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Digital Services Act Sparks Debate Among Cypriot MEPs: Balancing Safety And Freedom Online

Cypriot MEPs have highlighted the importance of the Digital Services Act (DSA) in creating a safer digital environment across the European Union. However, during a debate at the European Parliament’s plenary session in Strasbourg, they also raised concerns about potential risks to freedom of expression and unintended uses of the legislation.

DISY and EPP MEP Loucas Fourlas praised the Act as a vital step towards robust digital governance, protecting citizens from illegal content, misinformation, and online threats. However, he pointed out that differing views among EU Member States and MEPs illustrate the bloc’s fragmented external policy, which could hinder cohesive action.

Similarly, Michalis Hadjipantela, also from DISY and the EPP, welcomed the Act’s balanced approach, which aims to safeguard users from harmful content while ensuring that smaller businesses are not overburdened. He emphasized its role in fostering a transparent and secure digital ecosystem that supports competition, particularly for SMEs and startups.

From a different perspective, AKEL and Left MEP Giorgos Georgiou criticized the European Commission’s lack of action against the exploitative practices of Big Tech companies. He argued that without addressing the business models of these platforms, which thrive on extreme content, the Act cannot fully tackle hate speech and misinformation. Georgiou called for greater digital sovereignty in Europe, suggesting the development of alternative public platforms like Bluesky or Mastodon to counter Big Tech’s dominance.

DIKO and Progressive Alliance of Socialists and Democrats MEP Costas Mavrides underscored the nuanced nature of freedom of expression, noting that it must operate within the boundaries of EU legal frameworks. He dismissed criticism of restrictions on misinformation as hypocritical, especially from those who advocate for barriers against propaganda from authoritarian regimes.

Conversely, ELAM and European Conservatives and Reformists group MEP Geadis Geadi expressed concerns that the Act risks becoming a tool for censorship, threatening the very freedoms it seeks to protect. He argued for a reassessment of its implementation to ensure users’ rights remain intact.

Independent MEP Fidias Panayiotou echoed these concerns, citing recent accusations by Meta’s Mark Zuckerberg and Elon Musk, owner of platform X, that the EU is institutionalizing censorship. Panayiotou warned against unfairly censoring posts under the guise of misinformation and proposed inviting the tech leaders to the European Parliament for discussions on content moderation practices.

The debate was notable for its high level of engagement, with around 150 MEPs participating—nearly three times the usual attendance. A pilot system was also trialed, where speakers were announced during the session rather than in advance, resulting in lively exchanges and increased interaction through blue cards and petitions.

As the Digital Services Act moves forward, the challenge will lie in striking the right balance between ensuring online safety and safeguarding fundamental freedoms, a debate that will undoubtedly shape the digital future of Europe.

EBA Tightens Focus On High-Risk Third-Party Arrangements To Streamline Banking Oversight

The European Banking Authority has issued new guidelines designed to sharpen supervision of third-party arrangements linked to critical functions, in a move intended to simplify parts of the EU banking regulatory framework while preserving robust risk controls.

A More Proportionate Supervisory Model

The new approach concentrates attention on arrangements whose disruption could materially affect a financial institution’s operations. By doing so, regulators and firms can direct resources toward higher-risk dependencies rather than spreading oversight too thinly across lower-risk service relationships.

In practice, the framework aims to reduce unnecessary operational and supervisory burdens associated with less material third-party arrangements, while maintaining strong standards for governance, resilience and risk management.

Covering The Full Third-Party Lifecycle

The guidelines apply to both ICT and non-ICT services, reflecting the increasingly interconnected nature of modern financial operations. Rather than treating technology risk in isolation, the EBA has adopted a more holistic approach to third-party risk management.

The framework spans the entire lifecycle of an arrangement, including risk assessment, due diligence, contracting, subcontracting, ongoing monitoring, documentation and exit planning. That breadth is significant: in financial services, risk does not end at onboarding. It evolves as dependencies deepen, services change, and counterparties expand their own supplier chains.

Feedback From Industry And International Standards

The EBA said the final version incorporates feedback from a public consultation, together with input gathered through targeted outreach. It also takes account of international standards, including the Basel Committee on Banking Supervision’s Principles for the Sound Management of Third-Party Risk.

That alignment matters. As banks and investment firms operate across jurisdictions and through increasingly complex vendor ecosystems, regulatory convergence helps reduce fragmentation and supports more consistent control frameworks.

A Transitional Period For Implementation

To support adoption, the EBA has предусмотрed a two-year transitional period, giving institutions and supervisors time to adapt to the new requirements in a proportionate and orderly way. The phased approach should help firms recalibrate internal policies, renegotiate contracts where needed and strengthen oversight of the most material external dependencies.

Broader Legal And Regulatory Context

The guidelines were developed under Directive 2013/36/EU, which requires the EBA to further harmonise governance arrangements, processes and mechanisms across EU institutions. In shaping the final text, the authority also considered several other key pieces of EU legislation, including the second Payment Services Directive, the Investment Firms Directive, the Markets in Financial Instruments Directive and the Markets in Crypto-Assets Regulation.

The regulation establishing the EBA was also taken into account, underscoring the breadth of the legal foundation behind the new framework.

What The New Rules Mean For Institutions

For banks, investment firms and other financial entities, the message is clear: not every outsourced service warrants the same level of regulatory attention. The new guidelines are designed to ensure that oversight is proportionate to the potential impact of failure, with greater scrutiny reserved for arrangements supporting functions that could seriously disrupt operations if compromised.

In a sector where resilience has become a board-level priority, the EBA’s move reflects a broader regulatory trend: fewer blanket requirements, more risk-based judgment and a sharper focus on material exposures.

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