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DSA Enforcement, CSA Regulation & Israel Research Funding on the Agenda

This report summarizes key developments in EU AI and Tech policy during Q4 2025, covering the period from 29 September 2025 to 28 December 2025. Over these three months, a total of 152 new Parliamentary Questions (PQs) were published and 145 Commission Answers were made available. The quarter was dominated by the shift from digital policymaking to practical implementation, with a primary focus on DSA enforcement and platform accountability. This included numerous investigations into Very Large Online Platforms (VLOPs) concerning illegal content, the protection of minors, and advertising transparency. Other major narratives included ongoing debates surrounding the EU’s cybersecurity and critical infrastructure resilience, particularly regarding high-risk 5G suppliers and supply chain security; emerging questions on the implementation of the AI Act and its intersection with copyright and fundamental rights; and the growing importance of digital sovereignty and the geopolitical dimensions of tech policy, highlighted by the partial suspension of Israel’s participation in Horizon Europe and scrutiny of EU-US digital trade relations.

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Core Legislative Frameworks

Throughout Q4 2025, the implementation and enforcement of the EU’s landmark digital regulations, particularly the Digital Services Act (DSA), were the central focus of parliamentary scrutiny. The Commission consistently projected itself as an active enforcer, confirming ongoing investigations into multiple Very Large Online Platforms (VLOPs), including AliExpress, Temu, Shein, Meta, TikTok, and X, for issues ranging from the sale of illegal products to insufficient user appeal mechanisms and risks to minors. A recurring theme was the Commission’s defense of the DSA against accusations of censorship, with officials repeatedly clarifying that the Act is content-agnostic, does not define illegal content, and includes robust safeguards for freedom of expression. The Commission also frequently delineated its enforcement powers, noting that while it directly supervises VLOPs, the responsibility for smaller platforms lies with national Digital Services Coordinators.

Alongside the DSA, the new Regulation on Political Advertising drew significant attention. The Commission framed platforms’ decisions to ban political ads as “commercial decisions” but faced questions from MEPs about the regulation’s broad definitions and potential negative impact on civil society and local media. The implementation of the European Media Freedom Act (EMFA) also came under scrutiny, with the Commission defending the independence of the new European Board for Media Services and facing questions about media pluralism in Member States like Italy.

Key Questions This Quarter

❗ Commission Confirms Active DSA Investigations into Online Marketplaces

Executive Vice-President Virkkunen confirmed on 11 December 2025 that the protection of minors and consumers online are priorities, with multiple ongoing DSA proceedings. In response to question P-004467/2025, the Commission detailed its investigations into AliExpress and Temu for the dissemination of illegal goods, and noted it had sent requests for information to Shein regarding similar issues, including the sale of child-like sex dolls. The Commission stated it employs 183 staff for DSA enforcement and is pushing ahead with all open proceedings while respecting due process. (P-004467/2025, Gabriela Firea, S&D).

❗ Commission Defends DSA Against Accusations of Censorship and Overreach

In a reply on 14 October 2025 to a question concerning US criticism of the Digital Services Act (DSA), Executive Vice-President Virkkunen stated that the DSA “does not regulate content, nor can it be used as a legal basis to censor any specific viewpoint online.” The Commission frames the DSA as a tool to establish transparent procedures for tackling illegal content and societal risks while protecting freedom of expression, noting that appeal mechanisms have already led to millions of content reinstatements. (E-003303/2025, Marcel de Graaff, NI).

❓ MEPs Seek Clarity on ChatGPT’s Designation Under the DSA

In a question submitted on 4 December 2025, a group of MEPs led by Sergey Lagodinsky (Verts/ALE) pressed the Commission on the potential designation of OpenAI’s ChatGPT as a VLOP or VLOSE under the Digital Services Act. Citing user numbers far exceeding the DSA threshold for its search feature alone, the MEPs ask for the timeline of the designation assessment and how the rules will apply to a multifunctional AI tool, warning against regulatory gaps. A response from the Commission is pending. (E-004826/2025).

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AI Ethics, Safety & Fundamental Rights

The ethical and fundamental rights implications of new technologies were a prominent theme in Q4 2025, with a particular focus on the stalled negotiations over the proposed Child Sexual Abuse (CSA) Regulation, often dubbed ‘Chat Control’. The Commission defended its proposal, arguing that detection orders would be a targeted measure of “last resort” issued by judicial authorities and necessary for child protection. However, it faced intense questioning from MEPs who raised concerns about mass surveillance, the potential to break end-to-end encryption, and the risk of secure messaging services like Signal exiting the EU market.

Beyond the CSA debate, MEPs scrutinized the risks of AI, from emotional dependence on chatbots to the use of AI in content moderation and copyright enforcement. The Commission consistently pointed to the AI Act and the DSA as providing a comprehensive framework to address these risks, highlighting provisions on transparency, human oversight for high-risk systems, and risk mitigation for VLOPs. Questions were also raised about the proposed ‘European Democracy Shield’, with MEPs seeking assurances that the initiative would not become a tool for political censorship.

Key Questions This Quarter

❗ Commission Defends CSAM Proposal, Stresses Proportionality of Detection Orders

Responding to concerns about the proposal to prevent and combat child sexual abuse, Executive Vice-President Virkkunen stated on 23 December 2025 that the regulation strives to achieve a fair balance between all fundamental rights, including privacy and the rights of the child. The answer frames detection orders as a measure of “last resort,” targeted and issued by a judicial or independent authority. The Commission asserts that the proposal does not require specific service providers to withdraw from the EU and that it recognizes the important role of encryption in securing communications. (E-003993/2025, Mary Khan (ESN) and Petra Steger (PfE)).

❗ AI Act and DSA Address Risks of Emotional Dependence on Chatbots

The Commission acknowledges the potential for users to develop emotional dependence on AI systems, as detailed in a 7 November 2025 reply from Executive Vice-President Virkkunen. The response outlines how the AI Act prohibits manipulative or deceptive AI systems that cause significant harm and imposes transparency obligations. It also notes that if a chatbot is part of a VLOP service, the DSA requires providers to assess and mitigate systemic risks, including those to mental well-being. (E-003674/2025, Veronika Cifrová Ostrihoňová (Renew) et al.).

❓ MEPs Challenge Commission on ‘Chat Control’ Following Signal’s Threat to Exit EU

MEPs Mary Khan (ESN) and Petra Steger (PfE) questioned the Commission on 11 October 2025 regarding the ‘Chat Control’ proposal. The question cites criticism from the president of the messaging app Signal, who warned the company might withdraw from Europe if forced to break its end-to-end encryption. The MEPs ask for the Commission’s view on this criticism and how it justifies a policy that could force a secure messenger to discontinue its services for EU citizens. A response is pending. (E-003993/2025).

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Data, Cloud & Digital Infrastructure

The security and sovereignty of the EU’s digital infrastructure were key topics throughout the quarter. The Commission repeatedly emphasized its multi-layered legal framework for cybersecurity, pointing to the NIS2 Directive, the Cyber Resilience Act, and the upcoming revision of the Cybersecurity Act as crucial tools for securing critical infrastructure and de-risking ICT supply chains. A significant focus was placed on high-risk 5G suppliers, with the Commission reiterating its assessment that Huawei and ZTE pose “materially higher risks” and flagging a Spanish government contract with Huawei as a concern. The resilience of critical infrastructure was also highlighted in the context of cyberattacks on airports and power outages, with the Commission stressing the importance of Member States fully transposing the NIS2 and CER Directives.

Data protection remained a central issue, with the Commission clarifying that the GDPR applies to emerging areas like recreational genetic testing, though enforcement remains a national competence. The development of the European Digital Identity (EUDI) Wallet was also discussed, with the Commission stressing its voluntary nature and its potential use for services like a digitalised European Health Insurance Card, while also highlighting its built-in data protection safeguards.

Key Questions This Quarter

❗ Commission Reiterates High-Risk Supplier Concerns in Spanish Contract

In a 19 November 2025 reply, Executive Vice-President Virkkunen addressed concerns over a Spanish Ministry of the Interior contract with Huawei for managing judicial wiretap data. The Commission reiterated its assessment that Huawei presents “materially higher risks” than other 5G suppliers and stated that the contract could create a dependency on a high-risk supplier in a critical sector, increasing the risk of foreign interference. (E-003287/25, Juan Ignacio Zoido Álvarez (PPE)).

❗ Commission Confirms European Digital Identity Wallet is Voluntary

Executive Vice-President Virkkunen, in a reply on 17 December 2025, firmly stated that the use of the European Digital Identity (EUDI) Wallet is voluntary. The answer clarifies that Regulation (EU) 910/2014 ensures citizens who choose not to use the wallet will not be disadvantaged, and Member States must maintain alternative identification channels. The Commission also noted that the wallet strengthens personal data protection and its issuance does not require the use of personal numbers. (P-004426/2025, Christine Anderson (ESN)).

❓ MEPs Question Commission Stance on Telecom Sector Consolidation

Citing the Mario Draghi report on European competitiveness, an MEP has asked the Commission whether it agrees that increased consolidation in the telecom sector is necessary to create a true single market and boost investment. The question, submitted on 28 November 2025, also asks if the Commission has concrete plans for legislative action to facilitate consolidation and if it can estimate the potential impact on consumer prices. A response from the Commission is pending. (E-004720/2025, Valter Flego (Renew)).

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Research, Innovation & Industrial Policy

The EU’s strategy for technological sovereignty and industrial competitiveness was a recurring theme in Q4 2025. The Commission highlighted its ‘AI Continent Action Plan’ and ‘Chips Act 2.0’ as key initiatives to advance the EU’s leadership in strategic technologies. Progress on the original Chips Act was reported, with over €80 billion in private investment announced. The Commission also detailed its plans for a new European Competitiveness Fund (ECF) to support projects in strategic sectors and outlined initiatives like ‘Choose Europe’ to attract and retain top research talent.

However, the geopolitical dimensions of research funding became a major point of contention. The Commission confirmed its proposal to partially suspend Israel’s participation in the Horizon Europe programme, specifically in the European Innovation Council Accelerator, citing a review that found indications of human rights breaches. This move was repeatedly questioned by MEPs. Separately, the Commission defended its rules allowing EU-based firms controlled by non-EU parent companies (such as Israel Aerospace Industries) to receive European Defence Fund (EDF) funding, provided “robust safeguards” are in place and approved by the host Member State.

Key Questions This Quarter

❗ Commission Proposes Partial Suspension of Israel’s Horizon Europe Participation

In a reply dated 16 September 2025, High Representative/Vice-President Kallas confirmed that the EU has reviewed Israel’s compliance with Article 2 of the EU-Israel Association Agreement. The response stated the review concluded there are “indications that Israel would be in breach of Article 2.” Following this, the Commission proposed a Council Decision on 29 July 2025 to partially suspend Israel’s participation in the Horizon Europe research program, specifically targeting the European Innovation Council’s Accelerator. (E-003201/25, Manu Pineda (The Left)).

❗ Commission Details Support for European AI Startups and Scaleups

On 17 November 2025, Executive Vice-President Virkkunen responded to a question by detailing a range of initiatives to support AI innovation. The Commission highlighted the ‘AI Continent Action Plan’, financial support for ‘AI Factories’, the ‘GenAI4EU’ initiative, and the ‘EU Startup and Scaleup Strategy’. These programs aim to facilitate access to infrastructure, data, skills, and venture capital to foster the growth of European AI champions. (E-003657/2025, Jean-Paul Garraud (PfE)).

❓ MEPs Question Impact of Battery Rules on AI Wearable Competitiveness

A group of MEPs led by Stefano Cavedagna (ECR) submitted a question on 10 December 2025 concerning the EU requirement for user-removable batteries in all electronic devices by 2027. They ask how this rule aligns with the EU’s AI leadership goals, particularly for sophisticated wearable devices, and whether the Commission will consider targeted exemptions. A response from the Commission is pending. (E-004907/2025).

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Outlook: Key Pending Questions

As Q4 2025 concludes, several significant policy questions remain on the Commission’s agenda, setting the stage for debates in the new year. Notable pending responses relate to the risks and safeguards of the digital euro, with MEPs repeatedly questioning its impact on privacy, financial stability, and the future of cash. The practical application of the Digital Markets Act (DMA) is also under scrutiny, with awaited answers on its potential to delay innovation and its interplay with cybersecurity. Furthermore, the Commission is expected to clarify its position on the potential designation of new services like ChatGPT and WhatsApp Channels as Very Large Online Platforms under the DSA. The ongoing deadlock over the Child Sexual Abuse (CSA) Regulation and its implications for end-to-end encryption will continue to be a highly contentious issue, alongside questions about the legal basis for a proposed ‘European Democracy Shield’ and the EU’s strategy for reducing its dependence on China for critical raw materials.

All Parliamentary Questions and Commission Answers are accessible via Policy-Insider.AI.

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