European Union regulators on Monday said that Apple is in breach of sweeping new tech rules because it does not allow customers of its App Store to be steered to alternatives.

The European Commission, the EU’s executive arm, also said it had opened a new probe into Apple into new contractual terms with developers.

The EU opened an investigation into Apple, Alphabet and Meta in March under a landmark new law known as the Digital Markets Act (DMA), which aims to reel in the power of Big Tech firms. So-called anti-steering rules were one of the big areas of focus of the probe. Under the DMA, tech firms are not allowed to block businesses from telling their users about cheaper options for their products or about subscriptions outside of an app store.

On Monday, regulators said in their preliminary findings that Apple was in breach of the DMA because its App Store rules “prevent app developers from freely steering consumers to alternative channels for offers and content.”

CNBC has reached out to Apple for comment.

Apple only allows steering through a system where app developers can provide a link that sends users to a webpage where they can then purchase content, such as a subscription, according to the Commission. However, this process is “subject to several restrictions imposed by Apple that prevent app developers from communicating, promoting offers and concluding contracts through the distribution channel of their choice,” the Commission noted.

The regulators also said that the fees Apple charges developers for the initial acquisition of new customers via the App Store “go beyond what is strictly necessary.” The Commission did not disclose what represents a “strictly necessary” fee.

Apple could face fines of up to 10% of the company’s total worldwide annual turnover, if it is found in breach of the DMA.

The U.S. tech giant has been in EU’s crosshairs this year. Regulators hit Apple with a 1.8 billion euro ($1.93 billion) antitrust fine in March for abusing its dominant position in the market for the distribution of music streaming apps. The steering rules were also a focus in that investigation.

Apple made some big changes to its App Store in the EU this year in anticipation of the DMA. The Cupertino giant now allows apps to be downloaded from websites, as well as third-party app stores on its devices.

But the Commission also raised concerns about some of Apple’s new practices.

Apple still charges a “core technology fee” of 50 euro cents ($0.54) per app installed for downloads outside its own App Store. The Commission said it is looking into whether this complies with the DMA.

Regulators are also looking at whether the steps Apple makes users take to download alternative app stores or apps comply with the bloc’s rules.

The Commission will also look at whether “eligibility requirements related to the ability to offer alternative app stores or directly distribute apps from the web on iPhones” is also in compliance with the tech law.

China wants the European Union to revoke its decision to impose provisional tariffs on Chinese electric vehicles after both sides agreed to hold new talks, Global Times reported on Sunday.

China’s commerce minister Wang Wentao and Valdis Dombrovskis, executive vice president of the European Commission, agreed to begin discussions on the EU’s anti-subsidy investigation into Chinese EVs, Beijing said in a statement on Saturday.

The ideal outcome China wants is for the European Commission to revoke its tariff decision by July 4 and adhere to World Trade Organization rules, Global Times reported, quoting observers.

The EU’s provisional duties of up to 38.1% on Chinese EV imports are set to kick in by July 4 if discussions with Chinese authorities do not result in a resolution, the commission said in a statement earlier this month.

This is in addition to standard 10% duty already imposed on imported EVs.

Scrapping the tariff decision on Chinese EVs would benefit both sides, the report quoted observers, adding that the economic and trade cooperation between China and the EU was “huge” and both sides were dependent on each other..

The EU’s moves will invite countermeasures from China, experts warned, adding that both sides stand to lose unless the situation is resolved.

China has firmly opposed the tariffs, saying the move was “blatant protectionism” and could violate WTO rules, its commerce ministry said on June 14. A Chinese official told CNBC last week that the EU’s probe into Chinese EVs was overly selective and that the results were not credible.

Read the full report on Global Times.

Synthesia, a British artificial intelligence startup, on Monday showed off a slew of new product updates including the ability to create your own Apple-style key presentations with AI avatars by using just a laptop webcam or your phone.

The seven-year-old firm, which is backed by Nvidia, said the new product updates will make it more of an all-encompassing video production suite for large companies, rather than just a platform that offers users the ability to create AI-generated avatars.

Among the new updates Synthesia is launching is the ability to produce AI avatars using webcams or a phone, “full body” avatars with hands and arms, and a screen recording tool that shows an AI avatar guiding you through what you’re watching.

This is all training data to provide Synthesia’s AI algorithm with the facial and vocal nuances it needs to come up with humanlike avatars that speak in an expressive way. Earlier this year, Synthesia debuted new expressive avatars that can convey human emotions, including happiness, sadness, and frustration.

But now, Synthesia is introducing new software which will make it easier for users to produce a digital version of themselves from anywhere, using just a webcam and Synthesia’s software.

The company is also launching the ability to create full-body avatars. This is different to Synthesia’s current avatars, which are limited to just portrait view. Now, you can go into a studio with dozens of cameras, sensors and lights all around you to make avatars that can move their hands.

Generating hands is something that’s traditionally hard for AI to do — often because hands are only a small part of the human body and not typically the focus in visual content.

Synthesia also debuted the option to play videos of AI avatars speaking in any language they like, whether it’s English, French, German, or Chinese.

In the future, Synthesia says, it will be able to tailor AI avatars for different countries: For example, a Nigerian avatar running a user through a tutorial rather than an American.

Synthesia also launched a new AI video assistant which can produce summaries of entire articles and documents. This could be a human resources specialist making a quick video explaining company benefits packages, for example.

Another big feature the company is rolling out is a new screen recording tool, which shows an AI avatar guiding you through what you’re watching.

In CNBC’s interview with him, Riparbelli characterized what Synthesia is trying to do as an enterprise-focused product overhaul, which would make it more akin to giants like Microsoft, Salesforce, and Zoom in the enterprise category.

“The world has been blown away by this stuff for the last 12 to 18 to 24 months, which is awesome,” Riparbelli told CNBC.

“But now we have experimented a lot, and we have found out the right use cases for these technologies that have lasting business value. They’re not like just a short-term PR moment.”

“You need to do that business goal of reducing customer support tickets by showing videos instead of text; or sell by making videos instead of just sending out emails,” he added.

“Now people are creating workflows around that. They need better ways to achieve their business goals, not just an interface with AI models. That’s where we’re going as a company.”

Last year, Synthesia raised $90 million from investors including U.S. chipmaker Nvidia and venture capital firm Accel, in a funding round that valued it at $1 billion and giving it “unicorn” status.

The company’s competitors include AI video tools Veed, Colossyan, Elai, and HeyGen. And Chinese-owned social media app TikTok also recently debuted Symphony Assistant, a product that allows creators to make their own AI avatars.

 The company makes money through a number of subscription pricing plans ranging from $22 for a “starter” plan and $67 for a “creator” plan, to custom “enterprise” plans where pricing is based on negotiations with Synthesia’s sales team.