Competition regulation

OpenClaw users face account suspensions under Google AI rules

Google has suspended access to its Antigravity AI platform for numerous OpenClaw users, citing violations of its terms of service. Developers had used OpenClaw’s OAuth plugin to access subsidised Gemini model tokens, triggering backend strain and service degradation.

OpenClaw, launched in November 2025, gained more than 219,000 GitHub stars by enabling local AI agents for tasks such as email management and web browsing. Users authenticated through Antigravity to access advanced Gemini models at reduced cost, bypassing official distribution channels.

Google said the third-party integration powered non-authorised products on Antigravity infrastructure, triggering usage flagged as malicious. In February 2026, AI Ultra subscribers reported 403 errors and account restrictions, with some citing temporary disruptions to Gmail and Workspace.

Varun Mohan of Google DeepMind said the surge had degraded service quality and that enforcement prioritised legitimate users. Limited reinstatement options were offered to those unaware of violations, while capacity constraints were cited as the reason.

The move follows similar restrictions by Anthropic on third-party OAuth usage. Developers are shifting to alternative forks, as debate intensifies over open tooling, platform control, and the risks of agentic AI ecosystems.

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AI drives faster modernisation of legacy COBOL systems

Critical to finance, airlines, and government, COBOL handles about 95% of US ATM transactions. Despite its ubiquity, the pool of developers able to read and maintain COBOL is shrinking as seasoned engineers retire and universities offer limited instruction.

Institutional knowledge is now embedded in decades-old code, and documentation often lags.

Modernising COBOL differs from typical software updates. It requires untangling intricate dependencies and reverse-engineering business logic that has evolved over decades.

Traditional modernisation efforts involved large teams of consultants over the years, resulting in high costs and lengthy timelines. AI tools are changing that paradigm by automating the most labour-intensive tasks.

AI-driven solutions like Claude Code map code dependencies, trace execution paths, document workflows, and identify risks. They provide teams with actionable insights for prioritisation, risk management, and refactoring, dramatically shortening modernisation timelines from years to months.

Human experts remain essential to reviewing AI recommendations, ensuring regulatory compliance, and making strategic decisions about which components to modernise first.

Implementation follows an incremental approach. AI translates COBOL logic into modern languages, creates integration scaffolding, and supports side-by-side operation with legacy components.

Continuous validation at each step reduces risk, allowing teams to build confidence as complex parts of the system are modernised. AI automation combined with expert oversight makes large-scale COBOL modernisation feasible.

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Global privacy regulators warn of rising AI deepfake harms

Privacy regulators from around the world have issued a joint warning about the rise of AI-generated deepfakes, arguing that the spread of non-consensual images poses a global risk instead of remaining a problem confined to individual countries.

Sixty-one authorities endorsed a declaration that draws attention to AI images and videos depicting real people without their knowledge or consent.

The signatories highlight the rapid growth of intimate deepfakes, particularly those targeting children and individuals from vulnerable communities. They note that such material often circulates widely on social platforms and may fuel exploitation or cyberbullying.

The declaration argues that the scale of the threat requires coordinated action rather than isolated national responses.

European authorities, including the European Data Protection Board and the European Data Protection Supervisor, support the effort to build global cooperation.

Regulators say that only joint oversight can limit the harms caused by AI systems that generate false depictions, rather than protecting individuals’ privacy as required under frameworks such as the General Data Protection Regulation.

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OCC approval moves Crypto.com closer to US trust bank

Crypto.com has secured conditional approval from the Office of the Comptroller of the Currency to move ahead with plans to launch a federally regulated national trust bank in the United States.

Approval marks a notable step in the firm’s regulatory roadmap. It also signals continued alignment with US supervisory expectations as the digital asset sector seeks deeper integration with traditional financial infrastructure.

Plans focus on establishing Foris Dax National Trust Bank. The entity is designed to provide a consolidated suite of services, including digital asset custody, staking across multiple blockchain ecosystems such as Cronos, and trade settlement.

Full approval would place the entity under direct federal oversight, positioning it to serve institutional clients that require qualified custodians operating within a clear regulatory perimeter.

Leadership described the decision as recognition of its compliance and risk management framework. Executives said the structure would offer institutions a single regulated gateway to digital asset infrastructure and strengthen market confidence.

Existing operations at Crypto.com Custody Trust Company in New Hampshire will continue without interruption. Final authorisation will determine the timeline for launching the national trust bank and expanding federally supervised US services.

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Anthropic uncovers large-scale AI model theft operations

Three AI laboratories have been found conducting large-scale illicit campaigns to extract capabilities from Anthropic’s Claude AI, the company revealed.

DeepSeek, Moonshot, and MiniMax used around 24,000 fraudulent accounts to generate more than 16 million interactions, violating terms of service and regional access restrictions. The technique, called distillation, trains a weaker model on outputs from a stronger one, speeding AI development.

Distilled models obtained in this manner often lack critical safeguards, creating serious national security concerns. Without protections, these capabilities could be integrated into military, intelligence, surveillance, or cyber operations, potentially by authoritarian governments.

The attacks also undermine export controls designed to preserve the competitive edge of US AI technology and could give a misleading impression of foreign labs’ independent AI progress.

Each lab followed coordinated playbooks using proxy networks and large-scale automated prompts to target specific capabilities such as agentic reasoning, coding, and tool use.

Anthropic attributed the campaigns using request metadata, infrastructure indicators, and corroborating observations from industry partners. The investigation detailed how distillation attacks operate from data generation to model launch.

In response, Anthropic has strengthened detection systems, implemented stricter access controls, shared intelligence with other labs and authorities, and introduced countermeasures to reduce the effectiveness of illicit distillation.

The company emphasises that addressing these attacks will require coordinated action across the AI industry, cloud providers, and policymakers to protect frontier AI capabilities.

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OpenAI faces legal action in South Korea from top networks

South Korea’s leading terrestrial broadcasters have filed a lawsuit against OpenAI, claiming that the company trained its ChatGPT model using their news content without permission. KBS, MBC, and SBS are seeking an injunction to halt the alleged infringement and to recover damages.

The Korea Broadcasters Association said OpenAI generates significant revenue from its GPT services and has licensing agreements with media organisations worldwide.

Despite this, the company has refused to negotiate with the South Korean networks, leaving them without recourse to ensure proper use of their content.

The lawsuit emphasises the protection of intellectual property and creators’ rights, arguing that domestic copyright holders face high legal costs and barriers when confronting global technology companies. It also raises broader questions about South Korea’s data sovereignty in the age of AI.

Earlier action against Naver set a precedent for copyright enforcement in AI applications.

Although KBS subsequently partnered with Naver for AI-driven media solutions, the current case underscores continuing disputes over lawful access to broadcast content for generative AI training.

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EU DSA fine against X heads to court in key test case

X Corp., owned by Elon Musk, has filed an appeal with the General Court of the European Union against a €120 million fine imposed by the European Commission for breaching the Digital Services Act. The penalty, issued in December, marks the first enforcement action under the 2022 law.

The Commission concluded that X violated transparency obligations and misled users through its verification design, arguing that paid blue checkmarks made it harder to assess account authenticity. Officials also cited concerns about advertising transparency and researchers’ access to platform data.

Henna Virkkunen, the EU’s executive vice-president for tech sovereignty, security, and democracy, said deceptive verification and opaque advertising had no place online. The Commission opened its probe in December 2023, examining risk management, moderation practices, and alleged dark patterns.

X Corp. argued that the decision followed an incomplete investigation and a flawed reading of the DSA, citing procedural errors and due-process concerns. It said the appeal could shape future enforcement standards and penalty calculations under the regulation.

The EU is also assessing whether X mitigated systemic risks, including deepfaked content and child sexual abuse material linked to its Grok chatbot. US critics describe DSA enforcement as a threat to free speech, while EU officials say it strengthens accountability across the digital single market.

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Turkey reviews children’s data handling as identity checks planned for social platforms

The data protection authority of Turkey has opened a new review into how major social media platforms manage children’s personal data.

A decision that places scrutiny on TikTok, Instagram, Facebook, YouTube, X and Discord as Ankara prepares legislation that would expand state authority over digital activity instead of relying on existing rules alone.

Regulators aim to assess safeguards for children and ensure stronger compliance with local standards.

The ruling party is expected to introduce a family package that would require identity verification for every account through phone numbers or the e-Devlet system. Children under 15 would not be allowed to create profiles and further limits could apply to users under 18.

A proposal that would also allow authorities to order the rapid removal of content deemed unlawful without waiting for court approval, while platforms that fail to comply may face penalties such as phased bandwidth reductions.

Rights advocates warn that mandatory verification and broader enforcement powers could reshape online speech across the country. Some argue that linking accounts to verified identities threatens anonymity and could restrict legitimate expression instead of fostering safety.

Turkey has already expanded online oversight since 2016 through laws that increased the government’s ability to block websites, require content removal and oblige major platforms to maintain a legal presence in the country.

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Deutsche Bank expands digital asset plans 

The German banking giant has applied for a digital asset custody licence from BaFin, marking a significant step in its expansion into cryptocurrency services. The move positions Deutsche Bank to offer safekeeping solutions for clients seeking exposure to digital assets.

Plans form part of a broader strategy to build a dedicated digital assets division, according to David Lynne, a commercial banking executive. DWS Group’s initiatives highlight rising institutional interest in crypto partnerships in Germany.

Previous experimentation includes a tokenised investment platform developed in Singapore with Memento Blockchain, enabling access to digital asset funds through fiat on-ramps.

Activity mirrors wider domestic momentum, as Deutsche WertpapierService Bank has already launched crypto infrastructure linking traditional and digital accounts.

Regulatory clarity and growing client demand appear to be key drivers, with Deutsche Bank signalling a cautious yet deliberate approach to integrating cryptocurrencies into its mainstream banking services.

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Strict ban on crypto references introduced by OpenClaw

OpenClaw has introduced a firm community rule prohibiting any reference to Bitcoin or other cryptocurrencies on its Discord server, according to its creator, Peter Steinberger.

Enforcement drew attention after a user was removed for mentioning Bitcoin block height as a timing method in a benchmark, with the developer later offering to restore access.

The policy follows a rebrand scare when scammers hijacked old accounts to promote a fake Solana token. Market value spiked then plunged after Steinberger denied involvement, warning that no official token would be issued.

Rapid growth of the open-source project, which has attracted a large developer base within weeks of launch, contrasts with wider industry momentum linking AI agents and digital assets.

Leaders such as Jeremy Allaire of Circle argue stablecoins could become default payment rails for autonomous software, while Coinbase is already rolling out infrastructure enabling agents to transact on-chain.

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