Competition regulation

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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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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