhone 15 to surface anyway) indicate the 2023 iPhones may ditch the Lightning connector in favor of USB-C.

    Lees ook: