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.

Under the EU AI Act’s latest enforcement phase, regulators can demand model evaluations from leading AI developers before deployment and restrict the availability of systems deemed to pose significant risks, CNBC reported. Companies that violate the rules could face fines of up to $17 million (€15 million) or 3% of annual global revenue, whichever is higher.

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.

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