Competition regulation

Germany investigates Apple’s App Tracking Transparency

Germany‘s Federal Cartel Office has expressed concerns over Apple’s App Tracking Transparency (ATT) feature, which could potentially violate antitrust rules for large tech companies. The regulator’s preliminary findings come after a detailed three-year investigation into the feature, which allows iPhone users to block advertisers from tracking their activities across multiple apps. The investigation is part of broader scrutiny over the influence of major tech companies on the digital advertising ecosystem.

In a statement released on Thursday, the Federal Cartel Office noted that Apple now has the opportunity to respond to the allegations. The authority’s concerns focus on whether ATT unfairly impacts the business models of other companies that rely on data-driven advertising, such as Meta Platforms, app developers, and startups. These businesses argue that the feature could severely limit their ability to target users with personalised ads, affecting their revenue generation strategies.

Apple has defended ATT as a crucial privacy tool that empowers users to have more control over their data. The company argues that the feature helps to protect user privacy by giving individuals the option to block third-party tracking. However, its critics, particularly in the advertising industry, contend that ATT has created an uneven playing field, disadvantaging businesses that depend on targeted advertising. The outcome of this investigation could have significant implications for Apple’s business practices in Europe.

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EU regulators to discuss DeepSeek over data privacy concerns

European data protection authorities are set to discuss Chinese AI startup DeepSeek amid growing concerns about how the company handles personal data. The European Data Protection Board will review the firm’s practices at its monthly meeting on Tuesday, following questions from several national regulators about whether European user data is being used for AI training and if it could be transferred to China.

France‘s privacy watchdog, CNIL, has already questioned DeepSeek about its AI model and any potential risks to user privacy. Ireland‘s data protection authority has also requested information, while Italy has taken a more drastic step by ordering DeepSeek to block its chatbot in the country due to unresolved concerns over its privacy policy.

The European Union is known for its strict data protection laws, with the General Data Protection Regulation (GDPR) considered one of the most comprehensive privacy frameworks globally. Authorities are now working to coordinate their approach to ensure a consistent response to DeepSeek’s activities across the region.

Foxconn to adjust production amid US tariff changes

Foxconn, the world’s largest contract electronics manufacturer and Apple’s main iPhone maker, is prepared to adjust its production strategies in response to new US tariffs. Chairman Young Liu stated that the company is capable of planning its manufacturing around these changes, particularly with US President Donald Trump’s recently announced 25% tariff on all imports from Mexico and Canada, which has been paused until March 4.

Liu explained that Foxconn operates factories in both the United States and Mexico and will adjust production capacities based on the impact of the tariffs. He emphasised that Foxconn has the flexibility to move its operations between countries, minimising the overall effect of the tariffs on the company. However, Liu also warned that such tariffs are detrimental to the global economy, potentially shrinking markets.

Foxconn remains committed to working with US partners to align its manufacturing strategies with President Trump’s push for more domestic production. Despite the uncertainty around the tariffs, the company is prepared to adapt as necessary.

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Macron calls for investment and simplified AI rules

At the AI summit in Paris, French President Emmanuel Macron announced that Europe would reduce regulations to foster the growth of AI in the region. He called for more investment, particularly in France, and highlighted the importance of simplifying rules to stay competitive globally. Macron drew comparisons to the rapid reconstruction of the Notre-Dame cathedral, stating that a similar streamlined approach would be adopted for AI and data centre projects across Europe.

European Union digital chief Henna Virkkunen echoed Macron’s comments, promising to cut red tape and implement business-friendly policies. With the US pushing ahead with lighter AI regulations, there is increasing pressure on Europe to follow suit. Sundar Pichai, CEO of Alphabet, emphasised the need for more ecosystems of AI innovation, similar to the one emerging in France. The EU had previously passed the AI Act, which is the world’s first comprehensive set of AI regulations, but many at the summit urged a more flexible approach.

At the summit, France announced a major push for AI investment, including €109 billion from the private sector, and the launch of the Current AI partnership. This initiative, backed by countries like France and Germany, aims to ensure AI remains inclusive and sustainable. However, not all voices at the summit supported reducing regulations. Concerns were raised about the potential risks of weakening safeguards, particularly for workers whose jobs might be affected by AI advancements.

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French antitrust agency looks into Microsoft’s Bing deals

France‘s antitrust agency has launched an investigation into Microsoft over concerns that the company may be degrading search results for smaller rivals using Bing technology in their search-engine products. Microsoft has confirmed its full cooperation with the French regulator, the Autorité de la concurrence, but has not commented further. Although Microsoft does not dominate the general search market, it holds a significant share in the search-engine syndication sector.

The investigation, which was first reported by Bloomberg, could lead to formal charges and a potential fine for the US tech giant if the regulator determines that Microsoft’s actions are anti-competitive. The French competition authority has yet to provide any additional details about the probe. The case could have broader implications for the way major tech firms, including Microsoft, operate in the digital advertising and search-engine markets, potentially influencing how they collaborate with smaller companies.

If the investigation results in a fine or any form of penalty, it would further highlight the ongoing scrutiny of the practices of big tech companies in Europe. With regulators across the continent taking a closer look at the competitive dynamics of the tech sector, the outcome of this case could set a precedent for future antitrust actions within the industry.

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JD Vance takes on Europe’s AI regulations in Paris

US Vice President JD Vance is set to speak at the Paris AI summit on Tuesday, where he is expected to address Europe’s regulation of artificial intelligence and the moderation of content on major tech platforms. As AI continues to grow, the global discussion has shifted from safety concerns to intense geopolitical competition, with nations vying to lead the technology’s development. On the first day of the summit, French President Emmanuel Macron emphasised the need for Europe to reduce regulatory barriers to foster AI growth, in contrast to the regulatory divergence between the US, China, and Europe.

Vance, a vocal critic of content moderation on tech platforms, has voiced concerns over Europe’s approach, particularly in relation to Elon Musk’s platform X. Ahead of his trip, he stressed that free speech should be a priority for the US under President Trump, suggesting that European content moderation could harm these values. While Vance’s main focus in Paris is expected to be Russia’s invasion of Ukraine, he will lead the American delegation in discussions with nearly 100 countries, including China and India, to navigate competing national interests in the AI sector.

Macron and European Commission President Ursula von der Leyen are also expected to present a new AI strategy, aimed at simplifying regulations and accelerating Europe’s progress. At the summit, Macron highlighted the region’s shift to carbon-free nuclear energy to meet the growing energy demands of AI. German Chancellor Olaf Scholz called on European companies to unite in strengthening AI efforts within the continent. Meanwhile, OpenAI CEO Sam Altman is scheduled to speak, following a significant bid from a consortium led by Musk to purchase OpenAI.

The summit also anticipates discussions on a draft statement proposing an inclusive, human rights-based approach to AI, with an emphasis on avoiding market concentration and ensuring sustainability for both people and the planet. However, it remains unclear whether nations will support this approach as they align their strategies.

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Microsoft offers price change to avoid EU antitrust fine

Microsoft has proposed increasing the price difference between its Office product with the Teams app and the version without it, to avoid a potential EU antitrust fine. This comes after complaints from rivals like Salesforce-owned Slack and German competitor alfaview regarding Microsoft’s practice of bundling Teams with Office. Since Teams became a part of Office 365 in 2017, it gained widespread use during the pandemic, largely due to its video conferencing capabilities.

To address concerns, Microsoft unbundled Teams from Office in 2023, offering Office without Teams for €2 less and a standalone Teams subscription for €5 per month. The European Commission is currently gathering feedback from companies, with a decision on whether to conduct a formal market test expected soon. As part of its offer, Microsoft has also proposed better interoperability terms to make it easier for competitors to challenge its products.

The EU has previously fined Microsoft €2.2 billion for similar antitrust issues in the past. If the Commission accepts Microsoft’s proposal without issuing a fine or finding wrongdoing, it would likely allow the EU to focus resources on ongoing investigations into other tech giants like Apple and Google.

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Motorola loses appeal over UK emergency services contract

Motorola has been denied permission to appeal against the UK competition regulator’s ruling that it was making excessive profits from its contract to provide communications for Britain’s emergency services. The Court of Appeal unanimously dismissed the company’s application, upholding the Competition and Markets Authority’s (CMA) decision to impose a price cap on Motorola’s Airwave network.

The CMA introduced the cap in July 2023, reducing the cost of the Airwave service to reflect a competitive market, cutting an estimated £200 million in annual charges. Motorola had previously challenged the regulator’s findings at a tribunal but was unsuccessful. CMA Executive Director George Lusty welcomed the court’s decision, stating it ensures fair pricing for emergency services and marks the end of the legal dispute.

A Motorola spokesperson defended the company’s role, emphasising that Airwave remains essential for UK public safety communications. Despite disagreeing with the CMA’s ruling, Motorola said it is focused on continuing to provide high-quality emergency communication services.

EU AI regulations making it harder for global firms, Ezzat says

Aiman Ezzat, CEO of Capgemini, has criticised the European Union’s AI regulations, claiming they are overly restrictive and hinder the ability of global companies to deploy AI technology in the region. His comments come ahead of the AI Action summit in Paris and reflect increasing frustration from private sector players with EU laws. Ezzat highlighted the complexity of navigating different regulations across countries, especially in the absence of global AI standards, and argued that the EU’s AI Act hailed as the most comprehensive worldwide, could stifle innovation.

As one of Europe’s largest IT services firms, Capgemini works with major players like Microsoft, Google Cloud, and Amazon Web Services. The company is concerned about the implementation of AI regulations in various countries and how they affect business operations. Ezzat is hopeful that the AI summit will provide an opportunity for regulators and industry leaders to align on AI policies moving forward.

Despite the regulatory challenges, Ezzat spoke positively about DeepSeek, a Chinese AI firm gaining traction by offering cost-effective, open-source models that compete with US tech giants. However, he pointed out that while DeepSeek shares its models, it is not entirely open source, as there is limited access to the data used for training the models. Capgemini is in the early stages of exploring the use of DeepSeek’s technology with clients.

As concerns about AI’s impact on privacy grow, European data protection authorities have begun investigating AI companies, including DeepSeek, to ensure compliance with privacy laws. Ezzat’s comments underscore the ongoing tension between innovation and regulation in the rapidly evolving AI landscape.

UK officials push Apple to unlock cloud data, according to TWP

Britain’s security officials have reportedly ordered Apple to create a so-called ‘back door’ to access all content uploaded to the cloud by its users worldwide. The demand, revealed by The Washington Post, could force Apple to compromise its security promises to customers. Sources suggest the company may opt to stop offering encrypted storage in the UK rather than comply with the order.

Apple has not yet responded to requests for comment outside of regular business hours. The Home Office has served Apple with a technical capability notice, which would require the company to grant access to the requested data. However, a spokesperson from the Home Office declined to confirm or deny the existence of such a notice.

In January, Britain initiated an investigation into the operating systems of Apple and Google, as well as their app stores and browsers. The ongoing regulatory scrutiny highlights growing tensions between tech giants and governments over privacy and security concerns.