According to Financial Times News, US President Donald Trump has boycotted the G20 summit in Johannesburg, marking the first time ever a member country has skipped the event entirely. The summit, which was formed 26 years ago to promote cooperation among major economies, is now facing questions about its future relevance. European leaders from France, Germany, Italy, and the UK are arriving in South Africa alongside EU institution presidents António Costa and Ursula von der Leyen, attempting to maintain diplomatic engagement despite the US absence. Meanwhile, Booking.com CEO Glenn Fogel warns that Europe’s simplified AI rules still aren’t helping European companies compete globally, noting that regulatory uncertainty is preventing full AI deployment across the continent.
G20 boycott fallout
This is pretty unprecedented stuff. The G20 was supposed to be the forum where the world’s biggest economies actually talked to each other, and now we’ve got the host country literally planning to symbolically hand over to an empty chair where the US delegation should be sitting. South African President Cyril Ramaphosa had big plans for this summit to boost Africa’s global standing, but with the US gone and leaders from China, Russia, and several other major powers sending substitutes instead of attending themselves, the whole event feels like it’s lost its purpose.
And here’s the thing – the US is scheduled to host next year’s summit. How awkward is that going to be? European officials are basically admitting that any form of joint position on major issues like climate change or Ukraine is now impossible. They’re reduced to using what should be a major multilateral gathering for bilateral meetings instead. It’s hard to see how the G20 recovers from this level of diplomatic snub.
Europe’s AI struggle
While the diplomatic drama unfolds in South Africa, there’s another crisis brewing back in Europe – the continent’s inability to keep up in the AI race. Booking.com’s CEO isn’t mincing words here. Glenn Fogel says the EU’s attempt to simplify digital rules, including delaying parts of the AI Act, still isn’t enough to make European companies competitive.
Basically, Booking has this partnership with OpenAI, but they can’t even deploy their latest chatbot in Europe because of regulatory uncertainty. Fogel makes a compelling point – when companies don’t know what the rules will be, they’re naturally going to shy away from bringing new technologies to that market. And Europe’s playing catch-up while the US and China are racing ahead.
The Digital Markets Act creates another problem – it’s hitting European companies harder than their global competitors. Booking is currently the only Europe-based company designated as a gatekeeper under EU rules, which means they’re facing regulatory costs that their competitors aren’t. Fogel’s argument is pretty straightforward: fine, regulate us, but make sure everyone’s playing by the same rules.
Look, I get that regulation is important, especially with something as powerful as AI. But when your regulatory framework is actively holding back your own companies in a global industry, you’ve got to wonder if the balance is right. The travel industry doesn’t have walls between markets, as Fogel points out, so uneven regulation just puts European companies at a disadvantage.
Both of these stories point to the same fundamental challenge – how do you maintain global cooperation and competitiveness when the traditional frameworks are breaking down? The G20 boycott shows multilateralism in crisis, while Europe’s AI struggles reveal the difficulty of regulating fast-moving technology without handicapping your own economy. These aren’t easy problems to solve, but they’re becoming increasingly urgent.
