Brussels spent the week enforcing rules through national authorities that are not all in place. Bulgaria still lacks the full DSA enforcer it owed in February 2024, and consumer regulators opened formal actions against nine game companies after a year of talks went nowhere.
The money moved on its own schedule. Nscale raised $3.36 billion for a New York listing, largely from American funds, Abu Dhabi, and Nvidia, while the rules on scanning private chats stalled again in trilogue.
Policy & Regulation
Chat control talks stall at the sixth trilogue
Negotiators from the Commission, Council, and Parliament met on 29 September for the sixth political trilogue on the child sexual abuse regulation, tabled in May 2022. They agreed only on the planned EU centre against child sexual abuse, said rapporteur Javier Zarzalejos.
The core question is still open: when services may, or must, scan private unencrypted messages. The Irish presidency proposed making today's temporary voluntary scanning permanent; Parliament wants targeted detection orders, and the Council wants them dropped.
A new term, "search plans", has entered the text. An internal document dated 23 September shows Germany's own negotiators could not say what it means, and opposed it.
No date is set for the next round.
Bulgaria's DSA enforcer is still half built
The Commission sent Bulgaria an additional letter of formal notice on 1 October under the Digital Services Act. Sofia empowered one regulator after a 2025 reasoned opinion, but has not designated the data protection commission or the Electronic Media Council to complete the system.
Its penalty rules also do not always respect the DSA's fine ceilings. The DSA has applied in full since February 2024; platforms serving Bulgarian users still answer to an incomplete local enforcer.
Sofia has two months to reply.
Consumer regulators move on nine game companies
The Consumer Protection Cooperation Network, the EU's national consumer authorities acting together, launched coordinated actions on 30 September over in-game currencies. The targets include Finland's Supercell, Sweden's Mojang, and King's Malta entity, plus six other publishers.
A dialogue with the industry since 2025 "did not bring satisfactory results". The network now wants real-money prices shown, no bundles that force overspending, and a 14-day right to withdraw that covers unused virtual currency.
Capital & Investment
Nscale raises $3.36 billion before listing in New York
The London AI cloud company closed a pre-IPO convertible round led by Third Point, about $140 million short of its $3.5 billion target. It takes $2.36 billion now, and Nvidia adds $1 billion by mid-November.
Apollo, Citadel, and the Abu Dhabi Investment Council also joined. The notes convert at a valuation capped at $30 billion, below the up to $35 billion Nscale seeks on the NYSE.
First-half revenue reached $140.6 million against a net loss of $1.02 billion. Last week we reported that ByteDance was its largest early customer; investors did not flinch.
London's other exit story ended the same week. On 30 September Nubank said it is "not pursuing a transaction" with Monzo.
Headline closes $400 million for European seed and Series A
Headline closed its eighth European early-stage fund on 1 October, with a focus on AI. It backed Mistral AI at seed in 2023 and has invested in every round since.
Partner Jon Userovici said the firm can lead a first round and later one of $100 million or more through its global growth fund. A seed investor that can follow on at that size is still rare in Europe.
(Tech.eu)
Berlin pays for interceptor drones built in Ukraine
Chancellor Friedrich Merz announced in Kyiv that Germany will finance several tens of thousands of Quantum Systems interceptor drones for Ukraine's winter. Quantum WIY Industries, the company's Ukrainian venture, designed them, and they will be built in Ukraine.
Quantum Systems, which raised more than EUR 1 billion in July, runs three joint production companies there. Berlin is buying drones for Ukraine now and production capacity its own forces can draw on later.
(Tech.eu)
Work & Society
147 national MPs found on deepfake sites, almost all women
Researchers at the Berlin think tank Agora Digitale Transformation searched deepfake sites for the names of 5,872 MPs from all 27 national parliaments. They found 147 targeted MPs in 22 countries: 138 women and nine men.
National deepfake laws had no visible effect on the numbers. In response, 119 MEPs wrote to the Commission and member states asking for funded authorities to enforce the AI Act's ban on nudifier apps.
The ban applies from 2 December. The letter's point is that a ban nobody enforces protects no one.
Talent & Workforce
London courts staff with stock options and shorter notice periods
UK AI minister Kanishka Narayan told Sifted he is working "extremely rapidly" on non-compete clauses and long garden leave. Twenty-two founders, including the heads of ElevenLabs and Synthesia, had signed a letter asking for limits.
The same day, Legora chief executive Max Junestrand said UK option rules make London expansion a "no-brainer", while Sweden is "almost impossible". Equity tax stays national in the EU, and a Stockholm company hiring in London is what that costs.
One to Watch
Poland's AI regulator gets its powers on 28 October
Poland's Commission for the Development and Security of AI, KRiBSI, can inspect, handle complaints, and fine from 28 October. The Senate confirmed its chair, former Microsoft engineer Pamela Krzypkowska, on 24 September, and the first meeting must happen by 11 November.
As of 1 October no deputies had been named and the body had no website. It starts with PLN 9.3 million for 2026 and 30 staff, rising to 70; watch whether it opens a first case before larger national regulators do.