Huawei Scandal Exposes Corporate Influence on EU AI Standards

From Huaweigate to the AI Act: A Deep Dive into Corruption and Corporate Influence

Brussels recently found itself embroiled in another corruption scandal, this time involving the Chinese tech giant Huawei. The company’s offices, located just behind the European Parliament, were raided as part of an investigation into “active corruption within the European Parliament,” which included allegations of remuneration for political positions, excessive gifts, and invitations to events aimed at promoting private commercial interests.

The investigation, conducted by Follow the Money, Le Soir, and Knack, saw police raiding 21 addresses across Brussels, Flanders, Wallonia, and even Portugal, resulting in several arrests. However, while the spotlight is on Huawei and its dealings with the European Parliament, a deeper issue persists: the systemic failure of European institutions to protect democracy from influence operations.

The Need for Ethical Standards

There are ongoing failures in lobby monitoring, transparency, and enforcement of ethics, particularly regarding MEP gifts and conflicts of interest. The European Union (EU) must accelerate the establishment of a new ethics body aimed at consolidating ethical standards across all EU institutions. This necessity became apparent following the Qatargate scandal, and delays in implementation have only exacerbated public distrust.

Corporate Influence on the AI Act

In this context, the AI Act comes under scrutiny. The act, which aims to regulate artificial intelligence within the EU, is being shaped by major tech corporations, including Huawei. These companies are actively participating in the standard-setting process for AI, often pushing for permissive standards that risk undermining the act’s original objectives.

The AI Act has a dual purpose: to promote the adoption of AI technologies while ensuring that they are trustworthy. However, the commercial goals often overshadow the need for ethical considerations, as seen in various scandals involving biased algorithms. One notable case occurred in the Netherlands, where an algorithm used for detecting fraud in childcare benefits disproportionately targeted vulnerable groups, leading to severe social consequences.

Challenges in Standardization

The standard-setting process for the AI Act is predominantly industry-led, often sidelining independent experts and civil society. The CEN-CENELEC, the EU’s standard-setting body, is responsible for defining the risk mitigation processes associated with AI technologies. However, this reliance on private organizations raises questions about transparency and accountability.

Research shows that out of 150 identified experts involved in AI standardization, a significant majority represent corporate interests. Major tech companies like Microsoft, IBM, and Google dominate the dialogue, making it challenging for civil society to have a voice. For instance, many representatives from civil society struggle to access relevant documents and participate meaningfully in discussions.

Strategies Employed by Big Tech

Big Tech companies employ several strategies to influence the standard-setting process:

  • Muscle Power: Corporations can send multiple representatives to standard-setting bodies, unlike NGOs that are limited to fewer participants.
  • Club Mentality: Major tech firms often form alliances, effectively creating a closed network that excludes other societal interests.
  • Going International: By promoting international standards that favor corporate interests, companies can delay the EU’s legislative process.

These tactics enable tech giants to shape the standards that will govern AI technologies, often at the expense of fundamental rights.

Conclusion: The Need for Democratic Oversight

As the AI Act continues to take shape, the necessity for democratic institutions to reclaim decision-making power over fundamental rights becomes increasingly urgent. The influence of corporate interests in standard-setting processes threatens to undermine the integrity of AI regulations, which could have lasting implications for society.

In summary, as the EU navigates the complexities of regulating AI, it must prioritize transparency and inclusivity in its decision-making processes to protect democratic values and public interests.

More Insights

Revolutionizing Drone Regulations: The EU AI Act Explained

The EU AI Act represents a significant regulatory framework that aims to address the challenges posed by artificial intelligence technologies in various sectors, including the burgeoning field of...

Revolutionizing Drone Regulations: The EU AI Act Explained

The EU AI Act represents a significant regulatory framework that aims to address the challenges posed by artificial intelligence technologies in various sectors, including the burgeoning field of...

Embracing Responsible AI to Mitigate Legal Risks

Businesses must prioritize responsible AI as a frontline defense against legal, financial, and reputational risks, particularly in understanding data lineage. Ignoring these responsibilities could...

AI Governance: Addressing the Shadow IT Challenge

AI tools are rapidly transforming workplace operations, but much of their adoption is happening without proper oversight, leading to the rise of shadow AI as a security concern. Organizations need to...

EU Delays AI Act Implementation to 2027 Amid Industry Pressure

The EU plans to delay the enforcement of high-risk duties in the AI Act until late 2027, allowing companies more time to comply with the regulations. However, this move has drawn criticism from rights...

White House Challenges GAIN AI Act Amid Nvidia Export Controversy

The White House is pushing back against the bipartisan GAIN AI Act, which aims to prioritize U.S. companies in acquiring advanced AI chips. This resistance reflects a strategic decision to maintain...

Experts Warn of EU AI Act’s Impact on Medtech Innovation

Experts at the 2025 European Digital Technology and Software conference expressed concerns that the EU AI Act could hinder the launch of new medtech products in the European market. They emphasized...

Ethical AI: Transforming Compliance into Innovation

Enterprises are racing to innovate with artificial intelligence, often without the proper compliance measures in place. By embedding privacy and ethics into the development lifecycle, organizations...

AI Hiring Compliance Risks Uncovered

Artificial intelligence is reshaping recruitment, with the percentage of HR leaders using generative AI increasing from 19% to 61% between 2023 and 2025. However, this efficiency comes with legal...