Competition regulation

US platforms signal political shift in DSA risk reports

Major online platforms have submitted their 2025 systemic risk assessments under the Digital Services Act as the European Commission moves towards issuing its first fine against a Very Large Online Platform.

The reports arrive amid mounting political friction between Brussels and Washington, placing platform compliance under heightened scrutiny on both regulatory and geopolitical fronts.

Several US-based companies adjusted how risks related to hate speech, misinformation and diversity are framed, reflecting political changes in the US while maintaining formal alignment with EU law.

Meta softened enforcement language, reclassified hate speech under broader categories and reduced visibility of civil rights structures, while continuing to emphasise freedom of expression as a guiding principle.

Google and YouTube similarly narrowed references to misinformation, replaced established terminology with less charged language and limited enforcement narratives to cases involving severe harm.

LinkedIn followed comparable patterns, removing references to earlier commitments on health misinformation, civic integrity and EU voluntary codes that have since been integrated into the DSA framework.

X largely retained its prior approach, although its report continues to reference cooperation with governments and civil society that contrasts with the platform’s public positioning.

TikTok diverged from other platforms by expanding disclosures on hate speech, election integrity and fact-checking, likely reflecting its vulnerability to regulatory action in both the EU and the US.

European regulators are expected to assess whether these shifts represent genuine risk mitigation or strategic alignment with US political priorities.

As systemic risk reports increasingly inform enforcement decisions, subtle changes in language, scope and emphasis may carry regulatory consequences well beyond their formal compliance function.

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Instacart faces FTC scrutiny over AI pricing tool

US regulators are examining Instacart’s use of AI in grocery pricing, after reports that shoppers were shown different prices for identical items. Sources told Reuters the Federal Trade Commission has opened a probe into the company’s AI-driven pricing practices.

The FTC has issued a civil investigative demand seeking information about Instacart’s Eversight tool, which allows retailers to test different prices using AI. The agency said it does not comment on ongoing investigations, but expressed concern over reports of alleged pricing behaviour.

Scrutiny follows a study of 437 shoppers across four US cities, which found average price differences of 7 percent for the same grocery lists at the same stores. Some shoppers reportedly paid up to 23 percent more than others for identical items, according to the researchers.

Instacart said the pricing experiments were randomised and not based on personal data or individual behaviour. The company maintains that retailers, not Instacart, set prices on the platform, with the exception of Target, where prices are sourced externally and adjusted to cover costs.

The investigation comes amid wider regulatory focus on technology-driven pricing as living costs remain politically sensitive in the United States. Lawmakers have urged greater transparency, while the FTC continues broader inquiries into AI tools used to analyse consumer data and set prices.

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Competing visions of AGI emerge at Google DeepMind and Microsoft

Two former DeepMind co-founders now leading rival AI labs have outlined sharply different visions for how artificial general intelligence (AGI) should be developed, highlighting a growing strategic divide at the top of the industry.

Google DeepMind chief executive Demis Hassabis has framed AGI as a scientific tool for tackling foundational challenges. These include fusion energy, advanced materials, and fundamental physics. He says current models still lack consistent reasoning across tasks.

Hassabis has pointed to weaknesses, such as so-called ‘jagged intelligence’. Systems can perform well on complex benchmarks but fail simple tasks. DeepMind is investing in physics-based evaluations and AlphaZero-inspired research to enable genuine knowledge discovery rather than data replication.

Microsoft AI chief executive Mustafa Suleyman has taken a more product-led stance, framing AGI as an economic force rather than a scientific milestone. He has rejected the idea of race, instead prioritising controllable and reliable AI agents that operate under human oversight.

Suleyman has argued that governance, not raw capability, is the central challenge. He has emphasised containment, liability frameworks, and certified agents, reflecting wider tensions between rapid deployment and long-term scientific ambition as AI systems grow more influential.

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Euro stablecoins pass $1 billion milestone

Euro-denominated stablecoins have surpassed $1 billion in circulating supply, according to industry data, marking a significant milestone but remaining relatively insignificant within Europe’s broader monetary system. The total represents just 0.006% of the eurozone’s estimated $15.5 trillion M2 money supply.

Issuance activity was limited during 2020 and 2021, before accelerating from late 2023 onwards. Growth has continued through 2024 and into 2025, signalling renewed interest in tokenised euro products despite their small overall footprint.

Ethereum still hosts the largest share of euro stablecoins, although issuance has expanded to other blockchain networks, including Solana, Polygon, Arbitrum, Base, Avalanche, and Stellar. The shift reflects a move toward multi-chain deployment, focusing on payments, settlement, and cross-border transfers.

Euro stablecoins remain far smaller than dollar-based tokens, which continue to dominate on-chain liquidity and settlement. The euro’s limited digital presence highlights growth potential if regulation and institutional adoption advance.

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AI-generated ads face new disclosure rules in South Korea

South Korea will require advertisers to label AI-generated or AI-assisted advertising from early 2026, marking a shift in how the country governs AI in online commerce and consumer protection.

The measure responds to a sharp rise in deceptive ads using synthetic imagery and deepfakes, particularly in healthcare and financial promotions. Regulators say transparency at the point of content delivery is intended to reduce manipulation and restore consumer trust.

Authorities in South Korea acknowledge that mandatory labelling alone may not deter malicious actors, who can bypass rules through offshore hosting or rapidly changing content. Detection challenges and uneven enforcement capacity across platforms remain open concerns.

South Korea’s industry groups warn that the policy could have uneven economic effects within the country’s advertising ecosystem. Large platforms and agencies are expected to adapt quickly, while smaller firms may face higher compliance costs that slow experimentation with generative tools.

Policymakers argue the framework aligns with South Korea’s broader AI governance strategy, positioning the country between innovation-led and precautionary regulatory models as synthetic media becomes more widespread.

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Brazilian bank executive promotes Bitcoin for diversification

Itaú Asset Management partner Renato Eid has advised investors to consider allocating between 1% and 3% of their portfolios to Bitcoin. The recommendation, described as a measured approach, aims to strike a balance between diversification benefits and protection against currency weakness.

As head of beta strategies at Brazil’s largest private bank, Eid stressed the importance of a long-term perspective rather than attempting to time market cycles. Bitcoin, in his view, should function as a complementary asset rather than a central holding in a portfolio.

The guidance highlights explicitly Itaú’s BITI11 fund, a Brazilian-listed Bitcoin ETF that began trading on the B3 exchange in 2022 through a partnership with Galaxy Digital. The fund currently manages about $115.6 million and offers regulated exposure to Bitcoin for local investors.

Brazil’s currency volatility supports the case, with the real hitting record lows in December 2024 before partially recovering. Eid linked the strategy to Itaú Unibanco’s wider crypto expansion and increasing acceptance of crypto allocations among central global banks.

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Generative AI use grows across the EU

In 2025, nearly a third of people aged 16–74 across the European Union reported using generative AI tools, according to Eurostat. Most respondents used AI for personal tasks, while fewer applied it for work or education.

The survey data illustrate how generative AI is becoming a part of daily life for millions of Europeans, offering new ways to interact with technology and access creative tools that were once limited to specialists.

Generative AI tools are capable of producing new content, including text, images, videos, programming code, or other forms of data, based on patterns learned from existing examples. Users provide input or prompts, such as instructions or questions, which the AI then uses to generate tailored outputs.

This accessibility is helping people across the EU experiment with technology for both practical and recreational purposes, from drafting documents to designing visuals or exploring creative ideas, demonstrating the growing influence of AI on digital culture and personal productivity.

Adoption of generative AI varies significantly across the EU. Denmark, Estonia, and Malta recorded the highest usage, with nearly half of residents actively engaging with these tools, while Romania, Italy, and Bulgaria showed the lowest uptake, with fewer than a quarter of the population using AI.

These differences may reflect variations in digital infrastructure, education, and public awareness, as well as cultural attitudes toward emerging technologies.

Overall, the Eurostat data provide a snapshot of a digital landscape in transition, reflecting how Europeans are adapting to a new era of intelligent technology.

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Banks and fintechs turn to Visa as stablecoin infrastructure matures

Visa has launched a Stablecoins Advisory Practice through its Visa Consulting & Analytics unit, reflecting rising institutional interest in stablecoin-based payment infrastructure. The service aims to help banks, fintech firms, merchants, and enterprises assess strategy, market fit and implementation.

The move comes as the global stablecoin market exceeds $250 billion in value and emerging reports of an annualised stablecoin settlement run rate of $3.5 billion as of late November. According to the company, demand is rising among financial institutions exploring faster and lower-cost payment rails.

Visa Consulting & Analytics will offer services ranging from market education and strategy development to use case sizing and technical integration. The programme draws on Visa’s network of consultants, data scientists and product specialists to support clients navigating regulatory and operational complexity.

Several financial institutions have already participated in early engagements, citing the need for clearer frameworks as stablecoins gain traction in cross-border payments and digital finance. The advisory practice reflects broader efforts to support responsible adoption alongside emerging standards.

Visa has previously piloted stablecoin settlement using USDC and now supports more than 130 stablecoin-linked card programmes across 40 countries. The company is also testing stablecoin-based pre-funding for international payouts.

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UK sets course for comprehensive crypto regulation

The UK government has announced plans to bring cryptoassets firmly within the regulatory perimeter, aiming to support innovation while strengthening consumer protection and attracting long-term investment into the sector.

From 2027, cryptoasset firms will be regulated by the Financial Conduct Authority under rules similar to those governing traditional financial products, such as stocks and shares. The move is intended to provide legal clarity and increase confidence among consumers and businesses.

Ministers say that proportionate regulation will support innovation, ensure competitive markets, and strengthen the UK’s position as a global hub for digital assets. Enhanced oversight will boost transparency, aid sanctions enforcement, and help detect and tackle illicit activity.

The initiative forms part of a broader strategy to shape global crypto standards, including ongoing cooperation with the United States through the Transatlantic Taskforce, as the UK seeks to secure its role in the future of digital finance.

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Streaming platforms face pressure over AI-generated music

Musicians are raising the alarm over AI-generated tracks appearing on their profiles without consent, presenting fraudulent work as their own. British folk artist Emily Portman discovered an AI-generated album, Orca, on Spotify and Apple Music, which copied her folk style and lyrics.

Fans initially congratulated her on a release she had not made since 2022.

Australian musician Paul Bender reported a similar experience, with four ‘bizarrely bad’ AI tracks appearing under his band, The Sweet Enoughs. Both artists said that weak distributor security allows scammers to easily upload content, calling it ‘the easiest scam in the world.’

A petition launched by Bender garnered tens of thousands of signatures, urging platforms to strengthen their protections.

AI-generated music has become increasingly sophisticated, making it nearly impossible for listeners to distinguish from genuine tracks. While revenues from such fraudulent streams are low individually, bots and repeated listening can significantly increase payouts.

Industry representatives note that the primary motive is to collect royalties from unsuspecting users.

Despite the threat of impersonation, Portman is continuing her creative work, emphasising human collaboration and authentic artistry. Spotify and Apple Music have pledged to collaborate with distributors to enhance the detection and prevention of AI-generated fraud.

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