Artificial intelligence

EU gains power to fine AI firms like Anthropic, OpenAI up to 15M euros

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EU gains power to fine AI firms like Anthropic, OpenAI up to 15M euros
Photo: Logan Voss · Unsplash
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The European Commission gained new enforcement powers over general-purpose AI models on August 2, 2026, allowing it to inspect models, restrict EU market access, and impose fines. The rules apply to any company offering such models in the EU, including U.S. firms like Anthropic, OpenAI, and Google.

The powers, which took effect on Sunday, August 2, 2026, enable the Commission to demand evaluations before a model’s public release in the region. It can also block market access and fine providers up to 15 million euros or 3% of annual turnover, whichever is higher. According to Elisabetta Righini, partner at Sidley Austin, a U.S. address does not shield a lab from the EU regulator, and non-EU providers must appoint an EU-based authorized representative as a point of contact.

The move heightens tensions between the U.S. and the EU over tech sovereignty and fines on American companies. In July 2026, Google was fined $1 billion after regulators said it favored its own services, prompting U.S. President Donald Trump to threaten a “substantial” tariff. The new AI enforcement powers could create further flashpoints, as the EU seeks to reduce reliance on U.S. systems amid rising political friction.

The powers are part of a staggered rollout of the 2024 EU AI Act, which included a transition period for certain provisions. Henna Virkkunen, the Commission’s executive vice-president for tech sovereignty, security and democracy, said in a statement that harms can occur if AI is not properly designed and used, and the most advanced models create risks on an entirely new scale. Righini noted that exposure to fines is “real,” and liability extends to refusing an information request, giving misleading answers, or blocking a model evaluation.

The EU had previously sought access to Anthropic’s Mythos model for months before the company agreed to share it. In January 2026, the bloc opened an investigation into Elon Musk’s X over sexually explicit material spread by the AI chatbot Grok. On July 31, 2026, Reuters reported that the EU was in talks with OpenAI and Anthropic after recent cyber attacks by their models; OpenAI confirmed contact with the EU AI Office, while the Commission and Anthropic were approached for comment.

OpenAI’s VP of EMEA policy, Tom Gordon, said the company has collaborated closely with the Commission on implementing the AI Act and will continue working together. A Google spokesperson stated the company remains dedicated to meeting all applicable rules as part of its mission to advance European AI infrastructure and innovation. Anthropic, the White House, and the Department of Commerce have been approached for comment on the new powers.

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