Competition regulation Archives | Page 8 of 116

ECB reports minor impact of AI on employment

AI has so far had only a small effect on employment across Europe, according to economists at the European Central Bank. A comparison of 5,000 firms- both AI users and non-users- showed no significant difference in job creation or reduction.

Some firms that use AI intensively were even four percent more likely to hire new staff than average.

Economists noted that AI investment has not replaced existing jobs. In some cases, firms are hiring additional employees to develop and implement AI systems or to scale up operations more efficiently.

Only a minority of firms, around 15 percent, reported reducing labour costs as a motivation for AI adoption.

Despite limited impacts so far, the ECB cautioned that AI could have more significant effects as technology matures. Firms that specifically invest in AI to cut jobs may indeed reduce employment, and the long-term consequences for production processes and labour markets remain uncertain.

The findings come amid rising concern over AI-driven job losses, with companies such as Amazon and Allianz citing AI as a reason for recent cuts. Markets reacted negatively last week after a viral post predicted widespread layoffs, though current evidence shows only minor effects.

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EU considers placing Roblox under strict Digital Services Act rules

European regulators are examining whether Roblox should fall under the Digital Services Act’s most stringent obligations rather than remain outside the bloc’s most demanding platform rules.

The European Commission began analysing the gaming platform’s reported user figures after the company disclosed roughly 48 million monthly users across the EU.

Numbers above the threshold could qualify Roblox as a Very Large Online Platform under the DSA. Such a designation would mark the first time a gaming platform enters the category alongside social media services already subject to heightened oversight.

Platforms receiving the label must conduct regular risk assessments, submit mitigation reports and demonstrate stronger safeguards for minors.

Regulatory pressure has already begun at the national level. The Dutch Authority for Consumers and Markets launched an investigation in January after concerns that children could encounter violent or sexually explicit content within Roblox games or interact with harmful actors through online features.

Designation at the EU level would transfer supervisory authority to the European Commission, enabling wider investigations and potential fines if violations occur. Officials are still verifying user data before making a formal decision, and no deadline has been announced for the process.

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Crypto exchanges face strict 2027 reserve rules under new Brazil framework

Brazil’s central bank has introduced a regulatory framework requiring licensed crypto exchanges to prove asset sufficiency daily starting on 1 January 2027. The measures align digital asset intermediaries with banking standards on capital management, accounting, and data protection.

Under the rules, exchanges must submit daily attestations confirming that platforms hold adequate fiat and token reserves. Supervisors will review the reports to ensure companies can cover operational, liquidity, and cybersecurity risks while protecting customer balances.

The framework also mandates strict segregation of company and client assets. Exchanges must maintain separate accounts for customer fiat and digital holdings to prevent commingling of funds and improve transparency for regulators.

Platforms operating in Brazil will also be required to follow a specialised accounting manual for digital assets. Standardised rules for classification, valuation, and impairment aim to ensure financial statements clearly reflect exposures across regulated entities.

Authorities will expand oversight of cross-border transfers handled by domestic crypto exchanges. Platforms must report the origins of transactions and the blockchain pathways they follow. The central bank said the framework aims to strengthen resilience and protect customer funds.

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Ripple expands stablecoin platform for global payments

The money-movement solution Ripple Payments has been expanded to integrate both traditional and digital payment rails. The upgrade strengthens its enterprise-grade platform, enabling custody, collections, and liquidity management while supporting global fintech expansion.

The company emphasised that the platform now processes fiat currencies and stablecoins on a single infrastructure.

Operating in more than 60 major markets, Ripple supports corporate on-chain treasury operations through managed custody and virtual account capabilities.

Recent acquisitions of Palisade and Rail have enhanced custody, treasury automation, virtual accounts, and collections, allowing firms to collect, hold, exchange, and pay out both fiat and stablecoins seamlessly.

The expanded platform offers named virtual accounts and wallet issuance, automated collection flows, fund exchange, and settlement functions. Managed custody supports large-scale wallet issuance, fast transaction signing, and transfers to operating accounts.

Companies can collect fiat and stablecoins in integrated accounts with automated FX conversion and settlement. Ripple highlighted its liquidity management expertise, enabling clients to deploy corporate assets optimally.

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EU pushes federated cloud plan to reduce dependence on foreign tech

Europe is building a federated cloud and AI infrastructure intended to reduce reliance on US and Chinese technology providers and avoid ongoing strategic vulnerability.

The project, known as EURO-3C, was announced in Barcelona by Telefónica and is backed by the European Commission. More than seventy organisations across telecommunications, technology and emerging companies have joined the effort.

Architects of the scheme argue that linking national infrastructures into a shared network of nodes offers a realistic path forward, particularly as Europe cannot easily create a hyperscale cloud provider from scratch.

The initiative follows a series of US cloud outages that exposed the risks of excessive dependence on external infrastructure and raised questions about sovereignty, resilience and long-term competitiveness.

Commission officials described the programme as a way to build a secure cross-border digital ecosystem that supports industries such as automotive, e-health, public administration and sovereign government cloud.

Telefónica stressed that agentic AI, capable of taking autonomous actions, will play a central role in enabling Europe to develop technology rather than import it.

The partners view the project as a foundation for a unified and independent digital environment that strengthens industrial supply chains and prepares European sectors for the next phase of cloud and AI adoption.

They present the initiative as a significant step toward reducing strategic exposure while stimulating domestic innovation.

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Parliament deadlock leaves EU chat-scanning extension in doubt

The civil liberties committee failed to secure majority backing for its amended report on extending the EU’s temporary chat-scanning rules instead of giving a clear negotiating position.

Members of Parliament reviewed the amendments on Monday, but the final text did not garner sufficient support, leaving the proposal without endorsement as the adoption deadline approaches.

A proposal to extend the current derogation that allows tech companies to voluntarily scan their services for Child Sexual Abuse Material (CSAM).

The existing regime expires in April 2026 and was intended only as a stopgap while a permanent Child Sexual Abuse Regulation was developed. Years of stalled negotiations have led to the temporary rules being extended twice since 2021.

Council has already approved its position without changes to the Commission proposal, creating a tight timeline for Parliament.

With trilogue talks finally underway, institutions would need to conclude discussions unusually quickly to prevent the legal basis from expiring. If no agreement is reached by April, companies would lose their ability to scan services under the EU law.

The committee confirmed that the file will now move to plenary in the week of 9–12 March, where political groups may table new amendments. An outcome that will determine whether the temporary regime remains in place while negotiations on the permanent system continue.

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Free plan users can now transfer data to Claude

Anthropic has enhanced its Claude AI chatbot to make switching from other platforms easier. Users on the free plan can now activate Claude’s memory feature, which allows them to import data from other AI platforms using a new dedicated tool.

The update ensures that users don’t have to start over when transferring context and history from competitors like OpenAI’s ChatGPT or Google’s Gemini.

The memory import option, first introduced in October for paid subscribers, now appears under ‘settings’ → ‘capabilities’ for all users. The tool lets users copy a prompt from their previous AI and paste the output into Claude, seamlessly transferring past interactions.

The recent popularity of Claude has been driven by tools such as Claude Code and Claude Cowork, as well as the launch of the Opus 4.6 and Sonnet 4.6 models. Upgrades enhance Claude’s coding, spreadsheet, and complex task capabilities, boosting its appeal to new users.

Anthropic’s visibility has also increased amid debates with the Pentagon, as the company refuses to loosen AI safeguards for military use, drawing ‘red lines’ around mass surveillance and autonomous weapons.

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A new bill aims to formalise crypto taxation in Turkey

Turkey’s ruling AK Party has introduced a bill in parliament to formalise cryptocurrency taxation and revise key tax and spending rules. The legislation links crypto taxation to Turkey’s Capital Markets Law and sets a clear framework for digital assets.

Under the proposal, regulated crypto platforms would withhold a 10% tax on gains quarterly, applicable to both individuals and companies, residents and non-residents. Transaction service providers are subject to a 0.03% tax, and investors on unlicensed platforms must declare gains annually.

The president would have the authority to adjust the withholding tax between 0% and 20%, depending on factors such as token type, holding period, issuer, or wallet type. Exemptions include VAT-free crypto deliveries and corporate tax changes for foundation university hospitals from 2027.

If approved, the crypto taxation provisions would take effect two months after publication, signalling Turkey’s first formal steps to regulate digital assets and integrate them into the national tax system.

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Claude AI experiences temporary global outage

Anthropic’s AI chatbot, Claude, experienced a global outage, leaving users unable to access the platform. Visitors reported error messages indicating the system had broken down, though the company said it was working to resolve the issue.

The Claude API, used by other websites to integrate the chatbot, remained operational. Anthropic confirmed that the outage was limited to the Claude web interface and did not affect other integrations, emphasising that engineers were actively resolving the issue.

The outage, tracked by Down Detector, began around noon in the UK and affected users worldwide. Messages on the platform reassured users that Claude would return soon and that the problem had been identified and was being fixed.

The interruption comes at a sensitive time for Anthropic, as the company navigates heightened attention surrounding access to its Claude AI system. The situation unfolds amid broader discussions about the role of advanced AI tools in defence contexts, with industry players facing increasing scrutiny over their policies and partnerships.

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Amazon commits €33.7 billion to expand Spain cloud footprint

A €33.7 billion investment in Spain to expand cloud and AI infrastructure marks the most significant technology commitment in the country’s history, as Amazon confirms its major expansion plan.

Announced at MWC26 Barcelona, the package adds €18 billion to funding revealed in 2024 and strengthens the Amazon Web Services (AWS) Europe region based in Aragón.

Total investment in the AWS Europe (Spain) Region is expected to add €31.7 billion to GDP by 2035 and support around 29,900 jobs annually. About 6,700 direct roles stem from Amazon operations, with additional jobs created in construction, logistics, and supply chains.

New manufacturing and fulfilment facilities in Aragón are expected to create about 1,800 additional jobs, including a dedicated AI and machine learning server plant.

Since entering Spain in 2011, Amazon has invested more than €20 billion across retail, logistics, and cloud services. The Amazon Web Services region, launched in 2022, is accelerating AI adoption across Europe, including among Telefónica and BBVA.

A further €30 million will be allocated to community initiatives through 2035, focused on education, sustainability, and local development. Renewable energy projects, including 100 solar and wind sites, support operations and a net-zero carbon goal by 2040, establishing Aragón as a growing European digital hub.

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