Competition regulation

Disney+ subscribers protest AI content plans

Disney faces intense criticism after CEO Bob Iger announced plans to allow AI-generated content on Disney+. The streaming service, known for its iconic hand-drawn animation, now risks alienating artists and fans who value traditional craftsmanship.

Iger said AI would offer Disney+ users more interactive experiences, including the creation and sharing of short-form content. The company plans to expand gaming on Disney+ by continuing its collaborations with Fortnite, as well as featuring characters from Star Wars and The Simpsons.

Artists and animators reacted sharply, warning that AI could lead to job losses and a flood of low-quality material. Social media users called for a boycott, emphasising that generative AI undermines the legacy of Disney’s animation and may drive subscribers away.

The backlash reflects broader industry concerns, as other studios, such as Illumination and DreamWorks, have also rejected the use of generative AI. Creators like Dana Terrace of The Owl House urged fans to support human artistry, backing the push to defend traditional animation from AI-generated content.

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Ohanian predicts AI-driven jobs growth despite economic jitters

Reddit co-founder Alexis Ohanian says AI remains a durable long-term trend despite growing investor concern that the sector has inflated a market bubble. He argues the technology is now too deeply embedded in workflows to be dismissed as hype.

Tech stocks fell sharply on Thursday as uncertainty over US interest rate cuts prompted investors to seek safer assets. The Nasdaq Composite slid more than two percent, and the AI-driven Magnificent Seven posted broad losses, with Nvidia among the hardest-hit names.

Ohanian says valuations are not his focus but insists the underlying innovations are meaningful, pointing to faster software development as an example of measurable progress. He maintains confidence in technology trends even amid short-term market swings.

He also believes AI will create more roles than it eliminates, despite estimates that widespread adoption could disrupt up to seven percent of the US workforce. He argues that major technological shifts consistently open new career paths.

Ohanian notes that jobs once unimaginable, such as full-time online content creation, are now mainstream aspirations. He expects AI-led change to follow a similar pattern, delivering overall gains while acknowledging that the transition may be uneven.

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EU investigates Google over potential Digital Markets Act breach

The European Commission has opened an investigation into whether Google may be breaching the Digital Markets Act by unfairly demoting news publishers in search results.

An inquiry that centres on Google’s ‘site reputation abuse policy’, which appears to lower rankings for publishers that host content from commercial partners, even when those partnerships support legitimate ways of monetising online journalism.

The Commission is examining whether Alphabet’s approach restricts publishers from conducting business, innovating, and cooperating with third-party content providers. Officials highlighted concerns that such demotions may undermine revenue at a difficult moment for the media sector.

These proceedings do not imply a final decision; instead, they allow the EU to gather evidence and assess Google’s practices in detail.

If the Commission finds evidence of non-compliance, it will present preliminary findings and request corrective measures. The investigation is expected to conclude within 12 months.

Under the DMA, infringements can lead to fines of up to ten percent of a company’s worldwide turnover, rising to twenty percent for repeated violations, alongside possible structural remedies.

Senior Commissioners stressed that gatekeepers must offer fair and non-discriminatory access to their platforms. They argued that protecting publishers’ ability to reach audiences supports media pluralism, innovation, and democratic resilience.

Google Search, designated as a core platform service under the DMA, has been required to comply fully with the regulation since March 2024.

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New York Times lawsuit prompts OpenAI to strengthen privacy protections

OpenAI says a New York Times demand to hand over 20 million private ChatGPT conversations threatens user privacy and breaks with established security norms. The request forms part of the Times’ lawsuit over alleged misuse of its content.

The company argues the demand would expose highly personal chats from people with no link to the case. It previously resisted broader requests, including one seeking more than a billion conversations, and says the latest move raises similar concerns about proportionality.

OpenAI says it offered privacy-preserving alternatives, such as targeted searches and high-level usage data, but these were rejected. It adds that chats covered by the order are being de-identified and stored in a secure, legally restricted environment.

The dispute arises as OpenAI accelerates its security roadmap, which includes plans for client-side encryption and automated systems that detect serious safety risks without requiring broad human access. These measures aim to ensure private conversations remain inaccessible to external parties.

OpenAI maintains that strong privacy protections are essential as AI tools handle increasingly sensitive tasks. It says it will challenge any attempt to make private conversations public and will continue to update users as the legal process unfolds.

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Irish regulator opens DSA probe into X

Ireland’s media watchdog has opened a formal investigation into X under the EU’s Digital Services Act. Regulators will assess appeal rights and internal complaint handling after reports of inaccessible processes for users.

Irish officials will examine whether users can challenge refusals to remove reported content and receive clear outcomes. Potential penalties reach up to 6% of global turnover for confirmed breaches.

The case stems from ongoing supervision, a user complaint, and information from HateAid, marking the first such probe by Ireland. Wider EU scrutiny continues across huge platforms.

Other services, including Meta and TikTok, have faced DSA actions, underscoring tighter enforcement across the bloc. Remedial measures and transparency improvements could follow if non-compliance is found.

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European Commission launches Culture Compass to strengthen the EU identity

The European Commission unveiled the Culture Compass for Europe, a framework designed to place culture at the heart of the EU policies.

An initiative that aims to foster the identity ot the EU, celebrate diversity, and support excellence across the continent’s cultural and creative sectors.

The Compass addresses the challenges facing cultural industries, including restrictions on artistic expression, precarious working conditions for artists, unequal access to culture, and the transformative impact of AI.

It provides guidance along four key directions: upholding European values and cultural rights, empowering artists and professionals, enhancing competitiveness and social cohesion, and strengthening international cultural partnerships.

Several initiatives will support the Compass, including the EU Artists Charter for fair working conditions, a European Prize for Performing Arts, a Youth Cultural Ambassadors Network, a cultural data hub, and an AI strategy for the cultural sector.

The Commission will track progress through a new report on the State of Culture in the EU and seeks a Joint Declaration with the European Parliament and Council to reinforce political commitment.

Commission officials emphasised that the Culture Compass connects culture to Europe’s future, placing artists and creativity at the centre of policy and ensuring the sector contributes to social, economic, and international engagement.

Culture is portrayed not as a side story, but as the story of the EU itself.

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Banks and insurers pivot to AI agents at scale, Capgemini finds

Agentic AI is expected to deliver up to $450 billion in value by 2028, as financial institutions shift frontline processes to AI agents, according to Capgemini’s estimates. Banks start with customer service before expanding into fraud detection, lending, and onboarding, while insurers report similar priorities.

To seize the opportunity, 33% of banks are building agents in-house, while 48% of institutions are creating human supervisor roles. Cloud’s role is expanding beyond infrastructure, with 61% of executives calling cloud-based orchestration critical to scaling.

Adoption is accelerating but uneven. Four in five firms are in ideation or pilots, yet only 10% run agents at scale. Executives expect gains in real-time decision-making, accuracy, and turnaround, especially across onboarding, KYC, loan processing, underwriting, and claims.

Leaders also see growth levers. Most expect agents to support entry into new geographies, enable dynamic pricing, and deliver multilingual services that respect local norms and rules. Budgets reflect this shift, with up to 40% of generative AI spend already earmarked for agents.

Barriers persist. Skills shortages and regulatory complexity top the list of concerns, alongside high implementation costs. A quarter of firms are exploring ‘service-as-a-software’ models, paying for outcomes such as the resolution of fraud cases or the handling of customer queries.

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ChatGPT-5 outperformed by a Chinese startup model

A Chinese company has stunned the AI world after its new open-source model outperformed OpenAI’s ChatGPT-5 and Anthropic’s Claude Sonnet 4.5 in key benchmarks.

Moonshot AI’s Kimi K2 Thinking model achieved the best reasoning and coding scores yet, shaking confidence in American dominance over advanced AI systems.

The Beijing-based startup, backed by Alibaba and Tencent, released Kimi K2 Thinking on 6 November. It scored 44.9 percent in Humanity’s Last Exam and 60.2 percent in BrowseComp, both surpassing leading US models.

Analysts dubbed it another ‘DeepSeek moment ‘, echoing the earlier success of China in breaking AI cost barriers.

Moonshot AI trained the trillion-parameter system for just US$4.6 million (nearly ten times cheaper than GPT-5’s reported costs) using a Mixture-of-Experts structure and advanced quantisation for faster generation.

The fully open-weight model, released under a Modified MIT License, adds commercial flexibility and intensifies competition with US labs.

Industry observers called it a turning point. Hugging Face’s Thomas Wolf said the achievement shows how open-source models can now rival closed systems.

Researchers from the Allen Institute for AI noted that Chinese innovation is narrowing the gap faster than expected, driven by efficiency and high-quality training data rather than raw computing power.

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Nvidia stake sale powers SoftBank’s $22.5bn OpenAI bet

SoftBank sold its entire Nvidia stake for $5.83 billion and part of its T-Mobile holding for $9.17 billion, raising cash for OpenAI. Alongside a margin loan on Arm, the proceeds fund a $22.5 billion commitment and other projects. Nvidia slipped 2%; SoftBank referred to it as asset monetisation, not a valuation call.

Executives said the goal is an investor opportunity with balance-sheet strength, including backing for ABB’s robotics deal. Analysts called the quarter’s funding need unusually large but consistent with an AI pivot. SoftBank said the sale recycles capital, not a retreat from Nvidia.

SoftBank has a history with Nvidia: the Vision Fund invested in 2017 and exited in 2019; group ventures still utilise its technology. Projects include the $500 billion Stargate data centre programme, built on accelerated computing. Shares remain volatile amid concerns about the AI bubble and questions regarding the timing of deployment.

Results reflected the shift, with $19 billion in Vision Fund gains helping to double profit in fiscal Q2. SoftBank says its OpenAI stake will rise from 4% to 11% after the recapitalisation, with scope to increase further. The group aims to avoid setting a controlling threshold while scaling exposure to AI.

Management stressed liquidity and shareholder access, flagging a four-for-one stock split and ‘very safe’ funding plans. Further portfolio monetisation is possible as it backs AI infrastructure and applications at scale. Investors will closely monitor execution risks and the timing of returns from OpenAI and its adjacent bets.

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OpenAI loses German copyright lawsuit over song lyrics reproduction

A Munich regional court has ruled that OpenAI infringed copyright in a landmark case brought by the German rights society GEMA. The court held OpenAI liable for reproducing and memorising copyrighted lyrics without authorisation, rejecting its claim to operate as a non-profit research institute.

The judgement found that OpenAI had violated copyright even in a 15-word passage, setting a low threshold for infringement. Additionally, the court dismissed arguments about accidental reproduction and technical errors, emphasising that both reproduction and memorisation require a licence.

It also denied OpenAI’s request for a grace period to make compliance changes, citing negligence.

Judges concluded that the company could not rely on proportionality defences, noting that licences were available and alternative AI models exist.

OpenAI’s claim that EU copyright law failed to foresee large language models was rejected, as the court reaffirmed that European law ensures a high level of protection for intellectual property.

The ruling marks a significant step for copyright enforcement in the age of generative AI and could shape future litigation across Europe. It also challenges technology companies to adapt their training and licensing practices to comply with existing legal frameworks.

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