Competition regulation

Apple accuses the EU of blocking App Store compliance changes

Apple has accused the European Commission of preventing it from implementing App Store changes designed to comply with the Digital Markets Act, following a €500 million fine for breaching the regulation.

The company claims it submitted a formal compliance plan in October and has yet to receive a response from EU officials.

In a statement, Apple argued that the Commission requested delays while gathering market feedback, a process the company says lasted several months and lacked a clear legal basis.

The US tech giant described the enforcement approach as politically motivated and excessively burdensome, accusing the EU of unfairly targeting an American firm.

The Commission has rejected those claims, saying discussions with Apple remain ongoing and emphasising that any compliance measures must support genuinely viable alternative app stores.

Officials pointed to the emergence of multiple competing marketplaces after the DMA entered into force as evidence of market demand.

Scrutiny has increased following the decision by SetApp mobile to shut down its iOS app store in February, with the developer citing complex and evolving business terms.

Questions remain over whether Apple’s proposed shift towards commission-based fees and expanded developer communication rights will satisfy EU regulators.

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Writers challenge troubling AI assumptions about language and style

A growing unease among writers is emerging as AI tools reshape how language is produced and perceived. Long-established habits, including the use of em dashes and semicolons, are increasingly being viewed with suspicion as machine-generated text becomes more common.

The concern is not opposition to AI itself, but the blurring of boundaries between human expression and automated output. Writers whose work was used to train large language models without consent say stylistic traits developed over decades are now being misread as algorithmic authorship.

Academic and editorial norms are also shifting under this pressure. Teaching practices that once valued rhythm, voice, and individual cadence are increasingly challenged by stricter stylistic rules, sometimes framed as safeguards against sloppy or machine-like writing rather than as matters of taste or craft.

At the same time, productivity tools embedded into mainstream software continue to intervene in the writing process, offering substitutions and revisions that prioritise clarity and efficiency over nuance. Such interventions risk flattening language and discouraging the idiosyncrasies that define human authorship.

As AI becomes embedded in publishing, education, and professional writing, the debate is shifting from detection to preservation. Many writers warn that protecting human voice and stylistic diversity is essential, arguing that affectless, uniform prose would erode creativity and trust.

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WEF paper warns of widening AI investment gap

Policy-makers are being urged to take a more targeted approach to ‘sovereign AI’ spending, as a new paper released alongside the World Economic Forum meeting in Davos argues that no country can realistically build every part of the AI stack alone. Instead, the authors recommend treating AI sovereignty as ‘strategic interdependence’, combining selective domestic investment with trusted partnerships and alliances.

The paper, co-authored by the World Economic Forum and Bain & Co, highlights how heavily the United States and China dominate the global AI landscape. It estimates that the two countries capture around 65% of worldwide investment across the AI value chain, reflecting a full-stack model, from chips and cloud infrastructure to applications, that most other economies cannot match at the same scale.

For smaller and mid-sized economies, that imbalance can translate into a competitive disadvantage, because AI infrastructure, such as data centres and computing capacity, is increasingly viewed as the backbone of national AI capability. Still, the report argues that faster-moving countries can carve out a niche by focusing on a few priority areas, pooling regional capacity, or securing access through partnerships rather than trying to replicate the US-China approach.

The message was echoed in Davos by Nvidia chief executive Jensen Huang, who said every country should treat AI as essential infrastructure, comparable to electricity grids and transport networks. He argued that building AI data centres could drive demand for well-paid skilled trades, from electricians and plumbers to network engineers, framing the boom as a major job creator rather than a trigger for widespread job losses.

At the same time, the paper warns that physical constraints could slow expansion, including the availability of land, energy and water, as well as shortages of highly skilled workers. It also notes that local regulation can delay projects, although some industry groups argue that regulatory and cost pressures may push countries to innovate sooner in efficiency and greener data-centre design.

In the UK, industry body UKAI says high energy prices, limited grid capacity, complex planning rules and public scrutiny already create the same hurdles many other countries may soon face. It argues these constraints are helping drive improvements in efficiency, system design and coordination, seen as building blocks for more sustainable AI infrastructure.

Diplo is live reporting on all sessions from the World Economic Forum 2026 in Davos.

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AI Act strengthens training rules despite 2025 Digital Omnibus reforms

The European AI Regulation reinforces training and awareness as core compliance requirements, even as the EU considers simplifications through the proposed Digital Omnibus. Regulation (EU) 2024/1689 sets a risk-based framework for AI systems under the AI Act.

AI literacy is promoted through a multi-level approach. The EU institutions focus on public awareness, national authorities support voluntary codes of conduct, and organisations are currently required under the AI Act to ensure adequate AI competence among staff and third parties involved in system use.

A proposed amendment to Article 4, submitted in November 2025 under the Digital Omnibus, would replace mandatory internal competence requirements with encouragement-based measures. The change seeks to reduce administrative burden without removing AI Act risk management duties.

Even if adopted, the amendment would not eliminate the practical need for AI training. Competence in AI systems remains essential for governance, transparency, monitoring, and incident handling, particularly for high-risk use cases regulated by the AI Act.

Companies are therefore expected to continue investing in tailored AI training across management, technical, legal, and operational roles. Embedding awareness and competence into risk management frameworks remains critical to compliance and risk mitigation.

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Greece selected for Binance’s EU crypto approval

Binance has applied for a pan-European MiCA licence in Greece, positioning the country as a key regulatory gateway into the EU. The MiCA framework harmonises oversight across member states, enabling licensed firms to operate EU-wide under a single approval.

Contrary to expectations that Malta or Latvia would host the filing, the exchange selected Athens, where it has already established a holding company. The Hellenic Capital Market Commission is reportedly fast-tracking the review with support from leading accounting firms.

Company representatives said the MiCA regime offers legal clarity, regulatory certainty, and a framework that supports responsible innovation. Approval could lead to Binance expanding its corporate presence in Greece, including the opening of new offices and local staffing.

Regulatory urgency is intensifying as the July deadline approaches, particularly for firms operating across multiple EU jurisdictions. A successful application would strengthen Binance’s European strategy, expanding market access and reinforcing regulatory compliance.

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EU urged to accelerate AI deployment under new Apply AI strategy

European policymakers are calling for urgent action to accelerate AI deployment across the EU, particularly among SMEs and scale-ups, as the bloc seeks to strengthen its position in the global AI race.

Backing the European Commission’s Apply AI Strategy, the European Economic and Social Committee said Europe must prioritise trust, reliability, and human-centric design as its core competitive advantages.

The Committee warned that slow implementation, fragmented national approaches, and limited private investment are hampering progress. While the strategy promotes an ‘AI first’ mindset, policymakers stressed the need to balance innovation with strong safeguards for rights and freedoms.

Calls were also made for simpler access to funding, lighter administrative requirements, and stronger regional AI ecosystems. Investment in skills, inclusive governance, and strategic procurement were identified as key pillars for scaling trustworthy AI and strengthening Europe’s digital sovereignty.

Support for frontier AI development was highlighted as essential for reducing reliance on foreign models. Officials argued that building advanced, sovereign AI systems aligned with European values could enable competitive growth across sectors such as healthcare, finance, and industry.

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Snapchat settles social media addiction lawsuit as landmark trial proceeds

Snapchat’s parent company has settled a social media addiction lawsuit in California just days before the first major trial examining platform harms was set to begin.

The agreement removes Snapchat from one of the three bellwether cases consolidating thousands of claims, while Meta, TikTok and YouTube remain defendants.

These lawsuits mark a legal shift away from debates over user content and towards scrutiny of platform design choices, including recommendation systems and engagement mechanics.

A US judge has already ruled that such features may be responsible for harm, opening the door to liability that section 230 protections may not cover.

Legal observers compare the proceedings to historic litigation against tobacco and opioid companies, warning of substantial damages and regulatory consequences.

A ruling against the remaining platforms could force changes in how social media products are designed, particularly in relation to minors and mental health risks.

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Hong Kong crypto licensing overhaul draws industry concern

Hong Kong’s proposed crypto licensing overhaul has drawn criticism from industry leaders, who warn it could disrupt compliant firms and deter blockchain exposure.

Under the proposals, the existing allowance enabling firms to allocate up to 10% of fund assets to crypto without additional licensing would be removed. Even minimal exposure would require a full licence, a move the association called disproportionate and harmful to market experimentation.

Concerns also focused on the absence of transitional arrangements. Without a grace period, firms may be forced to suspend operations while licence applications are reviewed.

The association proposed a six- to 12-month transitional window to allow continued activity during regulatory processing.

Further criticism focused on custody rules restricting client assets to SFC-licensed custodians. Industry representatives warned the measure could limit access to early-stage tokens, restrict Web3 investment, and impose unnecessary geographic constraints.

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EU telecoms reform advances in small steps

The European Commission has unveiled the Digital Networks Act, aiming to reduce fragmentation across the EU telecoms sector. Proposals include limited spectrum harmonisation and an EU-wide numbering scheme to support cross-border business services.

Despite years of debate, the plan stops short of creating a fully unified telecoms market. National governments continue to resist deeper integration, particularly around control of 4G, 5G and wi-fi spectrum management.

The proposal reflects a cautious approach from the European Commission, balancing political pressure for reform against opposition from member states. Longstanding calls for consolidation have struggled to gain consensus.

Commission president Ursula von der Leyen has backed greater market integration, though the latest measures represent an incremental step rather than a structural overhaul.

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Amodei warns US AI chip exports to China risk national security

Anthropic chief executive Dario Amodei has criticised the US decision to allow the export of advanced AI chips to China, warning it could undermine national security. Speaking at the World Economic Forum 2026 in Davos, he questioned whether selling US-made hardware abroad strengthens American influence.

Amodei compared the policy to ‘selling nuclear weapons to North Korea‘, arguing that exporting cutting-edge chips risks narrowing the technological gap between the United States and China. He said Washington currently holds a multi-year lead in advanced chipmaking and AI infrastructure.

Sending powerful hardware overseas could accelerate China’s progress faster than expected, Amodei told Bloomberg. He warned that AI development may soon concentrate unprecedented intelligence within data centres controlled by individual states.

Amodei said AI should not be treated like older technologies such as telecoms equipment. While spreading US technology abroad may have made sense in the past, he argued AI carries far greater strategic consequences.

The debate follows recent rule changes allowing some advanced chips, including Nvidia’s H200 and AMD’s MI325X, to be sold to China. The US administration later announced plans for a 25% tariff on AI chip exports, adding uncertainty for US semiconductor firms.

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