The EU just re-elected its president for another five years — here's what that means for tech

Image Credits: Johannes Simon/Getty Images (opens in a new window) / Getty Images under a license.

The European Union’s president, Ursula von der Leyen, was confirmed in the role for another five years Thursday after parliamentarians voted overwhelmingly to re-elect her.

The scale of her support (401 votes for versus 284 against with 15 abstentions) — a far firmer endorsement than last time around — may say more about lawmakers’ concerns over rising geopolitical uncertainties, with war still raging in Ukraine and the U.S. headed for an election in November that could return Donald Trump to the White House by 2025, than reflecting ardent passion for her leadership. But her ability to stay calm in times of crisis appears to have won her grudging respect at the least.

So what does a vote for continuity of the EU’s leadership mean for the bloc’s tech policy through to 2029?

Von der Leyen has already pressed ahead with major reforms in digital policy. Her first term saw the EU affirm the Digital Markets Act (DMA) and the Digital Services Act (DSA) — two landmark regulations that take aim at exploitative Big Tech business models and could force a major reset in platform operations.

The EU also passed legislative measures aimed at enabling more data access for businesses, researchers, the public sector and consumers. And tech policy was centerstage with her decision to prioritize a risk-based regulation for artificial intelligence at a time when many others thought it too early to intervene. Now, with generative AI accelerating concerns over the risks of deepfakes and other AI-driven harms, her decision to make sure the EU has a rulebook in place seems rather prescient.

Von der Leyen’s second term looks set to focus on deepening the impact of this earlier round of digital policymaking — with a clear pledge to “ramp up and intensify” enforcement of the DMA and DSA, per political guidelines she published to accompany her candidacy for a second term.

Enforcing the EU’s digital rulebook

Enforcement looks set to dial up, particularly in the area of e-commerce. Designated platforms subject to the Commission’s oversight here include AliExpress, Amazon, Booking, Google Shopping, Meta Marketplace, Shein, Temu and Zalando.

Some new tech policymaking may also be on the horizon with a possible (further) tightening of rules around children and young people’s use of social media. Von der Leyen has committed to an EU-wide inquiry on “the broader impacts of social media on well-being” during the second term.

There could also be a bigger clampdown on dark pattern design. “We will tackle unethical techniques used by online platforms by taking action on the addictive design of online services, such as infinite scroll, default auto play or constant push,” she writes. “We will also firmly combat the growing trend of abusive behaviour online with an action plan against cyberbullying.”

While additional legislative measures are possible, both these areas could be addressed by the Commission sharpening its enforcement of the DSA.

Another stated focus for a von der Leyen second term is on “protecting our democracy,” as she puts it — which means grappling with the ongoing challenge posed by online disinformation.

Again this might translate into stepping up enforcement of the DSA, which requires larger platforms to identify and mitigate systemic risks in this area. The EU already has strong powers to go after tech giants that don’t clean up their act.

Her manifesto also commits to addressing “the ever-more realistic deepfakes that have impacted elections across Europe” — with the EU president saying the Commission will ensure that transparency requirements in the shiny new EU AI Act are implemented. She also says the bloc will “strengthen” its approach to AI-produced content that risks misleading people. How exactly remains to be seen.

Growing AI and boosting competitiveness

In addition to doubling down on key planks laid down in her first term, there are also signs von der Leyen wants to refine her approach in some areas.

Boosting Europe’s competitiveness is a particular focus for the second term, including through an expanded focus on supporting homegrown AI innovations.

We’ve seen a taster of this already, with Commission plans to reconfigure the bloc’s network of supercomputers for AI model training. But more support measures are planned, including for AI startups and research — the latter via a new European AI Research Council.

Her manifesto also repeats a message of urgency around the need for the bloc to unlock greater data access to foster competitiveness and expand use of digital services.

Here she reiterates the role of data access in driving AI development and other “frontier technologies,” as she puts it — calling for a “data revolution” and committing to a “European Data Union Strategy” to simplify data access for businesses and others by establishing a “clear and coherent legal framework” for data sharing. Though her manifesto commits to maintaining the EU’s existing “high” standards of privacy and security. So there’s a clear balance required here.

Elsewhere in her manifesto, there’s a push for a new approach to competition policy to dial up innovation and competitiveness, including around M&A, which sounds intended to benefit startups versus incumbent giants — with von der Leyen writing that the bloc should be “more supportive of companies scaling up in global markets.”

Better support for firms who may be the target of killer acquisitions is also discussed. And she wants to see more progress on ironing out more of the wrinkles in the EU’s single-market concept — which can still resemble more of a patchwork quilt in the case of online services — again with the goal of helping homegrown startups to scale.

A von der Leyen-led second term Commission also looks set to expend effort on cutting red tape in a bid to promote business growth — responding to the perennial criticism that the EU’s love of rulemaking is a barrier to homegrown innovation.

For instance, her manifesto commits to proposing a “new EU wide legal status to help innovative companies grow” — which she says will “take the form of a so-called 28th regime to allow companies to benefit from a simpler, harmonised set of rules in certain areas.”

Who benefits and how exactly remains to be seen, but it suggests some form of general pan-EU regulatory sandbox idea to support startups, in addition to the AI-specific sandboxes the AI Act is already ushering in.

Biotech startups could also be set for a boost, as her next Commission will propose a new European Biotech Act in 2025 to make it easier for researchers and startups to commercialize lab and factory developments. “This will be part of a broader Strategy for European Life Sciences to look at how we can support our green and digital transitions and develop high-value technologies,” says von der Leyen.

Summing up her key elements of her policy approach in an executive note, she adds: “The world is in a race that will dictate who will be the first to climate neutrality and first to develop the technologies that will shape the global economy for decades to come. Europe cannot afford to fall behind and lose its competitive edge in this race, nor can it leave any strategic vulnerabilities exposed.”

The EU just re-elected its president for another five years — here's what that means for tech

Image Credits: Johannes Simon/Getty Images (opens in a new window) / Getty Images under a license.

The European Union’s president, Ursula von der Leyen, was confirmed in the role for another five years Thursday after parliamentarians voted overwhelmingly to re-elect her.

The scale of her support (401 votes for versus 284 against with 15 abstentions) — a far firmer endorsement than last time around — may say more about lawmakers’ concerns over rising geopolitical uncertainties, with war still raging in Ukraine and the U.S. headed for an election in November that could return Donald Trump to the White House by 2025, than reflecting ardent passion for her leadership. But her ability to stay calm in times of crisis appears to have won her grudging respect at the least.

So what does a vote for continuity of the EU’s leadership mean for the bloc’s tech policy through to 2029?

Von der Leyen has already pressed ahead with major reforms in digital policy. Her first term saw the EU affirm the Digital Markets Act (DMA) and the Digital Services Act (DSA) — two landmark regulations that take aim at exploitative Big Tech business models and could force a major reset in platform operations.

The EU also passed legislative measures aimed at enabling more data access for businesses, researchers, the public sector and consumers. And tech policy was centerstage with her decision to prioritize a risk-based regulation for artificial intelligence at a time when many others thought it too early to intervene. Now, with generative AI accelerating concerns over the risks of deepfakes and other AI-driven harms, her decision to make sure the EU has a rulebook in place seems rather prescient.

Von der Leyen’s second term looks set to focus on deepening the impact of this earlier round of digital policymaking — with a clear pledge to “ramp up and intensify” enforcement of the DMA and DSA, per political guidelines she published to accompany her candidacy for a second term.

Enforcing the EU’s digital rulebook

Enforcement looks set to dial up, particularly in the area of e-commerce. Designated platforms subject to the Commission’s oversight here include AliExpress, Amazon, Booking, Google Shopping, Meta Marketplace, Shein, Temu and Zalando.

Some new tech policymaking may also be on the horizon with a possible (further) tightening of rules around children and young people’s use of social media. Von der Leyen has committed to an EU-wide inquiry on “the broader impacts of social media on well-being” during the second term.

There could also be a bigger clampdown on dark pattern design. “We will tackle unethical techniques used by online platforms by taking action on the addictive design of online services, such as infinite scroll, default auto play or constant push,” she writes. “We will also firmly combat the growing trend of abusive behaviour online with an action plan against cyberbullying.”

While additional legislative measures are possible, both these areas could be addressed by the Commission sharpening its enforcement of the DSA.

Another stated focus for a von der Leyen second term is on “protecting our democracy,” as she puts it — which means grappling with the ongoing challenge posed by online disinformation.

Again this might translate into stepping up enforcement of the DSA, which requires larger platforms to identify and mitigate systemic risks in this area. The EU already has strong powers to go after tech giants that don’t clean up their act.

Her manifesto also commits to addressing “the ever-more realistic deepfakes that have impacted elections across Europe” — with the EU president saying the Commission will ensure that transparency requirements in the shiny new EU AI Act are implemented. She also says the bloc will “strengthen” its approach to AI-produced content that risks misleading people. How exactly remains to be seen.

Growing AI and boosting competitiveness

In addition to doubling down on key planks laid down in her first term, there are also signs von der Leyen wants to refine her approach in some areas.

Boosting Europe’s competitiveness is a particular focus for the second term, including through an expanded focus on supporting homegrown AI innovations.

We’ve seen a taster of this already, with Commission plans to reconfigure the bloc’s network of supercomputers for AI model training. But more support measures are planned, including for AI startups and research — the latter via a new European AI Research Council.

Her manifesto also repeats a message of urgency around the need for the bloc to unlock greater data access to foster competitiveness and expand use of digital services.

Here she reiterates the role of data access in driving AI development and other “frontier technologies,” as she puts it — calling for a “data revolution” and committing to a “European Data Union Strategy” to simplify data access for businesses and others by establishing a “clear and coherent legal framework” for data sharing. Though her manifesto commits to maintaining the EU’s existing “high” standards of privacy and security. So there’s a clear balance required here.

Elsewhere in her manifesto, there’s a push for a new approach to competition policy to dial up innovation and competitiveness, including around M&A, which sounds intended to benefit startups versus incumbent giants — with von der Leyen writing that the bloc should be “more supportive of companies scaling up in global markets.”

Better support for firms who may be the target of killer acquisitions is also discussed. And she wants to see more progress on ironing out more of the wrinkles in the EU’s single-market concept — which can still resemble more of a patchwork quilt in the case of online services — again with the goal of helping homegrown startups to scale.

A von der Leyen-led second term Commission also looks set to expend effort on cutting red tape in a bid to promote business growth — responding to the perennial criticism that the EU’s love of rulemaking is a barrier to homegrown innovation.

For instance, her manifesto commits to proposing a “new EU wide legal status to help innovative companies grow” — which she says will “take the form of a so-called 28th regime to allow companies to benefit from a simpler, harmonised set of rules in certain areas.”

Who benefits and how exactly remains to be seen, but it suggests some form of general pan-EU regulatory sandbox idea to support startups, in addition to the AI-specific sandboxes the AI Act is already ushering in.

Biotech startups could also be set for a boost, as her next Commission will propose a new European Biotech Act in 2025 to make it easier for researchers and startups to commercialize lab and factory developments. “This will be part of a broader Strategy for European Life Sciences to look at how we can support our green and digital transitions and develop high-value technologies,” says von der Leyen.

Summing up her key elements of her policy approach in an executive note, she adds: “The world is in a race that will dictate who will be the first to climate neutrality and first to develop the technologies that will shape the global economy for decades to come. Europe cannot afford to fall behind and lose its competitive edge in this race, nor can it leave any strategic vulnerabilities exposed.”

President Biden vetoes crypto custody bill

US President Joe Biden during a campaign event at the Scranton Cultural Center at the Masonic Temple in Scranton, Pennsylvania

Image Credits: Hannah Beier/Bloomberg via Getty Images

President Joe Biden has vetoed H.J.Res. 109, a congressional resolution that would have overturned the Securities and Exchange Commission’s current approach to banks and crypto.

Specifically, the resolution targeted the SEC’s Staff Accounting Bulletin 121, which presents guidance around how banks can handle customers’ crypto assets — in effect, they must treat those assets as liabilities. Banking groups have criticized this approach as making it prohibitively expensive for them to handle crypto, while regulators argue it’s necessary to protect investors, particularly after the collapse of high-profile crypto companies like FTX.

“SAB 121 reflects considered technical SEC staff views regarding the accounting obligations of certain firms that safeguard crypto-assets,” Biden said in a statement. “By virtue of invoking the Congressional Review Act, this Republican-led resolution would inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues.”

Biden went on to say his administration “will not support measures that jeopardize the well-being of consumers and investors.”

H.J.Res. 109 was passed with mostly Republican support — but 21 Democrats supported the resolution in the House, and Majority Leader Chuck Schumer was among the Democrats who supported it in the Senate.

The president had previously indicated his intention to veto the resolution, while Representative Mike Flood (the Republican congressman who sponsored H.J.Res. 109 in the House) argued Biden should reconsider given the “overwhelming opposition to SAB 121.”

Organizations opposing SAB 121 include the American Bankers Association and other financial industry lobbying groups, as well as the crypto industry advocacy group Stand With Crypto.

“SAB 121 effectively precludes regulated banking organizations from offering digital asset custody at scale since it treats the assets as if they are owned rather than simply custodied by a banking organization,” the ABA and other industry groups said in an open letter to President Biden.

The White House’s announcement left the door open to further negotiations around crypto regulation.

“My Administration is eager to work with the Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, which will promote the responsible development of digital assets and payment innovation and help reinforce United States leadership in the global financial system,” Biden said.

Plaid's new president hails from Cloudflare, has IPO experience

Stack of woolen checked blankets

Image Credits: Manuta / Getty Images

Plaid has named Jennifer (Jen) Taylor, who most recently served as Cloudflare’s chief product officer, as its first president.

The move is notable in that it comes just months after the fintech startup hired former Expedia CFO Eric Hart to serve as its first chief financial officer. The hiring of a CFO is a step usually only taken by companies that are planning to go public. 

In announcing Taylor’s appointment, San Francisco-based Plaid pointed out that her nearly seven-year tenure spanned pre, during and after Cloudflare’s IPO — perhaps signaling that Plaid itself is inching closer to an initial public offering (IPO).

Update: A Plaid spokesperson told TechCrunch post-publication: “I can confirm that an eventual IPO is a milestone we’re tracking towards, but we don’t have any details or a timeline to share beyond that. Jen will be a critical component of maturing our tech and product strategy as we continue to grow and evolve.”

Image Credits: Jen Taylor, president / Plaid

In a LinkedIn post, Taylor wrote: “Super excited to share that I’ve joined Plaid as President, where I’ll be overseeing teams across tech + product building the network that will power the future of finance.”

Prior to joining Cloudflare, Taylor held high-level leadership positions at Salesforce, Facebook (now Meta) and Adobe and had a two-year stint as a venture capitalist.

Plaid got its start as a company that connects consumer bank accounts to financial applications, but has since been gradually expanding its offerings to also include lending, anti-fraud and payments. The 11-year-old company was almost acquired by Visa for $5 billion before antitrust regulators shut that deal down. Plaid went on to raise funding at a $13.4 billion valuation after the deal fell through, and has worked to diversify its revenue streams since.

In a blog post, Plaid co-founder and CEO Zach Perret wrote that Taylor’s “experience scaling products to meet increasing customer demand will be invaluable” as Plaid continues to expand its platform “to support ongoing innovation in financial services.”

Plaid has 8,500 customers and over 1,000 employees. Its backers include a16z, Index Ventures, Altimeter, Silver Lake, NEA, Kleiner Perkins, JP Morgan, Citi Ventures, Amex Ventures, Goldman Sachs and Spark Capital, among others.

Want more fintech news in your inbox? Sign up for TechCrunch Fintech here.

Plaid taps former Expedia exec as its new chief financial officer, says ‘no timeline’ for IPO