Competition regulation

WEF urges trade policy shift to protect workers in digital economy

The World Economic Forum (WEF) has published an article on using trade policy to build a fairer digital economy. Digital services now make up over half of global exports, with AI investment projected at $252 billion in 2024. Countries from Kenya to the UAE are positioning as digital hubs, but job quality still lags.

Millions of platform workers face volatile pay, lack of contracts, and no access to social protections. In Kenya alone, 1.9 million people rely on digital work yet face algorithm-driven pay systems and sudden account deactivations. India and the Philippines show similar patterns.

AI threatens to automate lower-skilled tasks such as data annotation and moderation, deepening insecurity in sectors where many developing countries have found a competitive edge. Ethical standards exist but have little impact without enforcement or supportive regulation.

Countries are experimenting with reforms: Singapore now mandates injury compensation and retirement savings for platform workers, while the Rider Law in Spain reclassifies food couriers as employees. Yet overly strict regulation risks eroding the flexibility that attracts youth and caregivers to gig work.

Trade agreements, such as the AfCFTA and the Kenya–EU pact, could embed labour protections in digital markets. Coordinated policies and tripartite dialogue are essential to ensure the digital economy delivers growth, fairness, and dignity for workers.

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Hollywood studios take legal action against MiniMax for AI copyright infringement

Disney, Warner Bros. Discovery and NBCUniversal have filed a lawsuit in California against Chinese AI company MiniMax, accusing it of large-scale copyright infringement.

The studios allege that MiniMax’s Hailuo AI service generates unauthorised images and videos featuring well-known characters such as Darth Vader, marketing itself as a ‘Hollywood studio in your pocket’ instead of respecting copyright laws.

According to the complaint, MiniMax, reportedly worth $4 billion, ignored cease-and-desist requests and continues to profit from copyrighted works. The studios argue that the company could easily implement safeguards, pointing to existing controls that already block violent or explicit content.

MiniMax’s approach, as they claim, represents a serious threat to both creators and the broader film industry, which contributes hundreds of billions of dollars to the US economy.

Plaintiffs, including Disney’s Marvel and Lucasfilm units, Universal’s DreamWorks Animation and Warner Bros.’ DC Comics, are seeking statutory damages of up to $150,000 per infringed work or unspecified compensation.

They are also asking for an injunction to prevent MiniMax from continuing its alleged violations instead of simply paying damages.

The Motion Picture Association has backed the lawsuit, with its chairman Charles Rivkin warning that unchecked copyright infringement could undermine millions of jobs and the cultural value created by the American film industry.

MiniMax, based in Shanghai, has not responded publicly to the claims but has previously described itself as a global AI foundation model company with over 157 million users worldwide.

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Miljodata hack exposes data of nearly 15% of Swedish population

Swedish prosecutors have confirmed that a cyberattack on IT systems provider Miljodata exposed the personal data of 1.5 million people, nearly 15% of Sweden’s population. The attack occurred during the weekend of August 23–24.

Authorities said the stolen data has been leaked online and includes names, addresses, and contact details. Prosecutor Sandra Helgadottir said the group Datacarry has claimed responsibility, though no foreign state involvement is suspected.

Media in Sweden reported that the hackers demanded 1.5 bitcoin (around $170,000) to prevent the release of the data. Miljodata confirmed the information has now been published on the darknet.

The Swedish Authority for Privacy Protection has received over 250 breach notifications, with 164 municipalities and four regional authorities impacted. Employees in Gothenburg were among those affected, according to SVT.

Private companies, including Volvo, SAS, and GKN Aerospace, also reported compromised data. Investigators are working to identify the perpetrators as the breach’s scale continues to raise concerns nationwide.

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AI will kill middle-ground media, but raw content will thrive

Advertising is heading for a split future. By 2030, brands will run hyper-personalised AI campaigns or embrace raw human storytelling. Everything in between will vanish.

AI-driven advertising will go far beyond text-to-image gimmicks. These adaptive systems will combine social trends, search habits, and first-party data to create millions of real-time ad variations.

The opposite approach will lean into imperfection, featuring unpolished TikToks, founder-shot iPhone videos, and authentic and alive content. Audiences reward authenticity over carefully scripted, generic campaigns.

Mid-tier, polished, forgettable, creative work will be the first to fade away. AI can replicate it instantly, and audiences will scroll past it without noticing.

Marketers must now pick a side: feed AI with data and scale personalisation, or double down on community-driven, imperfect storytelling. The middle won’t survive.

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AI search tools challenge Google’s dominance

AI tools are increasingly reshaping how people search online, with large language models like ChatGPT drawing millions away from traditional engines.

Montreal-based lawyer and consultant Anja-Sara Lahady says she now turns to ChatGPT instead of Google for everyday tasks such as meal ideas, interior decoration tips and drafting low-risk emails. She describes it as a second assistant rather than a replacement for legal reasoning.

ChatGPT’s weekly user base has surged to around 800 million, double the figure reported in 2025. Data shows that nearly 6% of desktop searches are already directed to language models, compared with barely half that rate a year ago.

Academics such as Professor Feng Li argue that users favour AI tools because they reduce cognitive effort by providing clear summaries instead of multiple links. However, he warns that verification remains essential due to factual errors.

Google insists its search activity continues to expand, supported by AI Overviews and AI Mode, which offer more conversational and tailored answers.

Yet, testimony in a US antitrust case revealed that Google searches on Apple devices via Safari declined for the first time in two decades, underlining the competitive pressure from AI.

The rise of language models is also forcing a shift in digital marketing. Agencies report that LLMs highlight trusted websites, press releases and established media rather than social media content.

This change may influence consumer habits, with evidence suggesting that referrals from AI systems often lead to higher-quality sales conversions. For many users, AI now represents a faster and more personal route to decisions on products, travel or professional tasks.

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Codex gets smarter with GPT-5, targets GitHub Copilot and rivals

OpenAI has optimised its new GPT-5 model for Codex, its agentic software development tool, boosting performance on both quick coding sessions and long, complex projects. CEO Sam Altman said Codex already accounts for 40% of platform traffic.

GPT-5 Codex can now build full projects, add features, run tests, refactor large codebases, and conduct detailed code reviews. It dynamically adjusts the time spent ‘thinking’ based on task complexity, allowing both interactive pair programming and extended autonomous work.

OpenAI stated that the model can run independently for over seven hours, completing refactorings, fixing test failures, and delivering finished code. Early tests indicate that it catches critical bugs more reliably, allowing developers to focus on the most important issues.

The upgraded Codex is available via terminal, IDE integrations, the web, and GitHub, and comes bundled with ChatGPT Plus, Pro, Business, Edu, and Enterprise subscriptions. OpenAI launched Codex CLI in April and a research preview in May.

With GPT-5 Codex, OpenAI aims to capture market share from GitHub Copilot, Google’s Gemini, Anthropic’s Claude, and startups such as Anysphere and Windsurf. The company claims the new version delivers faster, higher-quality results for developers at every stage of the software lifecycle.

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European regulators push for stronger oversight in crypto sector

European regulators from Italy, France, and Austria have called for changes to the EU’s Markets in Crypto-Assets Regulation (MiCA). Their proposals aim to fix supervisory gaps, improve cybersecurity, and simplify token white paper approvals.

The regulation, which came into force in December 2024, requires prior authorisation for firms offering crypto-related services in Europe. However, early enforcement has shown significant gaps in how national authorities apply the rules.

Regulators argue these differences undermine investor protection and threaten the stability of the European internal market.

Concerns have also been raised about non-EU platforms serving European clients through intermediaries outside MiCA’s scope. To counter this, authorities recommend restricting such activity and ensuring intermediaries only use platforms compliant with MiCA or equivalent standards.

Additional measures include independent cybersecurity audits, mandatory both before and after authorisation, to bolster resilience against cyber-attacks.

The proposals suggest giving ESMA direct oversight of major crypto providers and centralising white paper filings. Regulators say the changes would boost legal clarity, cut investor risks, and level the field for European firms against global rivals.

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Bank of England faces backlash over stablecoin cap plans

Cryptocurrency groups are urging the Bank of England to abandon proposals that would cap the amount of stablecoins individuals and businesses can hold. Industry leaders argue the measures would leave the UK with stricter oversight than the US and the European Union.

Under the plan, individuals would face limits between £10,000 and £20,000, while businesses would be restricted to about £10 million in systemic stablecoins.

The central bank maintains that caps are needed to protect financial stability and prevent deposit outflows from banks. Executives argue the approach is unworkable and could damage London’s role as an economic hub.

Coinbase executive Tom Duff Gordon warned the limits would harm UK savers and undermine confidence in sterling. Others highlighted practical issues, noting that enforcement could require digital IDs, and pointed out the absence of similar caps on cash or bank accounts.

The Payments Association said the rules’ make no sense’ given how other jurisdictions are approaching stablecoins.

By contrast, the US introduced the GENIUS Act in July, setting licensing and reserve requirements without placing restrictions on holdings. The EU’s MiCA framework also avoids caps, focusing instead on reserves, governance, and regulatory oversight.

Industry voices now caution that the UK risks falling behind its global peers if the BoE proceeds with the current plan.

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Google lays off over 200 AI contractors amid union tensions

The US tech giant, Google, has dismissed over 200 contractors working on its Gemini chatbot and AI Overviews tool. However, this sparks criticism from labour advocates and claims of retaliation against workers pushing for unionisation.

Many affected staff were highly trained ‘super raters’ who helped refine Google’s AI systems, yet were abruptly laid off.

The move highlights growing concerns over job insecurity in the AI sector, where companies depend heavily on outsourced and low-paid contract workers instead of permanent employees.

Workers allege they were penalised for raising issues about inadequate pay, poor working conditions, and the risks of training AI that could eventually replace them.

Google has attempted to distance itself from the controversy, arguing that subcontractor GlobalLogic handled the layoffs rather than the company itself.

Yet critics say that outsourcing allows the tech giant to expand its AI operations without accountability, while undermining collective bargaining efforts.

Labour experts warn that the cuts reflect a broader industry trend in which AI development rests on precarious work arrangements. With union-busting claims intensifying, the dismissals are now seen as part of a deeper struggle over workers’ rights in the digital economy.

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China’s market watchdog finds Nvidia violated antitrust law

China’s State Administration for Market Regulation (SAMR) has issued a preliminary finding that Nvidia violated antitrust law linked to its 2020 acquisition of Mellanox Technologies. The deal was approved with restrictions, including a ban on bundling and ‘unreasonable trading conditions’ in China.

SAMR now alleges that Nvidia breached those terms. A full investigation is underway. Nvidia shares fell 2.4% in pre-market trading after the announcement. According to the Financial Times, SAMR delayed releasing the findings to gain leverage in trade talks with the USA, currently taking place in Madrid.

At the same time, US export controls on advanced chips remain a challenge for Nvidia. Licensing for its China-specific H20 chips is still under review, affecting Nvidia’s access to the Chinese market.

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