Competition regulation Archives | Digital Watch Observatory

A new bill aims to formalise crypto taxation in Turkey

Turkey’s ruling AK Party has introduced a bill in parliament to formalise cryptocurrency taxation and revise key tax and spending rules. The legislation links crypto taxation to Turkey’s Capital Markets Law and sets a clear framework for digital assets.

Under the proposal, regulated crypto platforms would withhold a 10% tax on gains quarterly, applicable to both individuals and companies, residents and non-residents. Transaction service providers are subject to a 0.03% tax, and investors on unlicensed platforms must declare gains annually.

The president would have the authority to adjust the withholding tax between 0% and 20%, depending on factors such as token type, holding period, issuer, or wallet type. Exemptions include VAT-free crypto deliveries and corporate tax changes for foundation university hospitals from 2027.

If approved, the crypto taxation provisions would take effect two months after publication, signalling Turkey’s first formal steps to regulate digital assets and integrate them into the national tax system.

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Claude AI experiences temporary global outage

Anthropic’s AI chatbot, Claude, experienced a global outage, leaving users unable to access the platform. Visitors reported error messages indicating the system had broken down, though the company said it was working to resolve the issue.

The Claude API, used by other websites to integrate the chatbot, remained operational. Anthropic confirmed that the outage was limited to the Claude web interface and did not affect other integrations, emphasising that engineers were actively resolving the issue.

The outage, tracked by Down Detector, began around noon in the UK and affected users worldwide. Messages on the platform reassured users that Claude would return soon and that the problem had been identified and was being fixed.

The interruption comes at a sensitive time for Anthropic, as the company navigates heightened attention surrounding access to its Claude AI system. The situation unfolds amid broader discussions about the role of advanced AI tools in defence contexts, with industry players facing increasing scrutiny over their policies and partnerships.

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Amazon commits €33.7 billion to expand Spain cloud footprint

A €33.7 billion investment in Spain to expand cloud and AI infrastructure marks the most significant technology commitment in the country’s history, as Amazon confirms its major expansion plan.

Announced at MWC26 Barcelona, the package adds €18 billion to funding revealed in 2024 and strengthens the Amazon Web Services (AWS) Europe region based in Aragón.

Total investment in the AWS Europe (Spain) Region is expected to add €31.7 billion to GDP by 2035 and support around 29,900 jobs annually. About 6,700 direct roles stem from Amazon operations, with additional jobs created in construction, logistics, and supply chains.

New manufacturing and fulfilment facilities in Aragón are expected to create about 1,800 additional jobs, including a dedicated AI and machine learning server plant.

Since entering Spain in 2011, Amazon has invested more than €20 billion across retail, logistics, and cloud services. The Amazon Web Services region, launched in 2022, is accelerating AI adoption across Europe, including among Telefónica and BBVA.

A further €30 million will be allocated to community initiatives through 2035, focused on education, sustainability, and local development. Renewable energy projects, including 100 solar and wind sites, support operations and a net-zero carbon goal by 2040, establishing Aragón as a growing European digital hub.

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DeepSeek V4 tests China’s AI ambitions against US rivals

China’s DeepSeek is reportedly preparing to release its latest AI model, according to a Financial Times report. The planned debut of the company’s V4 large language model is seen as another test of China’s ability to compete with leading US AI firms.

Sources cited by the report said V4 will be a multimodal model capable of generating images, video, and text. DeepSeek has reportedly worked with Huawei and Cambricon to optimise the model for Chinese AI chips.

The release is expected ahead of the annual Two Sessions parliamentary meetings in China, which begin on 4 March. Analysts say the timing could reinforce DeepSeek’s positioning as a national AI champion.

The launch would be the company’s first major model release since its R1 reasoning system debuted in January last year. DeepSeek claimed R1 matched leading US models while using less computing power, a development some compared to a ‘Sputnik moment’ for American technology firms.

Separately, AI researcher Andrew Ng said the industry remains decades away from achieving artificial general intelligence (AGI). He argued that systems capable of matching human intellectual breadth remain distant, despite steady advances in model performance.

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OpenAI and Microsoft strengthen their long-term AI collaboration

Microsoft and OpenAI have reaffirmed their long-standing collaboration after new funding and partnerships raised speculation about their relationship.

Both firms stressed that recent announcements leave their original agreements intact, preserving a framework built on technical integration, trust and shared ambitions for AI development.

Microsoft’s exclusive licence to OpenAI’s intellectual property remains untouched, as does its position as the sole cloud provider for stateless APIs powering OpenAI models.

These APIs can be accessed through either company. Yet all such calls, including those arising from third-party partnerships such as OpenAI’s work with Amazon, continue to run on Azure rather than on alternative clouds. OpenAI’s own products, including Frontier, also stay hosted on Azure.

Revenue-sharing arrangements are unchanged, alongside the contractual definition and evaluation process for artificial general intelligence.

Both companies emphasised that the partnership was designed to allow independent initiatives while preserving deep cooperation across research, engineering and product innovation.

OpenAI retains the freedom to secure additional compute capacity elsewhere, supported by large-scale initiatives such as the Stargate project.

Even with broader collaborations emerging across the industry, both firms present their alliance as central to advancing responsible AI and expanding access to powerful tools worldwide.

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Agentic AI network slicing launches in 5G Advanced with Nokia and AWS

Nokia and Amazon Web Services have introduced what they describe as the first agentic AI-powered network slicing solution operating in commercial 5G-Advanced networks. Early pilot projects with du and Orange are already underway, marking the transition from laboratory testing to commercial deployment.

For an extended period, network slicing has been presented as a way to tailor connectivity to the needs of enterprises and end users, yet static configurations have until now limited its commercial impact. A more autonomous approach is now being tested, designed to convert operational intent directly into concrete network actions.

The joint system combines Nokia’s network slicing portfolio with AI services delivered via the Amazon Web Services (AWS) Bedrock platform. Software agents analyse real-time data, including traffic levels, location information, and significant events, and automatically adjust radio access network policies. However, this enables capacity to be prioritised in response to congestion, emergencies, or large gatherings.

Enterprise use is central to the deployment. Campuses, factories, and urban areas can receive connectivity aligned with predefined service level targets (SLAs), while public safety teams can activate dedicated network slices during critical incidents. Premium consumer services, such as gaming and streaming, may also benefit from more stable performance during peak demand periods.

The solution spans the radio, transport, and core networks and will be showcased at the Mobile World Congress 2026. Commercial success will depend on whether intent-based slicing can transform what has long been a promised feature into a sustainable and scalable revenue source for operators.

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EU faces renewed pressure to ease industrial AI rules

European governments are renewing pressure to scale back industrial AI rules rather than expand regulatory demands.

Ten countries, including Germany, France, Italy, Spain and Poland, have urged the EU to clarify how the AI Act overlaps with machinery law and to adopt more realistic implementation deadlines. Their position is even more surprising, given that the legislation already outlines its relationship with existing industrial frameworks.

Parliament’s centre and centre-right groups are pushing for deeper cuts. The European People’s Party wants all industrial sectors to move to a lighter regime, while Renew is advocating broad exemptions for industrial and business-to-business AI.

The European Conservatives and Reformers are also seeking reductions for non-safety-related systems. Together, the three groups edge close to a parliamentary majority, signalling momentum for a broader deregulation push.

No sweeping changes have been added to the AI omnibus so far, yet policymakers expect more adjustments ahead. The package must be finalised by August, so legislators are focused on meeting the deadline instead of reopening primary debates.

Broader revisions to industrial AI rules are likely to reappear in the Commission’s forthcoming Digital Fitness Check, which will reassess how multiple EU tech laws interact.

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Japan probes Microsoft cloud licensing

Japan’s Fair Trade Commission has launched an investigation into Microsoft in Tokyo over suspected antitrust violations. Authorities conducted an on-site inspection of Microsoft’s Japanese subsidiary in Tokyo on Wednesday, according to sources.

Regulators are examining whether Microsoft charged higher licensing fees to customers running Microsoft 365 and Windows on rival cloud platforms rather than on Microsoft Azure. The inquiry centres on concerns that software dominance may have restricted competition in Japan’s cloud market.

Microsoft’s Japanese unit said it would cooperate fully with the Fair Trade Commission in Tokyo. The watchdog is assessing whether pricing practices unfairly hindered rivals such as Amazon and Google, which also compete in Japan’s expanding cloud sector.

Japan’s Fair Trade Commission has intensified oversight of major technology firms in recent years. Previous actions in Japan include investigations into Amazon Japan and a 2025 order requiring Google to end certain preinstallation practices.

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Galaxy S26 series brings powerful AI and privacy features

Samsung Electronics has unveiled the Galaxy S26 series, featuring advanced AI experiences, powerful performance, and an industry-leading camera system designed to simplify everyday smartphone tasks.

The series, which includes the Galaxy S26, S26+, and S26 Ultra, handles complex processes in the background, allowing users to focus on results rather than device operations.

The Galaxy S26 Ultra introduces the world’s first built-in Privacy Display, a redesigned chipset, and improved thermal management. Together, these upgrades enhance AI performance, graphics, and CPU efficiency, while ensuring faster, cooler, and more reliable operation throughout the day.

Photography and videography are also upgraded with wider apertures, Nightography Video, Super Steady video, and AI-powered editing tools that make professional-quality content accessible to all users.

Galaxy AI streamlines daily experiences by proactively suggesting actions, organising information, and automating tasks. Features such as Now Nudge, Now Brief, Circle to Search, and upgraded Bixby allow users to interact naturally with their devices.

Integrated AI agents, including Gemini and Perplexity, support multi-step tasks across apps, from booking services to advanced searches, all with minimal input.

Samsung has embedded multiple layers of security and privacy in the Galaxy S26 series. From AI-powered Call Screening and Privacy Alerts to Knox Vault, Knox Matrix, and post-quantum cryptography, users can control data access and protect personal information.

With long-term security updates, seamless software, and Galaxy Buds4 integration, the S26 series aims to combine performance, convenience, and safety in a single, intuitive device.

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Italy orders Amazon to stop processing sensitive employee data after privacy ruling

The Italian data protection authority has ordered Amazon Italia Logistics to halt processing of sensitive employee data after investigators found that the company gathered details ranging from health conditions to union involvement.

Information about workers’ private lives and family members had also been collected, often retained for a decade through internal tracking systems rather than being limited to what labour rules in Italy allow.

Regulators discovered that some data originated from cameras positioned near restrooms and staff break areas, a practice that breached EU privacy standards.

The watchdog concluded that the company’s monitoring went far beyond what employers are permitted to compile when assessing staff performance or workplace needs.

Amazon responded by stressing that protecting employee information remains a priority and said that internal rules and training programmes are designed to ensure compliance. The company added that any findings from the Italian authority would prompt a review of its procedures instead of being dismissed.

An order that arrives as Amazon attempts to regain its lobby badges at the European Parliament.

Access was suspended in 2024 after senior representatives declined to attend hearings on warehouse working conditions, and opposition from MEPs continues to place pressure on Parliament President Roberta Metsola to reject reinstatement.

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