Competition regulation

The EU Commission hits Apple and Meta with draconian fines

The European Commission has fined tech giants Apple and Meta a combined €700 million, marking the first penalties under the EU’s Digital Markets Act (DMA). 

The act, designed to rein in the dominance of the world’s largest online platforms, targets practices that the EU considers harmful to consumer choice and digital competition.

Apple case

Apple received a €500 million fine for its App Store’s restrictive ‘steering terms,’ which the Commission found fail to allow users to discover better offers on other marketplaces. 

Apple defended its position, calling the EU’s decision an unfair attack on its business model and pledging to appeal.

Meta case

Meta was fined €200 million for its controversial ‘pay or consent’ model introduced on Facebook and Instagram in the EU in late 2023. 

The Commission argued that Meta’s practice of forcing users to accept the combination of their data for targeted advertising breaches privacy rights under the DMA. 

Meta responded sharply, accusing the EU of targeting successful American firms while giving a pass to their European and Chinese counterparts.

Larger context:

The fines come when transatlantic tensions over trade and regulation escalate. 

Although the European Commission insists the sanctions are unrelated to US-EU trade disputes, the White House has previously warned that such actions would face scrutiny and could prompt retaliatory tariffs. 

Both Apple and Meta now have 60 days to comply with the rulings or face additional penalty payments.

Despite the regulatory significance of the decision, the announcement was delivered via press release, with key EU officials overseeing the DMA absent. 

Their absence sparked questions about political coordination and timing, especially given recent US visits by EU leaders and ongoing diplomatic friction over digital regulation.

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OpenAI eyes Chrome in bid to boost ChatGPT

OpenAI has expressed interest in acquiring Google’s Chrome browser if it were to be made available, viewing it as a potential boost for its AI platform, ChatGPT.

The remarks, made by Nick Turley, head of product for ChatGPT, surfaced during the US Department of Justice’s antitrust trial against Google. The case follows a 2023 ruling that found Google had maintained an illegal monopoly in online search and advertising.

Although Google has shown no intention to sell Chrome and plans to appeal, the DoJ has suggested the move as a remedy to restore competition.

Turley disclosed that OpenAI previously approached Google to use its search technology within ChatGPT, after facing limitations with Microsoft Bing, its current provider.

An email from OpenAI presented in court showed the company proposed using multiple partners, including Google’s search API, to improve the chatbot’s performance. Google, however, declined the request, citing fears of empowering rivals.

Turley confirmed there is currently no partnership with Google and noted that ChatGPT remains years away from answering most queries using its own search system.

The testimony also highlighted OpenAI’s distribution challenges. Turley voiced concerns over being shut out of key access points controlled by major tech firms, such as browsers and app stores.

While OpenAI secured integration with Apple’s iPhones, it has struggled to achieve similar placements on Android devices. Turley argued that forcing Google to share search data with competitors could instead speed up ChatGPT’s development and improve user experience.

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ChatGPT search grows rapidly in Europe

ChatGPT search, the web-accessing feature within OpenAI’s chatbot, has seen rapid growth across Europe, attracting an average of 41.3 million monthly active users in the six months leading up to March 31.

It marks a sharp rise from 11.2 million in the previous six-month period, according to a regulatory filing by OpenAI Ireland Limited.

Instead of operating unnoticed, the service must now report this data under the EU’s Digital Services Act (DSA), which defines monthly recipients as users who actively view or interact with the platform.

Should usage cross 45 million, ChatGPT search could be classified as a ‘very large’ online platform and face stricter rules, including transparency obligations, user opt-outs from personalised recommendations, and regular audits.

Failure to follow DSA regulations could lead to serious penalties, up to 6% of OpenAI’s global revenue, or even a temporary ban in the EU for ongoing violations. The law aims to ensure online platforms operate more responsibly and with better oversight in the digital space.

Despite gaining ground, ChatGPT search still lags far behind Google, which handles hundreds of times more queries.

Studies have also raised concerns about the accuracy of AI search tools, with ChatGPT found to misidentify a majority of news articles and occasionally misrepresent licensed content from publishers.

Instead of fully replacing traditional search, these AI tools may still need improvement to become reliable alternatives.

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Japan tells Google to stop Android search dominance

Japanese regulators have accused Google of breaching the country’s anti-monopoly laws by restricting competition through the pre-installation of its search engine on Android smartphones.

The Japan Fair Trade Commission (JFTC) issued a cease and desist order on Tuesday, directing the US tech giant to halt the practice.

Google Japan called the move ‘regrettable’ and emphasised its long-standing investment in Japan to support innovation. The company has not yet indicated whether it will appeal the ruling.

The JFTC’s investigation began in 2023, with input from overseas regulators handling similar concerns in the United States and Europe.

This marks the first time the JFTC has taken such action against a major global technology firm. It follows global scrutiny of Google’s dominance, including a US court ruling last year that found Google had unfairly used its market power to suppress rivals.

European authorities have also raised similar concerns, accusing the company of monopolistic behaviour.

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Seoul unveils $4.9 billion chip support package

South Korea has announced a $4.9 billion boost to its semiconductor industry amid concerns over possible US tariffs targeting key export sectors.

The government plans to increase its total chip support package from $18.2 billion to $23.1 billion, in what officials describe as an urgent effort to shield the economy from intensifying global trade tensions.

President Donald Trump’s threat of a 25 percent tariff on South Korean goods has unsettled markets and raised fears for the country’s vital semiconductor and automotive industries.

Although the United States tariffs were temporarily suspended for 90 days, South Korea’s finance minister Choi Sang-mok said that duties on sectors such as chips and pharmaceuticals still remain a possibility. He urged swift action during what he called a ‘crucial window’ to keep South Korea competitive on the global market.

The expanded investment will fund infrastructure, talent development, and support for new chip clusters currently under construction. The measure is part of a broader $8.4 billion revised supplementary budget that requires approval from the National Assembly.

In addition to the chip support, Seoul has also rolled out a $2 billion emergency package for carmakers facing potential US tariffs, as the country works to navigate growing uncertainty in global trade.

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EU plans major staff boost for digital rules

The European Commission is ramping up enforcement of its Digital Services Act (DSA) by hiring 60 more staff to support ongoing investigations into major tech platforms. Despite beginning probes into companies such as X, Meta, TikTok, AliExpress and Temu since December 2023, none have concluded.

The Commission currently has 127 employees working on the DSA and aims to reach 200 by year’s end. Applications for the new roles, including legal experts, policy officers, and data scientists, remain open until 10 May.

The DSA, which came into full effect in February last year, applies to all online platforms in the EU. However, the 25 largest platforms, those with over 45 million monthly users like Google, Amazon, and Shein, fall under the direct supervision of the Commission instead of national regulators.

The most advanced case is against X, with early findings pointing to a lack of transparency and accountability.

The law has drawn criticism from the current Republican-led US government, which views it as discriminatory. Brendan Carr of the US Federal Communications Commission called the DSA ‘an attack on free speech,’ accusing the EU of unfairly targeting American companies.

In response, EU Tech Commissioner Henna Virkkunen insisted the rules are fair, applying equally to platforms from Europe, the US, and China.

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FTC challenges Meta’s dominance in social media trial

Mark Zuckerberg has defended Meta’s high-profile acquisitions of Instagram and WhatsApp during testimony in a major antitrust trial brought by the US Federal Trade Commission.

On the stand for a second day, the Meta CEO admitted the company could have developed its own rival to Instagram, but noted that building successful apps is extremely difficult.

Emails presented by the FTC showed Zuckerberg expressing concern about Instagram’s rapid growth in 2012 and WhatsApp’s dominance in messaging before both were bought by Meta.

The FTC argues that Meta unfairly stifled competition by acquiring its closest rivals instead of innovating independently. It is pushing for the breakup of Meta, saying that platforms like Instagram might have become major standalone competitors.

Zuckerberg, however, claimed that competition in the social media space remains intense, pointing to platforms such as TikTok, YouTube, and X. He insisted that Instagram was acquired mainly for its advanced camera technology, not to eliminate a competitor.

Emails from 2018 suggest that Zuckerberg anticipated future regulatory scrutiny and even considered the possibility of spinning off the company’s acquisitions.

The antitrust trial, set to last several weeks, will feature testimony from key industry figures including Sheryl Sandberg and Instagram co-founder Kevin Systrom. If the court rules in favour of the FTC, a second phase will determine how to dismantle the alleged monopoly.

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Nvidia hit by the new US export rules

Nvidia is facing fresh US export restrictions on its H20 AI chips, dealing a blow to the company’s operations in China.

In a filing on Tuesday, Nvidia revealed it now needs a licence to export these chips indefinitely, after the US government cited concerns they could be used in a Chinese supercomputer.

The company expects a $5.5 billion charge linked to the controls in its first fiscal quarter of 2026, which ends on 27 April. Shares dropped around 6% in after-hours trading.

The H20 is currently the most advanced AI chip Nvidia can sell to China under existing regulations.

Last week, reports suggested CEO Jensen Huang might have temporarily eased tensions during a dinner at Donald Trump’s Mar-a-Lago resort, by promising investments in US-based AI data centres instead of opposing the rules directly.

Just a day before the filing, Nvidia announced plans to manufacture some chips in the US over the next four years, though the specifics were left vague.

Calls for tighter controls had been building, especially after it emerged that China’s DeepSeek used the H20 to train its R1 model, a system that surprised the US AI sector earlier this year.

Government officials had pushed for action, saying the chip’s capabilities posed a strategic risk. Nvidia declined to comment on the new restrictions.

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Opera brings AI assistant to Opera Mini on Android

Opera, the Norway-based browser maker, has announced the rollout of its AI assistant, Aria, to Opera Mini users on Android. The move represents a strategic effort to bring advanced AI capabilities to users with low-end devices and limited data access, rather than confining such tools to high-spec platforms.

Aria allows users to access up-to-date information, generate images, and learn about a range of topics using a blend of models from OpenAI and Google.

Since its 2005 launch, Opera Mini has been known for saving data during browsing, and Opera claims that the inclusion of Aria won’t compromise that advantage nor increase the app’s size.

It makes the AI assistant more accessible for users in regions where data efficiency is critical, instead of making them choose between smart features and performance.

Opera has long partnered with telecom providers in Africa to offer free data to Opera Mini users. However, last year, it had to end its programme in Kenya due to regulatory restrictions around ads on browser bookmark tiles.

Despite such challenges, Opera Mini has surpassed a billion downloads on Android and now serves more than 100 million users globally.

Alongside this update, Opera continues testing new AI functions, including features that let users manage tabs using natural language and tools that assist with task completion.

An effort like this reflects the company’s ambition to embed AI more deeply into everyday browsing instead of limiting innovation to its main browser.

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Meta to use EU user data for AI training amid scrutiny

Meta Platforms has announced it will begin using public posts, comments, and user interactions with its AI tools to train its AI models in the EU, instead of limiting training data to existing US-based inputs.

The move follows the recent European rollout of Meta AI, which had been delayed since June 2024 due to data privacy concerns raised by regulators. The company said EU users of Facebook and Instagram would receive notifications outlining how their data may be used, along with a link to opt out.

Meta clarified that while questions posed to its AI and public content from adult users may be used, private messages and data from under-18s would be excluded from training.

Instead of expanding quietly, the company is now making its plans public in an attempt to meet the EU’s transparency expectations.

The shift comes after Meta paused its original launch last year at the request of Ireland’s Data Protection Commission, which expressed concerns about using social media content for AI development. The move also drew criticism from advocacy group NOYB, which has urged regulators to intervene more decisively.

Meta joins a growing list of tech firms under scrutiny in Europe. Ireland’s privacy watchdog is already investigating Elon Musk’s X and Google for similar practices involving personal data use in AI model training.

Instead of treating such probes as isolated incidents, the EU appears to be setting a precedent that could reshape how global companies handle user data in AI development.

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