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Alibaba Bans Anthropic’s Claude Code Over Security Concerns

Alibaba is banning employees from using Anthropic’s artificial intelligence tools for work, according to people familiar with the matter, in the latest sign of growing restrictions around AI use amid escalating U.S.-China technology tensions.

Starting July 10, the Chinese technology group will prohibit staff from using Anthropic’s Claude Code for business purposes, citing potential security risks. Alibaba has also classified the tool as high-risk software and instructed employees to remove Anthropic’s AI models and agent products from their devices, replacing them with the company’s own AI coding assistant, Qoder.

Dispute Follows Anthropic Allegations

The move comes weeks after Anthropic accused Alibaba of attempting to extract capabilities from its AI models through what it described as the largest known model distillation campaign against the company.

In a letter to the U.S. Senate Committee on Banking, Housing and Urban Affairs, Anthropic alleged that Alibaba had acted “brazenly” and “illicitly.”

AI Access Faces Tighter Controls

Anthropic’s terms of service prohibit companies in China and other countries it classifies as “adversarial nations” from using its models. According to the Financial Times, the company has also tightened controls to prevent Chinese firms from accessing Claude through third countries.

At the same time, claims circulated on Reddit and GitHub alleging that Claude Code contains hidden code capable of detecting whether users are based in China. Anthropic has not publicly responded to those allegations.

Chinese Companies Reassess AI Strategy

The restrictions extend beyond Alibaba. According to the Financial Times, Ant Group had provided employees with corporate Claude accounts through its Singapore entity, while ByteDance has reimbursed staff for personal Claude subscriptions so engineers can access the service via virtual private networks.

CNBC reported that ByteDance introduced the reimbursement programme in April to help employees “experience and learn” from a wider range of AI products.

Competition Intensifies

Alibaba’s decision reflects the increasingly fragmented AI landscape, as technology companies tighten internal policies, limit third-party AI tools and invest more heavily in proprietary models.

Neither Alibaba nor Anthropic immediately responded to requests for comment.

EU Agrees On Major Overhaul Of Financial Market Supervision

European Union finance ministers have reached agreement on a sweeping package designed to strengthen oversight of the bloc’s financial markets, in a move aimed at reducing fragmentation and improving the flow of capital across borders.

A Push To Deepen Capital Markets

The Market Integration and Supervision Package, or MISP, would grant the European Securities and Markets Authority direct supervision over major market operators that are currently regulated by national authorities. The reforms are intended to make Europe’s capital markets more integrated, more efficient and better able to channel savings into productive investment.

According to the Irish presidency, the package is meant to help savings and investments move more freely across the European Union, improving access to finance for companies while giving households broader opportunities to earn returns on their savings.

What The Reform Would Change

Under the new framework, ESMA would take direct oversight of key trading venues, clearing houses, securities settlement bodies and crypto-asset service providers. The package would also establish a permanent, independent executive board within the regulator, strengthening its institutional capacity.

Market operators would be able to opt into a new EU-wide operating framework. In parallel, the reforms would seek to make national supervision more consistent and update rules governing trading, transaction completion, investment management and the use of blockchain technology.

Why The Agreement Matters

Supporters of deeper capital markets argue that Europe has long paid a price for regulatory inconsistency. While many rules are harmonised across the bloc, differences in enforcement and supervision have contributed to a patchwork system that can make cross-border investment slower and more costly.

A more integrated framework, proponents say, could lower costs for companies seeking funding and broaden the menu of investment options available to savers and institutional investors alike.

Outstanding Questions Remain

Despite the broad agreement, some important details remain unresolved. Trading venues operated by Deutsche Börse, the company behind the Frankfurt stock exchange, may remain outside ESMA’s direct supervision.

Euronews previously reported that Germany had secured an exemption for Deutsche Börse’s domestically focused trading venues, leaving part of the system under regional supervision. The latest announcement did not clarify whether that arrangement will stand.

A Step Forward For The Savings And Investments Union

Dutch Finance Minister Eelco Heinen welcomed the deal, calling it a major advance for the Capital Markets Union and saying Europe had made more progress in 10 months than in the previous 10 years.

The agreement is an important milestone in the Savings and Investments Union, the EU’s broader effort to channel more of Europeans’ savings into investments that can support growth, innovation and competitiveness across the bloc.

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