Digital rules dispute deepens as US administration avoids trade retaliation

The US administration is criticising foreign digital regulations affecting major online platforms while avoiding trade measures that could disrupt the US economy. Officials say the rules disproportionately impact American technology companies.

US officials have paused or cancelled trade discussions with the UK, the EU, and South Korea. Current negotiations are focused on rolling back digital taxes, privacy rules, and platform regulations that Washington views as unfair barriers to US firms.

US administration officials describe the moves as a negotiating tactic rather than an escalation toward tariffs. While trade investigations into digital practices have been raised as a possibility, officials have stressed that the goal remains a negotiated outcome rather than a renewed trade conflict.

Technology companies have pressed for firmer action, though some industry figures warn that aggressive retaliation could trigger a wider digital trade war. Officials acknowledge that prolonged disputes with major partners could ultimately harm both US firms and global markets.

Despite rhetorical escalation and targeted threats against European companies, the US administration has so far avoided dismantling existing trade agreements. Analysts say mounting pressure may soon force Washington to choose between compromise and more concrete enforcement measures.

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Groq partners with Nvidia to expand inference technology

Groq has signed a non-exclusive licensing agreement with Nvidia to share its inference technology, aiming to make high-performance, cost-efficient AI processing more widely accessible.

Groq’s founder, Jonathan Ross, president Sunny Madra, and other team members will join Nvidia to help develop and scale the licensed technology. Despite the collaboration, Groq will remain an independent company, with Simon Edwards taking over as Chief Executive Officer.

Operations of GroqCloud will continue without interruption, ensuring ongoing services for existing customers. The agreement highlights a growing trend of partnerships in the AI sector, combining innovation with broader access to advanced processing capabilities.

The partnership could speed up AI inference adoption, offering companies more scalable and cost-effective options for deploying AI workloads. Analysts suggest such collaborations are likely to drive competition and innovation in the rapidly evolving AI hardware and software market.

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India to showcase local AI apps at impact summit

India’s technology ministry plans to showcase more than 100 homegrown applications at an upcoming AI Impact Summit. The event aims to highlight locally developed tools across public services and industry.

Officials say the initiative supports domestic innovation while reducing reliance on foreign technology platforms. Priority areas include governance, healthcare, education and small business productivity.

The ministry intends to promote practical AI adoption rather than experimental research. Developers will demonstrate solutions already deployed or nearing commercial readiness.

The showcase reflects India’s broader strategy to position local firms within global AI supply chains. Indian policymakers view applied AI as central to economic growth.

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EU crypto tax reporting rules take effect in January

The European Union’s new tax-reporting directive for crypto assets, known as DAC8, takes effect on 1 January. The rules require crypto-asset service providers, including exchanges and brokers, to report detailed user and transaction data to national tax authorities.

DAC8 aims to close gaps in crypto tax reporting, giving authorities visibility over holdings and transfers similar to that of bank accounts and securities. Data collected under the directive will be shared across EU member states, enabling a more coordinated approach to enforcement.

Crypto firms have until 1 July to ensure full compliance, including implementing reporting systems, customer due diligence procedures, and internal controls. After that deadline, non-compliance may result in penalties under national law.

For users, DAC8 strengthens enforcement powers. Authorities can act on tax avoidance or evasion with support from counterparts in other EU countries, including seizing or embargoing crypto assets held abroad.

The directive operates alongside the EU’s Markets in Crypto-Assets (MiCA) regulation, which focuses on licensing, customer protection, and market conduct, while DAC8 ensures the tax trail is monitored.

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ChatGPT becomes more customisable for tone and style

OpenAI has introduced new Personalisation settings in ChatGPT that allow users to fine-tune warmth, enthusiasm and emoji use. The changes are designed to make conversations feel more natural, instead of relying on a single default tone.

ChatGPT users can set each element to More, Less or Default, alongside existing tone styles such as Professional, Candid and Quirky. The update follows previous adjustments, where OpenAI first dialled back perceived agreeableness, then later increased warmth after users said the system felt overly cold.

Experts have raised concerns that highly agreeable AI could encourage emotional dependence, even as users welcome a more flexible conversational style.

Some commentators describe the feature as empowering, while others question whether customising a chatbot’s personality risks blurring emotional boundaries.

The new tone controls continue broader industry debates about how human-like AI should become. OpenAI hopes that added transparency and user choice will balance personal preference with responsible design, instead of encouraging reliance on a single conversational style.

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EU credits DMA as Apple opens iOS 26.3 to third-party accessories

The European Commission has welcomed Apple’s latest interoperability updates in iOS 26.3, crediting the Digital Markets Act for compelling the company to open its ecosystem.

The new features are currently in beta and allow third-party accessories to integrate more smoothly with iPhones and iPads, instead of favouring Apple’s own devices.

Proximity pairing will let headphones and other accessories connect through a simplified one-tap process, similar to AirPods. Notification forwarding to non-Apple wearables will also become available, although alerts can only be routed to one device at a time.

Apple is providing developers with the tools needed to support the features, which apply only within the EU.

The DMA classifies Apple as a gatekeeper and requires fairer access for rivals, with heavy financial penalties for non-compliance.

Apple has repeatedly warned that the rules risk undermining security and privacy, yet the company has already introduced DMA-driven changes such as allowing alternative app stores and opening NFC access.

Analysts expect the moves to reduce ecosystem lock-in and increase competition across the EU market. iOS 26.3 is expected to roll out fully across Europe from 2026 following the beta cycle, while further regulatory scrutiny may push Apple to extend interoperability even further.

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Japan investigates AI search services over news use

The Japan Fair Trade Commission (JFTC) announced it will investigate AI-based online search services over concerns that using news articles without permission could violate antitrust laws.

Authorities said such practices may amount to an abuse of a dominant bargaining position under Japan’s antimonopoly regulations.

The inquiry is expected to examine services from global tech firms, including Google, Microsoft, and OpenAI’s ChatGPT, as well as US startup Perplexity AI and Japanese company LY Corp. AI search tools summarise online content, including news articles, raising concerns about their effect on media revenue.

The Japan Newspaper Publishers and Editors Association warned AI summaries may reduce website traffic and media revenue. JFTC Secretary General Hiroo Iwanari said generative AI is evolving quickly, requiring careful review to keep up with technological change.

The investigation reflects growing global scrutiny of AI services and their interaction with content providers, with regulators increasingly assessing the balance between innovation and fair competition in digital markets.

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Small businesses battle rising cyber attacks in the US

Many small businesses in the US are facing a sharp rise in cyber attacks, yet large numbers still try to manage the risk on their own.

A recent survey by Guardz found that more than four in ten SMBs have already experienced a cyber incident, while most owners believe the overall threat level is continuing to increase.

Rather than relying on specialist teams, over half of small businesses still leave critical cybersecurity tasks to untrained staff or the owner. Only a minority have a formal incident response plan created with a cybersecurity professional, and more than a quarter do not carry cyber insurance.

Phishing, ransomware and simple employee mistakes remain the most common dangers, with negligence seen as the biggest internal risk.

Recovery times are improving, with most affected firms able to return to normal operations quickly and very few suffering lasting damage.

However, many still fail to conduct routine security assessments, and outdated technology remains a widespread concern. Some SMBs are increasing cybersecurity budgets, yet a significant share still spend very little or do not know how much is being invested.

More small firms are now turning to managed service providers instead of trying to cope alone.

The findings suggest that preparation, professional support and clearly defined response plans can greatly improve resilience, helping organisations reduce disruption and maintain business continuity when an attack occurs.

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ChatGPT may move beyond GPTs as OpenAI develops new Skills feature

OpenAI is said to be testing a new feature for ChatGPT that would mark a shift from Custom GPTs toward a more modular system of Skills.

Reports suggest the project, internally codenamed Hazelnut, will allow users and developers to teach the AI model standalone abilities, workflows and domain knowledge instead of relying only on role-based configurations.

The Skills framework is designed to allow multiple abilities to be combined automatically when a task requires them. The system aims to increase portability across the web version, desktop client and API, while loading instructions only when needed instead of consuming the entire context window.

Support for running executable code is also expected, providing the model with stronger reliability for logic-driven work, rather than relying entirely on generated text.

Industry observers note similarities to Anthropic’s Claude, which already benefits from a skill-like structure. Further features are expected to include slash-command interactions, a dedicated Skill editor and one-click conversion from existing GPTs.

Market expectations point to an early 2026 launch, signalling a move toward ChatGPT operating as an intelligent platform rather than a traditional chatbot.

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Italy orders Meta to lift WhatsApp AI restrictions

Italy’s competition authority has ordered Meta to halt restrictions limiting rival AI chatbots on WhatsApp. Regulators say the measures may distort competition as Meta integrates its own AI services.

The Italian watchdog argues Meta’s conduct risks restricting market access and slowing technical development. Officials warned that continued enforcement could cause lasting harm to competition and consumer choice.

Meta rejected the ruling and confirmed plans to appeal, calling the decision unfounded. The company stated that WhatsApp Business was never intended to serve as a distribution platform for AI services.

The case forms part of a broader European push to scrutinise dominant tech firms. Regulators are increasingly focused on the integration of AI across platforms with entrenched market power.

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