Google warns regulators that Microsoft’s licensing tactics threaten cloud competition and innovation

Digital2036 words10 min readabout 5 hours ago

Google Cloud raises fresh concerns over Microsoft's restrictive licensing policies, claiming they hinder fair competition, inflate costs, and pose cybersecurity risks amid ongoing regulatory scrutiny and industry shifts towards multicloud strategies.

Google Cloud has once again voiced serious concerns over Microsoft's licensing tactics when it comes to cloud services. They argue that these anti-competitive approaches still pose a significant obstacle to fair market competition and innovation worldwide. It’s been over a year since Google filed a formal complaint with the European Commission, but they continue to claim that Microsoft’s policies impose hefty financial penalties—up to a 400% markup—on organizations that use Windows Server licenses on competing cloud platforms like Google Cloud and Amazon Web Services (AWS). This so-called "vendor lock-in," as Google executives put it, essentially forces customers into Microsoft’s Azure cloud if they want to avoid paying sky-high costs.

Google points out that these practices are not just about business competitiveness—they also have broader economic implications. The UK's Competition and Markets Authority (CMA) found that even a modest 5% price increase, linked to limited competition in cloud services, costs British companies around £500 million every year. A study by the European Union echoes this, estimating that restrictive licensing policies hit local businesses with a €1 billion annual penalty. Over in the U.S., government agencies are reportedly overspending by about $750 million annually due to the lack of competition created by Microsoft’s licensing strategies.

Now, it’s not just about the economy—there’s also a serious cybersecurity angle to all this. By forcing customers to operate mainly within Microsoft’s ecosystem, it basically creates a monoculture that’s more vulnerable to widespread cyberattacks. This risk, interestingly enough, has already affected government bodies and key industries, potentially compromising service reliability and security. And with more companies deploying AI at scale using cloud platforms, the choice of provider isn't just about cost anymore—it really influences access to AI tools and features.

Despite ongoing investigations by regulatory bodies in the UK and the U.S. Federal Trade Commission, Microsoft doesn’t seem eager to loosen its licensing restrictions. Google Cloud officials have criticized Microsoft, branding its "exclusionary licensing" tactics as a way to cement Azure’s dominance in the market. Recently, Microsoft’s move to prevent managed service providers from hosting certain workloads on alternative clouds has only added fuel to the fire. And interestingly enough, Microsoft openly admits that driving customer migration to Azure is a key part of its growth plan—underscoring the commercial stakes involved in all of this.

While Microsoft claims to have reached settlement agreements with some European cloud providers—leading to complaints being withdrawn—Google emphasizes that these resolutions haven’t resulted in any real regulatory relief or policy shifts. Smaller European cloud firms, wary of clashing with Microsoft, tend to hold back from filing grievances. This leaves the big players, like AWS and Google Cloud, to challenge the entrenched licensing positions on their own.

In light of these ongoing clashes, Google recently announced plans to eliminate data transfer fees within the EU and UK, aiming to promote multicloud flexibility. This move aligns with the upcoming EU Data Act, which seeks to boost competition and make switching providers easier. This stands in contrast to Microsoft’s past reputation for high "cloud taxes," which Google argues hampers competition and limits what customers can choose.

Analysts and industry experts suggest that lifting Microsoft’s restrictive licensing policies could lead to huge economic benefits. They project that, by 2030, the European Union could add as much as €1.2 trillion to its GDP, and that annual savings of around €450 billion could be realized through increased market competition and better efficiency.

Google warns regulators that maintaining current policies could threaten digital transformation, security, and overall innovation. The company is calling for quick regulatory action to break down the barriers created by these licensing practices, with the goal of establishing a truly competitive cloud marketplace where customers—rather than vendors—dictate which platforms and AI capabilities are best suited for their needs.

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Source: Noah Wire Services

Verification / Sources

https://servernews.ru/1130196 - Please view link - unable to able to access data
https://www.techradar.com/pro/google-reminds-regulators-it-complained-about-microsofts-cloud-practices-a-year-ago-but-says-nothing-has-been-done - Google has reiterated its concerns about Microsoft's cloud licensing practices, emphasising that a formal complaint it filed with the European Commission over a year ago has seen no regulatory action. Google alleges Microsoft unfairly increases costs for customers using rival cloud platforms like Google Cloud or AWS by not allowing on-premises licenses to transfer without repurchasing—making it up to five times more expensive. While Microsoft allows these licenses to transition to its own Azure platform, competitors are disadvantaged, resulting in what Google calls "vendor lock-in." Despite findings from the UK's Competition and Markets Authority and an ongoing investigation by the U.S. Federal Trade Commission, no remedies have been imposed. Google Cloud executives Marcus Jadotte and Giorgia Abeltino blame the licensing restrictions for limiting cloud market competition and harming global economic productivity. They argue that removing these restrictions could yield up to €1.2 trillion in EU GDP growth by 2030.
https://www.reuters.com/business/retail-consumer/google-scraps-some-cloud-data-transfer-fees-eu-uk-2025-09-10/ - Google announced on Wednesday that it has eliminated data transfer fees for organisations using multiple cloud platforms in parallel within the European Union and the UK. This move comes just ahead of the implementation of the EU Data Act on Friday, which is intended to enhance competition and facilitate easier switching between cloud providers in a market currently dominated by Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. While the Act requires cloud providers to charge fees only "at cost," Google has gone a step further by offering its "Data Transfer Essentials" service completely free of charge. Microsoft began implementing at-cost fees in August, and AWS offers reduced rates for select cases. Google's initiative is aimed at simplifying multicloud operations and improving flexibility for users. The UK's antitrust authority also supports increased competition in cloud services, recently criticising Microsoft’s licensing terms.
https://cloud.google.com/blog/topics/inside-google-cloud/filing-eu-complaint-against-microsoft-licensing - Google Cloud has filed a formal complaint with the European Commission regarding Microsoft's anti-competitive licensing practices. The complaint alleges that Microsoft's licensing terms restrict European customers from moving their current Microsoft workloads to competitors’ clouds, despite there being no technical barriers to doing so, or impose a 400% price markup. This practice has significantly harmed European companies and governments, costing them at least €1 billion a year. The restrictive licensing also stifles innovation and competition, preventing European companies from using multiple clouds, including European cloud providers. Security and reliability suffer too, as Microsoft's lock-in tactics can result in a single point of failure that harms businesses, industries, and governments. Google advocates for regulatory intervention to ensure fair competition in the cloud market and to protect consumers.
https://apnews.com/article/045d5ac500165f1f0ac6787d67c57f92 - Google has lodged a formal complaint with the European Commission, accusing Microsoft of anti-competitive tactics in the cloud computing sector. Google's allegations assert that Microsoft's licensing practices force business customers to use its Azure cloud platform, increasing costs and security risks. Google contends that these practices stifle competition, particularly from rival services like Google Cloud and Amazon Web Services. Microsoft claims it has settled similar concerns with European cloud providers, who withdrew their complaints after reaching an agreement. The European Commission has acknowledged receipt of Google's complaint and will review it according to standard procedures. The dispute highlights ongoing tensions between major tech companies over market dominance in cloud services.
https://www.cnbc.com/2024/09/25/google-files-eu-antitrust-complaint-accusing-microsoft-of-stifling-cloud-competition.html - Google filed an antitrust complaint with the European Commission on Wednesday accusing Microsoft of using unfair licensing contracts to stifle competition in the multibillion-dollar cloud computing industry. In its complaint, Google — which ranks third globally in the cloud computing market behind market leaders Amazon Web Services and Azure — said Microsoft makes it harder for customers to move their workloads to competitors' clouds. It comes after a slew of cloud companies in July agreed a settlement with Microsoft which would see the firm make changes to address competition concerns. Microsoft's cloud 'tax' at issue. In a summary of the complaint, Google — which is not a CISPE member — said that Microsoft "harms cybersecurity and undermines innovation." According to Google, if a company runs Microsoft's Office suite of productivity tools and other applications on Google Cloud Platform or other competing clouds, they are effectively required to pay a "tax" in the form of punchy licensing fees to Microsoft. Google said Microsoft undermined competition in cloud, and referred to findings of a U.K. Competition and Markets Authority study which determined Microsoft acquired 60% to 70% of all new British cloud customers in 2021 and 2022. Google also suggested that Microsoft's cloud practices have potentially made businesses more prone to security issues.
https://cloud.google.com/blog/topics/inside-google-cloud/global-harms-restrictive-cloud-licensing-one-year-later - Microsoft still imposes a 400% price markup on customers who choose to move legacy workloads to competitors’ clouds. This penalty forces customers onto Azure by making it more expensive to use a competitor. A mere 5% increase in cloud pricing due to lack of competition costs U.K. cloud customers £500 million annually, according to the CMA. A separate study in the EU found restrictive licensing amounted to a billion-Euro tax on businesses. In the United States, the lack of competition due to Microsoft’s licensing tactics amounts to $750 million in overspending by government agencies every year. Cybersecurity and reliability also suffer, as Microsoft drives customers into an insecure monoculture that becomes a single point of failure. Attacks on Microsoft’s insecure software have spread across governments and critical industries. With AI technologies disrupting the business market in dramatic ways, ending Microsoft’s anti-competitive licensing is more important than ever as customers move to the cloud to access AI at scale. Customers, not Microsoft, should decide what cloud — and therefore what AI tools — work best for their business.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative highlights Google's ongoing concerns over Microsoft's licensing practices, referencing a formal complaint filed with the European Commission over a year ago. The most recent publication date of similar content is 6 days ago, indicating the topic's continued relevance. (techradar.com) The report includes updated data, such as the UK's Competition and Markets Authority's findings on the economic impact of Microsoft's practices, suggesting a higher freshness score.

Quotes check

Score: 7

Notes: The report includes direct quotes from Google Cloud executives, such as Marcus Jadotte and Giorgia Abeltino, regarding Microsoft's licensing practices. These quotes appear in earlier material, indicating potential reuse. (techradar.com) However, no online matches were found for some specific phrases, suggesting potential originality.

Source reliability

Score: 6

Notes: The narrative originates from ServerNews, a source with limited verifiability and a single-outlet narrative. This raises concerns about the reliability of the information presented. The report includes references to other reputable sources, such as Reuters and AP News, which strengthens its credibility. (reuters.com)

Plausability check

Score: 8

Notes: The claims regarding Microsoft's licensing practices and their impact on competition and innovation are plausible and align with previous reports. The narrative includes specific data points, such as the UK's Competition and Markets Authority's findings on the economic impact of Microsoft's practices, which supports its credibility. The tone and language used are consistent with typical corporate communications, suggesting authenticity.

Overall assessment

Veredict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative addresses ongoing concerns over Microsoft's licensing practices, referencing a formal complaint filed with the European Commission over a year ago. While the topic remains relevant, the source's limited verifiability and the reuse of quotes from earlier material raise questions about the originality and reliability of the content. The inclusion of updated data and references to reputable sources partially mitigates these concerns. Further verification from more authoritative sources is recommended to fully assess the credibility of the claims.

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Keywords

Cloud CompetitionLicensing PoliciesCybersecurity RisksMulticloud StrategiesRegulatory Scrutiny

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Cloud Competition
Licensing Policies
Cybersecurity Risks
Multicloud Strategies
Regulatory Scrutiny

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Marcus Jadotte,Giorgia Abeltino

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The new leadership at the CFTC isn’t just about defining rules for derivatives and DeFi; they could also impact overall market confidence and promote or hinder innovation. People keeping an eye on this should note that these shifts in governance could lead to significant adjustments—almost like past regulatory changes, but with the pace of today’s technological and geopolitical developments making everything more intense. References for the info:, Reuters on Trump’s FDIC pick, Acting CFTC Chair Pham’s statements, etc.] Source: Noah Wire ServicesVerification / Sources https://www.kanalcoin.com/white-house-cftc-leadership-crypto/ - Please view link - unable to able to access data https://www.reuters.com/world/us/trump-nominates-travis-hill-be-chair-us-fdic-bloomberg-news-reports-2025-10-01/ - On October 1, 2025, President Donald Trump nominated Travis Hill, the acting chair and current vice chair of the Federal Deposit Insurance Corporation (FDIC), to serve as its permanent chair. 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Catherine Clay to lead S&P Dow Jones Indices amid surge in SPX options trading and market evolution

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The surge in SPX options trading aligns with broader industry trends, where options are increasingly used for hedging and strategic positioning amid ongoing economic and geopolitical uncertainties. According to Cboe Global Markets, a major global derivatives exchange/operator, options trading volumes and revenues have been rising even as futures revenues have seen a slight decline. For example, the average daily volume of trading in S&P 500 index options grew by 7%, and options tied to the VIX Volatility Index increased by approximately 12%. The options market continues to attract investor interest as a key tool for risk management and strategic trading. Furthermore, the Options Clearing Corporation (OCC) has released a white paper proposing a phased transition towards extended trading hours, initially supporting trading from 22 hours per day, five days a week (22-5), with aspirations of eventually moving toward full 24/7 trading and clearing. 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References: Paragraph 1: [1], [2], [5], [6], [7] Paragraph 2: [1], [3] Paragraph 3: [4], [1] Paragraph 4: [1], [4] Source: Noah Wire ServicesVerification / Sources https://johnlothiannews.com/a-tale-of-two-markets-spx-options-expanding-lead-vs-eminis/?utm_source=rss&utm_medium=rss&utm_campaign=a-tale-of-two-markets-spx-options-expanding-lead-vs-eminis - Please view link - unable to able to access data https://www.spglobal.com/spdji/en/corporate-news/article/sp-dow-jones-indices-announces-leadership-succession - S&P Dow Jones Indices has appointed Catherine Clay as CEO, effective November 1, 2025, succeeding Dan Draper, who will remain as a Special Advisor. Ms. Clay, formerly Executive Vice President and Global Head of Derivatives at Cboe Global Markets, brings extensive experience in derivatives markets, digital assets, data analytics, and financial technology. 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Clay will replace Dan Draper, who will remain as a Special Advisor for a period after November 1, 2025. Clay joins from Cboe Global Markets, where she was Executive Vice President and Global Head of Derivatives, responsible for leading the Exchange's global options and futures businesses as well as its Data Vantage business across the U.S., Europe, Asia-Pacific, and the Middle East. https://www.rttnews.com/3579322/s-p-dow-jones-indices-ceo-dan-draper-steps-down-catherine-clay-to-be-new-ceo.aspx - S&P Dow Jones Indices, a division of S&P Global Inc., announced that CEO Dan Draper has decided to step down to pursue new opportunities. Draper will remain as a Special Advisor for a period after November 1, 2025. The company has appointed Catherine Clay as the new CEO, effective November 1, 2025. Previously, Clay served as Executive Vice President and Global Head of Derivatives at Cboe Global Markets. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 10 Notes: The narrative is based on a press release issued by S&P Global on October 2, 2025, announcing Catherine Clay's appointment as CEO of S&P Dow Jones Indices, effective November 1, 2025. (prnewswire.com) This press release is the earliest known publication of this information, indicating high freshness. Quotes check Score: 10 Notes: The direct quotes attributed to Martina Cheung, President and CEO of S&P Global, and Catherine Clay in the narrative are consistent with those in the press release. No discrepancies or variations in wording were found, suggesting the quotes are accurately reproduced. Source reliability Score: 10 Notes: The narrative originates from a press release issued by S&P Global, a reputable organisation. This source is considered reliable, and the information aligns with other reputable outlets, such as Nasdaq. (nasdaq.com) Plausability check Score: 10 Notes: The claims regarding Catherine Clay's appointment and her previous role at Cboe Global Markets are consistent with information from other reputable sources. The narrative provides specific details, such as the effective date of the appointment and the transition period for Dan Draper, which are corroborated by the press release and other reputable outlets. (prnewswire.com) Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is based on a recent press release from S&P Global, providing original and accurate information about Catherine Clay's appointment as CEO of S&P Dow Jones Indices. The quotes and details are consistent with other reputable sources, and there are no signs of disinformation or recycled content.

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Digital2067 words10 min read37 minutes ago

The European Central Bank has formalised agreements with seven tech firms, including Feedzai and Capgemini, to build the infrastructure for its digital euro, signalling a strategic move towards a sovereign digital currency set for potential launch in 2029.The European Central Bank (ECB) has taken an important step forward in its digital euro project by formalizing agreements with seven tech companies, aiming to develop key parts of the digital currency’s infrastructure. Announced on October 2, 2025, this move signals a structured and cooperative effort to build the groundwork for a sovereign digital currency that could potentially launch as early as 2029. Notably, among the main partners are Giesecke+Devrient, Nexi, and Capgemini, which indicates a mix of expertise coming from the payments world, technology sectors, and security fields, all working together to design the core systems of the digital euro. This announcement comes amid rising interest from institutions across Europe and beyond in central bank digital currencies (CBDCs). The digital euro project is different from decentralized cryptocurrencies like Bitcoin and Ethereum. The ECB emphasizes that it’s aiming for a regulated, state-backed solution intended to enhance financial sovereignty—not necessarily to challenge crypto markets directly. Financial analysts have pointed out that this initiative could signal a wider shift in Europe’s economic landscape, blending technological progress with strong financial regulation, and helping to future-proof the continent’s monetary system. A significant feature of the project involves fraud prevention. The ECB has teamed up with the Portuguese AI startup Feedzai, along with PwC, to develop an advanced AI-based system that detects and prevents fraud in transactions involving the digital euro. This system will analyze unusual behavior patterns among users to spot potential risks, thus improving the security and building trust around the currency. The deal with Feedzai is valued at as much as €237.3 million over four years, and it fits into a larger set of digital euro contracts that are estimated to range from €27.6 million up to €220.7 million—all of which also include work by Capgemini. These payments, however, will only begin once the project officially moves into the development stage, which depends on legislative approval anticipated by mid-2026. The digital euro isn’t just about innovation in finance; it’s also seen as a strategic move to bolster the eurozone’s financial independence. By decreasing reliance on major American payment networks like Visa and Mastercard, and by responding to the rise of dollar-pegged stablecoins, the ECB wants to maintain control over European payment systems. This effort is similar to what other big economies are doing—like China’s digital yuan, which has been integrated into existing payment systems with government backing. Experts highlight that the ECB’s approach shows a careful balancing act of regulation and technology, informed by what’s happening on the global stage. Looking ahead, the development of the digital euro reflects Europe’s commitment to creating a competitive and secure digital financial environment. It encourages innovation within a tightly regulated framework. While the broader crypto market might not see immediate disruption, the ongoing landscape—shaped by sovereign digital currencies—suggests new dynamics are on the horizon. Financial markets, regulators, and policy makers will need to navigate these changes with care as Europe moves toward what could be a digital euro launch in 2029. References: - Paragraph 1 – ¹ - Paragraph 2 – ¹ - Paragraph 3 – ², ³, etc. - Paragraph 4 – ¹, ² - Paragraph 5 – ¹ Source: Noah Wire ServicesVerification / Sources https://www.kanalcoin.com/ecb-digital-euro-tech-agreements/ - Please view link - unable to able to access data https://www.reuters.com/business/finance/ecb-picks-ai-startup-prevent-digital-euro-frauds-2025-10-02/ - The European Central Bank (ECB) has selected Portuguese AI startup Feedzai to help combat fraud associated with its planned digital euro. Feedzai, in partnership with PwC, will develop an AI system to assess fraud risk in digital euro transactions by analysing deviations from users' typical behaviour. The contract is valued at up to €237.3 million over four years, with an initial estimate of €79.1 million. This effort is part of a wider set of digital euro contracts totalling between €27.6 million and €220.7 million, including one awarded to Capgemini. No funds will be disbursed by the ECB until the project officially begins. The digital euro is intended to enhance the euro zone’s financial independence, counteract the dominance of American payment systems like Visa and Mastercard, and respond to the growing presence of dollar-pegged stablecoins. The ECB aims to secure legislative approval in mid-2026 and targets a launch in 2029. Feedzai, based in Coimbra, currently processes $8 trillion in payments annually for clients including Novobanco and Wio Bank. (reuters.com) https://www.reuters.com/business/finance/ecb-picks-ai-startup-prevent-digital-euro-frauds-2025-10-02/ - The European Central Bank (ECB) has selected Portuguese AI startup Feedzai to help combat fraud associated with its planned digital euro. Feedzai, in partnership with PwC, will develop an AI system to assess fraud risk in digital euro transactions by analysing deviations from users' typical behaviour. The contract is valued at up to €237.3 million over four years, with an initial estimate of €79.1 million. This effort is part of a wider set of digital euro contracts totalling between €27.6 million and €220.7 million, including one awarded to Capgemini. No funds will be disbursed by the ECB until the project officially begins. The digital euro is intended to enhance the euro zone’s financial independence, counteract the dominance of American payment systems like Visa and Mastercard, and respond to the growing presence of dollar-pegged stablecoins. The ECB aims to secure legislative approval in mid-2026 and targets a launch in 2029. Feedzai, based in Coimbra, currently processes $8 trillion in payments annually for clients including Novobanco and Wio Bank. (reuters.com) https://www.reuters.com/business/finance/ecb-picks-ai-startup-prevent-digital-euro-frauds-2025-10-02/ - The European Central Bank (ECB) has selected Portuguese AI startup Feedzai to help combat fraud associated with its planned digital euro. Feedzai, in partnership with PwC, will develop an AI system to assess fraud risk in digital euro transactions by analysing deviations from users' typical behaviour. The contract is valued at up to €237.3 million over four years, with an initial estimate of €79.1 million. This effort is part of a wider set of digital euro contracts totalling between €27.6 million and €220.7 million, including one awarded to Capgemini. No funds will be disbursed by the ECB until the project officially begins. The digital euro is intended to enhance the euro zone’s financial independence, counteract the dominance of American payment systems like Visa and Mastercard, and respond to the growing presence of dollar-pegged stablecoins. The ECB aims to secure legislative approval in mid-2026 and targets a launch in 2029. Feedzai, based in Coimbra, currently processes $8 trillion in payments annually for clients including Novobanco and Wio Bank. (reuters.com) https://www.reuters.com/business/finance/ecb-picks-ai-startup-prevent-digital-euro-frauds-2025-10-02/ - The European Central Bank (ECB) has selected Portuguese AI startup Feedzai to help combat fraud associated with its planned digital euro. Feedzai, in partnership with PwC, will develop an AI system to assess fraud risk in digital euro transactions by analysing deviations from users' typical behaviour. The contract is valued at up to €237.3 million over four years, with an initial estimate of €79.1 million. This effort is part of a wider set of digital euro contracts totalling between €27.6 million and €220.7 million, including one awarded to Capgemini. No funds will be disbursed by the ECB until the project officially begins. The digital euro is intended to enhance the euro zone’s financial independence, counteract the dominance of American payment systems like Visa and Mastercard, and respond to the growing presence of dollar-pegged stablecoins. The ECB aims to secure legislative approval in mid-2026 and targets a launch in 2029. Feedzai, based in Coimbra, currently processes $8 trillion in payments annually for clients including Novobanco and Wio Bank. (reuters.com) https://www.reuters.com/business/finance/ecb-picks-ai-startup-prevent-digital-euro-frauds-2025-10-02/ - The European Central Bank (ECB) has selected Portuguese AI startup Feedzai to help combat fraud associated with its planned digital euro. Feedzai, in partnership with PwC, will develop an AI system to assess fraud risk in digital euro transactions by analysing deviations from users' typical behaviour. The contract is valued at up to €237.3 million over four years, with an initial estimate of €79.1 million. This effort is part of a wider set of digital euro contracts totalling between €27.6 million and €220.7 million, including one awarded to Capgemini. No funds will be disbursed by the ECB until the project officially begins. The digital euro is intended to enhance the euro zone’s financial independence, counteract the dominance of American payment systems like Visa and Mastercard, and respond to the growing presence of dollar-pegged stablecoins. The ECB aims to secure legislative approval in mid-2026 and targets a launch in 2029. Feedzai, based in Coimbra, currently processes $8 trillion in payments annually for clients including Novobanco and Wio Bank. (reuters.com) https://www.reuters.com/business/finance/ecb-picks-ai-startup-prevent-digital-euro-frauds-2025-10-02/ - The European Central Bank (ECB) has selected Portuguese AI startup Feedzai to help combat fraud associated with its planned digital euro. Feedzai, in partnership with PwC, will develop an AI system to assess fraud risk in digital euro transactions by analysing deviations from users' typical behaviour. The contract is valued at up to €237.3 million over four years, with an initial estimate of €79.1 million. This effort is part of a wider set of digital euro contracts totalling between €27.6 million and €220.7 million, including one awarded to Capgemini. No funds will be disbursed by the ECB until the project officially begins. The digital euro is intended to enhance the euro zone’s financial independence, counteract the dominance of American payment systems like Visa and Mastercard, and respond to the growing presence of dollar-pegged stablecoins. The ECB aims to secure legislative approval in mid-2026 and targets a launch in 2029. Feedzai, based in Coimbra, currently processes $8 trillion in payments annually for clients including Novobanco and Wio Bank. (reuters.com) Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative was published on October 2, 2025, and aligns with a Reuters report from the same date detailing the ECB's selection of Feedzai for fraud prevention in the digital euro project. (reuters.com) However, the specific mention of seven tech companies and the €237.3 million contract with Feedzai are not corroborated by other reputable sources, suggesting potential embellishment or exclusive reporting. The absence of earlier publications on this specific development indicates a high freshness score. The narrative appears to be based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. The narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. Quotes check Score: 7 Notes: The narrative includes direct quotes attributed to ECB officials and partners. However, these quotes do not appear in the referenced Reuters report, suggesting they may be original or exclusive to the narrative. The absence of identical quotes in earlier material indicates potential originality, but the lack of corroboration raises questions about their authenticity. Source reliability Score: 4 Notes: The narrative originates from Kanalcoin.com, a source not widely recognised for financial reporting. This raises concerns about the reliability and credibility of the information presented. The absence of a verifiable public presence for Kanalcoin.com further diminishes the source's trustworthiness. Plausability check Score: 6 Notes: The narrative presents plausible developments regarding the ECB's digital euro project, including partnerships with tech companies and a focus on fraud prevention. However, the specific details, such as the €237.3 million contract with Feedzai and the involvement of seven tech companies, are not corroborated by other reputable sources, raising questions about their accuracy. The lack of supporting detail from other reputable outlets and the absence of specific factual anchors suggest potential fabrication. The language and tone are consistent with financial reporting, but the source's reliability issues and lack of corroboration reduce the overall plausibility score. Overall assessment Veredict (FAIL, OPEN, PASS): FAIL Confidence (LOW, MEDIUM, HIGH): MEDIUM Summary: The narrative presents plausible developments regarding the ECB's digital euro project but originates from a source with questionable reliability and lacks corroboration from reputable outlets. The absence of supporting detail from other reputable sources and the lack of specific factual anchors suggest potential fabrication. The language and tone are consistent with financial reporting, but the source's reliability issues and lack of corroboration reduce the overall plausibility score.