E-commerce and trade

Google avoids breakup as AI reshapes search and threatens e-commerce traffic

The US tech giant Google will not be forced to divest Chrome or Android following the long-running US monopoly case.

Judge Mehta ruled that while Google holds a monopoly in traditional search, the rise of AI companies is creating new competitive pressures.

The judgement prevents Google from striking exclusive distribution deals but still allows it to pay partners for preloading and placement of its products. The court also ordered Google to loosen its control over search data, a move that could enable rivals to build their own AI-driven search tools.

Yet, concerns remain for e-commerce businesses.

Google Zero, the company’s AI-powered search summary, is cutting website traffic by keeping users within Google’s results.

Research shows sharp declines in mobile click-through rates, leaving online retailers uncertain of their future visibility.

Experts warn that zero-click searches are becoming the norm. Businesses are being urged to optimise for Google’s AI overviews, enhance the value of product and review pages, track traffic impacts, and diversify their marketing channels.

While Google has avoided structural remedies, its dominance in search and AI appears far from over.

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AI export rules tighten as the US opens global opportunities

President Trump has signed an Executive Order to promote American leadership in AI exports, marking a significant policy shift. The move creates new global opportunities for US businesses but also introduces stricter compliance responsibilities.

The order establishes the American AI Exports Program, overseen by the Department of Commerce, to develop and deploy ‘full-stack’ AI export packages.

These packages cover everything from chips and cloud infrastructure to AI models and cybersecurity safeguards. Industry consortia will be invited to submit proposals, outlining hardware origins, export targets, business models, and federal support requests.

A central element of the initiative is ensuring compliance with US export control regimes. Companies must align with the Export Control Reform Act and the Export Administration Regulations, with special attention to restrictions on advanced computing chips.

New guidance warns against potential violations linked to hardware and highlights red flags for illegal diversion of sensitive technology.

Commerce stresses that participation requires robust export compliance plans and rigorous end user screening.

Legal teams are urged to review policies on AI exports, as regulators focus on preventing misuse of advanced computing systems in military or weapons programmes abroad.

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Microsoft brings Anthropic AI into Office 365 as OpenAI tensions rise

The US tech giant Microsoft is expanding its AI strategy by integrating Anthropic’s Claude models into Office 365, adding them to apps like Word, Excel and Outlook instead of relying solely on OpenAI.

Internal tests reportedly showed Anthropic’s systems outperforming OpenAI in specific reasoning and data-processing tasks, prompting Microsoft to adopt a hybrid approach while maintaining OpenAI as a frontier partner.

The shift reflects growing strain between Microsoft and OpenAI, with disputes over intellectual property and cloud infrastructure as well as OpenAI’s plans for greater independence.

By diversifying suppliers, Microsoft reduces risks, lowers costs and positions itself to stay competitive while OpenAI prepares for a potential public offering and develops its own data centres.

Anthropic, backed by Amazon and Google, has built its reputation on safety-focused AI, appealing to Microsoft’s enterprise customers wary of regulatory pressures.

Analysts believe the move could accelerate innovation, spark a ‘multi-model era’ of AI integration, and pressure OpenAI to enhance its technology faster.

The decision comes amid Microsoft’s push to broaden its AI ecosystem, including its in-house MAI-1 model and partnerships with firms like DeepSeek.

Regulators are closely monitoring these developments, given Microsoft’s dominant role in AI investment and the potential antitrust implications of its expanding influence.

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Arm unveils Lumex mobile chips built for AI

UK-based chip designer Arm introduced Lumex, a next-generation chip design explicitly designed to power AI on smartphones, smartwatches, and next-generation PCs.

Arm, whose processor architecture underpins devices from Apple and Nvidia, described Lumex as its most advanced platform yet for real-time AI assistance, communication and on-device personalisation.

Arm’s senior vice-president Chris Bergey said consumers now expect instant, private, seamless AI features instead of gradual improvements.

The Lumex platform combines performance, privacy, and efficiency, allowing partners to use the design as delivered or configure it to their own requirements.

A brand that is part of a broader naming structure includes Neoverse for infrastructure, Niva for PCs, Zena for automotive, and Orbis for the internet of things.

Meanwhile, Arm is reportedly preparing to manufacture its chips, having recruited Amazon’s Rami Sinno, who helped build Trainium and Inferentia, to strengthen its in-house ambitions.

These moves mark a significant moment for Arm, as the company seeks to expand its influence in the AI hardware space and reduce reliance on licensing alone.

With the rise of generative AI, the push for high-performance chips designed around on-device intelligence is becoming central to the future of mobile technology.

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Japan and Taiwan deepen semiconductor collaboration beyond business

Experts from Japan and Taiwan have highlighted closer cooperation in semiconductors, stressing that ties extend beyond business into education and research.

At a forum in Taipei, SEMI’s Terry Tsao said Taiwan’s chip design and fabrication expertise complements Japan’s materials and manufacturing equipment strengths. He noted that TSMC’s Kumamoto expansion creates opportunities for talent development in partnership with local schools.

Tsao described Taiwanese growth as a golden semiconductor era, emphasising its success closely tied to Japanese collaboration. He argued that TSMC’s achievements in Japan also represent progress for Japan’s industry.

Kazuhito Hashimoto, head of the Japan Science and Technology Agency, said joint projects with Taiwan’s National Science and Technology Council are underway. He pledged support for expanded research exchanges between the two partners.

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Google boosts Gemini with audio uploads and NotebookLM upgrades

The US tech giant has expanded the capability of its Gemini app by allowing users to upload audio files for AI analysis across Android, iOS, and the web. The upgrade enables transcription of interviews, voice memos and lecture recordings instead of relying solely on typed or spoken prompts.

Free-tier users can upload clips of up to ten minutes with five prompts daily, while paid subscribers have access to three hours of uploads across multiple files. According to Gemini vice president Josh Woodward, the feature is designed to make the platform more versatile and practical for everyday tasks.

Google has also enhanced its Search AI mode with five new languages, including Hindi, Japanese and Korean, extending its multilingual reach.

NotebookLM, the company’s research assistant powered by Gemini, can now generate structured reports such as quizzes, study guides and blog posts from uploaded content, available in more than 80 languages.

These improvements underline Google’s ambition to integrate AI more deeply into everyday applications instead of leaving the technology confined to experimental tools. They also highlight growing competition in the AI market, with Google using Gemini 2.5 to expand its services for global users.

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AI Mode in Google Search adds multilingual support to Hindi and four more languages

Google has announced an expansion of AI Mode in Search to five new languages, including Hindi, Indonesian, Japanese, Korean and Brazilian Portuguese. The feature was first introduced in English in March and aims to compete with AI-powered search platforms such as ChatGPT Search and Perplexity AI.

The company highlighted that building a global search experience requires more than translation. Google’s custom version of Gemini 2.5 uses advanced reasoning and multimodal capabilities to provide locally relevant and useful search results instead of offering generic answers.

AI Mode now also supports agentic tasks such as booking restaurant reservations, with plans to include local service appointments and event ticketing.

Currently, these advanced functions are available to Google AI Ultra subscribers in the US, while India received the rollout of the language expansion in July.

These developments reinforce Google’s strategy to integrate AI deeply into its search ecosystem, enhancing user experience across diverse regions instead of limiting sophisticated AI tools to English-language users.

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Mistral AI pushes growth with new funding and global deals

Founded in 2023 by ex-Google DeepMind and Meta researchers, Mistral has quickly gained global attention with its open-source models and consumer app, which hit one million downloads within two weeks of launch.

Mistral AI is now seeking fresh funding at a reported $14 billion valuation, more than double its worth just a year ago. Its investors include Microsoft, Nvidia, Cisco, and Bpifrance, and it has signed partnerships with AFP, Stellantis, Orange, and France’s army.

Its growing suite of models spans large language, audio, coding, and reasoning systems, while its enterprise tools integrate with services such as Asana and Google Drive. French president Emmanuel Macron has openly endorsed the firm, framing it as a strategic alternative to US dominance in AI.

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European Commission proposes mutual data flow agreement with Brazil

The European Commission has initiated the adoption of a data protection adequacy decision with Brazil, recognising that the country offers a level of data protection comparable to the EU’s General Data Protection Regulation (GDPR).

The agreement will enable seamless data transfers between the EU and Brazil across sectors, including business, government, and research.

This mutual decision marks one of the broadest scopes of data adequacy granted by the EU and is expected to boost economic ties between the two regions, which together serve 670 million consumers, Tech Sovereignty, Security, and Democracy Executive Vice President Henna Virkkunen said.

Brazil is also advancing its adequacy decision to allow data flows to the EU. Virkkunen described Brazil as a ‘natural partner’ and stressed the importance of collaboration amid global uncertainty.

Commissioner Michael McGrath praised Brazil’s privacy framework, emphasising that robust data protection ensures consumer trust, rights, and transparency.

The draft decision will now undergo review by the European Data Protection Board (EDPB) and require approval from the EU member states and scrutiny by the European Parliament.

Once adopted, the adequacy decision will be subject to regular evaluations to ensure continued compliance with the EU standards.

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Mistral secures €1.3B ASML investment amid $14B valuation

ASML has reportedly become the top shareholder in French AI company Mistral after investing €1.3 billion. The deal forms part of a wider €2 billion funding round that values Mistral at $14 billion, marking a significant milestone for the Paris-based startup.

The Dutch chip-making equipment giant will also gain a board seat at Mistral, with Bank of America advising on the investment. The move is seen as a step towards reinforcing European technological sovereignty by reducing reliance on American and Chinese AI systems.

The partnership could help Mistral expand its generative AI tools and open-source platforms while enhancing ASML’s ability to integrate data analytics into its operations.

Industry analysts suggest the collaboration will unite two European technology leaders at a critical moment in the global race for AI dominance.

Founded by Timothée Lacroix, Guillaume Lample, and Arthur Mensch, Mistral has quickly become one of Europe’s most valuable AI startups.

The company, backed by investors including Microsoft, Databricks, and General Catalyst, develops open-source generative AI models that directly compete with those produced by OpenAI.

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