EU Targets X Under DSA  

The European Union has started investigating social media company X under the Digital Services Act (DSA) over posts concerning Hamas’s terrorist attack on Israel. Regulators will investigate whether X’s “Community Notes” (essentially crowd-sourced fact checking) is sufficient to remove harmful content. The DSA went into effect in November 2022, and the law requires that online platforms and search engines remove illegal content with risks to public security. This is only the latest in a series of actions by the EU targeting American technology companies as previously the EU designated five major technology companies as “gatekeepers” in violation of the Digital Markets Act. In response to this, a bipartisan group of lawmakers in the United States has written a letter to President Biden claiming that European technology regulations are unfairly targeting American firms while not targeting Chinese or EU companies. The letter noted, "The designation of leading U.S. companies as 'gatekeepers' threatens to upend the U.S. economy, diminish our global leadership in the digital sphere, and jeopardize the security of consumers." There is highly likely to be a major trade issue between the United States and the European Union over the medium term due to technology companies. The EU has implemented stringent regulations that often harm the interests of major U.S. technology companies, and if a Republican is elected in 2024, then they are likely to challenge the EU’s hostility towards American companies

Hamas Leader Visits Egypt for Peace Talks

Ismail Haniyeh, the leader of Hamas, visited Egypt for ceasefire talks amid the intensifying Gaza war. The prospect of a ceasefire is uncertain with early reports indicating that an agreement was not reached. If the talks are successful, they will likely only lead to a pause in fighting. Both Israel and Hamas remain firm in their stances, with Israel vowing to continue its military operation until Hamas is eradicated and all hostages are freed, and Hamas demanding a permanent ceasefire. Meanwhile, U.S. President Joe Biden expressed his administration’s push for a diplomatic solution, although he does not expect a second hostage release deal soon. The U.S. also requested a delay on a U.N. Security Council vote on boosting aid to Gaza. 

In the Red Sea, Yemen’s Houthi forces have been disrupting trade through the Suez Canal by attacking commercial vessels, resulting in increasing shipping costs and disruption to supply chains. The U.S. has set up a multinational force with ten, mostly NATO countries, to patrol the Red Sea to deter and respond to future Houthi attacks. Some reports also said the U.S. is considering directly targeting the Houthi’s in Yemen. In response, Houthi leader, Abdel-Malek al-Houthi, warned they will target U.S. warships if missile strikes in Yemen occur.

IC Says 2022 Election Was Not Hacked

According to a new declassified report from the U.S. intelligence community, Russia and China attempted to influence the 2022 midterm elections, but they did not successfully hack into the election infrastructure or disrupt voting. As the Report states, U.S. intelligence community said on Monday. “We have no evidence that any detected activity prevented voting, changed votes, or disrupted the ability to tally votes or to transmit election results in a timely manner; altered any technical aspect of the voting process; or otherwise compromised the integrity of voter registration information or any ballots cast during 2022 federal elections.” The report highlights the continued threat that election interference poses from autocratic regimes, but it also shows that most of their efforts are unsophisticated. However, there are political risks for businesses who incidentally get connected to such efforts, such as social media companies.

Colorado Court Rules Trump Cannot Run in State

The Colorado Supreme Court has disqualified former President Donald Trump from running in the primary in the state because of his role in the January 6, 2021, attack on the U.S. Capitol. According to their reasoning, this constitutes “insurrection or rebellion” under the 14th Amendment. The case is most likely going to the Supreme Court, but if other states make similar decisions, then there are highly likely to be right-wing protests in opposition. This will also further conspiracy theories about stolen elections that could lead to right-wing violence during the 2024 election cycle.

Chile Rejects Proposed Constitution  

On December 17, Chileans rejected the new “conservative” constitution meant to replace the one from the Pinochet era. According to polls, almost 56% of the country voted to reject the new constitution. This is the second constitution in recent years that Chileans have rejected with the previous one being seen are far too progressive. Creating a new constitution became important after massive violent protests in 2019 over inequality. President Boric has stated that the government will not move forward with a third re-write, which means the current constitution will remain. However, this does pose risks of protests returning if Boric is unable to move his policy agenda forward on tax and pension reform.

NSA Publishes Cybersecurity Year in Reviews 

The U.S. National Security Agency (NSA) has published its 2023 Cybersecurity Year in Review to highlight its accomplishments, including inaugurating the new AI Security Center, countering Russian cyberespionage and China’s malicious cyber activity, and increased cybersecurity services to DOD contractors. Cyberattacks are an increasing risk to small and large corporations, and it is important that Western governments demonstrate the capabilities to challenge advanced persistent threats. Although the report shows publicly disclosed successes, the NSA remains critical for cyber defenses and working with the private sector..