Competition regulation

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.

For more information on these topics, visit diplomacy.edu. 

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.

For more information on these topics, visit diplomacy.edu. 

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.

For more information on these topics, visit diplomacy.edu.

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.

For more information on these topics, visit diplomacy.edu.

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.

For more information on these topics, visit diplomacy.edu.

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.

For more information on these topics, visit diplomacy.edu.

Japan targets Apple and Google with new law

The Japan Fair Trade Commission (JFTC) announced on Monday that it has designated Apple Inc., its Japanese subsidiary iTunes K.K., and Google LLC under the new smartphone software competition promotion law.

The law targets dominant IT companies in the smartphone app market, regulating areas like smartphone operating systems, app stores, web browsing software, and search engines.

The primary aim of the law is to prevent these giants from blocking market entry for other companies or giving preferential treatment to their own services. The law will take full effect in December, with the designated companies required to correct any problematic practices.

Apple will be required to allow other companies into the App Store business instead of monopolising it, fostering price competition. Google will be prohibited from displaying its services in search results instead of favouring them.

In response, both companies expressed concerns, with Apple questioning the impact on user experience and Google vowing to engage in discussions to ensure fairness.

For more information on these topics, visit diplomacy.edu.

MetaAI launches in Europe amid data concerns

Meta has resumed the roll-out of its MetaAI across Europe after halting the launch last year due to regulatory uncertainty.

The Irish Data Protection Commission (DPC) still has questions regarding Meta’s AI tool, particularly in relation to its use of personal data from Facebook and Instagram users to train large language models.

The company has been in discussions with the DPC, but instead of an agreement, it remains under review as the tool continues to roll out.

MetaAI was first introduced in the US in September 2023, followed by India in June 2024, and the UK in October. It enables users to interact with a chat function across Facebook, Instagram, Messenger, and WhatsApp.

However, its expansion in Europe faced delays last summer due to concerns raised by the Irish privacy watchdog.

The company has expressed confidence in its compliance with the EU’s data protection laws and has been transparent with the DPC about its launch. However, failure to comply with the General Data Protection Regulation (GDPR) could lead to significant fines.

Additionally, certain aspects of MetaAI fall under the scope of Europe’s Digital Services Act (DSA), which requires the company to meet specific standards on user safety and transparency.

The European Commission has indicated it is waiting for a risk assessment from Meta to ensure that the tool complies with DSA obligations. While initial elements may not be directly relevant to the DSA, the Commission will continue to monitor the deployment closely.

For more information on these topics, visit diplomacy.edu.

European Commission charges €58.2 million in fees for DSA enforcement

The European Commission has charged the largest online platforms in the EU a total of €58.2 million in supervisory fees for their enforcement under the Digital Services Act (DSA).

These fees, which apply to platforms with over 45 million users per month, aim to fund the Commission’s activities for DSA enforcement, including administrative and human resource costs.

Meta, TikTok, and Google have filed five pending court cases against the fees, challenging the charges.

The DSA, designed to increase platform accountability, became fully applicable in February 2024, and the Commission has designated 25 Very Large Online Platforms, including major players like Amazon and LinkedIn.

During the 2024 period, the Commission launched formal proceedings against several platforms and sent over 100 requests for information.

However, instead of these fees fully covering the Commission’s expenses, they led to a deficit of €514,061. Investigations into platforms like X are ongoing, with transparency issues being a key concern.

For more information on these topics, visit diplomacy.edu.

US robotics firms seek federal support amid China’s rapid growth

Following the US’s first-ever Enterprise Artificial Intelligence Strategy in October 2024, leading robotics companies are urging the government to develop a national robotics strategy and establish a federal office to support the industry.

The push comes as China accelerates its robotics investments, raising concerns about US competitiveness in the global market.

Executives from Tesla, Boston Dynamics, and Agility Robotics showcased their latest innovations on Capitol Hill this week, advocating for policies that bolster domestic production and adoption of robots.

Jeff Cardenas, CEO of Apptronik, highlighted how the United States once led the field but lost ground to Japan and Europe. Tesla’s Jonathan Chen added that manufacturing at scale remains a key challenge.

The Association for Advanced Automation warned that without strong federal leadership, the US risks falling behind in both robotics and AI. Meanwhile, China continues expanding its robotics sector, with a state-backed fund aiming to attract $138 billion over two decades.

According to the International Federation of Robotics, China now leads in industrial robot usage, with 1.8 million in operation as of 2023.

With global investment in robotics projected to exceed $13 billion by 2025, US industry leaders stress that a national strategy is essential to maintaining a competitive edge.

For more information on these topics, visit diplomacy.edu.