Competition regulation Archives | Page 2 of 113

Publishers challenge OpenAI over alleged copyright infringement

Legal pressure is increasing on OpenAI as Encyclopaedia Britannica and Merriam-Webster file a lawsuit accusing the company of large-scale copyright violations.

According to the complaint, nearly 100,000 copyrighted articles were allegedly used without authorisation to train large language models. Publishers also argue that AI-generated outputs can reproduce parts of their content, raising concerns about unauthorised distribution.

Additional claims focus on how AI systems retrieve and present information. The lawsuit argues that retrieval-augmented generation tools may rely on proprietary databases, potentially undermining publishers’ business models by reducing traffic to original sources.

Concerns are also raised about inaccurate outputs attributed to publishers, which could affect trust in established information providers. The case highlights ongoing tensions between AI development and intellectual property protections.

Growing legal disputes involving media organisations, including The New York Times, suggest that courts will play a key role in defining how copyrighted material can be used in AI training.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

New licensing rules for crypto platforms in Australia

Australia is advancing plans to regulate digital asset platforms under its financial services framework. The Senate committee recommended passing the Digital Assets Framework Bill 2025, bringing Australia closer to licensing crypto exchanges and tokenisation platforms.

Industry groups have raised concerns about definitions such as ‘digital token’ and ‘factual control.’ Broad wording could inadvertently cover infrastructure providers, including multi-party wallet systems, potentially classifying them as financial service operators.

Ripple Labs emphasised the need for precise language to avoid unintended regulation.

The committee supported the Treasury’s approach while planning to refine technical details through future regulations. Coinbase welcomed the progress but noted ongoing banking challenges for crypto firms.

The bill now proceeds to the Senate for debate and a final vote, which could reshape digital asset operations in Australia.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Britain targets quantum leadership with £1bn investment

UK Secretary of State for Science, Innovation and Technology Liz Kendall has announced a £1bn funding package to boost UK quantum computing and retain domestic talent.

The initiative reflects growing concern over the country’s ability to compete globally, particularly after the US established dominance in AI.

Officials emphasised the need to retain British startups, engineers, and researchers who often relocate abroad in search of better funding and scaling opportunities. The UK produces top talent, but Google and OpenAI own many leading firms.

The investment will support the development of large-scale quantum computers for use across science, industry, and the public sector. Another £1bn will fund real-world use in finance, pharmaceuticals, and energy.

The government aims to build a fully operational domestic quantum system by the early 2030s.

Quantum computing uses qubits that can exist in multiple states simultaneously, enabling far greater computational power than classical systems. Fully fault-tolerant machines are still in development, but the technology could drive advances in drug discovery, materials science, and complex modelling.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

EU reviews X compliance proposal under Digital Services Act

X has submitted a compliance proposal to the European Commission outlining how it intends to modify its blue check verification system following regulatory concerns under the Digital Services Act.

The EU regulators concluded that the platform’s system allowed users to obtain verification simply by paying for a subscription without meaningful identity checks, potentially misleading users about the authenticity of accounts.

The Commission imposed a €120 million fine in December and gave the company 60 working days to propose corrective measures. Officials confirmed that X met the deadline for submitting a plan, which regulators will now assess.

The platform, owned by Elon Musk, must also pay the penalty while the Commission evaluates the proposed changes. The company has challenged the enforcement decision before the EU’s General Court.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

France pushes EU AI gigafactories to support European technology

In the EU, France is calling for planned European AI ‘gigafactories’ to focus on testing and scaling European technologies rather than primarily increasing demand for hardware from companies such as Nvidia.

The large computing facilities are intended to provide the infrastructure needed to train advanced AI systems. However, officials in France argue that the projects should strengthen Europe’s technological capabilities rather than reinforce reliance on foreign suppliers.

Several EU countries, including Poland, Austria and Lithuania, support using the infrastructure to improve Europe’s digital resilience.

The initiative forms part of the European Commission’s wider plans to expand computing capacity and support the development of a stronger European AI ecosystem.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Young investors warned on crypto and AI advice

Australia’s financial regulator has warned young investors to be cautious with social media influencers and AI chatbots. A survey by the Australian Securities and Investments Commission found one in four Gen Z Australians invest in crypto, often guided by online content.

The survey of 1,127 participants aged 18 to 28 showed 63% use social media for financial information, 18% rely on AI platforms, and 30% consult YouTube. AI was the most trusted source at 64%, but over half still trust influencers and social media despite possible misinformation.

ASIC previously issued warnings to 18 influencers suspected of promoting high-risk products without a licence. Commissioner Alan Kirkland said some social media marketing promotes crypto scams or risky super switches that threaten young people’s key assets.

The regulator is also watching AI financial guidance. Personalised advice from unlicensed sources is illegal, and young investors should carefully check sources, especially as crypto exchanges increasingly use AI bots for trading guidance.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Tesla moves to enter the British household electricity market

A licence that would allow Tesla to supply electricity directly to households and businesses across Great Britain has been applied for.

The application was submitted to the national energy regulator Ofgem, which oversees energy suppliers in England, Scotland and Wales.

Approval would enable the company to enter the retail electricity market as early as next year. The service is expected to operate under the brand ‘Tesla Electric’, extending the company’s strategy of combining electric vehicles, battery storage and energy supply into a single ecosystem.

Tesla’s UK energy subsidiary, Tesla Energy Ventures, filed the application through its Manchester-based operation. Regulatory review may take several months, as Ofgem typically requires up to nine months to evaluate electricity supplier licences.

A future electricity offer could primarily target households that already use Tesla technologies, including home batteries and electric vehicle charging systems.

The company sells Powerwall storage batteries in the UK, which allow homeowners to store electricity generated by solar panels or purchased during off-peak hours.

Such systems also allow surplus energy stored in batteries to be sold back to the grid.

Similar services are already available in the US, where Tesla launched a residential electricity supply programme in Texas in 2022.

The expansion into the energy supply market comes amid pressure on Tesla’s automotive business in Europe. Sales of Tesla vehicles in the UK declined significantly during 2025, reducing the company’s share of the national car market.

Diversifying into energy services could therefore represent a broader strategic shift for the company led by Elon Musk. Integrating electricity supply with electric vehicles and home energy systems could allow Tesla to build a more comprehensive energy platform for consumers.

If approved, the initiative would position Tesla as both a technology manufacturer and a direct energy supplier in the British market.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

EU approves signature of global AI framework

The European Parliament has approved the Council of Europe Framework Convention on Artificial Intelligence, the first international legally binding treaty on AI governance.

With 455 votes in favour, 101 against, and 74 abstentions, Parliament endorsed the EU’s signature to embed existing AI legislation in a global framework. The move reinforces the safe and rights-respecting deployment of AI across the EU and worldwide.

The convention sets standards for transparency, documentation, risk management, and oversight, applying to both public authorities and private actors acting on their behalf.

It establishes a global baseline for AI governance while allowing the EU to maintain higher protections under the AI Act, GDPR, and other EU legislation covering product safety, liability, and non-discrimination.

The EU co-rapporteurs highlighted that the agreement demonstrates the EU’s commitment to human-centric AI. By prioritising democracy, accountability, and fundamental rights, the framework aims to ensure AI strengthens open societies while supporting stable economic growth.

Negotiations on the convention began in 2022 with participation from the EU member states, international partners, civil society, academia, and industry. Current signatories include the EU, the UK, Ukraine, Canada, Israel, and the United States, with the convention open to additional global partners.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

DIGITALEUROPE urges changes to EU AI Act rules for industry

European industry representatives are urging policymakers to reconsider parts of the EU AI Act, arguing that the current framework could impose significant compliance costs on companies developing AI tools for industrial and medical technologies.

According to Cecilia Bonfeld-Dahl, director-general of DIGITALEUROPE, manufacturers of high-tech machines, medical devices, and radio equipment are already subject to strict product safety regulations. Adding AI-specific requirements could create unnecessary administrative burdens for companies already heavily regulated. She argues that policymakers should aim for balanced AI regulation that encourages innovation while maintaining safety standards.

Industry groups warn that classifying certain AI systems as high-risk under Annex I of the AI Act could be particularly costly for smaller firms. DIGITALEUROPE estimates that a company with around 50 employees developing an AI-based product could incur initial compliance costs of €320,000 to €600,000, followed by annual expenses of up to €150,000. According to the organisation, such costs could reduce profits significantly and discourage smaller companies from pursuing AI innovation.

Manufacturing and medical technology sectors across Europe employ millions of workers and increasingly rely on AI to improve product performance and safety. Industry representatives argue that many applications, such as AI systems used to enhance industrial equipment safety or improve medical devices, already operate under established regulatory frameworks. These existing frameworks could be adapted rather than introducing additional layers of regulation.

The broader regulatory landscape is also contributing to concerns among technology companies. Over the past six years, the EU has introduced nearly 40 new technology-related regulations, some of which overlap or impose similar compliance requirements. DIGITALEUROPE estimates that compliance with the AI Act could cost companies approximately €3.3 billion annually, while cybersecurity and data-sharing regulations add further financial obligations.

Industry leaders warn that rising compliance costs could affect investment in AI development across Europe. Current estimates suggest that the EU accounts for about 7.5% of global AI investment, significantly behind the United States and China.

DIGITALEUROPE has called on the EU institutions to consider postponing parts of the AI Act’s implementation timeline to allow further discussion on how high-risk AI systems should be defined. Supporters of this approach argue that additional consultation could help ensure the regulatory framework protects consumers while also enabling European companies to compete globally in the rapidly evolving AI sector.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Telegram faces global outages as Russia slows service

Users of the messaging app Telegram have experienced outages in multiple regions over the past 24 hours, with the largest volume of complaints coming from Russia. Reports from the US, UK, Germany, the Netherlands, and Norway suggest the issues could be global.

Difficulties primarily affected the mobile app, with users reporting login issues, messaging delays, and limited access to features. In Russia, outages result from traffic slowdowns by Roskomnadzor, with similar restrictions affecting WhatsApp.

Telegram’s founder, Pavel Durov, has criticised the Russian government’s actions, arguing that authorities aim to push citizens towards a state-controlled alternative, the ‘Max’ messenger.

Despite Telegram overtaking WhatsApp in Russia with over 95 million active users, Max has now surpassed 100 million users, showing the Kremlin’s growing influence over digital communications.

Russian authorities have stated that Telegram must comply with local laws, moderate content, and consider data localisation to avoid further restrictions. Durov has reaffirmed the platform’s commitment to protecting user privacy and upholding freedom of speech.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!