EU AI Act Enforcement Powers Now Active: OpenAI, Anthropic Face Fines Up to 3% of Global Revenue

Anthropic, OpenAI among firms facing new scrutiny under EU AI Act enforcement powers

Anthropic, the White House and the Department of Commerce have been approached for comment. Recent rapid leaps in AI capability have also brought new tensions between AI labs and the EU. The bloc had sought access to Anthropic's Mythos model for months before the company said it would share access. Europe's latest moves come as it scrambles to build up tech sovereignty to stop being so reliant on U.S. systems as tensions with the U.S. administration rise. The EU is in talks with OpenAI and Anthropic after recent cyber attacks by their models, Reuters reported on Friday. OpenAI confirmed it was in contact with the EU AI Office. The European Commission and Anthropic have been approached for comments on the report. Elisabetta Righini, partner at Sidley Austin, told CNBC the powers could be used on any company offering a general purpose AI [GPAI] model in the EU, regardless of where they were based. "A U.S. address does not put a lab outside the EU regulator's reach," she said. "Non-EU providers must also appoint an EU-based authorised representative as the regulator's point of contact." Exposure to risks from fines for AI companies is "real", Righini said. "What's rarely appreciated is that GPAI liability isn't limited to substantive breaches: refusing an information request, giving misleading answers, or blocking a model evaluation is fineable on its own," she added. While the new enforcement powers relate to the AI Act, the Commission has taken steps to clamp down on AI in the past. In January, the bloc said it opened an investigation into Elon Musk's X over the spreading of sexually explicit material by the AI chatbot Grok. "We've collaborated closely with the European Commission and the wider ecosystem on implementing the AI Act, including its Codes of Practice, and will continue working together to help Europe realise the benefits of the Intelligence Age," Tom Gordon, VP, EMEA policy at OpenAI, told CNBC when asked to comment on the new powers. A Google spokesperson said: "As the Act and its codes of practice take effect, we remain dedicated to meeting all applicable rules as part of our primary mission: advancing European AI infrastructure and innovation."

The EU can now inspect AI models, block market access, and fine providers 3% of turnover. The grace period is over.

EU AI Act enforcement powers took effect August 2. The Commission can demand model evaluations, restrict market access, and fine providers up to 3% of global revenue. Applies to OpenAI, Anthropic, Google regardless of where they are based. The European Commission gained enforcement powers over general-purpose AI models on August 2, ending the grace period for Chapter V of the EU AI Act. The Commission can now demand to evaluate models before regional release, restrict EU market access, and fine providers up to €15 million or 3% of global annual turnover, whichever is higher. The powers apply to any company offering a general-purpose AI model in the EU, regardless of where it is headquartered. Non-EU providers must appoint an EU-based authorised representative. "A US address does not put a lab outside the EU regulator's reach," said Elisabetta Righini, partner at Sidley Austin. She added that liability extends beyond substantive breaches: "Refusing an information request, giving misleading answers, or blocking a model evaluation is finable on its own." The Commission is in talks with OpenAI and Anthropic after recent cyber incidents involving their models, Reuters reported. The EU had sought access to Anthropic's Mythos model for months before the company agreed to share it in June. The timing raises transatlantic tensions. Trump threatened the EU with "substantial" tariffs after Brussels fined Google $1 billion in July under Digital Markets Act rules. Adding AI Act enforcement to that dynamic gives Brussels another lever against American tech companies. Anthropic's silence on open weights drew accusations that it wanted regulatory protection, and EU enforcement gives the Commission tools to demand the kind of model access Anthropic was reluctant to provide voluntarily. "We've collaborated closely with the European Commission and the wider ecosystem on implementing the AI Act," said Tom Gordon, VP of EMEA policy at OpenAI. Google said it remains "dedicated to meeting all applicable rules." The White House is also asserting control over who accesses frontier models, and American AI labs now face two governments demanding pre-release review from opposite sides of the Atlantic, each with its own thresholds, timelines, and penalties. The companies that built models to serve the world are discovering that the world wants to approve them first.

E.U. AI Act enforcement powers target OpenAI, Anthropic, Google

The European Commission began enforcing the E.U. AI Act's rules for general-purpose AI models on Sunday, gaining new powers to inspect models, restrict access to the European market, and fine providers up to €15 million or 3% of annual turnover, whichever is higher. The enforcement powers, which took effect August 2, are administered by the Commission's AI Office and cover every company that makes a general-purpose AI model available in the E.U., no matter where that company is headquartered, according to CNBC. That puts U.S. companies including Anthropic, OpenAI, and Google $GOOGL among those subject to the new rules. Under the AI Act, providers of general-purpose AI models must document certain information and share it with competent authorities or downstream providers. They must also establish a copyright policy and publish a summary of the data used to train their models. Providers of the most advanced models, which the Act defines as those that may pose systemic risks, face additional requirements covering potential large-scale harms including cybersecurity threats and risks to fundamental rights, the Commission said. The enforcement regime also covers prohibited AI practices -- including systems that manipulate people, exploit vulnerabilities, or score individuals in ways that threaten their rights -- as well as new transparency requirements. Chatbots and other interactive AI systems must now tell users they are interacting with AI rather than a human, and AI-generated or altered content must carry machine-readable marks. 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." Elisabetta Righini, partner at law firm Sidley Austin, said that exposure to fines is real and extends beyond substantive violations. "What's rarely appreciated is that GPAI liability isn't limited to substantive breaches: refusing an information request, giving misleading answers, or blocking a model evaluation is fineable on its own," she said. Righini also noted that companies headquartered outside the E.U. are required to designate a local representative through whom regulators can make contact. Tom Gordon, VP of EMEA policy at OpenAI, said in a statement the company would continue working with the Commission. "We've collaborated closely with the European Commission and the wider ecosystem on implementing the AI Act, including its Codes of Practice, and will continue working together to help Europe realise the benefits of the Intelligence Age," he said. A Google spokesperson said the company remains committed to meeting all applicable rules. The E.U. has also opened discussions with OpenAI and Anthropic in the wake of cyber attacks that have been linked to their models, according to CNBC. The new enforcement powers arrive after months of tension between the bloc and U.S. AI labs over model access. Anthropic agreed to give the EU's cybersecurity agency ENISA access to its Mythos model after senior Commission officials traveled to San Francisco to press Anthropic leadership directly, following an earlier arrangement in which OpenAI offered the EU access to its GPT-5.5-Cyber model.

Anthropic, OpenAI Face New EU AI Crackdown as Regulators Gain Enforcement Power

The European Commission has expanded its authority to oversee the world's most advanced artificial intelligence systems, giving regulators new powers to scrutinize general-purpose AI models before they are released across the European Union. The new oversight regime is part of the EU's phased rollout of the AI Act, which was approved in 2024 and is designed to create stricter guardrails around high-impact AI technologies. Henna Virkkunen, the European Commission's executive vice president for tech sovereignty, security and democracy, warned that the risks from advanced AI models require heightened scrutiny. "Harms can occur if AI is not properly designed and used and the most advanced models create risks on an entirely new scale," Virkkunen said. The move increases regulatory pressure on leading AI companies including Anthropic and OpenAI, which are among the developers building some of the world's most powerful foundation models. The crackdown also adds another point of tension between the U.S. and Europe over technology policy. CNBC reported that Washington and Brussels have clashed over Europe's efforts to reduce reliance on American technology companies and impose penalties on U.S.-based firms. After European regulators issued Google a €1 billion penalty under Digital Markets Act rules in July, President Donald Trump threatened the EU with a "substantial" tariff. Regulatory exposure may also extend beyond where an AI company is headquartered. Elisabetta Righini, a partner at Sidley Austin, told CNBC that U.S. companies cannot avoid EU oversight simply by operating outside the bloc. "A U.S. address does not put a lab outside the EU regulators' reach," Righini said, noting that non-European AI providers must appoint an EU-based authorized representative to communicate with regulators. Righini added that companies could face penalties not only for model-related safety failures but also for failing to cooperate with regulators. "What's rarely appreciated is that GPAI liability isn't limited to substantive breaches: refusing an information request, giving misleading answers, or blocking a model evaluation is fineable on its own," she said. OpenAI said it has been working with European regulators as the new framework takes effect. Tom Gordon, OpenAI's vice president for EMEA policy, told CNBC that the company has "collaborated closely with the European Commission and the wider ecosystem on implementing the AI Act, including its Codes of Practice." Google also said it expects to comply with the new requirements as the rules and related guidance are implemented. This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.