Competition regulation

Publishers set to earn from Comet Plus, Perplexity’s new initiative

Perplexity has announced Comet Plus, a new service that will pay premium publishers to provide high-quality news content as an alternative to clickbait. The company has not disclosed its roster of partners or payment structure, though reports suggest a pool of $42.5 million.

Publishers have long criticised AI services for exploiting their work without compensation. Perplexity, backed by Amazon’s Jeff Bezos, said Comet Plus will create a fairer system and reward journalists for producing trusted content in the era of AI.

The platform introduces a revenue model based on three streams: human visits, search citations, and agent actions. Perplexity argues this approach better reflects how people consume information today, whether by browsing manually, seeking AI-generated answers, or using AI agents.

The company stated that the initiative aims to rebuild trust between readers and publishers, while ensuring that journalism thrives in a changing digital economy. The initial group of publishing partners will be revealed later.

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Silicon Valley moves to influence AI policy

Silicon Valley insiders are preparing to pour over $100 million into next year’s US midterm elections to influence AI policy. The super-PAC Leading the Future, backed by Andreessen Horowitz and Greg Brockman, seeks to impact AI policy and limit strict regulation.

Leading the Future targets battleground states such as California, New York, Illinois, and Ohio. The PAC intends to fund campaigns, run extensive social media ads, and focus on politicians who support innovation-friendly ‘guardrails’ rather than heavy-handed regulation.

The initiative draws inspiration from the crypto industry’s political playbook, which successfully backed candidates aligned with its interests.

The group’s structure combines federal and state PACs with a 501(c)(4) organisation, offering flexibility and influence over both major parties. High-profile backers include Marc Andreessen, Greg Brockman, Joe Lonsdale, and Ron Conway.

Their collective goal is to ensure AI development continues without regulatory barriers that could slow American innovation and job creation.

Silicon Valley’s strategy highlights the increasing role of tech money in politics, reflecting a shift in donor priorities. The PAC’s influence may become a decisive factor in shaping AI legislation, with potential implications for the industry and broader US policy debates.

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YouTube under fire for AI video edits without creator consent

Anger grows as YouTube secretly alters some uploaded videos using machine learning. The company admitted that it had been experimenting with automated edits, which sharpen images, smooth skin, and enhance clarity, without notifying creators.

Although tools like ChatGPT or Gemini did not generate these changes, they still relied on AI.

The issue has sparked concern among creators, who argue that the lack of consent undermines trust.

YouTuber Rhett Shull publicly criticised the platform, prompting YouTube liaison Rene Ritchie to clarify that the edits were simply efforts to ‘unblur and denoise’ footage, similar to smartphone processing.

However, creators emphasise that the difference lies in transparency, since phone users know when enhancements are applied, whereas YouTube users were unaware.

Consent remains central to debates around AI adoption, especially as regulation lags and governments push companies to expand their use of the technology.

Critics warn that even minor, automatic edits can treat user videos as training material without permission, raising broader concerns about control and ownership on digital platforms.

YouTube has not confirmed whether the experiment will expand or when it might end.

For now, viewers noticing oddly upscaled Shorts may be seeing the outcome of these hidden edits, which have only fuelled anger about how AI is being introduced into creative spaces.

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xAI accuses Apple and OpenAI of blocking competition in AI

Elon Musk’s xAI has filed a lawsuit in Texas accusing Apple and OpenAI of colluding to stifle competition in the AI sector.

The case alleges that both companies locked up markets to maintain monopolies, making it harder for rivals like X and xAI to compete.

The dispute follows Apple’s 2024 deal with OpenAI to integrate ChatGPT into Siri and other apps on its devices. According to the lawsuit, Apple’s exclusive partnership with OpenAI has prevented fair treatment of Musk’s products within the App Store, including the X app and xAI’s Grok app.

Musk previously threatened legal action against Apple over antitrust concerns, citing the company’s alleged preference for ChatGPT.

Musk, who acquired his social media platform X in a $45 billion all-stock deal earlier in the year, is seeking billions of dollars in damages and a jury trial. The legal action highlights Musk’s ongoing feud with OpenAI’s CEO, Sam Altman.

Musk, a co-founder of OpenAI who left in 2018 after disagreements with Altman, has repeatedly criticised the company’s shift to a profit-driven model. He is also pursuing separate litigation against OpenAI and Altman over that transition in California.

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FTC cautions US tech firms over compliance with EU and UK online safety laws

The US Federal Trade Commission (FTC) has warned American technology companies that following European Union and United Kingdom rules on online content and encryption could place them in breach of US legislation.

In a letter sent to chief executives, FTC Chair Andrew Ferguson said that restricting access to content for American users to comply with foreign legal requirements might amount to a violation of Section 5 of the Federal Trade Commission Act, which prohibits unfair or deceptive commercial practices.

Ferguson cited the EU’s Digital Services Act and the UK’s Online Safety Act, as well as reports of British efforts to gain access to encrypted Apple iCloud data, as examples of measures that could put companies at risk under US law.

Although Section 5 has traditionally been used in cases concerning consumer protection, Ferguson noted that the same principles could apply if companies changed their services for US users due to foreign regulation. He argued that such changes could ‘mislead’ American consumers, who would not reasonably expect their online activity to be governed by overseas restrictions.

The FTC chair invited company leaders to meet with his office to discuss how they intend to balance demands from international regulators while continuing to fulfil their legal obligations in the United States.

Earlier this week, a senior US intelligence official said the British government had withdrawn a proposed legal measure aimed at Apple’s encrypted iCloud data after discussions with US Vice President JD Vance.

The issue has arisen amid tensions over the enforcement of UK online safety rules. Several online platforms, including 4chan, Gab, and Kiwi Farms, have publicly refused to comply, and British authorities have indicated that internet service providers could ultimately be ordered to block access to such sites.

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Bitcoin price drops after whale sell-off while Ethereum holds

Bitcoin price weakened sharply after a $2.7 billion whale sell-off sparked automated liquidations, pushing the cryptocurrency toward key support near $110,500. Over $846 million in liquidations doubled the total crypto capitalisation to about $3.83 trillion.

Indicators suggest short-term volatility and choppy price action.

Technical metrics highlight the divergence between Bitcoin and Ethereum. Bitcoin’s ADX at 16 and RSI near 42 signal low trend conviction and growing selling pressure, while the Squeeze Momentum Indicator points to potential volatility ahead.

Ethereum remains comparatively resilient, with an ADX around 41, a bullish 50–200 EMA spread, and RSI near 59, supporting continued positive momentum.

Traders are advised to emphasise risk management amid elevated uncertainty. Key Bitcoin support levels sit at $110,500 and $107,000–$107,600, with resistance at $116,000 and $120,000. Ethereum support ranges from $4,194 to $4,400, while immediate resistance reaches $4,954.

Tightening stop-losses, reducing leverage, and waiting for confirmed volatility resolution are recommended before initiating new positions.

The recent whale-induced volatility demonstrates how a large order can swiftly impact market dynamics. While Bitcoin shows fragile trend conditions, Ethereum’s technical strength provides a measure of stability.

Monitoring indicators and key levels remains essential for navigating the current environment.

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Musicians report surge in AI fakes appearing on Spotify and iTunes

Folk singer Emily Portman has become the latest artist targeted by fraudsters releasing AI-generated music in her name. Fans alerted her to a fake album called Orca appearing on Spotify and iTunes, which she said sounded uncannily like her style but was created without her consent.

Portman has filed copyright complaints, but says the platforms were slow to act, and she has yet to regain control of her Spotify profile. Other artists, including Josh Kaufman, Jeff Tweedy, Father John Misty, Sam Beam, Teddy Thompson, and Jakob Dylan, have faced similar cases in recent weeks.

Many of the fake releases appear to originate from the same source, using similar AI artwork and citing record labels with Indonesian names. The tracks are often credited to the same songwriter, Zyan Maliq Mahardika, whose name also appears on imitations of artists in other genres.

Industry analysts say streaming platforms and distributors are struggling to keep pace with AI-driven fraud. Tatiana Cirisano of Midia Research noted that fraudsters exploit passive listeners to generate streaming revenue, while services themselves are turning to AI and machine learning to detect impostors.

Observers warn the issue is likely to worsen before it improves, drawing comparisons to the early days of online piracy. Artists and rights holders may face further challenges as law enforcement attempts to catch up with the evolving abuse of AI.

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Internet platforms in China face new pricing guidelines

China has unveiled draft rules to rein in pricing practices on internet platforms, responding to long-standing complaints from both merchants and consumers about unfair or misleading costs. The proposed measures, announced by the National Development and Reform Commission on 23 August, are designed to make pricing more transparent and equitable across the country’s vast digital marketplace.

The draft regulations would require platforms and merchants to follow standardised pricing guidelines, clearly disclose their rules, and notify users promptly of any fee changes. Authorities in China say prices should be set and adjusted through standardised contracts or formal orders to reduce arbitrary or hidden charges.

The move comes after repeated allegations that major platforms have manipulated prices to their advantage, leaving consumers and smaller sellers at a disadvantage. By tightening oversight, Beijing hopes to rebuild trust in online commerce while ensuring a fairer playing field.

The draft will remain open for public comment for one month, allowing businesses and citizens to weigh in before the measures are finalised.

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Australia weighs cyber militia to counter rising digital threats

Cyberattacks are intensifying worldwide, with Australia now ranked fourth globally for threats against operational technology and industrial sectors. Rising AI-powered incursions have exposed serious vulnerabilities in the country’s national defence and critical infrastructure.

The 2023–2030 Cyber Security Strategy designed by the Government of Australia aims to strengthen resilience through six ‘cyber shields’, including legislation and intelligence sharing. But a skills shortage leaves organisations vulnerable as ransomware attacks on mining and manufacturing continue to rise.

One proposal gaining traction is the creation of a volunteer ‘cyber militia’. Inspired by the cyber defence unit in Estonia, this network would mobilise unconventional talent, retirees, hobbyist hackers, and students, to bolster monitoring, threat hunting, and incident response.

Supporters argue that such a force could fill gaps left by formal recruitment, particularly in smaller firms and rural networks. Critics, however, warn of vetting risks, insider threats, and the need for new legal frameworks to govern liability and training.

Pilot schemes in high-risk sectors, such as energy and finance, have been proposed, with public-private funding viewed as crucial. Advocates argue that a cyber militia could democratise security and foster collective responsibility, aligning with the country’s long-term cybersecurity strategy.

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Visa expands stablecoin settlement to new assets and blockchains

Visa is expanding its stablecoin settlement capabilities by supporting new digital assets and blockchains. The payments giant will now include Global Dollar (USDG), PayPal USD (PYUSD), and Circle’s euro-backed EURC.

Settlement will extend to Stellar and Avalanche, broadening its support beyond Ethereum and Bitcoin. A new Paxos partnership aims to improve settlement speed and cut cross-border costs.

Visa executives said stablecoins could help fix inefficiencies in emerging markets. They also argued that trusted, scalable, interoperable assets can transform cross-border payments.

Visa is also pushing into new regions, with plans to expand settlement across Central and Eastern Europe, the Middle East, Africa, and Latin America. Recent Yellow Card and Bridge deals will enable stablecoin cards for daily use.

The firm stressed that a stablecoin strategy will become essential for institutions moving money globally.

According to Visa, the expansion will improve liquidity management, lower settlement costs, and provide 365-day transaction support. The network has processed over $225 million in stablecoin settlements, cementing its lead in digital payments.

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