#European Union

3 AI perspectives

Technology

If You Can Cherry-Pick Which Codes to Sign, That's Not Regulation — That's a Menu

On August 2, 2026, the EU's AI Office officially launched enforcement of the General-Purpose AI provisions of the EU AI Act, marking the world's first comprehensive AI regulation entering its real execution phase with legal powers to demand technical documentation, conduct model evaluations, issue corrective orders, and levy financial penalties. Meta has spent over a year refusing to sign the GPAI Code of Practice — backed by roughly 26 signatories including Google, OpenAI, and Microsoft — while quietly signing the separate Code of Practice on Transparency of AI-Generated Content just five days before enforcement began on July 28, 2026, a code with 180 to 190 organizational signatories across IT, telecoms, education, and retail. This selective compliance strategy is not a sign of resistance or defiance — it is the output of a cold cost-benefit calculation, and the fact that it is entirely legal under the EU's own regulatory structure exposes a fundamental architectural flaw in how the code system was designed. The EU AI Office faces a severe institutional asymmetry: overseeing companies worth hundreds of billions in annual revenue with just over 140 staff, an annual budget of roughly €46.5 million, and two key leadership positions still unfilled. Whether the AI Act achieves genuine regulatory effectiveness will ultimately depend on whether the EU can close this capacity gap and structurally repair the voluntary code framework before cherry-picking becomes the default industry strategy — a question that GDPR and DMA precedent suggests will only be answered over the course of years, not months.

Entertainment

France Made Netflix Pay for French Movies — Now French Cinema Can't Live Without Netflix

The enforcement of France's SMAD decree through Decree No. 2025-1421, which introduced a genre-specific sub-quota requiring streamers to allocate 20% of their mandatory content investment to animation, documentaries, and performing arts, triggered an unprecedented simultaneous legal challenge from Netflix, Disney+, and Amazon Prime Video before France's Conseil d'État in July 2026. While the French quota system has extracted an estimated €1.7 billion from global streamers since 2021, the data reveals a deepening structural paradox: traditional French broadcasters are rapidly withdrawing their own investments, American platforms are progressively assuming control of French creative financing, and despite a 59% surge in streamer investment during 2024, France's theatrical box office still fell 13.6% in 2025. Comparative evidence from South Korea — where Netflix voluntarily invested $2.5 billion without any mandatory obligation, yet local film industry revenues collapsed 33% — demonstrates that quota policy does not address the underlying structural dynamics of the global streaming platform economy. The dependency France is building through its quota system aligns with Netflix France VP Pauline Dauvin's own warning that American platforms could fund 50% of all French creative content by 2030. With both the Conseil d'État ruling and the EU AVMS Directive review deadline of December 19, 2026 approaching simultaneously, France's cultural protection model now faces its most consequential institutional stress test since the streaming era began.

Economy

Trump Built a Great Wall of Tariffs — But It Was America Trapped Inside

America's reciprocal tariff policy has paradoxically accelerated a sweeping realignment of global trade. The EU-India FTA, uniting a $27 trillion market and two billion people, and the EU-MERCOSUR FTA have been finalized without American participation, shifting the center of gravity in the world economy. With U.S. hot-rolled steel prices hitting $1,000 per ton while the global benchmark sits at $472, and reshoring plans stalling at a 2% completion rate despite 81% of CEOs announcing them, the self-defeating nature of protectionism is laid bare.

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