Google faces double jeopardy under new EU tech rules
Google is set to receive its first fine under the Digital Markets Act in the coming months, with the European Commission now drafting its decision. The penalty follows a separate €2.95 billion fine earlier this month under older antitrust rules for favouring its AdX ad exchange.
The new charges target Google for prioritising its vertical search engines, Google Shopping, Flights and Hotels, over rivals. Sources say Google could still avoid the fine with an improved proposal, though feedback from comparison sites, airlines and hotels remains critical.
The Commission isn’t rushing to close the case amid Trump administration criticism over EU tech crackdowns and current trade tensions. The DMA, effective since 2023, can impose fines up to 10% of annual global sales.
Google would become the third US tech giant fined under the DMA, following penalties handed to Apple and Meta in April.
Databricks and OpenAI join forces in $100M enterprise play
Databricks has partnered with OpenAI to integrate ChatGPT maker’s AI models directly into its cloud platform and flagship Agent Bricks product. The deal is expected to generate $100 million in revenue as OpenAI expands beyond its long-standing Microsoft Azure partnership.
OpenAI’s models, including GPT-5, will become available to more than 20,000 Databricks enterprise customers. The integration builds on an existing relationship where OpenAI uses Databricks to process AI data and enhance ChatGPT.
For Databricks, the partnership provides an edge over listed rival Snowflake in the enterprise AI race. CEO Ali Ghodsi said the company is seeing “overwhelming demand from enterprise customers looking to build AI apps and agents on their data.”
The San Francisco firm closed a $1 billion funding round earlier this month at a $100 billion valuation, making it one of the world’s most valuable private companies.
Nine European banks unite to launch euro stablecoin
A consortium of nine European banks, including ING and UniCredit, is forming a new Amsterdam-based company to launch a euro-denominated stablecoin in the second half of next year.
The move aims to counter US dominance in a market where dollar-pegged tokens overwhelmingly prevail. Global stablecoin issuance stands at nearly $300 billion, but euro-denominated versions total just $620 million, according to Bank of Italy figures.
The banks said the initiative “will provide a real European alternative to the US-dominated stablecoin market, contributing to Europe’s strategic autonomy in payments.”
The effort proceeds despite ECB scepticism. President Christine Lagarde told policymakers in June that privately issued stablecoins pose risks for monetary policy and financial stability, urging legislation for a digital euro instead.
Deutsche Bank warned that emerging markets are adopting dollar-based stablecoins to replace local deposits. “Countries should adopt stablecoins or risk being left behind. Europe is under particular pressure,” the report said.
Microsoft hedges AI bets with Anthropic integration
Microsoft will integrate Anthropic’s AI models into its Copilot assistant, signaling a push to reduce dependence on its high-profile OpenAI partnership.
Users can now select Claude Sonnet 4 and Claude Opus 4.1 in Copilot’s Researcher agent and when developing agents in Copilot Studio.
Copilot will remain powered by OpenAI’s latest models as the default option. Charles Lamanna, president of Microsoft’s business and industry Copilot operations, said users who opt in can switch between OpenAI and Anthropic models.
The move marks a shift for Copilot, which has primarily relied on OpenAI for AI features across Word and Outlook. Microsoft, a key OpenAI backer, has been developing its own AI models while integrating offerings from DeepSeek, xAI and Meta.
Anthropic’s models are primarily hosted on Amazon Web Services, a rival to Microsoft’s cloud business.
