The European Union has entered a new phase of artificial intelligence regulation after granting its executive arm sweeping enforcement powers over advanced AI models, significantly expanding its authority to inspect frontier systems, restrict market access and impose multimillion-euro penalties on developers that fail to comply with the bloc’s landmark AI legislation.
The new powers, which took effect on Sunday under the EU AI Act, strengthen the authority of the European Commission and its AI Office, placing leading U.S. developers including OpenAI, Anthropic and Google under a far more rigorous regulatory regime if they offer general-purpose AI models within the European market.
The measures represent one of the world’s most comprehensive attempts to regulate frontier AI and reinforce the EU’s ambition to become the global standard-setter for artificial intelligence governance.
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Under the new framework, the European Commission can require developers of general-purpose AI (GPAI) models to submit their systems for evaluation before they are made publicly available in the European Union. Regulators may also demand technical information about models, conduct compliance assessments and, where necessary, limit or prohibit access to the EU market if they conclude a model presents unacceptable risks or violates the AI Act.
Companies that fail to comply face penalties of up to €15 million ($17.3 million) or 3% of annual global turnover, whichever is higher.
Importantly, the Commission can also impose fines for procedural violations, including refusing information requests, providing misleading responses or obstructing regulatory evaluations, even if no underlying safety breach is established.
Legal experts say those provisions substantially expand regulators’ leverage over AI developers.
Elisabetta Righini, a partner at Sidley Austin, said the rules apply to any company offering a general-purpose AI model in Europe, regardless of where it is headquartered.
“A U.S. address does not put a lab outside the EU regulator’s reach,” she said, noting that non-European providers must appoint an EU-based authorized representative to serve as their regulatory point of contact.
AI Act Enters Enforcement Phase
The expanded supervisory powers form part of the phased implementation of the 2024 EU AI Act, the world’s first comprehensive legal framework governing artificial intelligence. Rather than taking effect all at once, the legislation is being introduced gradually, with different obligations becoming enforceable over several years.
The latest phase focuses on general-purpose AI models, particularly frontier systems capable of performing a broad range of tasks and posing systemic risks because of their scale and capabilities.
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy at the European Commission, said stronger oversight is necessary as AI systems become increasingly powerful.
“Harms can occur if AI is not properly designed and used and the most advanced models create risks on an entirely new scale,” she said.
Stoking Friction with U.S. AI companies
The new enforcement powers are likely to intensify tensions between Brussels and major American AI developers, many of whom have questioned aspects of the EU’s regulatory approach.
Recent disputes show that the relationship remains complex.
Reuters reported last week that the European Union has been in discussions with OpenAI and Anthropic following alleged cyber incidents involving their AI models. OpenAI confirmed it has been engaging with the EU AI Office. The two companies have also faced growing pressure from European regulators seeking greater transparency into the capabilities and risks of their frontier AI systems.
In May, European authorities reportedly spent months seeking access to Anthropic’s Mythos model before the company agreed to cooperate. Tom Gordon, OpenAI’s Vice President for Europe, the Middle East and Africa, said the company has worked closely with European policymakers during implementation of the AI Act.
“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 realize the benefits of the Intelligence Age,” Gordon said.
Google likewise said it remains committed to complying with the new regulatory framework while continuing to invest in European AI infrastructure and innovation.
The tougher AI oversight also arrives against the backdrop of widening trade and regulatory disputes between Washington and Brussels. The European Union has been pursuing a strategy centered on technological sovereignty, seeking to reduce its dependence on U.S.-based digital platforms, cloud infrastructure and artificial intelligence providers.
That strategy has frequently brought European regulators into conflict with major American technology companies.
Last month, Google was fined $1 billion after EU regulators concluded the company had unfairly favored its own services. The decision prompted President Donald Trump to threaten the bloc with substantial tariffs, highlighting the growing overlap between technology regulation and international trade policy.
The Commission has also demonstrated a willingness to scrutinize AI-enabled products beyond traditional language models.
In January, European regulators opened an investigation into X over the dissemination of sexually explicit content generated by its AI chatbot, Grok.
Although the AI Act is European legislation, its influence extends far beyond the bloc. Because multinational AI developers generally operate unified global platforms, many analysts expect compliance measures adopted for Europe to shape product development worldwide.
The law also reinforces the “Brussels Effect,” whereby companies frequently adopt European regulatory standards across global operations rather than maintaining separate compliance systems for different jurisdictions.
For AI developers, compliance is becoming a strategic issue alongside model performance and commercialization. Companies must now demonstrate not only technological capability but also transparency, risk management and regulatory readiness as governments around the world move to establish formal oversight of powerful AI systems.
The AI Act uses a risk-based approach, imposing progressively stricter obligations depending on the potential societal impact of AI systems. General-purpose AI models, particularly frontier systems capable of broad reasoning and autonomous decision-making, are subject to enhanced transparency, documentation and safety requirements.
The latest enforcement powers mark a significant milestone in the Act’s implementation, giving the European Commission practical authority to investigate, evaluate and sanction AI providers.