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Joaquín Almunia, the EU's Competition Commissioner, has laid down an ultimatum for US search giant Google to meet competition concerns as both sides signalled a desire to avoid a repeat of tech giant Microsoft’s mammoth legal dispute with the EU executive.

Telecommunications regulations, set for an overhaul later this year, could be expanded to give the mobile sector sweeping new powers over the internet, international leading players representing the web have claimed.

The European Commission is set to launch a substantial review of rules governing personal documents with the aim of making electronic identities take off across the EU. But the proposal faces likely opposition from civil rights groups and member states where identity cards do not exist.

The European Commission is planning to force energy, transport and financial companies to invest more in their cyber security and to report on breaches suffered, two EU officials said.

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