Forward

Digital competition is expected to remain a central priority for competition authorities worldwide in 2026. Market developments in Artificial Intelligence (AI) at both the development and deployment stages will continue to be closely monitored through market studies, competition enforcement, and, where relevant, merger control, as recent acquisitions (such as Meta/Manus) begin to shape the sector. In this context, France has already announced a market study on conversational agents and agentic commerce, which are at the core of a profound transformation in the economics of digital markets. Regulatory developments, particularly in the European Union and the United Kingdom, are also expected to influence market dynamics, as these jurisdictions adopt new approaches to competition in digital markets through updated guidelines and the implementation of dedicated digital competition regimes, including for emerging technologies such as AI.

I am beginning my third year working at Digital Competition. I am grateful to my clients and friends for their trust, and I look forward to continuing to contribute to the policy debates in the years ahead. All topics covered in this newsletter are among my research priorities, and I am available to conduct research on them immediately.

My Work

Analysis: Digital Competition’s Forecast in 2026

Market and regulatory developments, especially in the Artificial Intelligence (AI) sector, are expected to reshape the economics of digital markets and the competition policy debates in antitrust, merger control, and digital competition regimes. The analysis

News

Generative AI

Frenck Investigation into Conversational Agents and Agentic Commerce

The French competition authority has launched its first market study on the downstream segment of the AI value chain, focusing on conversational agents and agentic commerce. These developments lie at the core of a profound transformation in the economics of digital markets, particularly the web, as interactions increasingly shift from human-mediated to agent-mediated models. The study

Google Enters Agentic Commerce

In the United States, Gemini users will be able to shop directly from retailer partners, such as Walmart and Shopify, without leaving the Gemini app. OpenAI entered into a similar arrangement with Instacart in December 2025. Google/Walmart. Google/Shopify. OpenAI/Instacart

French Study on Energy and AI

The French competition authority has published an opinion on competition issues related to the energy and environmental impacts of artificial intelligence. The opinion focuses on the energy use of data centres as a proxy and identifies three main competition-related concerns: (i) access to energy and energy costs; (ii) the frugality of AI services (namely, the environmental efficiency of AI models); and (iii) the standardisation of methods for assessing AI’s environmental footprint. The study is particularly relevant for France, which seeks to attract AI actors by promoting access to affordable, decarbonised energy, notably by leveraging its extensive nuclear energy capacity. The study

Australian Study on AI

The Australian Competition and Consumer Commission (ACCC) has published a paper examining recent developments in AI at both the development and deployment stages, and their implications for competition and consumers. The paper finds that AI is evolving rapidly, with a trend toward increased personalisation of models and applications. The ACCC indicates that it will continue to monitor these developments, including in the context of its proposed digital competition regime. The study

Interim Measures Against Meta AI in Italy

The Italian competition authority has imposed interim measures against WhatsApp, preventing it from blocking rival AI assistants from accessing the messaging service. The intervention occurred less than two months after WhatsApp announced the contested practice, underscoring competition authorities' willingness to act swiftly to address potential competition concerns in downstream AI markets. At the EU level, the Commission is also reportedly considering interim measures regarding the same practice. Italy. European Union

Korean Study on Data and Competition

The Korean competition authority has published a study on data and competition. According to the press release accompanying the study (currently available only in Korean), the authority intends to continue monitoring market developments at the upstream level of the AI value chain. The Study

Acquisitions in AI Markets

At the upstream level, Nvidia entered into a non-exclusive agreement valued at approximately $20 billion with Groq, a firm developing custom chips for fast and cost-efficient inference that partially compete with Nvidia’s own chips. Nvidia also acquired key personnel, including Groq’s founder and president, while Groq remains operationally independent. Nvidia/Groq

Google has also acquired the energy provider Intersect for $4.5 billion, underscoring the strategic importance of securing energy supply for data centres used in AI applications. Google/Intersect

At the downstream level, Meta acquired Manus for reportedly $2 billion (Manus was launched only in March 2025). The acquisition is intended to support the development of general-purpose AI agents across Meta’s consumer and business products, including Meta AI, which is already making significant internal investments in AI. Meta/Manus

Digital Competition Regimes

Review of the European Digital Markets Act (DMA)

The Commission has published the summary of responses to the consultation on the review of the DMA. The responses suggest that the DMA may require adjustments to certain substantive and procedural aspects to remain effective and responsive to new market developments, particularly in relation to AI. Given the prominence of AI in the consultation, the Commission may consider opening a market investigation into new practices and services—similar to its recent investigation into the cloud sector—to assess the application of the DMA to AI-related markets. The consultation

Position Paper on AI and the DMA

The High-Level Group of the DMA—a group of European regulators—has published its first paper on the DMA and AI, outlining cross-regulatory issues in relation to AI. The paper

Africa Drawing Inspiration from the DMA

Drawing on the DMA, a regulation adopted in Africa introduces obligations similar to those imposed on firms designated as gatekeepers. The regulation

Competition

Apple’s Privacy Policy Fined in Italy

The Italian competition authority found that Apple engaged in an anticompetitive practice by requiring developers to obtain user consent to collect and use data for personalised advertising. According to the authority, this amounted to an abusive “double consent” mechanism that was detrimental to Apple’s commercial partners, insofar as it reduced consent rates, and disproportionate to the pursuit of any legitimate objective, as Apple could allegedly have achieved an equivalent level of protection through less restrictive means—although the decision does not specify what those means would be.

In my view, the authority’s reasoning is problematic because it risks treating the exercise of user choice itself—and, in particular, the absence of consent—as anticompetitive harm, a conclusion that sits uneasily with both consumer welfare and data protection principles. The decision

OECD Conference on Merger Control

The OECD will organise a conference on the proposed revisions to the European merger guidelines, to be held in Paris and online on 22 January. Registration 

Digital Policy

EU Seeks Views on the Better Regulation Communication

The Commission is reviewing the Better Regulation framework, which serves as the core guidance for drafting European legislation. I have already identified several shortcomings in this regard in my report, “Europe’s Progress in the Digital Single Market: A Proposal for Consistency.” The feedback. My report