Competition regulation Archives | Page 19 of 120

Gemini growth narrows gap in chatbot race

Google’s AI chatbot Gemini has surpassed 750 million monthly users, signalling rapid consumer adoption, according to fourth-quarter 2025 earnings. The figure jumped from 650 million in the previous quarter, reinforcing Gemini’s rapid expansion in the generative AI market.

Competitive positioning remains solid. Meta AI has nearly 500 million users, while ChatGPT leads globally with about 810 million. Ongoing product upgrades and ecosystem integration across Google services have sustained Gemini’s growth momentum.

Gemini 3 has driven adoption, with Google calling it its most advanced model, offering deeper reasoning and more nuanced responses. Leadership called the release a key growth driver, with further investment and updates expected to sustain expansion.

Broader AI demand is also lifting Alphabet’s financial performance. Annual revenue has topped $400 billion for the first time, driven by enterprise API demand and infrastructure growth, including the Ironwood TPU rollout.

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Crypto market sheds $500 billion in sell-off

Roughly $500 billion has been wiped from the cryptocurrency market over the past week as a Bitcoin-led sell-off accelerated. Total digital asset capitalisation fell by about $467.6 billion since 29 January, reflecting broad risk-off sentiment across global markets.

Bitcoin briefly dropped to a 15-month low of $72,877 before rebounding 1.31% to $76,681.72. The asset remains down 13% year-to-date and nearly 39% below its October peak above $126,000, underscoring sustained selling pressure.

Macro forces are driving the downturn. Escalating US-Iran tensions pushed capital toward traditional safe havens, while currency shifts, interest rate differentials, and tightening liquidity conditions weighed on leverage and stablecoin flows.

Analysts say the decline reflects positioning resets and broader market nervousness rather than a single catalyst.

Near-term outlook remains cautious. Liquidation pressure persists, though key structural supports continue to hold. Technical analysts identify $73,000 as critical downside support, while reclaiming the $77,500–78,000 range would be needed to restore bullish momentum.

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Malaysia enforces a total ban on e-waste imports after corruption probe

Authorities have imposed a full and immediate ban on the import of electronic waste in Malaysia to end the long-standing practice of foreign dumping.

The Anti-Corruption Commission reclassified all e-waste as an absolute prohibition, removing the earlier discretion that allowed limited exemptions. Officials argue that the country should protect its environment rather than accept hazardous materials from other nations.

Authorities have spent years intercepting containers loaded with discarded electronics suspected to contain toxic metals that contaminate soil and water when mishandled.

Environmental groups have repeatedly urged stronger controls, noting that waste from computers, mobile phones and household appliances poses severe risks to human health. The government now insists that firm enforcement must accompany the new restrictions to prevent continued smuggling.

The decision comes amid a widening corruption inquiry into oversight of e-waste. The director-general of the environment department and his deputy have been detained on suspicion of abuse of power. At the same time, investigators have frozen bank accounts and seized cash linked to the case.

The Home Ministry has pledged increased surveillance and warned that Malaysia will safeguard its national security by stopping illegal e-waste at its borders.

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Negative narratives follow XRP price rallies

Search behaviour around XRP increasingly reflects the psychological side of the crypto market. Negative narratives spread quickly online, shaping sentiment and fuelling volatility. Data shows that ‘XRP scam’ search spikes often appear during strong price rallies.

Crypto analyst Leonidas compared Google Trends data for ‘Ripple scam’ and ‘XRP scam’ with XRP’s price chart. Results show that damaging search surges typically align with bullish moves and sometimes precede pullbacks, suggesting that perception pressure builds during peak momentum.

Rapid price growth tends to trigger retail curiosity and concern, primarily when sensational claims circulate widely. Search spikes often coincide with heightened mainstream and social media exposure, indicating sentiment reacts to price action rather than fundamentals.

Despite recurring allegations and past regulatory scrutiny, institutional partnerships and XRP Ledger adoption remain intact. Analysts stress that sentiment spikes rarely signal structural weakness, urging investors to prioritise utility and adoption metrics.

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User activity stabilises as TikTok recovers from transition disruption

TikTok has largely recovered from a brief decline in daily active users following its US ownership change, when a group of American investors assumed control of domestic operations. Usage fell temporarily as uncertainty spread among users. Competing video apps saw short-term gains during the disruption.

Data from Similarweb shows TikTok’s US daily active users dropped to between 86 and 88 million after the transition, compared with a typical average of around 92 million. Activity has since rebounded to more than 90 million. Many users who experimented with alternatives have returned.

Platforms rivalling TikTok, including UpScrolled and Skylight Social, experienced rapid but limited growth. UpScrolled peaked at 138,500 daily users before falling back to roughly 68,000. Skylight Social reached 81,200 daily users, then declined to around 56,300.

User concerns were driven less by ownership itself and more by fears around platform changes. An updated privacy policy allowing precise GPS tracking triggered backlash, alongside confusion over language referencing sensitive personal data. Some interpreted the changes as increased surveillance.

A multi-day data centre outage disrupted search, likes, and in-app messaging, resulting in user frustration. Some users attributed the glitches to possible censorship or platform instability. Once services were restored, activity stabilised, and concerns eased.

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US security process delays Nvidia chip sales

Nvidia’s plans to export its H200 AI chips to China remain pending nearly two months after US President Donald Trump approved. A national security review is still underway before licences can be issued to Chinese customers.

Chinese companies have delayed new H200 orders while awaiting clarity on licence approvals and potential conditions, according to people familiar with the discussions. The uncertainty has slowed anticipated demand and affected production planning across Nvidia’s supply chain.

In January, the US Commerce Department eased H200 export restrictions to China but required licence applications to be reviewed by the departments of State, Defence, and Energy.

Commerce has completed its analysis, but inter-agency discussions continue, with the US State Department seeking additional safeguards.

The export framework, which also applies to AMD, introduces conditions related to shipment allocation, testing, and end-use reporting. Until the review process concludes, Nvidia and prospective Chinese buyers remain unable to proceed with confirmed transactions.

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Bitcoin drops to 2024 low as AI fears and geopolitics rattle markets

A cautious mood spread across global markets as US stocks declined and Bitcoin slid to its lowest level since late 2024. Technology and software shares led losses, pushing major indices to their weakest performance in two weeks.

Bitcoin fell sharply before stabilising, remaining well below its October peak despite continued pro-crypto messaging from Washington. Gold and silver moved higher during the session, reinforcing their appeal as defensive assets amid rising uncertainty.

Investor sentiment weakened after Anthropic unveiled new legal-focused features for its Claude chatbot, reviving fears of disruption across software and data-driven business models. Analysts at Morgan Stanley pointed to rotation within the technology sector, with investors reducing exposure to software stocks.

Geopolitical tensions intensified after reports of US military action involving Iran, pushing oil prices higher and increasing market volatility. Combined AI uncertainty, geopolitical risk, and shifting safe-haven flows continue to weigh on equities and digital assets alike.

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India pushes Meta to justify WhatsApp’s data-sharing

The Supreme Court of India has delivered a forceful warning to Meta after judges said the company could not play with the right to privacy.

The court questioned how WhatsApp monetises personal data in a country where the app has become the de facto communications tool for hundreds of millions of people. Judges added that meaningful consent is difficult when users have little practical choice.

Meta was told not to share any user information while the appeal over WhatsApp’s 2021 privacy policy continues. Judges pressed the company to explain the value of behavioural data instead of relying solely on claims about encrypted messages.

Government lawyers argued that personal data was collected and commercially exploited in ways most users would struggle to understand.

The case stems from a major update to WhatsApp’s data-sharing rules that India’s competition regulator said abused the platform’s dominant position.

A significant penalty was issued before Meta and WhatsApp challenged the ruling at the Supreme Court. The court has now widened the proceedings by adding the IT ministry and has asked Meta to provide detailed answers before the next hearing on 9 February.

WhatsApp is also under heightened scrutiny worldwide as regulators examine how encrypted platforms analyse metadata and other signals.

In India, broader regulatory changes, such as new SIM-binding rules, could restrict how small businesses use the service rather than broadening its commercial reach.

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Ofcom expands scrutiny of X over Grok deepfake concerns

The British regulator, Ofcom, has released an update on its investigation into X after reports that the Grok chatbot had generated sexual deepfakes of real people, including minors.

As such, the regulator initiated a formal inquiry to assess whether X took adequate steps to manage the spread of such material and to remove it swiftly.

X has since introduced measures to limit the distribution of manipulated images, while the ICO and regulators abroad have opened parallel investigations.

The Online Safety Act does not cover all chatbot services, as regulation depends on whether a system enables user interactions, provides search functionality, or produces pornographic material.

Many AI chatbots fall partly or entirely outside the Act’s scope, limiting regulators’ ability to act when harmful content is created during one-to-one interactions.

Ofcom cannot currently investigate the standalone Grok service for producing illegal images because the Act does not cover that form of generation.

Evidence-gathering from X continues, with legally binding information requests issued to the company. Ofcom will offer X a full opportunity to present representations before any provisional findings are published.

Enforcement actions take several months, since regulators must follow strict procedural safeguards to ensure decisions are robust and defensible.

Ofcom added that people who encounter harmful or illegal content online are encouraged to report it directly to the relevant platforms. Incidents involving intimate images can be reported to dedicated services for adults or support schemes for minors.

Material that may constitute child sexual abuse should be reported to the Internet Watch Foundation.

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EU AI Act guidance delay raises compliance uncertainty

The European Commission has missed a key deadline to issue guidance on how companies should classify high-risk AI systems under the EU AI Act, fuelling uncertainty around the landmark law’s implementation.

Guidance on Article 6, which defines high-risk AI systems and stricter compliance rules, was due by early February. Officials have indicated that feedback is still being integrated, with a revised draft expected later this month and final adoption potentially slipping to spring.

The delay follows warnings that regulators and businesses are unprepared for the act’s most complex rules, due to apply from August. Brussels has suggested delaying high-risk obligations under its Digital Omnibus package, citing unfinished standards and the need for legal clarity.

Industry groups want enforcement delayed until guidance and standards are finalised, while some lawmakers warn repeated slippage could undermine confidence in the AI Act. Critics warn further changes could deepen uncertainty if proposed revisions fail or disrupt existing timelines.

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