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Italian finance police have searched the headquarters of the country’s data protection authority as part of a probe into alleged corruption and embezzlement, according to judicial sources. Rome prosecutors are investigating the agency’s president, Pasquale Stanzione, along with three other board members, over claims of excessive spending and irregularities linked to regulatory decisions.

Stanzione said he was “absolutely serene” when questioned by reporters, but declined to say whether he would resign. The opposition 5-Star Movement said the investigation had damaged the credibility of the authority and called for Stanzione to step down, intensifying political pressure on the watchdog’s leadership.

The Italian data protection authority, known as the Garante, is one of the European Union’s most active enforcers of digital privacy rules and has frequently taken action against major technology companies. In recent years, it has fined and briefly banned OpenAI’s ChatGPT, blocked China’s DeepSeek chatbot over privacy concerns, and last week warned AI platforms, including Elon Musk’s Grok, about the risks of generating deepfake images without user consent.

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Fiona Scott Morton, a highly qualified American economist, has decided not to take up the position of Chief Competition Economist in the European Commission following widespread criticism of her appointment. The strongest objections came from France, with President Emmanuel Macron expressing doubts and questioning whether there were no qualified European candidates for the role. Scott Morton, a Yale University economics professor, has an impressive background, including working in the US justice department’s antitrust department during the Obama presidency. However, she has also worked as a consultant for major tech companies like Apple, Microsoft, and Amazon, which raised concerns given that her job would involve regulating these digital giants.

EU antitrust chief Margrethe Vestager defended the appointment, highlighting Scott Morton’s corporate experience as an asset. Nevertheless, Scott Morton made the decision not to take up the post due to the political controversy surrounding her appointment and the importance of having the full support of the EU’s competition directorate. Opposition to her appointment came from various quarters, including President Macron and several Commission colleagues, as well as the four largest political blocs in the European Parliament. However, after discussions with Scott Morton, some concerns were addressed, and Philippe Lamberts of the Greens expressed support for her.

Critics argued that the criticism of Scott Morton’s appointment was unjustified since her role would primarily involve overseeing economic evidence in competition enforcement rather than favoring specific competitors. Nobel Prize-winning economist Jean Tirole praised her qualifications and stated that the European Commission was fortunate to have attracted someone of her caliber. Margrethe Vestager emphasized that the suggestion of bias based on nationality was questionable and clarified that Scott Morton would only need to recuse herself from a few cases.

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