This week, AI’s growing influence on search and advertising collided with mounting legal pressure on Big Tech, while agency groups continued to reshape their businesses for an AI-first future. In today’s MadTech Daily, we look at the Houthis claiming strikes on two Saudi tankers, Google burning through USD$6bn as AI spending soars, and Nine cutting publishing jobs as it accelerates its digital shift.

The impact of AI-powered search is becoming increasingly difficult for publishers to ignore. New research from the Association of Online Publishers found that Google Search referrals to major UK news publishers fell 7.1% between the first and second quarters of 2025, as Google expanded AI Overviews and reported double-digit Search revenue growth. 

Meanwhile, the courts had a busy week. A US judge temporarily blocked Paramount Skydance’s proposed USD$110bn (£86.9bn) acquisition of Warner Bros. Discovery following a lawsuit from a coalition of state attorneys general. In a separate ruling, another judge gave approval to Anthropic’s USD$1.5bn (£1.19bn) copyright settlement, clearing the way for payments to authors and publishers who accused the AI company of infringement. 

Regulators were equally active. The European Union ordered Google to open key parts of Android AI and Search to competitors under the Digital Markets Act, requiring fairer access to AI assistant functionality and search data. The move is designed to curb Google's ability to favour its own services and boost competition across AI-powered search.

AliExpress also found itself in regulators' crosshairs. The European Commission fined the Alibaba-owned marketplace €550m (£473m) for breaching the Digital Services Act, citing failures to adequately tackle illegal products and assess platform risks. The company has since vowed to appeal, arguing the penalty overlooks the significant improvements it has already made to strengthen compliance.

Away from the courtroom, the advertising industry continued its transformation. Omnicom Media announced it will merge Hearts & Science and Mediahub into a single global agency network spanning 40 markets, creating a business with more than USD$9bn (£7.11bn) in annual billings. Meanwhile, Stagwell is preparing to launch Stagwell Curate, an AI-powered media marketplace that gives the holding company greater control over premium advertising inventory while reducing its dependence on third-party platforms.