Competition regulation

China says US curbs will harm global semiconductor industry

China has warned that the United States‘ efforts to pressure other nations into targeting its semiconductor industry will ultimately backfire.

During a regular press briefing, Chinese foreign ministry spokesperson Lin Jian criticised Washington’s approach, arguing that it would disrupt the global semiconductor supply chain and hinder industry development worldwide.

The comments came in response to reports that the White House plans to tighten restrictions on China’s access to advanced chip technologies.

Lin Jian emphasised that such actions not only undermine fair competition but also threaten the stability of the global technology market.

Tensions between the US and China over semiconductor access have escalated in recent years, with Washington implementing export controls and encouraging its allies to adopt similar measures.

Beijing has consistently opposed these restrictions, calling them politically motivated attempts to curb China’s technological progress.

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TSMC-Intel investment rumours unconfirmed by Taiwan’s economy ministry

Taiwan‘s economy minister stated that the government has not received any official information regarding a potential overseas investment by chip giant TSMC in Intel or the United States.

Media reports have suggested that TSMC, the world’s largest contract chipmaker, has been in talks to take a stake in Intel, but neither company has confirmed the speculation. Any significant foreign investment by a Taiwanese company requires government approval through the economy ministry’s investment review commission.

Speaking to reporters in Taipei, Economy Minister Kuo Jyh-huei clarified that the ministry cannot comment on market rumours without receiving an official report from TSMC. He confirmed that no application or formal communication has been submitted so far.

Kuo also highlighted that, given the foreign investment nature of such a deal, a formal review process would be necessary before any discussions could take place.

The potential deal has gained attention amid heightened US-Taiwan trade tensions. Former US President Donald Trump previously criticised Taiwan for its dominance in the semiconductor market and expressed a desire to bring more manufacturing back to the United States.

Meanwhile, Taiwan continues to run a significant trade surplus with the US, adding further complexity to any potential cross-border investment.

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Trump’s team considers tighter semiconductor trade restrictions on China with international cooperation

Stronger semiconductor restrictions on China are being considered by Donald Trump’s team, expanding on measures introduced during Joe Biden’s presidency. Bloomberg News reported that discussions have taken place about tightening controls on chip exports and maintenance.

US officials have recently met with their Japanese and Dutch counterparts to explore limits on engineers from Tokyo Electron and ASML working on semiconductor equipment in China.

Additional restrictions on Nvidia chip exports are also under consideration, aiming to further curb Beijing’s technological capabilities.

Trump’s team is pushing for greater alignment with key allies to mirror restrictions already imposed on American chipmakers, such as Lam Research, KLA, and Applied Materials. Tokyo Electron, ASML, and various government officials have either declined or not responded to requests for comment.

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Nvidia takes legal action against EU antitrust investigation

Nvidia has filed a lawsuit against the European Commission for accepting a referral from Italy to review its acquisition of AI startup Run:ai. The US chipmaker argues that the Commission violated a recent court ruling that restricts its powers over minor transactions. This case follows growing concerns over the Commission’s use of Article 22, which allows it to review smaller mergers that fall below EU merger thresholds, a move companies have criticised as overreach.

While the case will not impact the approval of the AI‘s deal, which was cleared in December, a ruling in favour of Nvidia could curb the European Commission’s ability to regulate similar transactions in the future. Nvidia argues that the decision breaches legal principles, including proportionality and equal treatment, and undermines legal certainty for businesses operating in the EU.

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Young Indians turn to crypto for extra income

In Nagpur, India, flower shop owner Ashish Nagose is one of many young Indians turning to cryptocurrency trading as a way to supplement their income. With regulations tightening around equity derivatives in India, Nagose hopes that trading in crypto assets like Bitcoin and Ethereum can provide stability during slower months for his family-owned flower business. His efforts reflect a broader trend among young Indians who are increasingly looking to cryptocurrencies as a source of income, with the crypto market in India growing rapidly.

The surge in cryptocurrency trading volumes on Indian exchanges has been remarkable, more than doubling in the last quarter of 2024. As of now, young retail traders, particularly in smaller cities like Jaipur, Lucknow, and Pune, are driving much of the interest in crypto. Many of these individuals are seeking opportunities to earn more in a country where job growth has not kept pace with the economy. With India’s crypto market projected to grow to $15 billion by 2035, local platforms like CoinSwitch are seeing increasing numbers of users.

However, this rise in crypto interest is not without challenges. The Indian government has imposed steep taxes on crypto trading and has issued warnings about the risks and volatility of these digital assets. Despite these concerns, young traders like Sagar Neware are determined to make a living through crypto, aiming to restart their family’s business with the money they earn from trading.

The surge in crypto trading in India is also drawing attention to the need for regulatory oversight. While the government has yet to adopt comprehensive regulations for cryptocurrencies, it has warned of potential risks to macroeconomic stability. Despite the central bank’s caution, India’s young crypto enthusiasts are undeterred, continuing to learn and trade in hopes of a more prosperous future.

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Indonesia and Apple close deal to end iPhone 16 ban

Indonesia and Apple have reportedly reached an agreement to lift the country’s ban on iPhone 16s, with a potential deal expected to be signed this week. The ban was imposed in October after Apple failed to meet the requirement that smartphones sold in Indonesia must include at least 35% locally-made parts.

As part of the agreement, Apple will invest $1 billion into a manufacturing plant in Indonesia, focused on producing components for smartphones and other products. Additionally, Apple will commit to training local workers in research and development, expanding beyond its existing Apple academies. However, Apple has no immediate plans to begin iPhone production in the country.

Neither Apple nor Indonesia’s Ministry for Industry have responded to requests for comment on the matter.

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EU court sides with Italy in Google antitrust case

The European Court of Justice has backed Italy‘s antitrust authority in a ruling against Google, stating that the tech giant’s refusal to allow Enel’s JuicePass app to work with its Android Auto platform could constitute an abuse of market power. This decision supports a 2021 fine of 102 million euros imposed by the Italian watchdog after Google blocked the e-mobility app. Google had argued that the refusal was due to security concerns and the absence of a specific template for compatibility, but the court disagreed, stating that dominant companies must ensure their platforms are interoperable with third-party apps unless doing so would harm security.

Although Google has since resolved the issue, the ruling sets a precedent for future cases involving platform dominance. The court acknowledged that companies could refuse interoperability if it compromises platform security, but if this is not the case, they must develop a compatible template in a reasonable timeframe. Google claimed the feature was only relevant to a small percentage of cars in Italy at the time, but the ruling now forces the company to comply with the antitrust decision. The case is final and cannot be appealed, and the Italian Council of State will follow the court’s guidance in its future ruling.

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Trump orders review of tariffs over digital service taxes

US President Donald Trump has directed his trade officials to revive investigations into digital service taxes imposed by foreign countries on American tech giants.

The move could lead to new tariffs on imports from nations like France, Canada, and India, which have introduced taxes targeting major firms such as Google, Meta, Apple, and Amazon. Trump argues that these levies unfairly exploit US companies and has vowed to protect America’s tax base from foreign appropriation.

The renewed probe follows previous investigations during Trump’s first term, where the US Trade Representative found that several countries discriminated against American firms, paving the way for potential retaliatory tariffs.

While the Biden administration initially imposed 25% tariffs on goods from countries with digital taxes, these duties were suspended to allow for global tax negotiations. However, with talks stalling and the US rejecting the 15% global minimum tax, Trump has now abandoned the deal entirely.

The new directive also calls for scrutiny of the Digital Markets Act and Digital Services Act imposed by the European Union, assessing whether they encourage censorship or undermine free speech for US companies.

As tensions grow, the US could impose fresh tariffs on billions of dollars worth of foreign imports. Trump has not yet revealed the specific tariff rates or the value of goods that may be targeted in this latest round of trade actions.

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US lawmakers criticise EU’s Digital Markets Act

US House Judiciary Chair Jim Jordan has called on European Union antitrust chief Teresa Ribera to clarify how the EU enforces its Digital Markets Act (DMA), which he believes disproportionately targets American companies. His request follows a memorandum signed by US President Donald Trump, warning that the administration would scrutinise the EU’s new rules regulating how US companies interact with consumers in Europe.

Jordan and his co-signatory, Scott Fitzgerald, criticised the DMA’s hefty fines, which can reach up to 10% of a company’s global revenue for violations. They argue that the rules not only disadvantage US companies but also potentially benefit Chinese firms, stifling innovation and handing over valuable data to adversarial nations. The letter urges Ribera to address these concerns with the judiciary committee by March 10.

The European Commission, where Ribera is the second-highest official, has rejected claims that its laws are aimed at American companies. Ribera defended the DMA in a recent interview, stating that the EU should not be pressured into altering laws that have already been approved by European lawmakers.

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Telstra faces penalties after broadband speed ruling

Australia’s Federal Court has ruled that telecom giant Telstra misled customers about downgrading the upload speed of its broadband plans. The Australian Competition & Consumer Commission (ACCC) initiated legal action in December 2022, accusing Telstra of downgrading the upload speeds for nearly 9,000 customers in 2020 without informing them or adjusting charges accordingly.

The ACCC argued that Telstra’s failure to notify customers deprived them of the chance to decide whether the altered service met their needs. The regulator is seeking penalties, compensation for affected customers, and other measures, with a final decision to be made by the court later.

Telstra expressed disappointment in the ruling but acknowledged the court’s decision. A spokesperson said the company would review the judgment before deciding on further steps.

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