This week’s developments highlighted a widening gap between regulatory pressure and rapid innovation, as Big Tech faced renewed antitrust challenges while advertisers and platforms doubled down on AI-driven growth. In today’s MadTech Daily, we discuss Google set to double AI spending to USD$185bn (£137bn) after strong earnings, Netflix reaching 61% of UK households, according to Barb, and Baidu unveiling its first dividend alongside a USD$5bn (£3.7bn) buyback.

The US Department of Justice escalated its antitrust battle with Google, filing a cross-appeal in the landmark search monopoly case. The move signals continued disagreement over the remedies imposed on Google for allegedly dominating the online search and search advertising markets, keeping the future shape of its ad business firmly under scrutiny.

Dealmaking in the media sector also hit turbulence. Netflix faced pointed questioning from US lawmakers as it defended its proposed USD$82bn (£61bn) acquisition of Warner Bros. Discovery. Senators from both parties raised concerns over competition, labour impacts, and potential harm to consumers.

While regulators pressed pause on power plays, platforms pushed ahead with AI-driven transformation. Amazon unveiled plans to open its advertising stack to AI agents, launching an open beta of its Amazon Ads Model Context Protocol (MCP) Server. The new integration layer allows AI agents to interact with Amazon Ads via a single, standardised connection, reducing friction for advertisers and ad tech partners looking to automate workflows.

In China, AI adoption is being fuelled by consumer incentives. Alibaba pledged 3bn yuan (£320m) in Spring Festival promotions to accelerate uptake of its AI app, Qwen. The Lunar New Year campaign spans Alibaba’s ecosystem, using cash rewards and lottery-style giveaways to embed Qwen into everyday consumer activity.

Confidence in the advertising market was reinforced by new forecasts from the Interactive Advertising Bureau (IAB). Its 2026 Outlook Study projects US ad spend will grow 9.5% year on year, driven by major cyclical events, a continued shift toward performance-led strategies. 

Finally, Australia’s media landscape is set for a significant shake-up. Nine Entertainment announced the sale of its radio network, including 2GB and 3AW to pub magnate Arthur Laundy for AUS$56m (£41.4m).