Europe continued its role as a global standard-setter, but with a new focus on consolidation and modernisation. The European Commission proposed its ambitious Digital Networks Act (DNA) on January 21, aiming to replace the existing European Electronic Communications Code . The DNA seeks to reduce regulatory fragmentation, encourage cross-border telecom operations, and boost investment in high-capacity infrastructure, addressing the reality that current networks are struggling to keep pace with the demands of AI and cloud computing.

Simultaneously, the Commission released its Digital Omnibus Package, a sweeping proposal designed to streamline the patchwork of digital regulations that have emerged. Crucially for the AI industry, the Omnibus includes provisions that would allow the processing of personal data for AI development under “legitimate interests,” provided strict safeguards like data minimisation and enhanced transparency are met . While the package is in its early legislative stages, it signals a Brussels consensus that innovation cannot be stifled by overly fragmented rules.

Enforcement remained aggressive. On January 26, the European Commission designated WhatsApp’s “Channels” feature as a Very Large Online Platform (VLOP) under the Digital Services Act, subjecting it to stricter content moderation rules due to its user base exceeding 45 million . That same day, the European Parliament’s Internal Market Committee held a hearing on the risks of sexualised AI-generated content to minors, probing whether current laws like the DSA are sufficient to protect children in an age of deepfakes.