Competition regulation

UK sets course for comprehensive crypto regulation

The UK government has announced plans to bring cryptoassets firmly within the regulatory perimeter, aiming to support innovation while strengthening consumer protection and attracting long-term investment into the sector.

From 2027, cryptoasset firms will be regulated by the Financial Conduct Authority under rules similar to those governing traditional financial products, such as stocks and shares. The move is intended to provide legal clarity and increase confidence among consumers and businesses.

Ministers say that proportionate regulation will support innovation, ensure competitive markets, and strengthen the UK’s position as a global hub for digital assets. Enhanced oversight will boost transparency, aid sanctions enforcement, and help detect and tackle illicit activity.

The initiative forms part of a broader strategy to shape global crypto standards, including ongoing cooperation with the United States through the Transatlantic Taskforce, as the UK seeks to secure its role in the future of digital finance.

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Streaming platforms face pressure over AI-generated music

Musicians are raising the alarm over AI-generated tracks appearing on their profiles without consent, presenting fraudulent work as their own. British folk artist Emily Portman discovered an AI-generated album, Orca, on Spotify and Apple Music, which copied her folk style and lyrics.

Fans initially congratulated her on a release she had not made since 2022.

Australian musician Paul Bender reported a similar experience, with four ‘bizarrely bad’ AI tracks appearing under his band, The Sweet Enoughs. Both artists said that weak distributor security allows scammers to easily upload content, calling it ‘the easiest scam in the world.’

A petition launched by Bender garnered tens of thousands of signatures, urging platforms to strengthen their protections.

AI-generated music has become increasingly sophisticated, making it nearly impossible for listeners to distinguish from genuine tracks. While revenues from such fraudulent streams are low individually, bots and repeated listening can significantly increase payouts.

Industry representatives note that the primary motive is to collect royalties from unsuspecting users.

Despite the threat of impersonation, Portman is continuing her creative work, emphasising human collaboration and authentic artistry. Spotify and Apple Music have pledged to collaborate with distributors to enhance the detection and prevention of AI-generated fraud.

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Indonesia fines Platform X for pornographic content violations

Platform X has paid an administrative fine of nearly Rp80 million after failing to meet Indonesia’s content moderation requirements related to pornographic material, according to the country’s digital regulator.

The Ministry of Communication and Digital Affairs said the payment was made on 12 December 2025, after a third warning letter and further exchanges with the company. Officials confirmed that Platform X appointed a representative to complete the process, who is based in Singapore.

The regulator welcomed the company’s compliance, framing the payment as a demonstration of responsibility by an electronic system operator under Indonesian law. Authorities said the move supports efforts to keep the national digital space safe, healthy, and productive.

All funds were processed through official channels and transferred directly to the state treasury managed by the Ministry of Finance, in line with existing regulations, the ministry said.

Officials said enforcement actions against domestic and global platforms, including those operating from regional hubs such as Singapore, remain a priority. The measures aim to protect children and vulnerable groups and encourage stronger content moderation and communication.

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Europe risks falling behind without telecom scale, Telefónica says

Telefónica has called for a shift in Europe’s telecommunications policy, arguing that market fragmentation is undermining investment, digital competitiveness, and the continent’s technological sovereignty, according to a new blog post from the company.

In the post, Telefónica says Europe’s emphasis on maximising retail competition has produced a highly fragmented operator landscape. It cites industry data showing the average European operator serves around five million customers, far fewer than peers in the United States or China.

The company argues that this lack of scale explains Europe’s lower per-capita investment in telecoms infrastructure and is slowing the rollout of technologies such as standalone 5G, fibre networks, and sovereign cloud and AI platforms.

Telefónica points to recent reports by Mario Draghi and Enrico Letta as signs of a policy shift, with EU institutions placing greater weight on investment capacity, resilience, and dynamic efficiency alongside traditional competition objectives.

The blog post concludes that Europe faces a strategic choice between preserving fragmented markets or enabling responsible consolidation. Telefónica says carefully regulated mergers could support sustainability, reduce regional digital divides, and strengthen Europe’s digital infrastructure.

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EU moves to tax low-value e-commerce parcels

The European Commission welcomed the decision by EU Member States to introduce a €3 customs duty on low-value e-commerce parcels arriving from third countries.

A measure, which enters into force in July 2026, that applies to items valued below €150 and aims to restore fair competition instead of allowing online imports to benefit from longstanding exemptions.

The move responds to the rapid growth of cross-border e-commerce shipments and will operate as a temporary solution until the EU Customs Data Hub becomes fully operational in 2028.

Until then, the Council and the Commission will coordinate legal changes and IT systems to ensure smooth implementation and effective customs supervision across the Union.

Once the Customs Data Hub is in place, a permanent customs duty regime will replace the temporary measure, offering authorities a comprehensive view of goods entering and leaving the EU.

The €3 duty applies only to parcels sent directly to consumers and remains separate from ongoing negotiations on a handling fee intended to offset the rising operational costs faced by customs authorities.

The reform builds on earlier Commission proposals to remove duty exemptions for low-value parcels and forms part of the most extensive overhaul of EU customs rules in decades.

European institutions argue that modernised customs controls are essential instead of relying on outdated frameworks, particularly as global e-commerce volumes continue to expand.

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Mercedes-Benz proposes new supervisory board members

Mercedes-Benz will propose Katharina Beumelburg and Rashmi Misra for election to its supervisory board at the annual general meeting on 16 April 2026. The appointments aim to strengthen the board’s focus on sustainability and AI, areas deemed vital for the company’s future.

Beumelburg serves as Chief Sustainability and New Technologies Officer at Heidelberg Materials, overseeing global decarbonisation initiatives. She has over 20 years’ experience in sustainability and industrial transformation, previously holding senior roles at SLB, Siemens, and Siemens Energy.

Misra brings extensive expertise in AI and data platforms. She was Chief AI Officer at Analog Devices, leading the global AI strategy and developing AI-powered sensing technologies, and previously spent more than six years at Microsoft as Vice President of AI, Data and Emerging Technologies.

Dame Polly Courtice and Prof Dr Helene Svahn will step down at the close of the AGM. Chairman Martin Brudermüller said the two new nominees are internationally recognised leaders whose expertise will support Mercedes-Benz’s strategic focus on key future technologies.

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YouTube offers creators payments in PayPal stablecoin

YouTube has introduced a new payment option for US-based creators, allowing them to receive earnings in PayPal’s stablecoin, PYUSD. The move adds another major tech company experimenting with crypto-linked payments, while simplifying the process for content creators.

PayPal manages the conversion and custody of the stablecoin, meaning YouTube does not directly handle any crypto. The feature uses YouTube’s existing payout system and follows PayPal’s broader PYUSD rollout earlier this year.

Stablecoins have gained attention among tech firms following the signing of the GENIUS Act in July 2025, which provides a federal framework for these assets. Stripe and Google are exploring stablecoins for faster settlements, reflecting rising interest in regulated digital payments.

PYUSD, which reached a market capitalisation of nearly $4 billion, is already integrated into several PayPal products, including Venmo and merchant tools. For now, the payout option is limited to US creators, with no timeline announced for expansion to other regions.

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EU tightens customs rules on low-cost e-commerce parcels

EU member states have agreed to introduce a €3 customs duty on low-value e-commerce parcels entering the bloc, marking a significant shift in how online imports are taxed. The new duty will apply to individual items worth less than €150 that are shipped directly to the EU consumers from non-EU countries and is set to take effect in July 2026.

The European Commission says the measure responds to the rapid growth of e-commerce imports and aims to level the playing field between online sellers based outside the EU and European retailers, which are already subject to customs duties and other costs. The duty is designed as a temporary solution ahead of broader reforms of the EU customs system.

The interim regime will remain in place until the planned EU Customs Data Hub becomes operational in 2028. Once established, the hub is expected to provide customs authorities with a comprehensive, real-time overview of goods entering and leaving the EU, allowing for a permanent and more integrated customs duty framework for e-commerce.

The €3 customs duty is separate from a proposed EU-wide handling fee on e-commerce parcels, which is still under negotiation. While the duty addresses competitive imbalances, the handling fee would compensate customs authorities for the rising costs of supervising the growing volume of small parcels.

Under current plans, the fee could take effect later in 2026, pending an agreement between the EU institutions.

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OpenAI launches GPT‑5.2 for professional knowledge work

OpenAI has introduced GPT‑5.2, its most advanced model series to date, designed to enhance professional knowledge work. Users report significant time savings, with daily reductions of 40-60 minutes and more than 10 hours per week for heavy users.

The new model excels at generating spreadsheets, presentations, and code, while also handling complex, multi-step projects with improved speed and accuracy.

Performance benchmarks show GPT‑5.2 surpasses industry professionals on GDPval tasks across 44 occupations, producing outputs over eleven times faster and at a fraction of the cost.

Coding abilities have also reached a new standard, encompassing debugging, refactoring, front-end UI work, and multi-language software engineering tasks, providing engineers with a more reliable daily assistant.

GPT‑5.2 Thinking improves long-context reasoning, vision, and tool-calling capabilities. It accurately interprets long documents, charts, and graphical interfaces while coordinating multi-agent workflows.

The model also demonstrates enhanced factual accuracy and fewer hallucinations, making it more dependable for research, analysis, and decision-making.

The rollout includes ChatGPT Instant, Thinking, and Pro plans, as well as API access for developers. Early tests show GPT‑5.2 accelerates research, solves complex problems, and improves professional workflows, setting a new benchmark for real-world AI tasks.

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Seven teams advance in XPRIZE contest backed by Google

XPRIZE has named seven finalist teams in its three-year, $5 million Quantum Applications competition, a global challenge backed by Google Quantum AI, Google.org, and GESDA to accelerate real-world quantum computing use cases.

Selected from 133 submissions, the finalists are developing quantum algorithms that could outperform classical systems on practical tasks linked to sustainability, science, and industry. They will share a $1 million prize at this stage, ahead of a $4 million award pool in 2027.

Google says the competition supports its goal of finding concrete problems where quantum systems can beat leading classical methods. The finalists span materials science, chemistry, optimisation, and biomedical modelling, showing growing momentum behind application-driven research.

The teams include Calbee Quantum, Gibbs Samplers, Phasecraft’s materials group, QuMIT, Xanadu, Q4Proteins, and QuantumForGraphproblem, each proposing algorithms with potential impact ranging from clean-energy materials and advanced semiconductors to drug discovery and molecular analysis.

Finalists now proceed to Phase II, which focuses on benchmarking against classical tools, assessing feasibility, and demonstrating pathways to real-world advantage. A wildcard round in 2026 will offer re-entry for other teams.

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