Competition regulation Archives | Page 2 of 119

Financial institutions adopt stricter monitoring than crypto exchanges

A Chainalysis analysis of crypto compliance monitoring shows that transaction surveillance standards across financial institutions and crypto firms have tightened significantly since 2020.

The report says nearly half of organisations onboarded in 2026 now operate at alerting standards that would have placed them among the top 10% for alerting strictness in 2020. Chainalysis said newer entrants are launching with more aggressive Know Your Transaction monitoring configurations, reflecting the maturation of digital asset compliance frameworks.

According to the analysis, traditional financial institutions generally apply stricter detection thresholds than crypto exchanges. Financial institutions set lower dollar-detection floors for both illicit and non-illicit categories, meaning they are alerted for smaller sums and apply a more conservative monitoring approach.

The gap is particularly visible in indirect exposure to non-illicit flows. Chainalysis said crypto exchanges set average alerting minimums of USD 950, compared with USD 150 for traditional financial institutions. For illicit funds, both groups apply tighter thresholds, with exchanges setting alerts from USD 100 and financial institutions from USD 55.

The report also highlights a persistent gap between direct and indirect exposure monitoring. Direct exposure refers to funds arriving immediately from a known illicit source, while indirect exposure covers funds that pass through intermediary addresses before arriving at the final destination. Chainalysis said direct monitoring has become more standardised, but indirect exposure thresholds often remain 10 to 20 times higher than direct thresholds in categories such as ransomware, fraud shops, scams, darknet markets, and sanctioned jurisdictions.

Regional differences also remain. Chainalysis said direct exposure monitoring is broadly uniform across regions, while indirect exposure thresholds vary more significantly. EMEA organisations generally apply the strictest and most concentrated thresholds, while APAC organisations show more lenient and varied configurations.

Chainalysis said the findings show a compliance sector in transition, with stronger direct exposure monitoring but continuing inconsistency in how organisations treat indirect risk.

Why does it matter?

The findings point to a maturing crypto compliance environment, especially as traditional financial institutions expand into digital assets. However, the persistent gap in indirect exposure shows that illicit actors may still find room to exploit inconsistent monitoring practices. As funds move through intermediary wallets and cross-regional networks, calibration of indirect risk controls is becoming a key issue for regulatory defensibility, counterparty due diligence, and institutional trust in digital asset markets.

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European Union reviews platform power in third annual Digital Markets Act report

The European Commission has published its first formal review of the Digital Markets Act, assessing how the regulation is affecting large online platforms and digital market competition across the European Union.

The review says the DMA has already produced visible changes in some areas, including greater user choice through third-party app stores and prompts allowing users to select browsers or search engines. However, it also points to continuing challenges in implementation and enforcement.

Enforcement has become a central part of the assessment. In April 2025, Apple was fined €500 million for blocking developers from directing users to cheaper purchasing options, while Meta was fined €200 million over its ‘consent or pay’ model. Both companies are appealing the decisions.

The Commission also highlighted ongoing compliance and procedural difficulties. According to the review, investigations are taking around twice as long as the 12-month target, while legal procedures are being used to slow compliance.

The assessment raises broader questions about whether the DMA should eventually cover fast-growing areas such as AI tools and cloud platforms. The review presents the regulation as an evolving framework whose long-term impact will depend on consistent enforcement and adaptation to new market realities.

Why does it matter?

The review indicates that the Digital Markets Act is transitioning from establishing rules to a more challenging phase of enforcement. Initial changes suggest that the law is starting to influence the behaviour of platforms. However, delays, appeals, and uncertainties regarding AI and cloud services demonstrate that the European Union’s digital competition framework will need to continuously adapt as the power of platforms shifts into new areas of the digital economy.

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UK expands regulatory and infrastructure plans for digital finance

The Bank of England plans to publish draft rules for systemic stablecoins in June, as part of the UK’s broader digital asset regulatory framework.

Deputy Governor Sarah Breeden outlined the plans during the City Week conference in London.

According to officials, regulators are reviewing earlier proposals following industry feedback related to compliance and market impact. The proposals may include limits on overall stablecoin issuance and requirements for banks issuing stablecoins through separate legal entities.

Authorities are also considering branding requirements intended to distinguish stablecoins from insured bank deposits.

Breeden also referred to growing institutional interest in tokenised financial markets and distributed ledger-based settlement systems.

Several financial institutions, including HSBC, Euroclear, and London Stock Exchange Group, are expected to participate in the UK’s digital securities sandbox later this year.

Alongside private-sector initiatives, the Bank of England is also upgrading its Real-Time Gross Settlement infrastructure and exploring pilot projects involving tokenised government debt instruments. Authorities additionally aim to extend settlement operating hours toward near-continuous availability by the early 2030s.

Why does it matter?

The UK’s push to regulate stablecoins and support tokenized finance highlights how major economies are increasingly competing to become leading hubs for digital financial innovation.

Decisions taken by the Bank of England could influence how traditional banking, payments, and capital markets evolve globally as governments and institutions move toward blockchain-based financial infrastructure.

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Canada advances 5G expansion with new spectrum and tower infrastructure reforms

Canada has announced measures to strengthen wireless connectivity, expand 5G infrastructure and accelerate the deployment of next-generation telecommunications technologies.

The government confirmed the rules for a planned 2027 millimetre-wave spectrum auction in the 26 GHz and 38 GHz bands. The auction will make 4.8 GHz of spectrum available to support advanced 5G applications and future 6G technologies. An additional 850 MHz of spectrum in the 26 GHz band will be made available through a future non-competitive licensing process.

The auction framework includes spectrum caps intended to ensure that several operators can access spectrum in each area. It also introduces smaller licensing areas, allowing operators to target spectrum access according to regional and business needs.

Alongside the spectrum measures, the government is proposing reforms to modernise Canada’s wireless tower-siting process. Planned changes include a standardised digital approval process and a publicly accessible online portal for applications and consultations. The reforms are intended to reduce administrative burden, improve transparency and support faster infrastructure deployment.

Minister of Industry Mélanie Joly said reliable and affordable connectivity is essential for economic growth, public safety and quality of life. The government said faster and more efficient infrastructure approvals would support competition, innovation and expanded wireless coverage across the country.

Officials also noted that millimetre wave spectrum can carry large amounts of data over short distances, supporting applications such as industrial automation, smart agriculture, private networks and fixed wireless services in rural and remote communities.

Why does it matter?

The announcement shows how 5G and future 6G planning increasingly depend on both spectrum policy and infrastructure deployment rules. By combining new mmWave spectrum with tower-siting reforms, Canada is trying to increase wireless capacity, reduce rollout delays and support data-intensive applications in industry, agriculture, private networks and rural connectivity.

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European Commission launches copyright consultation focused on AI

The European Commission has launched a call for evidence to gather views on whether EU copyright rules should be modernised in response to changes in the digital economy, including challenges linked to generative AI.

The consultation will assess the practical impact and effectiveness of the 2019 Directive on Copyright in the Digital Single Market, which updated EU rules on the use of copyright-protected content across digital platforms and online services. The Commission will examine whether the directive has facilitated the use of protected content in digital environments, improved licensing practices and supported a fairer copyright marketplace.

Rapid technological and market developments are reshaping the creative economy, with the Commission seeking views on how generative AI affects licensing, enforcement and the use of protected works. The review also covers online piracy, particularly of live events, remuneration for performers and producers of recorded music played in the EU, and access to and re-use of works for research purposes.

The call for evidence is open until 25 June and invites contributions from relevant stakeholders on both the review of the 2019 directive and a possible targeted legislative initiative on copyright. The process will be supported by an external study and a stakeholder survey.

Why does it matter?

Generative AI has intensified long-running copyright tensions between technology developers, creators, publishers and platforms. The consultation could influence how the EU approaches licensing, enforcement and the use of protected works in AI systems, while also shaping wider debates on creator remuneration and digital rights in Europe’s creative economy.

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OECD paper examines competition effects of AI adoption in downstream markets

The OECD has published a competition policy paper examining how AI adoption, including generative and agentic systems, may affect competition in downstream markets.

The paper focuses on how firms use AI as an input into production, service delivery, logistics, and customer engagement, rather than on competition in AI infrastructure or foundation model development. The paper states that AI may support competition by lowering barriers to entry, reducing minimum efficient scale, and supporting product differentiation and innovation.

Generative AI can automate or accelerate cognitive tasks such as writing, coding, summarisation, translation, planning, image generation, and customer support. According to the paper, these tools may allow smaller firms and start-ups to operate with lower staffing and operational costs.

The paper identifies potential gains from AI-enabled personalisation, predictive analytics, and cost reduction. AI tools can help firms offer tailored services, reduce operating costs, and improve matching between consumers and suppliers.

The OECD said the effects of AI adoption may vary depending on factors such as firm size, sector exposure, access to data, and computing resources. Adoption costs, integration challenges, access to data and compute, firm size, and sector exposure can all shape whether AI strengthens competition or reinforces existing market advantages.

The paper identifies competition concerns, including algorithmic collusion, personalised pricing, bundling, and dependence on large model providers or cloud platforms. It also warns that dependence on a small number of model providers, cloud platforms, or proprietary data sources could limit downstream contestability.

The paper describes agentic AI as an emerging issue for competition authorities. Systems made up of multiple coordinated AI agents could reshape search, workflow automation, customer engagement, and consumer choice, while raising new questions about liability, auditability, oversight, and market structure.

The OECD said competition authorities may require a combination of enforcement, market monitoring, regulation, and cooperation to address AI-related market developments. It also identifies areas for further research, including sector-specific impacts in health, finance, professional services, platform services, search, logistics, and creative industries.

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CMA opens Strategic Market Status investigation into Microsoft business software

The UK Competition and Markets Authority has opened a Strategic Market Status investigation into Microsoft’s business software ecosystem, marking another major step in the country’s digital competition regime.

The investigation will examine Microsoft’s position across workplace software products widely used throughout the UK economy, including productivity software, personal computer and server operating systems, database management systems, security software and its growing AI assistant ecosystem, including Copilot. The CMA said more than 15 million commercial users across the UK rely on Microsoft’s software ecosystem.

Regulators will assess whether Microsoft has Strategic Market Status in business software and whether its position may limit customer choice. The CMA said it will examine concerns linked to product bundling, interoperability limits and default settings that could make it harder for businesses and public-sector organisations to switch providers or combine Microsoft tools with competing products.

The authority will also examine how competing AI services can integrate with Microsoft’s business software as workplace tools increasingly incorporate AI and agentic AI functions. The CMA said customers should be able to access software and AI services from a range of suppliers rather than being locked into a single ecosystem.

Cloud competition concerns are also linked to the probe. An SMS designation would allow the CMA to consider targeted interventions related to Microsoft’s software licensing practices, which were previously identified as reducing competition in cloud services.

The CMA will gather evidence from Microsoft, customers, rivals, challenger technology firms and other stakeholders before deciding whether to designate Microsoft with Strategic Market Status. The regulator said the investigation does not assume wrongdoing and that any future interventions would depend on the evidence and relevant legal tests.

Why does it matter?

The investigation shows how digital competition oversight is moving deeper into enterprise software, cloud infrastructure and AI-enabled workplace tools. As products such as Copilot become embedded in systems used by businesses and public services, regulators are increasingly treating interoperability, bundling and switching costs as strategic competition issues rather than narrow technical questions.

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EU Commission reviews Android DMA rules on interoperability

The European Commission is consulting third parties on proposed measures requiring Alphabet to ensure effective interoperability between Google Android and AI services under the Digital Markets Act.

The draft measures focus on AI services’ access to key Android capabilities, including wake-word activation, contextual data, integration with applications, and access to hardware and software resources needed for reliable and responsive services.

The Commission opened proceedings in January 2026 to specify how Alphabet should comply with DMA interoperability obligations for features relevant to AI services. Its proposed measures cover invocation, context, actions on apps and the operating system, access to resources, and general requirements such as free access, documented frameworks and APIs, technical assistance and reporting.

Stakeholders were asked to comment on the effectiveness, completeness, feasibility and implementation timelines of the proposed measures, particularly from the perspective of AI service providers and Android device manufacturers.

Input from Alphabet and interested third parties may lead to adjustments before the Commission adopts a final decision-making the measures legally binding. The Commission is expected to adopt that decision by 27 July 2026.

Why does it matter?

The case shows how the DMA is being applied to the emerging competitive landscape for AI assistants and mobile operating systems. If third-party AI services need access to Android features such as wake words, contextual data, app actions and on-device resources to compete effectively, interoperability rules could shape which AI tools reach users and how much control gatekeepers retain over mobile AI ecosystems.

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European Ombudsman criticises Commission over X risk report access

The European Ombudswoman has criticised the European Commission’s handling of a request for public access to a risk assessment report submitted by social media platform X under the Digital Services Act.

The case concerned a journalist’s request to access X’s 2023 risk assessment report, which large online platforms must provide under the DSA. The Commission refused to assess the report for possible disclosure, arguing that access could undermine X’s commercial interests, an ongoing DSA investigation and an independent audit.

The Ombudswoman found it unreasonable for the Commission to rely on a general presumption of non-disclosure rather than individually assessing the report. She said the circumstances in which the EU courts have allowed such presumptions differ from the rules applying to DSA risk assessment reports.

Although X has since made the report public with redactions, the Ombudswoman recommended that the Commission conduct its own assessment and aim to give the journalist the widest access possible, including potentially to parts redacted by the company. If access is refused for any sections, the Commission must explain why.

The finding of maladministration highlights the importance of transparency in the oversight of very large online platforms under the DSA, particularly where documents are relevant to public scrutiny of platform risk management and regulatory enforcement.

Why does it matter?

The case tests how far transparency obligations around very large online platforms can be limited by broad claims of commercial sensitivity or ongoing investigations. DSA risk assessment reports are central to understanding how platforms identify and manage systemic risks, so access decisions affect public oversight of the EU digital regulation as much as the rights of individual requesters.

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Stablecoin rules updated in revised US Senate proposal

The US Senate Banking Committee has released a revised 309-page draft of the Digital Asset Market Clarity Act ahead of a markup vote, reopening debate on stablecoin rewards, DeFi protections and the regulation of digital asset markets.

The draft, proposed by Committee Chair Tim Scott, seeks to provide a federal framework for digital asset market structure, including provisions on securities innovation, illicit finance, decentralised finance, banking innovation, regulatory sandboxes, software developers and customer protection.

A key section addresses stablecoin rewards. The draft would prohibit digital asset service providers from paying interest or yield on payment stablecoin balances in a way that is economically or functionally equivalent to bank deposit interest. However, it would permit certain activity-based or transaction-based rewards and incentives, provided they are not equivalent to interest or yield on a bank deposit.

The text also includes provisions affecting decentralised finance. It covers rules on non-decentralised finance trading protocols, illicit finance obligations for distributed ledger messaging systems, temporary holds for certain digital asset transactions, voluntary cybersecurity programmes for DeFi trading protocols and studies on digital asset mixers, foreign intermediaries and financial stability risks.

Software developer protections are also included in the draft. The bill contains a dedicated title on protecting software developers and software innovation, including provisions on non-fungible tokens, self-custody and blockchain regulatory certainty.

The draft still faces further negotiation before any final vote. Lawmakers continue to debate the balance between consumer protection, illicit finance controls, innovation, stablecoin incentives and the treatment of decentralised finance. At the same time, the legislation needs to be aligned with other Senate work on digital asset market structure.

Why does it matter?

The revised Clarity Act is another step towards a federal framework for digital asset markets in the United States, with rules that could shape how crypto firms, stablecoin platforms and decentralised finance projects operate. Its provisions on stablecoin rewards, DeFi and software developers show lawmakers trying to balance innovation, consumer protection and oversight in one of the world’s most important financial markets.

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