Regulatory Watch – July 2025

EU unveils AI code of practice

The European Commission has released a draft code of practice aimed at helping companies comply with the EU’s rules on artificial intelligence. The code is voluntary, but signatories will benefit from legal certainty. They will be required to make publicly available summaries about the content used to train their general-purpose AI models and mitigate the risk of outputs that infringe copyright. AI rules for large language models will become legally binding on 2 August. In a statement the Commission said that the code was ‘co-designed by AI stakeholders’ and ‘aligned with their needs’. Microsoft have indicated that they will sign but Meta has reiterated its opposition to the code, saying that it introduces legal uncertainties and exceeds the scope of the AI Act.

US to ban Chinese technology in submarine cables

The Federal Communications Commission (FCC) will introduce new rules to ensure that new cables landing in the US are less vulnerable to threats from foreign adversaries. FCC Chair Brendan Carr described submarine cables as the ‘unsung heroes of global communications’. They are increasingly critical as the US builds datacentres for artificial intelligence and next generation technologies, he said. The new rules will ban companies using some types of Chinese technology from building submarine communications cables connected to the US. A further proposed rule is expected to cover all Chinese equipment and technology.

Age verification app will be tested in five EU states

France, Spain, Italy, Denmark and Greece will test a new age verification app designed to protect children online, the European Commission said in a statement. The app is built on the same technical specifications as the European digital identity wallet which is due to be introduced in 2026. The countries can customise the model according to their requirement, integrate it into a national app or keep it separate. The Commission also issued guidelines for online platforms to take measures to protect minors as part of their compliance with the EU’s Digital Services Act.

UK seeks resolution to Apple encryption clash

Concerns over technology trade agreements with the US are likely to force a re-think in the UK government’s demand for Apple to create a ‘back door’, according to officials quoted in the Financial Times. The Home Office issued the ‘technical capability notice’ in January, requiring Apple to enable access to its secure cloud storage system for investigations. The government has long argued that it needs such access for terrorism and child sexual abuse investigations. Apple responded by withdrawing its most secure storage service in the UK and is challenging the decision through an investigatory powers tribunal, which Meta has also agreed to support. However, the UK Trade agreement with the US envisages much closer technology cooperation and the US government is known to be unhappy with the access demand. Officials quoted from within the UK government say that a compromise will need to be found.

New presidential executive orders will target ‘Woke AI’ in the US

AI models will need to be politically neutral and unbiased if companies are to be awarded federal contracts, according to the Wall Street Journal. Artificial intelligence models are trained by scraping data from across the internet, but many in the administration are concerned that models have a liberal bias. The move could have wider impacts on AI models, given that many technology companies are trying to win federal contracts. Other executive orders are also expected to be announced in support of a new ‘AI Action Plan’, including measures to promote exports of US chips and AI tools.

Sources:  The Financial Times, The Wall Street Journal, Bird and Bird, APNews, Euronews, CNN, The Guardian, The Daily Telegraph, Bloomberg, Economic Times, Ars Technica, Reuters, BBC, Politico, Telecompaper