The European Commission has lost access to its control panel for buying and
tracking ads on Elon Musk’s X — after fining the social media platform €120
million for violating EU transparency rules.
“Your ad account has been terminated,” X’s head of product, Nikita Bier, wrote
on the platform early Sunday.
Bier accused the EU executive of trying to amplify its own social media post
about the fine on X by trying “to take advantage of an exploit in our Ad
Composer — to post a link that deceives users into thinking it’s a video and to
artificially increase its reach.”
The Commission fined X on Thursday for breaching the EU’s rules under the
Digital Services Act (DSA), which aims to limit the spread of illegal content.
The breaches included a lack of transparency around X’s advertising library and
the company’s decision to change its trademark blue checkmark from a means of
verification to a “deceptive” paid feature.
“The irony of your announcement,” Bier said. “X believes everyone should have an
equal voice on our platform. However, it seems you believe that the rules should
not apply to your account.”
Trump administration has criticized the DSA and the Digital Markets Act, which
prevent large online platforms, such as Google, Amazon and Meta, from
overextending their online empires.
The White House has accused the rules of discriminating against U.S. companies,
and the fine will likely amplify transatlantic trade tensions. U.S. Secretary of
Commerce Howard Lutnick has already threatened to keep 50 percent tariffs on
European exports of steel and aluminum unless the EU loosens its digital rules.
U.S. Vice President JD Vance blasted Brussels’ action, describing the fine as a
response for “not engaging in censorship” — a notion the Commission has
dismissed.
“The DSA is having not to do with censorship,” said the EU’s tech czar, Henna
Virkkunen, told reporters on Thursday. “This decision is about the transparency
of X.”
Tag - Breaches
Prime minister’s questions: a shouty, jeery, very occasionally useful advert for
British politics. Here’s what you need to know from the latest session in
POLITICO’s weekly run-through.
What they sparred about: Grooming gangs. Prime Minister Keir Starmer and Tory
Leader Kemi Badenoch went toe-to-toe over whether the investigation into
widespread child abuse was fit for purpose — or falling apart before it even
started.
Word of context: The government confirmed a national inquiry into child sexual
exploitation would take place in June. Since then, four abuse survivors quit the
inquiry’s victims and survivors liaison panel over their treatment. Former
senior social worker Annie Hudson also withdrew from a shortlist of potential
inquiry chairs.
No confidence: Badenoch said the four victims had “lost all confidence” and were
“dismissed and contradicted” by ministers. “What’s the point in speaking up if
we’re just going to be called liars,” the Tory leader asked on behalf of one
victim. Starmer condemned it as one of the “worst scandals of our time” and said
the door “will always be open” if they wanted to return.
Bookmark this: The PM insisted the inquiry will “never be watered down, its
scope will not change, and it will examine the ethnicity and religion of the
offenders.” Starmer confirmed crossbench peer and government troubleshooter
Louise Casey (mooted as a future cabinet secretary), who wrote the initial
grooming gangs audit, would support the inquiry.
War of words: The Tory leader asked why victims would return when “the
government has engaged in a briefing war against survivors.” That strong
accusation drew cries of “shame” from Labour backbenchers before Badenoch
referenced another survivor, accusing Labour of creating a “toxic environment.”
Pushing on: Starmer conceded there were still “hard yards” to be done to put
survivors at the heart of the inquiry, given their “difficult experiences” and
“wide range of views.” Nonetheless, the PM insisted, “I want to press on and get
this right.” Perhaps unsurprisingly, Badenoch mentioned Starmer’s previous
opposition to a national inquiry. “The victims don’t believe them,” she
declared. “They don’t like it, but it’s true.”
Of course: This sensitive and horrifying chapter in Britain’s history descended
into a political knockabout. The PM mentioned work on reopening historic sexual
abuse and mandatory reporting, which “fell on deaf ears” from the Tories.
He should know: Starmer, often pejoratively labeled a lawyer by Badenoch, was
asked why the inquiry wasn’t judge-led, given victims would prefer this, rather
than a police officer or social worker chairing proceedings. The PM said
judge-led inquiries were “often held back until the end of the criminal
investigation,” which he wanted to run alongside the inquiry.
Ministerial matters: But Badenoch suggested the chair was not the only problem.
Quoting one victim, who accused Safeguarding Minister Jess Phillips of lying
(which Speaker Linsday Hoyle frowned upon), the Tory leader asked if the PM
still had confidence in her. Starmer answered in the affirmative, saying she
“has probably more experience than any other person in this House in dealing
with violence against women and girls.” The Tories, you won’t be surprised to
learn, want Phillips gone.
Helpful backbench intervention of the week: Roz Savage, the, er, Lib Dem MP for
South Cotswolds, initially made PMQs a bit easier for Starmer after the
Political Pics X account snapped her question in a transparent folder heading
into No 10 … on Tuesday. “There was a very, very serious breach of national
security,” she joked. Keeping Starmer on his toes, Savage instead asked about
digital ID and, aptly, the risk of data breaches.
Totally unscientific scores on the doors: Starmer 7/10. Badenoch 6/10. Choosing
a winner and a loser seems trivial given the main topic this week. Badenoch
understandably used the victims’ departure to ask if the inquiry could fulfill
its purpose. But the Tory leader’s political points lost the room, with the PM —
just about — retaining authority with promises about the inquiry’s scope and
remit. The survivors, on and off the panel, will hope those words translate into
action.
BRUSSELS — An EU plan to sanction Israel’s government ministers and cut back on
trade ties has been put on ice as a leading group of member countries believes
it’s no longer necessary in light of the U.S.-brokered peace agreement to end
the war in Gaza.
The original push is now unlikely to find sufficient support at meetings of
foreign ministers and EU leaders this month, according to four European
diplomats, granted anonymity to speak to POLITICO about the closed-door talks.
An agreement among all 27 capitals would be needed to impose the penalties, and
despite growing pressure on the EU to act, the deal announced by U.S. President
Donald Trump has divided national governments on the way forward. Separate
measures to restrict trade could be introduced with the backing of a smaller
group of countries, but this too now looks unlikely, according to the diplomats.
European Commission President Ursula von der Leyen used her State of the Union
address in September to announce she would move to blacklist “extremist
ministers,” impose restrictions on violent West Bank settlers and pause
bilateral payments to Israel.
Those proposals are due to be discussed at a Foreign Affairs Council in
Luxembourg on Oct. 20 and a summit of leaders in Brussels on Oct. 23. Despite
that, draft documents reveal that no consensus has yet been achieved.
In comments to POLITICO, Belgian Foreign Minister Maxime Prévot — whose country
has been pushing for a tougher stance on Israel — said it was “regrettable” the
EU had taken more than two years to present measures.
“The credibility of the EU’s foreign policy has been seriously shaken,” he said.
“For many citizens, it is still difficult to understand why the EU is incapable
of taking firm decisions.”
Germany, Hungary and a handful of other delegations have consistently opposed
the implementation of sanctions, even though there has been broad agreement at
the political level and a joint EU declaration backing steps against settlers
accused of human rights breaches.
In the wake of the announcement that Hamas and Israel had “signed off on the
first phase” of a pact to end the war, European Commission spokesperson Paula
Pinho this week hinted the bloc could change its stance.
The sanctions were “proposed in a given context, and if the context changes,
that could eventually lead to a change of the proposal,” she said.
According to the diplomats who spoke to POLITICO, the Commission currently
doesn’t intend to withdraw the plan even if the prospect of a lasting ceasefire
has cast it into uncertainty.
BRUSSELS ― The European Commission is set to tighten the screws on countries
that breach democratic norms by linking billions of euros in payouts to
adherence to European standards.
It means that governments, notably Hungary, which have fallen foul of EU
rule-of-law standards through crackdowns on judicial and media freedoms, risk
losing substantial funding from the EU’s centralized budget.
The EU’s 2028-2034 spending plan, scheduled to be published next Wednesday and
marking the start of at least a couple of years of laborious negotiations, will
extend the link between payments and democratic backsliding, according to a
document seen by POLITICO. Previously, only parts of the €1.2 trillion budget
have been linked.
The move is likely to exacerbate tensions between the Commission and Hungarian
Prime Minister Viktor Orbán, who faces the very real prospect of losing power
after 15 years in an election slated for 2026. He’s had a turbulent relationship
with EU policymakers and fellow governments, which have criticized what they see
as his Russia-friendly and authoritarian policies.
While the EU has taken action against Hungary and already withheld some funding
― and Orbán has made life difficult by threatening to block European efforts to
sanction Moscow ― the next budget “will provide for a streamlined and harmonized
conditionality system for all EU funds allocated to member states,” according to
the document.
The Commission wants to move away from the current system where “member states
with particular issues could be tempted to shift some investments between
programs to avoid being subject to a particular condition,” it states.
Several EU countries supported tightening the link between the rule of law and
funding in their submissions to the Commission ahead of the budget proposal.
After its publication, governments will begin negotiations with each other on a
final text ― but this is a lengthy process that is not expected to conclude
until 2027.
“The Conditionality Regulation must be applied to all EU funding,” Finland wrote
in its position paper on the new budget, seen by POLITICO.
But Hungary retorted in its own document that these rules “allowed for exerting
arbitrary political pressure in policy areas unrelated to the protection of the
Union’s budget.” Slovakia, which has also been criticized over rule-of-law
issues, echoed these arguments in its own submission.
OUT OF OFFICE
Hungary is already losing out on €18 billion in funding that was suspended over
its breaches of European law in the past few years. Orbán, who is campaigning on
an anti-EU platform, is unlikely to make moves to claim back the payments before
he faces the public vote.
According to an EU diplomat, the Commission is exploiting Orbán’s domestic
weaknesses ― he is trailing behind his conservative pro-EU rival Péter Magyar in
the polls ― to propose stricter rules. With national capitals not expected to
vote on the new rules until 2027, there’s a chance Orbán might be out of office
before the budget is approved.
Commission officials are confident that a Magyar-led government would mend ties
with Brussels and implement the EU-required reforms to access blocked funds.
Viktor Orbán, who is campaigning on an anti-EU platform, is unlikely to make
moves to claim back the payments before he faces the public vote. | Oliver
Matthys/EPA
Under the plan, the budget would contain a direct link between a government’s
breach of the rule of law and the related payment that is put on hold, an EU
official said.
This means that while farmers’ subsidies will be untouched by a government’s
authoritarian drift, a student exchange program might suffer if there have been
breaches of academic freedom.
The Commission wants to keep the money flowing to the recipients of EU funding
― such as NGOs or universities ― regardless of whether a government complies
with the rule of law.
The overall idea is that civil society shouldn’t bear the brunt of a leader’s
misdoings.
Renew, the European Parliament’s liberal group, wants to take this a step
further. It supports directly handing the frozen EU funds to civil society,
effectively bypassing the central government.
This new system, known as “smart conditionality,” would mark a change from the
current rules, where frozen funds are handed back to the EU’s 27 countries
collectively after an expiration date.
“We set clear conditions: No EU money for autocrats, but continued support for
civil society,” Valérie Hayer, the chair of Renew, said on Thursday. “She
[Commission President Ursula von der Leyen] made a commitment. Now it’s up to
her to keep her word.”
However, “smart conditionality” has been criticized on the grounds that it
reduces the incentives for national governments to carry out the required
reforms.
Commissioners are expected to iron out this issue during emergency talks on the
budget slated for the weekend.
BRUSSELS — Friedrich Merz’s arrival as German chancellor in May rekindled the
fading Franco-German love affair — and the lovebirds have already found a shared
interest: killing Europe’s ethical supply chain dream.
Merz and French President Emmanuel Macron joined forces this month to hobble new
European Union rules aimed at boosting supply chain transparency, agreeing to
mutual concessions that critics say have left the bill toothless.
The bilateral deal highlights a new era for the historical Franco-German
relationship focused on a sharp pro-business agenda, some argue, thanks to a
budding bromance between the two leaders.
Adopted last year, the EU’s supply chain oversight law requires companies to
police their supply chains for possible environmental and human rights
violations. But the bill has yet to be implemented, having been selected as part
of a whole set of EU rules currently subject to a massive simplification effort
to cut the regulatory burden for businesses.
EU countries on Monday agreed on a dramatically watered-down version of the
revolutionary rules in record time. Initially presented by the European
Commission in February 2022, the new version — if endorsed by the EU as a whole
— will only apply to a fraction of the European companies initially targeted.
The new text “is possibly one of the first policy [deliveries] that is going to
be restarting the Franco-German alliance,” said Alberto Alemanno, an EU law
professor at HEC Paris.
Amid escalating trade tensions and geopolitical turmoil, the European Union is
on a mission to reinvent itself as a prosperous, pro-business, anti-red tape
powerhouse. Macron and Merz are leading the charge in that mission.
“It is a first success for the Franco-German couple,” said a French economy
ministry official who was granted anonymity in line with the French government’s
communication practices after the agreement among EU countries was announced.
That’s because Macron, a staunchly pro-business liberal, and Merz, an equally
pro-business conservative, agreed on mutual concessions to make the text more
palatable for the two countries, the same official explained.
The affinity the two leaders share has not gone unnoticed.
“There’s a bit of a honeymoon between Macron and Merz,” Alemanno said. “They
really get along well because they have a very similar style of leadership. They
are both very charismatic. They also say things that are quite unpopular, but
they just say it.”
Last month, Macron told an audience of business executives that the due
diligence directive ought “not just to be postponed for one year, but to be put
off the table.”
Emmanuel Macron told an audience of business executives that the due diligence
directive ought “not just to be postponed for one year, but to be put off the
table.” | Pool Photo by Benoit Tessier via EPA
His comments followed a similar statement from Merz, who had called for a
“complete repeal” of the law during a visit to Brussels.
As their leaders were making bold public statements about scrapping the rules
altogether, behind the scenes the French and German delegations in Brussels
negotiated to effectively hollow out the file.
After the agreement was reached, Paris hailed the outcome as a joint win for
Europe’s most powerful leaders, while Berlin stayed mum.
“The German government will not publicly comment on statements made by other
governments or information based on anonymous sources,” a German government
spokesperson said.
Civil society groups, meanwhile, question whether Europe’s supply chain
oversight rules still make a difference.
“We’re getting to the point of, is it even worth having this law?” said Richard
Gardiner, interim head of EU policy at the ShareAction NGO, arguing that if
“badly written” rules are then enshrined in law, companies will have no
incentive to do better.
A LONG TIME COMING
The French and German positions come on the back of a tumultuous start to Ursula
von der Leyen’s second term as European Commission president, during which she
pledged to answer EU leaders’ calls to cut red tape for business.
One of the first concrete measures the new Commission took was an “omnibus”
bill, an “unprecedented simplification effort” that watered down several green
laws from the previous mandate, including the corporate sustainability reporting
directive and the supply chain law.
The Commission wanted these changes to be fast-tracked.
“I have never seen them move this fast on a piece of legislation,” said
ShareActions’s Gardiner, describing the policymaking process in Brussels as
having gone from a “technocratic [process] to essentially a personality-based,
knee-jerk reaction.”
Among the key changes to the rules is the number of companies that will be
impacted.
While the Commission’s proposal was to exclude 80 percent of European companies
from having to comply with both the sustainability reporting and the supply
chain rules, EU countries ultimately backed a French proposal to limit the scope
of the latter to companies with more than 5,000 employees and €1.5 billion in
net turnover. In other words, fewer than 1,000 European companies would be
subject to them.
Friedrich Merz and French President Emmanuel Macron joined forces this month to
hobble new European Union rules aimed at boosting supply chain transparency,
agreeing to mutual concessions that critics say have left the bill toothless. |
Olivier Hoslet/EPA
And that’s what the French wanted.
“I think that this alignment between France and Germany allowed [us] to
progress,” said the French official quoted above.
In particular, the French agreed to concessions on civil liability — a main
concern of German companies, which did not want to be liable for breaches of the
law at the EU level. In exchange, Berlin agreed to back the higher threshold
that determines which companies are subject to the new rules to ensure they
align with those that already exist in French law.
On the French side, there was a “prioritization of the topic of the threshold,”
said a Parliament official familiar with the details.
THE BACKSTORY
Berlin especially has long been at the forefront of the political war against
the supply chain oversight law, with liberal and conservative politicians
turning their opposition into a core component of electoral politics at a time
of economic downturn, warnings of de-industrialization and global trade wars.
Even well before the Commission presented its rules, Germany was pressing
Brussels to follow its lead and exempt companies with fewer than 1,000
employees. Back in 2022 the bill was already falling short of what progressive
lawmakers and green groups were requesting.
After all three EU institutions managed to clinch a deal in December 2023 —
overcoming an attempt by center-right European People’s Party (EPP) lawmakers to
kill the file, and having already agreed to carve out the financial sector to
win France over — the horse-trading intensified.
Germany’s liberals, back then the smallest party in the three-party coalition of
former Chancellor Olaf Scholz, launched a last-ditch push to kill the heavily
lobbied and controversial file altogether, despite major disagreements within
the national coalition government. France and Italy both jumped on the
bandwagon.
Despite all this, the measure made it through.
Now, the survival of EU supply chain oversight rules is part of the new
coalition agreement between the Christian Democrats and the Social Democrats
(SPD) in Berlin. In principle, the agreement binds the German chancellor to
protect the bill, albeit with a promise to trim the bureaucratic burden in the
text. But tensions are simmering beneath the surface.
Now, the survival of EU supply chain oversight rules is part of the new
coalition agreement between the Christian Democrats and the Social Democrats
(SPD) in Berlin. | Filip Singer/EPA
“Many people would have benefited from the law, but their voices were not loud
enough — while the bureaucracy debate overshadowed the debate,” said one German
government official, granted anonymity to speak freely about internal political
dynamics.
THE FRENCH U-TURN
Macron’s position was far less consistent than Merz’s. He performed a
spectacular U-turn to become the No. 1 opponent of a text he and his governments
had advocated, at least publicly.
Having been one of the first countries to enact a national law banning human
rights abuses and environmental breaches from supply chains, France initially
cast itself as a top supporter of the text and made it a priority when it held
the rotating Council presidency back in 2022. Then, last year, Paris piggybacked
on Berlin’s opposition, requesting that the law apply to fewer companies.
Fast forward to 2025, and the French have become fierce critics of the text.
Earlier this year, POLITICO revealed that Paris had asked the European
Commission to indefinitely delay the text. That was before Macron told a roomful
of business CEOs gathered in Versailles from all over the world that the text
should be thrown out altogether.
While the president’s shift is music to the ears of France’s industry lobbies,
it has also triggered an internal revolt from his allies who warned against
sacrificing green and anti-forced labor rules under pressure from business.
And unlike about a year ago, Berlin and Paris are facing barely any pushback.
Last year, the Greens and the Social Democrats in the former German coalition
government voiced their opposition to Berlin’s attempts to kill the bill, before
giving in to pressure from the liberals. Now, the Social Democrats co-governing
with Merz’ conservative party are mostly quiet.
On Wednesday, the SPD-led labor ministry finally broke its silence, saying it
was in “favor of reducing the administrative burden on companies and at the same
time effectively protecting human rights.”
Calls to alleviate the burden for businesses, it seems, have become the new
political consensus.
“The whole narrative has gotten out of hand. And no one is still up against it,”
Gardiner said.
Marianne Gros and Antonia Zimmermann reported from Brussels, Giorgio Leali
reported from Paris and Laura Hülsemann reported from Berlin.
BRUSSELS — The European Union is trying to stop space from turning into a
junkyard.
The European Commission on Wednesday proposed a new Space Act that seeks to dial
up regulatory oversight of satellite operators — including requiring them to
tackle their impact on space debris and pollution, or face significant fines.
There are more than 10,000 satellites now in orbit and growing space junk to
match. In recent years, more companies — most notably Elon Musk’s Starlink —
have ventured into low-Earth orbit, from where stronger telecommunication
connections can be established but which requires more satellites to ensure full
coverage.
“Space is congested and contested,” a Commission official said ahead of
Wednesday’s proposal in a briefing with reporters. The official was granted
anonymity to disclose details ahead of the formal presentation.
The EU executive wants to set up a database to track objects circulating in
space; make authorization processes clearer to help companies launch satellites
and provide services in Europe; and force national governments to give
regulators oversight powers.
The Space Act proposal would also require space companies to have launch safety
and end-of-life disposal plans, take extra steps to limit space debris, light
and radio pollution, and calculate the environmental footprint of their
operations.
Mega and giga constellations, which are networks of at least 100 and 1,000
spacecraft, respectively, face extra rules to coordinate orbit traffic and avoid
collisions.
“It’s starting to look like a jungle up there. We need to intervene,” said
French liberal lawmaker Christophe Grudler. “Setting traffic rules for
satellites might not sound as sexy as sending people to Mars. But that’s real,
that’s now and that has an impact on our daily lives.”
Under the proposal, operators would also have to run cybersecurity risk
assessments, introduce cryptographic and encryption-level protection, and are
encouraged to share more information with corporate rivals to fend off
cyberattacks.
Breaches of the rules could result in fines of up to twice the profits gained or
losses avoided as a result of the infringement, or, where these amounts cannot
be determined, up to 2 percent of total worldwide annual turnover.
Satellites exclusively used for defense or national security are excluded from
the law.
THE MUSK PROBLEM
The Space Act proposal comes as the EU increasingly sees a homegrown satellite
industry as crucial to its connectivity, defense and sovereignty ambitions.
Musk’s dominance in the field has become a clear vulnerability for Europe. His
Starlink network has showcased at scale how thousands of satellites can reach
underserved areas and fix internet voids, but it has also revealed his hold over
Ukraine’s wartime communication, highlighting the danger of relying on a single,
foreign player.
Top lawmakers in the European Parliament, including Grudler, earlier this month
advocated for a “clearly ring-fenced budget of at least €60 billion” devoted to
space policy, while French President Emmanuel Macron last week called for the
next EU budget to earmark more money to boost Europe’s space sector.
That’s crucial “if we want to stay in the game of the great international
powers,” he said shortly after the French government announced it would ramp up
its stake in Eutelsat, a Franco-British satellite company and Starlink rival.
The Space Act proposal introduces additional requirements for players from
outside the EU that operate in the European market, unless their home country is
deemed to have equivalent oversight by the Commission, which could be the case
for the U.S. They will also have to appoint a legal representative in the bloc.
The proposal is set to apply from 2030 and will now head to the Council of the
EU, where governments hash out their position, and the European Parliament for
negotiations on the final law.
Aude van den Hove contributed reporting.
Dutch authorities are investigating a major disruption to train traffic in the
Netherlands on the opening day of the NATO summit — an incident that one senior
official said could be sabotage.
A power outage early on Tuesday has disrupted some traffic to and from the
Netherlands’ main airport Schiphol, located 50 kilometers from where leaders of
the Western defense alliance NATO are gathering today and tomorrow.
Around 30 cables were damaged due to a fire, local media reported. The damaged
cables have impacted the trains running from Amsterdam, Schiphol and Utrecht
stations.
Dutch Justice Minister David van Weel on Tuesday said the disruption “could be
sabotage.”
“[Sabotage] is one of the things we are now investigating,” he told broadcaster
NOS at the Public Forum ahead of the NATO leaders’ meetings. “Then the question
is: Who is behind it? It can be an activist group, it can be a country. It can
be many things,” he said.
Van Weel served as NATO’s most senior hybrid and cybersecurity official until
the middle of last year.
Officials at Dutch railway provider ProRail and public authorities are still
investigating the incident.
The train disruptions are the most recent disruption to events in the
Netherlands, after Dutch municipalities on Monday already faced a series of
low-level cyberattacks.
A wave of distributed denial-of-service attacks hit a dozen Dutch organizations,
including several municipalities, the National Cyber Security Centre confirmed.
The attacks did not result in data breaches or intrusions, authorities said.
Dutch cyber authorities pointed to the pro-Russian hacktivist group
NoName057(16), which claimed the attacks. The group has targeted NATO countries
including Belgium, Romania and others in the past year with such DDoS attacks,
seeking to influence how countries position themselves toward NATO and the war
in Ukraine.
The attacks fit the description of threats outlined by Dutch authorities ahead
of the NATO summit. While not very sophisticated, they appeared aimed at sowing
confusion and stretching the capacity of public sector institutions involved in
organizing the summit.
Threat intelligence firm Recorded Future last week warned that the NATO summit
in The Hague was expected to draw intense interest from Russian and Chinese
threat operatives, with defense infrastructure and logistics providers likely to
be top targets for espionage and sabotage.
Sex toy vendor Lovehoney Group has filed a complaint with the European
Commission alleging that Google’s content rules for search break EU law by
unfairly excluding the company’s products from its results.
UK-based Lovehoney alleges that Google’s Safe Search function — which screens
content for certain users — unfairly suppresses links to legally sold,
age-unrestricted products on its website such as Womanizer.com and We-Vibe,
while similar items from mainstream retailers remain visible.
The group says that retailers like Rossmann and Carrefour are not treated in
such a manner and this breaches the bloc’s Digital Markets Act (DMA), which is
designed to ensure a fair and open digital market.
The self-described “global leader in sexual wellness products” made its
submission to the Commission on March 7, and later met with the DMA unit
responsible, company spokesperson Verena Singmann told POLITICO.
“It is our [goal to] promote sexual happiness and empowerment because we know
that it is imperative for people’s health, wellbeing and happiness,” added
Singmann.
Singmann said the company is urging the Commission to ensure that gatekeepers
apply content rules in a fair and transparent manner.
A spokesperson for the Commission said it had received the complaint and is
reviewing it as “market information,” as the regulation does not include a
formal complaint mechanism.
BRUSSELS — The European Commission launched an internal disciplinary probe into
one of its senior officials, Henrik Hololei, over concerns he allegedly violated
rules on conflicts of interest, transparency, gift acceptance and document
disclosure, according to documents seen by POLITICO.
The internal probe comes five months after the European Public Prosecutor’s
Office opened a criminal investigation into corruption allegations involving the
Estonian politician Hololei. That criminal case was prompted by a report from
French newspaper Libération, which revealed that Hololei — then a senior EU
transport official — exchanged confidential details about a major aviation deal
with Qatar in return for gifts for himself and his inner circle, including stays
in a five-star hotel in Doha.
The claims were based on confidential findings from a 2023 inquiry by the
European Anti-Fraud Office, which was triggered by POLITICO revelations and
ended last year in the Commission recommending disciplinary proceedings.
Since then, Hololei took up a new role with a reduction in pay as Hors Classe
Adviser at the Directorate-General for International Partnerships. He was
notified on March 21 of this year that he faced an internal disciplinary
procedure from the Commission, according to the documents seen by POLITICO.
“This internal disciplinary procedure is ongoing and is carried out within a
reasonable period of time, account being taken of both the interests of the
institution and of the person concerned,” a Commission spokesperson said when
asked.
The Commission’s probe, overseen by Budget Commissioner Piotr Serafin, examines
“potential breaches” of four articles of the Commission’s staff regulation.
These pertain to “unauthorized acceptance of gifts,” “conflict of interest,”
“unauthorized disclosure of documents” and “breach of the rules on transparency
and the Commission Guide to Missions,” per the document.
The Commission was previously criticized for not taking measures when handling
the Hololei case, especially after EU prosecutors found grounds to open a
criminal probe on the case. | Rodrigo Antunes/EFE via EPA
If a staffer is found to be in breach of the Commission’s internal regulations,
penalties can range from a written reprimand to removal from their job and
reduction in their pension payouts. (The Commission’s Investigation and
Disciplinary Office oversees internal disciplinary proceedings involving the
institution’s own staff.)
In a written response to questions from French Socialist member of the European
Parliament Chloé Ridel late last year, Serafin wrote that there was no “evidence
of criminal conduct” in the report on Hololei by the fraud office, which is also
known as OLAF. Ridel then told POLITICO she was disappointed that the Commission
hadn’t considered suspending an air travel agreement between the EU and Qatar
that Hololei helped to negotiate.
“The Commission’s refusal to consider suspending the agreement … is particularly
bold, especially at a time when European citizens’ trust in their institutions
has already been severely shaken,” she said in a written statement on April 10.
Hololei did not reply to a written request for comment.
The Commission was previously criticized for not taking measures when handling
the Hololei case, especially after EU prosecutors found grounds to open a
criminal probe on the case.
Asked whether the decision to open their own investigation on Hololei was
triggered by the prosecutor’s probe, the Commission’s spokesperson said the
prosecutors “did not alert the Commission that an investigation was open on
Hololei.”
The top EU prosecutor, which by nature doesn’t have to provide information on
whom it investigates, did, however, confirm its probe publicly.
“We have no comment, since this is an ongoing EPPO investigation,” said a
spokesperson from the public prosecutor’s office, which is also known as EPPO.
Europeans are fleeing X en masse, according to a new report from Elon Musk’s
social media platform.
The latest figures from X published this week — which it was required to release
to comply with the European Union’s flagship tech rulebook, the Digital Services
Act — show a sharp decline in the number of users in Europe.
Since August last year, the platform has lost 11 million European users, with
the biggest exoduses reported in France (2.7 million), Poland (1.8 million) and
Germany (1.3 million).
Today, the platform has about 95 million users in Europe, down from around 105
million last year, representing a 10.5 percent drop in six months. Lithuania and
Luxembourg both lost a quarter of their users.
Musk — who has been one of U.S. President Donald Trump’s most prominent advisers
during the first 100 days of his second term in office — acquired X, then known
as Twitter, in 2022. His changes to the platform’s rules, and encouragement of
right-wing political movements from the United States to Europe, have sparked
criticism about the website’s amplification of disinformation and hate speech.
The city of Paris quit the platform in January, joining a slew of other accounts
that have fled since Musk’s takeover, from legendary horror writer Stephen King
to Leeds University and media outlets including British newspaper The Guardian.
The European Commission has been investigating whether X adheres to the EU’s
requirements to act on illegal content and fake news since 2023, and accused the
platform of breaking the law last July — though it has yet to hand down a
long-awaited punishment.
Musk’s electric vehicle company Tesla has also taken a hit in Europe in recent
months, with sales falling by more than 50 percent across January and February
this year.