EU Tech Dilemma - Issue #474 June 27th, 2024

Apple Inc. is withholding several new technologies from European Union consumers, citing regulatory concerns. The company announced on Friday that it will block the release of Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing in the EU this year. The decision comes in response to the EU's Digital Markets Act, aimed at curbing the power of Big Tech.

Devon Kirk, Co-Head of Portage Partner and Portage Capital Solutions, joined Ed Ludlow to discuss the state of the fintech growth equity market in the US and Europe. She highlighted a significant opportunity for AI in financial services.

This month, Barcelona-based tech startup Brickken announced its selection to participate in the European Commission’s (EC) European Blockchain and Distributed Ledger Technologies (DLT) Regulatory Sandbox. The sandbox aims to accelerate blockchain development by facilitating direct contact between startups and regulators across pan-European countries, allowing them to test new products and services in real-life environments.

The European Commission (EC) opened a consultation on the use of artificial intelligence (AI) in financial services on June 18. Responses will inform the commission about the “concrete application and impact of AI in financial services,” it said. This follows the European Parliament and European Council's passage of the AI Act, expected to enter into force in July, regulating AI development and use in the EU. The EU calls it “the world’s first comprehensive AI regulation.”

Meta is expanding its AI Startup Program across Europe, highlighting innovation and the influence of American tech companies in the region’s AI landscape. Partnering with Hugging Face and Scaleway, the program will select five startups for mentoring, tools, and computing power. While aiming to boost European AI development, it raises concerns about data privacy and tech sector independence. Running from September 2024 to February 2025 at Paris' STATION F campus, the program is open to EU applicants. Selected startups will work with Meta’s FAIR lab and access open-source AI models like Llama.

The financial ecosystem is undergoing a massive shift due to the rapid development of Artificial Intelligence (AI) and its integration into financial technology (fintech). As we enter this new era, it's essential to understand how AI is transforming the landscape, enhancing efficiency, and creating new opportunities, particularly in India's finance sector.

Europe is lagging behind both the United States and China in technology and innovation, according to Nick Clegg, a top executive at US firm Meta. Clegg, president of global affairs at the parent company of Facebook, Instagram, and WhatsApp, told AFP that Europe has a "real problem."

Swift's research indicates positive sentiment among EU SMEs towards the Instant Payments Regulation, effective since April. SME decision-makers in France, Germany, Italy, and Spain, engaged in cross-border transactions, show optimism. A survey of over 2,000 revealed that nearly nine out of ten expect to be impacted. Specifically, 44% anticipate cost savings, 27% foresee cash flow improvements, and 20% believe it will enhance competitiveness.