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The European Union gained new powers to inspect AI models, restrict EU market access and fine model providers, raising the stakes for U.S. companies like Anthropic and OpenAI and Google . Under the powers that came into effect on Sunday, the Commission, the EU's executive arm, can demand to evaluate models before public release in the region, restrict EU market access and fine a provider up to 15 million euros or 3% of its annual turnover, whichever is higher. The new powers could mean further flashpoints between the U.S. and European Commission, with the two sparring over Europe's push for tech sovereignty and fines on American tech companies. Google was hit with a $1 billion fine in July after European regulators said the company gave preferential treatment to its own services. In response, U.S. President Donald Trump threatened the EU with a "substantial" tariff.
How the powers fit into the EU AI Act rollout
The EU AI Office's supervisory and enforcement powers over general-purpose AI models are part of a staggered rollout of the 2024 EU AI Act, which has imposed a transition period for certain aspects of the law. Henna Virkkunen, executive vice-president for tech sovereignty, security and democracy at the European Commission, said in a statement: "Harms can occur if AI is not properly designed and used and the most advanced models create risks on an entirely new scale." Anthropic, the White House and the Department of Commerce have been approached for comment.
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