The enforcement start, per Sifted, marks a procedural milestone more than a substantive shift. The real test will be whether regulators can move beyond these relatively straightforward disclosure mandates to tackle the Act's more contentious and technically complex provisions, such as those governing high-risk AI systems. In our view, the initial focus on labeling may create a compliance checkbox mentality, while the deeper governance challenges around bias, safety, and accountability remain unaddressed. Watch for the first major fines, which will reveal whether the EU's threat of penalties up to 3% of global turnover has any teeth or is merely a paper tiger.