EU tech policy faces a daunting agenda in 2025: implementing a complex set of digital laws, revitalising the economy, and defending the EU’s democratic model against growing internal and external threats.

The European elections and political uncertainty in France and Germany have slowed Brussels’ legislative machinery in 2024, with member states and industry groups advocating for a pause in pushing through new legislation.

Instead, the EU, driven by the Council, is pivoting towards implementing existing legislation, which is key to ensuring a harmonised digital single market.

At the same time, the EU faces an “existential challenge” of lagging productivity, prompting calls from both former Italian prime ministers Enrico Letta and Mario Draghi to boost investment and reduce regulatory burdens.

Competition in advanced technologies such as artificial intelligence (AI), cloud computing, space and telecommunications remains fierce, with global rivals vying for dominance – something Letta and Draghi said create an pressing need for the EU to take targeted legislative action.

Across the Atlantic, the incoming second presidency of US President-elect Donald Trump –with Elon Musk potentially heading a new US Department of Government Efficiency– raises concerns that the EU will find it harder to enforce its digital rulebook against American Big Tech.

These efforts come against the backdrop of an increasingly hostile global environment.

Disinformation campaigns have targeted the EU’s electoral processes and those of its neighbourhood, while physical attacks on undersea internet cables and cyber-attacks by foreign adversaries have heightened tensions.

Enforcement in the spotlight

One of the Commission’s key challenges for 2025 will be fully enforcing the Digital Services Act (DSA) and the Digital Markets Act (DMA), the EU’s landmark frameworks for online content moderation and antitrust regulation.

In 2024, the Commission launched 11 investigations under the DSA and seven under the DMA, with outcomes expected next year. Whether these investigations will result in fines remains uncertain, but whatever the outcome, they are likely to generate intense scrutiny and worldwide analysis.

The Commission may further expand its list of companies designated under the DMA and DSA for closer scrutiny. A key case to watch is Telegram, which recently reported one billion global users but less than 45 million in the EU, a disparity that will continue to attract scrutiny.

DSA delegated acts on data access for researchers and user counting methodologies are slated for early and late 2025, respectively. Guidelines on protecting minors and trusted flaggers will also be introduced during the year.

Meanwhile, the EU executive must implement laws on data sharing and cloud data migration under the Data Governance Act and the Data Act, as well as four implementing acts to help enforce the Artificial Intelligence Act next year.

Another significant enforcement challenge is the Chips Act, which aims to ensure that 20% of global semiconductor production takes place in Europe by 2030.

Tensions are also expected to flare over enforcing the Political Advertising Regulation and the European Media Freedom Act. The rise of far-right parties in the European Parliament and member states, strengthened by ideological support from the US, will intensify debates on media pluralism, disinformation, and democracy.

The EU Merger Regulation is another flashpoint, especially around “killer acquisitions” and promoting “European champions”. Commissioner Ribera will have to balance competing prerogatives to promote EU-based industrial giants globally while protecting market competition internally.

Similarly, the Foreign Subsidies Regulation—designed to prevent non-EU entities from acquiring strategic EU assets—will be closely monitored in 2025, especially since only one case under investigation was closed in 2024. 

Struggles with implementation

Member states are grappling with the complex task of transposing and implementing EU’s digital rulebook. The European Commission has initiated several infringement procedures against lagging countries, which could eventually result in fines – although this extreme step is rarely taken.

Monitoring these procedures in 2025 will provide insight into the effectiveness, or otherwise, of EU law enforcement.

While the governance models of the DSA, DMA, and AI Act have been hailed as future-proof and enforcement-ready, especially in contrast to the challenges posed by the GDPR, doubts remain about the EU’s capacity to effectively enforce its digital laws, especially in the face of the new Musk-Trump axis.

Legislative and non-legislative initiatives

The Commission vowed to focus on investment, cut red tape for companies and announced at least 30 new non-legislative and legislative initiatives.

The Commission has already approved the first seven AI factories and is working to pool funding for a tentatively named AI Research Council.

A hot topic for 2025 will be negotiations on the EU’s next seven-year budget, the Multiannual Financial Framework (MFF). The Commission’s much-criticised idea of a centralised Competitiveness Fund, scrapping all regional and R&I programmes, will be at odds with academics and the European Parliament, who want to see a doubling and reform of EU R&I funding.

Industry groups are also pushing for a unified legal status for innovative companies, a proposal that is expected to make progress in the coming year.

Legislative acts expected in 2025 include efforts to improve internet speeds, the Digital Networks Act, and the long-delayed EU Space Law, which aims to harmonise national licensing frameworks and create a unified European space market.

As politics and technology increasingly intertwined globally, EU tech policy faces one of its toughest years yet, even though it is better prepared than ever to tackle the upcoming challenges ahead.

Jacob Wulff Wold contributed to reporting.

[Edited by Chris Powers/Daniel Eck]