Competition regulation

AI governance becomes urgent for mortgage lenders

Mortgage lenders face growing pressure to govern AI as regulatory uncertainty persists across the United States. States and federal authorities continue to contest oversight, but accountability for how AI is used in underwriting, servicing, marketing, and fraud detection already rests with lenders.

Effective AI risk management requires more than policy statements. Mortgage lenders need operational governance that inventories AI tools, documents training data, and assigns accountability for outcomes, including bias monitoring and escalation when AI affects borrower eligibility, pricing, or disclosures.

Vendor risk has become a central exposure. Many technology contracts predate AI scrutiny and lack provisions on audit rights, explainability, and data controls, leaving lenders responsible when third-party models fail regulatory tests or transparency expectations.

Leading US mortgage lenders are using staged deployments, starting with lower-risk use cases such as document processing and fraud detection, while maintaining human oversight for high-impact decisions. Incremental rollouts generate performance and fairness evidence that regulators increasingly expect.

Regulatory pressure is rising as states advance AI rules and federal authorities signal the development of national standards. Even as boundaries are debated, lenders remain accountable, making early governance and disciplined scaling essential.

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Half of xAI’s founding team has now left the company

Departures from Elon Musk’s AI startup xAI have reached a symbolic milestone, with two more co-founders announcing exits within days of each other. Yuhuai Tony Wu and Jimmy Ba both confirmed their decisions publicly, marking a turning point for the company’s leadership.

Losses now total six out of the original 12 founding members, signalling significant turnover in less than three years. Several prominent researchers had already moved on to competitors, launched new ventures, or stepped away for personal reasons.

Timing coincides with major developments, including SpaceX’s acquisition of xAI and preparations for a potential public listing. Financial opportunities and intense demand for AI expertise are encouraging senior talent to pursue independent projects or new roles.

Challenges surrounding the Grok chatbot, including technical issues and controversy over its harmful content, have added internal pressure. Growing competition from OpenAI and Anthropic means retaining skilled researchers will be vital to sustaining investor confidence and future growth.

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Russia signals no immediate Google ban as Android dependence remains critical

Officials in Russia have confirmed that no plans are underway to restrict access to Google, despite recent public debate about the possibility of a technical block. Anton Gorelkin, a senior lawmaker, said regulators clarified that such a step is not being considered.

Concerns centre on the impact a ban would have on devices running Android, which are used by a significant share of smartphone owners in the country.

A block on Google would disrupt essential digital services instead of encouraging the company to resolve ongoing legal disputes involving unpaid fines.

Gorelkin noted that court proceedings abroad are still in progress, meaning enforcement options remain open. He added that any future move to reduce reliance on Google services should follow a gradual pathway supported by domestic technological development rather than abrupt restrictions.

The comments follow earlier statements from another lawmaker, Andrey Svintsov, who acknowledged that blocking Google in Russia is technically feasible but unnecessary.

Officials now appear focused on creating conditions that would allow local digital platforms to grow without destabilising existing infrastructure.

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EU faces tension over potential ban on AI ‘pornification’

Lawmakers in the European Parliament remain divided over whether a direct ban on AI-driven ‘pornification’ should be added to the emerging digital omnibus.

Left-wing members push for an explicit prohibition, arguing that synthetic sexual imagery generated without consent has created a rapidly escalating form of online abuse. They say a strong legal measure is required instead of fragmented national responses.

Centre and liberal groups take a different position by promoting lighter requirements for industrial AI and seeking clarity on how any restrictions would interact with the AI Act.

They warn that an unrefined ban could spill over into general-purpose models and complicate enforcement across the European market. Their priority is a more predictable regulatory environment for companies developing high-volume AI systems.

Key figures across the political spectrum, including lawmakers such as Assita Kanko, Axel Voss and Brando Benifei, continue to debate how far the omnibus should go.

Some argue that safeguarding individuals from non-consensual sexual deepfakes must outweigh concerns about administrative burdens, while others insist that proportionality and technical feasibility need stronger assessment.

The lack of consensus leaves the proposal in a delicate phase as negotiations intensify. Lawmakers now face growing public scrutiny over how Europe will respond to the misuse of generative AI.

A clear stance from the Parliament is still pending, rather than an assured path toward agreement.

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European ombudsman opens probe into AI use in EU funding reviews

A formal inquiry has been opened into how AI is used in the evaluation of the EU funding proposals, marking the first investigation of its kind at the institutional level.

European Ombudsman Teresa Anjinho initiated the probe following allegations that external experts relied on AI systems when assessing applications.

Concerns emerged after a Polish company failed to secure support from the European Innovation Council Accelerator programme after submitting its bid before the November 2023 deadline. The complainant alleged that third-party AI use compromised fairness and influenced the assessment outcome.

Requests have been made for clearer governance standards, including explicit disclosure when AI systems are used in proposal reviews. Fears also emerged that sensitive commercial data could be exposed through external AI platforms.

Despite no grounds to reopen the case, a systemic probe into AI transparency and safeguards was launched. Document inspections are scheduled through March, followed by institutional meetings in April to determine whether regulatory or procedural changes are warranted.

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EU considers blanket crypto ban targeting Russia

European Union officials are weighing a sweeping prohibition on cryptocurrency transactions involving Russia, signalling a more rigid sanctions posture against alternative financial networks.

Policymakers argue that the rapid emergence of replacement crypto service providers has undermined existing restrictions.

Internal European Commission discussions indicate concern that digital assets are facilitating trade flows supporting Russia’s war economy. Authorities say platform-specific sanctions are ineffective, as new entities quickly replicate restricted services.

Proposals under review extend beyond private crypto platforms. Measures could include sanctions on additional Russian banks, restrictions linked to the digital ruble, and scrutiny of payments infrastructure tied to sanctioned trade channels.

The consensus remains uncertain, with some states warning that a blanket ban could shift activity to non-European markets. Parallel trade controls targeting dual-use exports to Kyrgyzstan are also being considered as part of broader anti-circumvention efforts.

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Google acquisition of Wiz cleared under EU merger rules

The European Commission has unconditionally approved Google’s proposed acquisition of Wiz under the EU Merger Regulation, concluding that the deal raises no competition concerns in the European Economic Area.

The assessment focused on the fast-growing cloud security market, where both companies are active. Google provides cloud infrastructure and security services via Google Cloud Platform, while Wiz offers a cloud-native application protection platform for multi-cloud environments.

Regulators examined whether Google could restrict competition by bundling Wiz’s tools or limiting interoperability with rival cloud providers. The market investigation found customers would retain access to credible alternatives and could switch suppliers if needed.

The Commission also considered whether the acquisition would give Google access to commercially sensitive data relating to competing cloud infrastructure providers. Feedback from customers and rivals indicated that the data involved is not sensitive and is generally accessible to other cloud security firms.

Based on these findings, the Commission concluded that the transaction would not significantly impede effective competition in any relevant market. The deal was therefore cleared unconditionally following a Phase I review.

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BlockFills freezes withdrawals as Bitcoin drops below $65,000

BlockFills, an institutional digital asset trading and lending firm, has suspended client deposits and withdrawals, citing market volatility as Bitcoin experiences significant declines.

A notice sent to clients last week stated the suspension was intended ‘to further the protection of our clients and the firm.’ The Chicago-based company serves approximately 2,000 institutional clients and provides crypto-backed lending to miners and hedge funds.

Clients were informed they could continue trading under certain restrictions, though positions requiring additional margin could be closed.

The suspension comes as Bitcoin fell below $65,000 last week, down roughly 25% in 2026 and approximately 45% from its October peak near $120,000. In the digital asset industry, withdrawal halts are often interpreted as warning signs of potential liquidity constraints.

Several crypto firms, including FTX, BlockFi, and Celsius, imposed similar restrictions during prior downturns before entering bankruptcy proceedings.

BlockFills has not specified how long the suspension will last. A company spokesperson said the firm is ‘working hand in hand with investors and clients to bring this issue to a swift resolution and to restore liquidity to the platform.’

Founded in 2018 with backing from Susquehanna and CME Group, there is currently no public evidence of insolvency.

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Russia tightens controls as Telegram faces fresh restrictions

Authorities in Russia have tightened their grip on Telegram after the state regulator Roskomnadzor introduced new measures accusing the platform of failing to curb fraud and safeguard personal data.

Users across the country have increasingly reported slow downloads and disrupted media content since January, with complaints rising sharply early in the week. Although officials initially rejected claims of throttling, industry sources insist that download speeds have been deliberately reduced.

Telegram’s founder, Pavel Durov, argues that Roskomnadzor is trying to steer people toward Max rather than allowing open competition. Max is a government-backed messenger widely viewed by critics as a tool for surveillance and political control.

While text messages continue to load normally for most, media content such as videos, images and voice notes has become unreliable, particularly on mobile devices. Some users report that only the desktop version performs without difficulty.

The slowdown is already affecting daily routines, as many Russians rely on Telegram for work communication and document sharing, much as workplaces elsewhere rely on Slack rather than email.

Officials also use Telegram to issue emergency alerts, and regional leaders warn that delays could undermine public safety during periods of heightened military activity.

Pressure on foreign platforms has grown steadily. Restrictions on voice and video calls were introduced last summer, accompanied by claims that criminals and hostile actors were using Telegram and WhatsApp.

Meanwhile, Max continues to gain users, reaching 70 million monthly accounts by December. Despite its rise, it remains behind Telegram and WhatsApp, which still dominate Russia’s messaging landscape.

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AML breach triggers major fine for a Netherlands crypto firm

Dutch regulators have fined a cryptocurrency service provider for operating in the Netherlands without the legally required registration, underscoring intensifying enforcement across Europe’s digital asset sector.

De Nederlandsche Bank (DNB) originally imposed an administrative penalty of €2,850,000 on 2 October 2023. Authorities found the firm breached the Anti-Money Laundering and Anti-Terrorist Financing Act by offering unregistered crypto services.

Registration rules, introduced on 21 May 2020, require providers to notify supervisors due to elevated risks linked to transaction anonymity and potential misuse for money laundering or terrorist financing.

Non-compliance prevented the provider from reporting unusual transactions to the Financial Intelligence Unit-Netherlands. Regulators weighed the severity, duration, and culpability of the breach when determining the penalty amount.

Legal proceedings later altered the outcome. The Court of Rotterdam ruled on 19 December 2025 to reduce the fine to €2,277,500 and annulled the earlier decision on objection.

DNB has since filed a further appeal with the Trade and Industry Appeals Tribunal, leaving the case ongoing as oversight shifts toward MiCAR licensing requirements introduced in December 2024.

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