Competition regulation

X faces EU probe over AI data use

Elon Musk’s X platform is under formal investigation by the Irish Data Protection Commission over its alleged use of public posts from EU users to train the Grok AI chatbot.

The probe is centred on whether X Internet Unlimited Company, the platform’s newly renamed Irish entity, has adhered to key GDPR principles while sharing publicly accessible data, like posts and interactions, with its affiliate xAI, which develops the chatbot.

Concerns have grown over the lack of explicit user consent, especially as other tech giants such as Meta signal similar data usage plans.

A move like this is part of a wider regulatory push in the EU to hold AI developers accountable instead of allowing unchecked experimentation. Experts note that many AI firms have deployed tools under a ‘build first, ask later’ mindset, an approach at odds with Europe’s strict data laws.

Should regulators conclude that public data still requires user consent, it could force a dramatic shift in how AI models are developed, not just in Europe but around the world.

Enterprises are now treading carefully. The investigation into X is already affecting AI adoption across the continent, with legal and reputational risks weighing heavily on decision-makers.

In one case, a Nordic bank halted its AI rollout midstream after its legal team couldn’t confirm whether European data had been used without proper disclosure. Instead of pushing ahead, the project was rebuilt using fully documented, EU-based training data.

The consequences could stretch far beyond the EU. Ireland’s probe might become a global benchmark for how governments view user consent in the age of data scraping and machine learning.

Instead of enforcement being region-specific, this investigation could inspire similar actions from regulators in places like Singapore and Canada. As AI continues to evolve, companies may have no choice but to adopt more transparent practices or face a rising tide of legal scrutiny.

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Meta faces landmark antitrust trial

An antitrust trial against Meta commenced in Washington, with the US Federal Trade Commission (FTC) arguing that the company’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were designed to crush competition instead of fostering innovation.

Although the FTC initially approved these deals, it now claims they effectively handed Meta a monopoly. Should the FTC succeed, Meta may be forced to sell off both platforms, a move that would reshape the tech landscape.

Meta has countered by asserting that users have benefited from Instagram’s development under its ownership, instead of being harmed by diminished competition. Legal experts believe the company will focus on consumer outcomes rather than corporate intent.

Nevertheless, statements made by Meta CEO Mark Zuckerberg, such as his remark that it’s ‘better to buy than to compete,’ may prove pivotal. Zuckerberg and former COO Sheryl Sandberg are both expected to testify during the trial, which could span several weeks in the US.

Political tensions loom over the case, which was first launched under Donald Trump’s presidency. Reports suggest Zuckerberg has privately lobbied Trump to drop the lawsuit, while Meta has criticised the FTC’s reversal years after approving the acquisitions.

The recent dismissal of two Democratic commissioners from the FTC by Trump has raised concerns over political interference, especially as the commission now holds a Republican majority.

While the FTC seeks to challenge Meta’s dominance, experts caution that proving harm in this case will be far more difficult than in the ongoing antitrust battle against Google.

Unlike the search engine market, which is clearly monopolised, the social media space remains highly competitive, with platforms like TikTok, YouTube and X offering strong alternatives.

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EU plans new law to tackle online consumer manipulation

The European Commission is preparing to introduce the Digital Fairness Act, a new law that aims to boost consumer protection online instead of adding more regulatory burden on businesses.

Justice Commissioner Michael McGrath described the upcoming legislation as both pro-consumer and pro-business during a speech at the European Retail Innovation Summit, seeking to calm industry concerns about further EU regulation following the Digital Services Act and the Digital Markets Act.

Designed to tackle deceptive practices in the digital space, the law will address issues such as manipulative design tricks known as ‘dark patterns’, influencer marketing, and personalised pricing based on user profiling.

It will also target concerns around addictive service design and virtual currencies in video games—areas where current EU consumer rules fall short. The legislation will be based on last year’s Digital Fairness Fitness Check, which highlighted regulatory gaps in the online marketplace.

McGrath acknowledged the cost of complying with EU-wide consumer protection measures, which can run into millions for businesses.

However, he stressed that the new act would provide legal clarity and ease administrative pressure, particularly for smaller companies, instead of complicating compliance requirements further.

A public consultation will begin in the coming weeks, ahead of a formal legislative proposal expected by mid-2026.

Maria-Myrto Kanellopoulou, head of the Commission’s consumer law unit, promised a thoughtful approach, saying the process would be both careful and thorough to ensure the right balance is struck.

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LMArena tightens rules after Llama 4 incident

Meta has come under scrutiny after submitting a specially tuned version of its Llama 4 AI model to the LMArena leaderboard, sparking concerns about fair competition.

The ‘experimental’ version, dubbed Llama-4-Maverick-03-26-Experimental, ranked second in popularity, trailing only Google’s Gemini-2.5-Pro.

While Meta openly labelled the model as experimental, many users assumed it reflected the public release. Once the official version became available, users quickly noticed it lacked the expressive, emoji-filled responses seen in the leaderboard battles.

LMArena, a crowdsourced platform where users vote on chatbot responses, said Meta’s custom variant appeared optimised for human approval, possibly skewing the results.

The group released over 2,000 head-to-head matchups to back its claims, showing the experimental Llama 4 consistently offered longer, more engaging answers than the more concise public build.

In response, LMArena updated its policies to ensure greater transparency and stated that Meta’s use of the experimental model did not align with expectations for leaderboard submissions.

Meta defended its approach, stating the experimental model was designed to explore chat optimisation and was never hidden. While company executives denied any misconduct, including speculation around training on test data, they acknowledged inconsistent performance across platforms.

Meta’s GenAI chief Ahmad Al-Dahle said it would take time for all public implementations to stabilise and improve. Meanwhile, LMArena plans to upload the official Llama 4 release to its leaderboard for more accurate evaluation going forward.

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Strategy faces potential Bitcoin sale amid mounting financial pressure

Michael Saylor’s firm, Strategy, may be forced to sell part of its Bitcoin reserves to meet mounting financial obligations. A recent filing warned that the company may struggle to meet obligations without new equity or debt funding.

Strategy holds over 528,000 BTC, acquired for more than $35 billion at an average price of $67,458. Despite this, the company expects an unrealised loss of nearly $6 billion in Q1 2025.

With $8 billion in debt, $35 million in annual interest, and $150 million in dividends, the firm faces significant pressure.

In March, Strategy announced plans to raise $2.1 billion through a perpetual preferred stock offering an 8% dividend. It would fund company operations and allow further Bitcoin purchases. Still, its future hinges on Bitcoin’s market performance.

Bitcoin is currently trading around $76,000, down 10% over the week. While Trump’s tariffs have affected market sentiment, analysts suggest Bitcoin could reach $110,000 as global interest rates fall.

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The Trump administration ends the crypto enforcement team

The US Justice Department has officially disbanded its National Cryptocurrency Enforcement Team (NCET). The move signals a significant change in approach under the Trump administration.

Initially formed in 2022 during Biden’s presidency, the team was responsible for investigating crypto-related fraud and financial crimes. Its closure reflects a broader move away from aggressive regulatory enforcement.

Deputy Attorney General Todd Blanche was recently confirmed as the department’s second-in-command. He issued new guidelines directing prosecutors to prioritise cases involving terrorism, drug trafficking, and human trafficking.

Blanche criticised the previous administration’s policy of ‘regulation by prosecution’. He called for charges only where there is clear evidence of intentional legal violations.

The Justice Department will now avoid targeting crypto exchanges, mixers, and digital wallets based on their users’ actions or minor regulatory issues. Agencies such as the SEC have already paused several high-profile cases in response to this shift.

Trump’s support for crypto also extends to personal ties. His family reportedly holds a significant stake in token sales by World Liberty Financial. Trump has also previously launched his digital tokens.

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Anthropic grows its presence in Europe

Anthropic is expanding its operations across Europe, with plans to add over 100 new roles in sales, engineering, research, and business operations. Most of these positions will be based in Dublin and London.

The company has also appointed Guillaume Princen, a former Stripe executive, as its head for Europe, the Middle East, and Africa. This move signals Anthropic’s ambition to strengthen its global presence, particularly in Europe where the demand for enterprise-ready AI tools is rising.

The company’s hiring strategy also reflects a wider trend within the AI industry, with firms like Anthropic competing for global market share after securing significant funding.

The recent $3.5 billion funding round bolsters Anthropic’s position as it seeks to lead the AI race across multiple regions, including the Americas, Europe, and Asia.

Instead of focusing solely on the US, Anthropic’s European push is designed to comply with local AI governance and regulatory standards, which are increasingly important to businesses operating in the region.

Anthropic’s expansion comes at a time when AI firms are facing growing competition from companies like Cohere, which has been positioning itself as a European-compliant alternative.

As the EU continues to shape global AI regulations, Anthropic’s focus on safety and localisation could position it favourably in these highly regulated markets. Analysts suggest that while the US may remain a less regulated environment for AI, the EU is likely to lead global AI policy development in the near future.

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Taiwan warns of economic impact after US tariff decision

The United States has imposed a 32 per cent tariff on Taiwanese exports, with semiconductors notably exempt from the new trade restrictions.

Taiwan, a major supplier of advanced electronics, has strongly condemned the move, calling it unfair and harmful to economic ties. Nearly a quarter of Taiwan’s exports go directly to the United States, with electronic components and consumer devices making up a significant share.

President Donald Trump has previously criticised Taiwan’s dominance in the semiconductor industry and threatened tariffs on the sector. While chips remain untouched for now, industry experts warn that tariffs could still be introduced in the future.

Taiwan Semiconductor Manufacturing Company (TSMC) recently pledged a $100 billion investment in the US to expand its Arizona operations, a move praised by Trump. Other chipmakers, including South Korea’s Samsung and SK Hynix, are also being urged to increase their investments in American facilities.

Government officials and businesses in Taiwan are now working to mitigate the impact of the tariffs. President Lai Ching-te has signalled interest in expanding trade ties with the US, including potential purchases of natural gas.

The Taiwanese government has lodged a formal protest with Washington, arguing that the tariffs undermine economic cooperation. Analysts suggest that Taiwan may have underestimated Trump’s hard-line trade policies, expecting more favourable treatment after recent investment commitments.

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Apple and Samsung brace for impact as US tariffs take effect

US President Donald Trump has announced new import tariffs that could significantly impact smartphone prices and the profit margins of leading manufacturers.

Apple and Samsung, which dominate United States smartphone sales, are particularly vulnerable due to their heavy reliance on production in China and Vietnam. Under the new tariff scheme, China faces a 34 per cent import levy, while Vietnam is subject to a 46 per cent fee.

Industry analysts warn that if the tariffs remain unchanged, consumers will likely see higher prices on smartphones and other electronic devices.

Ben Wood, chief analyst at CCS Insight, noted that Apple and Samsung may attempt to cushion some of the added costs, but this would put pressure on their profit margins.

Foxconn, Apple’s primary manufacturing partner, has been shifting production to India in an effort to reduce reliance on China. However, India is also affected by the tariffs, facing a 26 per cent reciprocal rate.

Samsung faces similar challenges, with limited options to offset the impact of the new tariffs. Even if the company moved all production back to South Korea, it would still be subject to a 25 per cent import duty.

The new tariff measures are expected to have broad implications for the consumer electronics industry, potentially reshaping global supply chains and pricing structures.

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South Korea faces industry pushback on AI Basic Act

Global tech companies, including OpenAI and Google, have urged the South Korean government to take a flexible approach to its upcoming AI regulations.

Representatives from OpenAI, Google, and the Business Software Alliance (BSA) met with the Ministry of Science and ICT to discuss the AI Basic Act, which takes effect in 2026.

The AI Basic Act, passed in December, aims to promote AI development while ensuring safety, making South Korea the second region after the European Union to introduce such legislation.

Tech firms raised concerns over potential regulatory burdens, particularly in defining high-impact applications and operator liability.

South Korean officials are now drafting enforcement ordinances for the new law. Industry representatives have requested a less rigid approach compared with the stricter AI regulations in the EU, hoping to balance innovation with compliance.

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