Competition regulation

EU split widens over ban on AI nudification apps

European lawmakers remain divided over whether AI tools that generate non-consensual sexual images should face an explicit ban in the EU legislation.

The split emerged as debate intensified over the AI simplification package, which is moving through Parliament and the Council rather than remaining confined to earlier negotiations.

Concerns escalated after Grok was used to create images that digitally undressed women and children.

The EU regulators responded by launching an investigation under the Digital Services Act, and the Commission described the behaviour as illegal under existing European rules. Several lawmakers argue that the AI Act should name pornification apps directly instead of relying on broader legal provisions.

Lead MEPs did not include a ban in their initial draft of the Parliament’s position, prompting other groups to consider adding amendments. Negotiations continue as parties explore how such a restriction could be framed without creating inconsistencies within the broader AI framework.

The Commission appears open to strengthening the law and has hinted that the AI omnibus could be an appropriate moment to act. Lawmakers now have a limited time to decide whether an explicit prohibition can secure political agreement before the amendment deadline passes.

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Germany fines Amazon €59 million for abusing market power in seller pricing

The German competition authority has fined Amazon €59 million for abusing its dominant position by influencing the pricing behaviour of third-party sellers.

Regulators concluded that Amazon’s pricing algorithms and Fair Pricing Policy breached national digital dominance rules and the EU competition law, rather than aligning with fair marketplace standards.

The authority argued that Amazon competes directly with merchants on its platform while shaping their prices through restrictions such as caps that penalise sellers who exceed certain limits.

Officials described that approach as incompatible with healthy competition since a platform should not influence rivals’ commercial strategies while participating in the same market.

Amazon strongly disputed the ruling and claimed the conclusion conflicts with the EU consumer standards. The company argued that the decision forces the platform to promote prices that fail to reflect competitive market conditions and announced it will challenge the findings.

The case follows a 2025 preliminary assessment and builds on Amazon’s earlier designation in 2022 as a company of paramount significance for competition, a judgement upheld by the Federal Court of Justice in Germany in 2024.

A ruling that marks another step in Europe’s efforts to rein in digital platforms that wield extensive influence across multiple markets.

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Spain faces escalating battle with Telegram founder

The confrontation between Spain and Telegram founder Pavel Durov has intensified after he claimed that Pedro Sánchez endangered online freedoms.

Government officials responded that the tech executive spread lies rather than engage with the proposed rules in good faith. Sánchez argued that democracy would not be silenced by what he called the techno-oligarchs of the algorithm.

The dispute followed the unveiling of new measures aimed at major technology companies. The plan introduces a ban on social media use for under-16s and holds corporate leaders legally responsible when unlawful or hateful content remains online rather than being removed.

Platforms would also need to adopt age-verification tools such as ID checks or biometric systems, which Durov argued could turn Spain into a surveillance state by allowing large-scale data collection.

Tensions widened as Sánchez clashed with prominent US tech figures. Sumar urged all bodies linked to the central administration to leave X, a move that followed Elon Musk’s accusation that the Spanish leader was acting like a tyrant.

The row highlighted how Spain’s attempt to regulate digital platforms has placed its government in open conflict with influential technology executives.

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Germany voices unease over tech sovereignty with France

A senior German official has voiced frustration over joint tech sovereignty efforts with France, describing the experience as disillusioning. The remarks followed a high profile digital summit hosted by Germany and France in Berlin.

The comments came from Luise Hölscher of Germany, who said approaches to buying European technology differ sharply between Germany and France. Germany tends to accept solutions from across Europe, while France often favours domestic providers.

Despite tensions, Hölscher said the disagreement has not damaged the wider partnership between Germany and France. Germany is now exploring closer cooperation with other European countries.

The debate unfolds as the EU considers new rules on cloud services and AI procurement across Germany and France. European institutions are weighing how far public bodies should prioritise European suppliers.

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Gemini growth narrows gap in chatbot race

Google’s AI chatbot Gemini has surpassed 750 million monthly users, signalling rapid consumer adoption, according to fourth-quarter 2025 earnings. The figure jumped from 650 million in the previous quarter, reinforcing Gemini’s rapid expansion in the generative AI market.

Competitive positioning remains solid. Meta AI has nearly 500 million users, while ChatGPT leads globally with about 810 million. Ongoing product upgrades and ecosystem integration across Google services have sustained Gemini’s growth momentum.

Gemini 3 has driven adoption, with Google calling it its most advanced model, offering deeper reasoning and more nuanced responses. Leadership called the release a key growth driver, with further investment and updates expected to sustain expansion.

Broader AI demand is also lifting Alphabet’s financial performance. Annual revenue has topped $400 billion for the first time, driven by enterprise API demand and infrastructure growth, including the Ironwood TPU rollout.

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Crypto market sheds $500 billion in sell-off

Roughly $500 billion has been wiped from the cryptocurrency market over the past week as a Bitcoin-led sell-off accelerated. Total digital asset capitalisation fell by about $467.6 billion since 29 January, reflecting broad risk-off sentiment across global markets.

Bitcoin briefly dropped to a 15-month low of $72,877 before rebounding 1.31% to $76,681.72. The asset remains down 13% year-to-date and nearly 39% below its October peak above $126,000, underscoring sustained selling pressure.

Macro forces are driving the downturn. Escalating US-Iran tensions pushed capital toward traditional safe havens, while currency shifts, interest rate differentials, and tightening liquidity conditions weighed on leverage and stablecoin flows.

Analysts say the decline reflects positioning resets and broader market nervousness rather than a single catalyst.

Near-term outlook remains cautious. Liquidation pressure persists, though key structural supports continue to hold. Technical analysts identify $73,000 as critical downside support, while reclaiming the $77,500–78,000 range would be needed to restore bullish momentum.

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Malaysia enforces a total ban on e-waste imports after corruption probe

Authorities have imposed a full and immediate ban on the import of electronic waste in Malaysia to end the long-standing practice of foreign dumping.

The Anti-Corruption Commission reclassified all e-waste as an absolute prohibition, removing the earlier discretion that allowed limited exemptions. Officials argue that the country should protect its environment rather than accept hazardous materials from other nations.

Authorities have spent years intercepting containers loaded with discarded electronics suspected to contain toxic metals that contaminate soil and water when mishandled.

Environmental groups have repeatedly urged stronger controls, noting that waste from computers, mobile phones and household appliances poses severe risks to human health. The government now insists that firm enforcement must accompany the new restrictions to prevent continued smuggling.

The decision comes amid a widening corruption inquiry into oversight of e-waste. The director-general of the environment department and his deputy have been detained on suspicion of abuse of power. At the same time, investigators have frozen bank accounts and seized cash linked to the case.

The Home Ministry has pledged increased surveillance and warned that Malaysia will safeguard its national security by stopping illegal e-waste at its borders.

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Negative narratives follow XRP price rallies

Search behaviour around XRP increasingly reflects the psychological side of the crypto market. Negative narratives spread quickly online, shaping sentiment and fuelling volatility. Data shows that ‘XRP scam’ search spikes often appear during strong price rallies.

Crypto analyst Leonidas compared Google Trends data for ‘Ripple scam’ and ‘XRP scam’ with XRP’s price chart. Results show that damaging search surges typically align with bullish moves and sometimes precede pullbacks, suggesting that perception pressure builds during peak momentum.

Rapid price growth tends to trigger retail curiosity and concern, primarily when sensational claims circulate widely. Search spikes often coincide with heightened mainstream and social media exposure, indicating sentiment reacts to price action rather than fundamentals.

Despite recurring allegations and past regulatory scrutiny, institutional partnerships and XRP Ledger adoption remain intact. Analysts stress that sentiment spikes rarely signal structural weakness, urging investors to prioritise utility and adoption metrics.

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User activity stabilises as TikTok recovers from transition disruption

TikTok has largely recovered from a brief decline in daily active users following its US ownership change, when a group of American investors assumed control of domestic operations. Usage fell temporarily as uncertainty spread among users. Competing video apps saw short-term gains during the disruption.

Data from Similarweb shows TikTok’s US daily active users dropped to between 86 and 88 million after the transition, compared with a typical average of around 92 million. Activity has since rebounded to more than 90 million. Many users who experimented with alternatives have returned.

Platforms rivalling TikTok, including UpScrolled and Skylight Social, experienced rapid but limited growth. UpScrolled peaked at 138,500 daily users before falling back to roughly 68,000. Skylight Social reached 81,200 daily users, then declined to around 56,300.

User concerns were driven less by ownership itself and more by fears around platform changes. An updated privacy policy allowing precise GPS tracking triggered backlash, alongside confusion over language referencing sensitive personal data. Some interpreted the changes as increased surveillance.

A multi-day data centre outage disrupted search, likes, and in-app messaging, resulting in user frustration. Some users attributed the glitches to possible censorship or platform instability. Once services were restored, activity stabilised, and concerns eased.

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US security process delays Nvidia chip sales

Nvidia’s plans to export its H200 AI chips to China remain pending nearly two months after US President Donald Trump approved. A national security review is still underway before licences can be issued to Chinese customers.

Chinese companies have delayed new H200 orders while awaiting clarity on licence approvals and potential conditions, according to people familiar with the discussions. The uncertainty has slowed anticipated demand and affected production planning across Nvidia’s supply chain.

In January, the US Commerce Department eased H200 export restrictions to China but required licence applications to be reviewed by the departments of State, Defence, and Energy.

Commerce has completed its analysis, but inter-agency discussions continue, with the US State Department seeking additional safeguards.

The export framework, which also applies to AMD, introduces conditions related to shipment allocation, testing, and end-use reporting. Until the review process concludes, Nvidia and prospective Chinese buyers remain unable to proceed with confirmed transactions.

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