Competition regulation

Australia’s social media age limit prompts restrictions on millions of under-16 accounts

Major social media platforms restricted access to approximately 4.7 million accounts linked to children under 16 across Australia during early December, following the introduction of the national social media minimum age requirement.

Initial figures collected by eSafety indicate that platforms with high youth usage are already engaging in early compliance efforts.

Since the obligation took effect on 10 December, regulatory focus has shifted towards monitoring and enforcement instead of preparation, targeting services assessed as age-restricted.

Early data suggests meaningful steps are being taken, although authorities stress it remains too soon to determine whether platforms have achieved full compliance.

eSafety has emphasised continuous improvement in age-assurance accuracy, alongside the industry’s responsibility to prevent circumvention.

Reports indicate some under-16 accounts remain active, although early signals point towards reduced exposure and gradual behavioural change rather than immediate elimination.

Officials note that the broader impact of the minimum age policy will emerge over time, supported by a planned independent, longitudinal evaluation involving academic and youth mental health experts.

Data collection will continue to monitor compliance, platform migration trends and long-term safety outcomes for children and families in Australia.

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Nvidia H200 chip sales to China cleared by US administration

The US administration has approved the export of Nvidia’s H200 AI chips to China, reversing years of tight US restrictions on advanced AI hardware. The Nvidia H200 chips represent the company’s second-most-powerful chip series and were previously barred from sale due to national security concerns.

The US president announced the move last month, linking approval to a 25 per cent fee payable to the US government. The administration said the policy balances economic competitiveness with security interests, while critics warned it could strengthen China’s military and surveillance capabilities.

Under the new rules, Nvidia H200 chips may be shipped to China only after third-party testing verifies their performance. Chinese buyers are limited to 50 per cent of the volume sold to US customers and must provide assurances that the chips will not be used for military purposes.

Nvidia welcomed the decision, saying it would support US jobs and global competitiveness. However, analysts questioned whether the safeguards can be effectively enforced, noting that Chinese firms have previously accessed restricted technologies through intermediaries.

Chinese companies have reportedly ordered more than two million Nvidia H200 chips, far exceeding the chipmaker’s current inventory. The scale of demand has intensified debate over whether the policy will limit China’s AI ambitions or accelerate its access to advanced computing power.

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EU proposes indefinite spectrum licences for telecoms

The European Commission is set to unveil the Digital Networks Act (DNA), a major revamp of EU telecom regulations aimed at boosting investment in digital infrastructure.

A draft document indicates the Commission plans to grant indefinite-duration radio spectrum licences, introducing ‘use-it-or-share-it’ conditions to prevent hoarding and encourage active deployment.

The DNA also calls for tighter oversight of dominant firms, including transparency, non-discrimination, and pricing rules in related markets.

Fibre rollout guidance and flexible copper replacement deadlines aim to harmonise investment and support 2030 connectivity goals across member states.

Large online platforms are expected to engage in a voluntary cooperative framework moderated by the Body of European Regulators for Electronic Communications (BEREC).

The approach avoids mandatory levies or binding duties, focusing instead on technical dialogue and ‘best practice’ codes while leaving enforcement largely to national regulators.

The draft shifts focus from forcing Big Tech to fund networks to reforming spectrum and telecom rules to boost investment. Member states and the European Parliament will negotiate EU coordination, national discretion, and net neutrality protections.

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EU reaffirms commitment to Digital Markets Act enforcement

European Commission Executive Vice President Teresa Ribera has stated that the EU has a constitutional obligation under its treaties to uphold its digital rulebook, including the Digital Markets Act (DMA).

Speaking at a competition law conference, Ribera framed enforcement as a duty to protect fair competition and market balance across the bloc.

Her comments arrive amid growing criticism from US technology companies and political pressure from Washington, where enforcement of EU digital rules has been portrayed as discriminatory towards American firms.

Several designated gatekeepers have argued that the DMA restricts innovation and challenges existing business models.

Ribera acknowledged the right of companies to challenge enforcement through the courts, while emphasising that designation decisions are based on lengthy and open consultation processes. The Commission, she said, remains committed to applying the law effectively rather than retreating under external pressure.

Apple and Meta have already announced plans to appeal fines imposed in 2025 for alleged breaches of DMA obligations, reinforcing expectations that legal disputes around EU digital regulation will continue in parallel with enforcement efforts.

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Billions in data protection fines remain unpaid

Ireland’s Data Protection Commission is owed more than €4 billion in fines imposed on companies, primarily Big Tech firms. Most of the penalties remain unpaid due to ongoing legal challenges.

Figures released under Freedom of Information laws show the watchdog collected only €125,000 from over €530 million in fines issued last year. Similar patterns have persisted across several previous years.

Since 2020, the commission has levied €4.04 billion in data protection penalties. Just €20 million has been paid, while the remaining balance is tied up in appeals before Irish and EU courts.

The regulator states that legislation prevents enforcement until the court proceedings conclude. Several cases hinge on a landmark WhatsApp ruling at the EU’s top court, expected to shape future collections.

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Next-generation Siri will use Google’s Gemini AI model

Apple and Google have confirmed a multi-year partnership that will see Google’s Gemini models powering Siri and future Apple Intelligence features. The collaboration will underpin Apple’s next-generation AI models, with updates coming later this year.

The move follows delays in rolling out Siri upgrades first unveiled at WWDC 2024. While most Apple Intelligence features have already been launched, the redesigned Siri has been postponed due to development taking longer than anticipated.

According to reports, Apple will continue using its own models for specific tasks, while Gemini is expected to handle summarisation, planning, and other advanced functions.

Bloomberg reports the upcoming Siri will be structured around three layers: query planning, knowledge retrieval, and summarisation. Gemini will handle planning and summarisation, helping Siri structure responses and create clear summaries.

Knowledge retrieval may also benefit from Gemini, potentially broadening Siri’s general knowledge capabilities beyond its current hand-off system.

All AI processing will operate on Apple’s Private Cloud Compute platform, ensuring user privacy and keeping data secure. Analysts suggest this integration will embed Gemini more deeply into Siri’s core functionality, rather than serving as a supplementary tool.

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Australia raises concerns over AI misuse on X

The eSafety regulator in Australia has expressed concern over the misuse of the generative AI system Grok on social media platform X, following reports involving sexualised or exploitative content, particularly affecting children.

Although overall report numbers remain low, authorities in Australia have observed a recent increase over the past weeks.

The regulator confirmed that enforcement powers under the Online Safety Act remain available where content meets defined legal thresholds.

X and other services are subject to systemic obligations requiring the detection and removal of child sexual exploitation material, alongside broader industry codes and safety standards.

eSafety has formally requested further information from X regarding safeguards designed to prevent misuse of generative AI features and to ensure compliance with existing obligations.

Previous enforcement actions taken in 2025 against similar AI services resulted in their withdrawal from the Australian market.

Additional mandatory safety codes will take effect in March 2026, introducing new obligations for AI services to limit children’s exposure to sexually explicit, violent and self-harm-related material.

Authorities emphasised the importance of Safety by Design measures and continued international cooperation among online safety regulators.

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AI gap reflects China’s growing technological ambitions

China’s AI sector could narrow the technological AI gap with the United States through growing risk-taking and innovation, according to leading researchers. Despite export controls on advanced chipmaking tools, Chinese firms are accelerating development across multiple AI fields.

Yao Shunyu, a former senior researcher at ChatGPT maker OpenAI and now Tencent’s AI scientist, said a Chinese company could become the world’s leading AI firm within three to five years. He pointed to China’s strengths in electricity supply and infrastructure as key advantages.

Yao said the main bottlenecks remain production capacity, including access to advanced lithography machines and a mature software ecosystem. Such limits still restrict China’s ability to manufacture the most advanced semiconductors and narrow the AI gap with the US.

China has developed a working prototype of an extreme-ultraviolet lithography machine that could eventually rival Western technology. However, Reuters reported the system has not yet produced functioning chips.

Sources familiar with the project said commercial chip production using the machine may not begin until around 2030. Until then, Chinese AI ambitions are likely to remain constrained by hardware limitations.

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Google brings AI to personalised shopping

Google is working with major retailers to use AI in guiding customers from product discovery to checkout. The company has launched the Universal Commerce Protocol, an open standard for seamless agentic commerce that keeps retailers in control of customer relationships.

The Universal Commerce Protocol works with existing systems and partners, including Shopify, Etsy, Wayfair, Target, and Walmart.

Customers can receive personalised offers, loyalty rewards, and recommendations in Google Search or Gemini, completing purchases via Google Pay without leaving the platform.

To support retailers, Google has launched Gemini Enterprise for Customer Experience, which unifies search, commerce, and service touchpoints across all channels.

Early partners, such as The Home Depot and McDonald’s, are already utilising AI-powered agents to enhance service, provide proactive recommendations, and improve customer engagement.

Logistics also feature prominently, with Wing expanding delivery capabilities alongside Walmart, doubling operations in existing markets, and rolling out to Houston, Orlando, Tampa, Charlotte, and other cities.

Google aims to create an end-to-end shopping ecosystem where AI, agentic protocols, and seamless delivery elevate both customer and retailer experiences.

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Indonesia and Malaysia restrict access to Grok AI over content safeguards

Malaysia and Indonesia have restricted access to Grok, the AI chatbot available through the X platform, following concerns about its image generation capabilities.

Authorities said the tool had been used to create manipulated images depicting real individuals in sexually explicit contexts.

Regulatory bodies in Malaysia and Indonesia stated that the decision was based on the absence of sufficient safeguards to prevent misuse.

Requests for additional risk mitigation measures were communicated to the platform operator, with access expected to remain limited until further protections are introduced.

The move has drawn attention from regulators in other regions, where online safety frameworks allow intervention when digital services fail to address harmful content. Discussions have focused on platform responsibility, content moderation standards, and compliance with existing legal obligations.

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