Competition regulation

IBM Cloud replaces free support with AI tools

The cloud computing services offered by IBM will end free human support under its Basic Support tier in January 2026, opting for an AI-driven self-service model instead.

Users will lose the option to open or escalate technical cases through the portal or APIs. However, they can still report service issues via the Cloud Console and raise billing or account cases through the Support Portal.

IBM will direct customers to its Watsonx-powered AI Assistant, upgraded earlier in the year, while introducing a ‘Report an Issue’ tool to improve routing. The company plans to expand its support library to provide more detailed self-help resources.

Starting at $200 per month, paid support will remain available for organisations needing faster response times and direct technical assistance.

The company describes the change as an alignment with industry norms. AWS, Google Cloud and Microsoft Azure already provide free tiers that rely on community forums, online resources and billing support.

However, IBM Cloud holds only 2–4 percent of the market, according to Synergy Research Group, which some analysts suggest makes cost reductions in support more likely. Tencent, another provider, previously withdrew support for basic users because they were not profitable.

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CNIL fines Google and SHEIN in ongoing cookie compliance crackdown

France’s data protection authority, CNIL, has fined Google 350 million euros and SHEIN 150 million euros as part of a broader enforcement effort targeting non-compliant use of advertising cookies under Article 82 of the French Data Protection Act.

The action stems from CNIL’s 2019 guidelines, aimed at ensuring that internet users are adequately informed and give valid consent for the placement of cookies.

The CNIL’s restricted committee, responsible for imposing penalties, raised ongoing concerns such as unauthorised cookie placement and the growing use of ‘cookie walls’ where users must accept cookies to access services.

Although not illegal by default, such practices require consent, with all choices presented clearly and without bias.

In Google’s case, CNIL also cited a breach of Article L.34-5 of the French Postal and Electronic Communications Code for displaying promotional emails in Gmail’s ‘Promotions’ and ‘Social’ tabs without prior user consent. High-traffic platforms remain a key focus of the authority’s compliance strategy.

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China and India adopt contrasting approaches to AI governance

As AI becomes central to business strategy, questions of corporate governance and regulation are gaining prominence. The study by Akshaya Kamalnath and Lin Lin examines how China and India are addressing these issues through law, policy, and corporate practice.

The paper focuses on three questions: how regulations are shaping AI and data protection in corporate governance, how companies are embedding technological expertise into governance structures, and how institutional differences influence each country’s response.

Findings suggest a degree of convergence in governance practices. Both countries have seen companies create chief technology officer roles, establish committees to manage technological risks, and disclose information about their use of AI.

In China, these measures are largely guided by central and provincial authorities, while in India, they reflect market-driven demand.

China’s approach is characterised by a state-led model that combines laws, regulations, and soft-law tools such as guidelines and strategic plans. The system is designed to encourage innovation while addressing risks in an adaptive manner.

India, by contrast, has fewer binding regulations and relies on a more flexible, principles-based model shaped by judicial interpretation and self-regulation.

Broader themes also emerge. In China, state-owned enterprises are using AI to support environmental, social, and governance (ESG) goals, while India has framed its AI strategy under the principle of ‘AI for All’ with a focus on the role of public sector organisations.

Together, these approaches underline how national traditions and developmental priorities are shaping AI governance in two of the world’s largest economies.

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CJEU confirms Zalando’s status as very large online platform under DSA

On 25 April 2023, the European Commission designated Zalando, as a ‘very large online platform’ (VLOP) under the Digital Services Act (DSA), noting that over 83 million people used the platform monthly, well above the 45 million threshold. As a VLOP, Zalando is subject to stricter obligations, particularly in protecting consumers and preventing the spread of illegal content.

Zalando contested this designation before the General Court of the European Union, arguing that only its third-party seller section (the Partner Programme) should qualify as an online platform under the DSA, not its direct retail operations (Zalando Retail).

The Court rejected Zalando’s arguments and upheld the Commission’s decision. It ruled that Zalando qualifies as a VLOP due to its Partner Programme. Since Zalando could not distinguish between users exposed to third-party seller content and those who were not, the Commission was entitled to consider all 83 million users as active recipients.

The Court also dismissed Zalando’s claims that the DSA violated legal certainty, equal treatment, and proportionality principles. It highlighted the potential for large platforms to facilitate the distribution of dangerous or illegal goods. As such, Zalando remains subject to the enhanced responsibilities imposed on very large online platforms under the DSA.

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Key AI researchers depart Apple for rivals Meta and OpenAI

Apple is confronting a significant exodus of AI talent, with key researchers departing for rival firms instead of advancing projects in-house.

The company lost its lead robotics researcher, Jian Zhang, to Meta’s Robotics Studio, alongside several core Foundation Models team members responsible for the Apple Intelligence platform. The brain drain has triggered internal concerns about Apple’s strategic direction and declining staff morale.

Instead of relying entirely on its own systems, Apple is reportedly considering a shift towards using external AI models. The departures include experts like Ruoming Pang, who accepted a multi-year package from Meta reportedly worth $200 million.

Other AI researchers are set to join leading firms like OpenAI and Anthropic, highlighting a fierce industry-wide battle for specialised expertise.

At the centre of the talent war is Meta CEO Mark Zuckerberg, offering lucrative packages worth up to $100 million to secure leading researchers for Meta’s ambitious AI and robotics initiatives.

The aggressive recruitment strategy is strengthening Meta’s capabilities while simultaneously weakening the internal development efforts of competitors like Apple.

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Statsig to be acquired by OpenAI in £1.1bn deal

OpenAI has agreed to acquire the product development startup Statsig in an all-stock deal valued at £1.1 billion, marking one of the most significant acquisitions in the company’s history.

Statsig, founded in 2021, provides tools for developers to test and manage new features. Upon completion of the deal, Statsig’s founder and CEO, Vijaye Raji, will join OpenAI as the new chief technology officer (CTO) for applications.

Raji will report to OpenAI Applications CEO Fidji Simo and lead product engineering for key products such as ChatGPT.

The acquisition is part of a broader trend of significant deals for the AI company this year, which recently concluded a £6.5 billion all-stock acquisition of an AI device startup. OpenAI’s expanding valuation, which reached £300 billion following a March funding round, has supported this growth.

The company is reportedly discussing a further share sale that could increase its valuation to £500 billion. The completion of the Statsig deal is subject to regulatory approval, after which the company will continue to operate independently from its Seattle office, with its employees joining the OpenAI team.

Other leadership changes at OpenAI include the appointment of Srinivas Narayanan as CTO for B2B applications and Kevin Weil’s move to a new team focused on AI for Science.

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Privacy concerns arise as Google reportedly expands gaming data sharing

Google may roll out a Play Games update on 23 September adding public profiles, stat tracking, and community features. Reports suggest users may customise profiles, follow others, and import gaming history, while Google could collect gameplay and developer data.

The update is said to track installed games, session lengths, and in-game achievements, with some participating developers potentially accessing additional data. Players can reportedly manage visibility settings, delete profiles, or keep accounts private, with default settings applied unless changed.

The EU and UK are expected to receive the update on 1 October.

Privacy concerns have been highlighted in Europe. Austrian group NOYB filed a complaint against Ubisoft over alleged excessive data collection in games like Far Cry Primal, suggesting that session tracking and frequent online connections may conflict with GDPR.

Ubisoft could face fines of up to four percent of global turnover, based on last year’s revenues.

Observers suggest the update reflects a social and data-driven gaming trend, though European players may seek more explicit consent and transparency.

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Hong Kong sees surge in stablecoin licensing interest

Bank of China’s Hong Kong-listed shares jumped 6.7% on Monday after reports that the bank’s local branch is preparing to apply for a stablecoin issuer licence. The Hong Kong Economic Journal said the branch has already formed a task force to explore potential issuance.

The move comes after Hong Kong launched its stablecoin licensing regime on 1 August, requiring approval from the Hong Kong Monetary Authority. The framework sets strict rules on reserves, redemptions, fund segregation, anti-money laundering, disclosure and operator checks.

The regime has already drawn interest from major institutions such as Standard Chartered.

Chinese firms JD.com and Ant Financial have also expressed plans to seek licences abroad, potentially in Hong Kong, to support cross-border payments.

Advocates highlight the efficiency of stablecoins, noting that blockchain technology reduces settlement times and cuts intermediary costs. The benefits are particularly pronounced in emerging markets, where stablecoins hedge against currency volatility.

Regulators, however, have urged caution. The SFC and HKMA warned investors about speculation-driven price swings from licensing rumours, highlighting risks of reacting to unverified reports.

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Ukraine’s central bank warns against adding virtual assets to national reserves

Ukraine’s National Bank (NBU) has ruled out adding cryptocurrencies to the country’s foreign currency reserves, calling the proposal premature and high-risk. First Deputy Governor Serhiy Nikolaychuk said crypto volatility could reduce reserves and threaten their security.

The central bank highlighted the lack of a global regulatory framework and unified classification for virtual assets. Including crypto, which could violate IMF rules and impede Ukraine’s EU integration.

The European Central Bank considers it unacceptable for member states to include crypto in their reserves.

A draft law filed with parliament earlier this year would have allowed the NBU to acquire cryptocurrencies if desired. However, lawmakers and central bank officials have expressed caution, citing the high volatility of digital assets and potential risks to national financial stability.

Ukraine has seen rising crypto use since Russia’s 2022 invasion. According to a recent UK think tank report, a lack of comprehensive regulation has led to significant losses from crypto-related crime.

Authorities are continuing to prioritise security and financial prudence over speculative digital holdings.

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EU and Australia diverge on paths to AI regulation

The regulatory approaches to AI in the EU and Australia are diverging significantly, creating a complex challenge for the global tech sector.

Instead of a unified global standard, companies must now navigate the EU’s stringent, risk-based AI Act and Australia’s more tentative, phased-in approach. The disparity underscores the necessity for sophisticated cross-border legal expertise to ensure compliance in different markets.

In the EU, the landmark AI Act is now in force, implementing a strict risk-based framework with severe financial penalties for non-compliance.

Conversely, Australia has yet to pass binding AI-specific laws, opting instead for a proposal paper outlining voluntary safety standards and 10 mandatory guardrails for high-risk applications currently under consultation.

It creates a markedly different compliance environment for businesses operating in both regions.

For tech companies, the evolving patchwork of international regulations turns AI governance into a strategic differentiator instead of a mere compliance obligation.

Understanding jurisdictional differences, particularly in areas like data governance, human oversight, and transparency, is becoming essential for successful and lawful global operations.

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