Competition regulation

Italy blocks DeepSeek chatbot over privacy concerns

Italy’s data protection authority, the Garante, has ordered the Chinese AI startup DeepSeek to block its chatbot in the country, citing insufficient responses to queries about its privacy policy. The watchdog had requested detailed information on data collection practices, sources, purposes, and storage, particularly concerning whether user data is stored in China. DeepSeek’s failure to adequately address these concerns prompted the Garante to impose an immediate ban and launch an investigation.

DeepSeek had removed its AI assistant from Italian app stores earlier this week but claimed it was not subject to local regulation. Agostino Ghiglia, a member of the Garante’s board, stated that the company’s stance worsened its position. Italian users who had already downloaded the app still reported access to the chatbot, while the web version remains operational. The Garante emphasised that European citizens must have clear consent and data protection guarantees, especially regarding servers located in China.

The Garante’s action highlights growing scrutiny of AI platforms in Europe, with data regulators in Ireland and France also questioning DeepSeek’s privacy practices. Italy‘s proactive approach has drawn attention; the country temporarily banned ChatGPT in 2023 over similar concerns. DeepSeek has positioned its AI as a cost-effective alternative to US models, surpassing ChatGPT as the top-rated app on Apple’s US App Store. However, its refusal to cooperate with European regulators may jeopardise its expansion.

Government of Taiwan weighs response to potential US chip tariffs

Taiwan’s government is assessing whether to assist its industry in response to possible US tariffs on semiconductors, Premier Cho Jung-tai confirmed. Authorities are closely monitoring recent developments after former President Donald Trump pledged to impose tariffs to encourage domestic production in the US.

Taiwan, home to leading chipmaker TSMC, plays a crucial role in global technology supply chains. Cho emphasised Taiwan’s strategic position in the industry and pledged continued efforts to strengthen external cooperation and maintain technological leadership. Economy Minister Kuo Jyh-huei downplayed concerns, suggesting any tariff impact would be minimal due to Taiwan’s technological edge.

During Trump’s previous administration, TSMC committed to a $12 billion factory in Arizona, later expanding the investment to $65 billion. The latest tariff proposal follows his recent directive for US agencies to investigate trade deficits and alleged currency manipulation, which could present further challenges for Taiwan.

Taiwan’s trade surplus with the US surged 83% last year, reaching a record $111.4 billion, driven by high-tech exports, particularly semiconductors. TSMC has declined to comment on the potential tariffs, while the government continues to evaluate its response.

Italy suspends DeepSeek AI app amid data protection concerns

The Chinese AI app DeepSeek was removed from Apple and Google app stores in Italy on Wednesday, following a request by the country’s data protection authority for information on its handling of personal data. Italy’s Garante regulator gave DeepSeek 20 days to clarify what data it collects, its sources, purposes, and whether it is stored in China. Concerns over safeguarding underage users, potential bias, and risks of electoral interference were also highlighted by Garante chief Pasquale Stanzione.

The app, which recently surpassed ChatGPT in downloads from Apple’s App Store, remains functional for Italian users who had already installed it. It is also still available in other European Union countries and the UK. Ireland‘s Data Protection Commission has also sought details about DeepSeek’s data processing practices for Irish users, while Germany‘s government has voiced concerns about potential AI-driven election interference ahead of its February vote.

Italy’s Garante is known for its proactive stance on AI regulations, having temporarily banned ChatGPT in 2023 over alleged breaches of EU privacy laws. DeepSeek, which touts itself as a cost-efficient alternative to U.S. AI services, has faced mounting scrutiny as it gains popularity. Meanwhile, Irish regulators noted that DeepSeek has not designated Ireland as its EU headquarters, complicating oversight under EU data protection rules.

Google appeals EU’s record antitrust fine

Google has appealed to the EU’s top court to overturn a record 4.3-billion-euro antitrust fine imposed seven years ago, arguing that the penalty punished the company for its innovation. The fine was originally levied by the European Commission, which accused Google of using its Android operating system to suppress competition by forcing manufacturers to pre-install Google Search, Chrome, and the Google Play store on devices. While the fine was later reduced to 4.1 billion euros by a lower court, Google maintains that its actions fostered competition, not hindered it.

During Tuesday’s hearing, Google lawyer Alfonso Lamadrid stated that the Commission failed to meet its legal obligations and relied on errors in law. Lamadrid defended Google’s agreements with phone manufacturers, insisting they were not anti-competitive, but rather beneficial to the market. The case centres on whether the European Commission acted appropriately in its investigation and decision to reshape markets through such penalties.

The judges of the Luxembourg-based Court of Justice of the European Union will make a final ruling in the coming months, with no further opportunity for appeal. In addition to this case, Google remains under scrutiny by EU regulators for its advertising business, with another major decision expected later this year.

OpenAI faces legal action from Indian news companies

Several prominent Indian media outlets, including those owned by billionaires Gautam Adani and Mukesh Ambani, are taking legal action against OpenAI. These outlets, such as NDTV and Network18, along with organisations like the Indian Express and Hindustan Times, have filed to join an ongoing lawsuit against OpenAI in a New Delhi court. They allege that OpenAI has been improperly scraping their copyrighted content to train its AI model, ChatGPT, without permission or payment.

The legal claim, which is being led by the Digital News Publishers Association (DNPA), argues that OpenAI’s practices pose a significant threat to the copyrights of its members. The publishers claim that OpenAI’s actions amount to ‘wilful scraping’ and the use of their work for commercial gain, especially as the company generates revenue through ads linked to AI-generated content. This lawsuit highlights broader concerns in the media industry about the influence of large tech companies on content distribution and monetisation.

The legal proceedings are part of a larger global trend, with authors, musicians, and news organisations worldwide suing AI firms for using their works without compensation. In the US, the New York Times has filed a similar lawsuit against OpenAI and its major backer, Microsoft. This new case in India adds significant pressure to OpenAI, which has denied the allegations, arguing that its AI systems rely on publicly available data and that deleting such data could violate US law.

The Indian plaintiffs argue that OpenAI’s failure to strike content-sharing deals with local publishers, while it has done so with international media outlets, undermines the business of Indian news companies. The publishers warn that OpenAI’s practices could weaken the media landscape and negatively impact democracy, calling for greater protection of intellectual property in the age of AI.

Ads to launch on Threads platform

Meta has begun testing advertisements on its Threads platform in the US and Japan, targeting a small group of users with image ads in their home feeds. The trial comes as the platform surpasses 300 million monthly active users. Businesses will have the opportunity to extend their existing Meta campaigns to Threads, with the company closely monitoring the tests before a wider rollout.

Advertisers will also benefit from a new inventory filter powered by AI, enabling control over the type of content their ads appear alongside. Analysts suggest that while Threads is still a minor player in Meta’s overall revenue strategy, growing uncertainty around TikTok has led brands to explore alternative platforms.

Launched in July 2023 as a competitor to X, formerly known as Twitter, Threads continues to attract users following X’s controversial changes under Elon Musk. Meta’s plans to expand its AI infrastructure with a $65 billion investment this year further highlight its ambitions to remain competitive with tech giants such as OpenAI and Google.

While Threads is not expected to contribute significantly to Meta’s revenue by 2025, its integration into Meta’s broader ad ecosystem demonstrates the company’s efforts to capitalise on the platform’s growing popularity.

GameOn founder faces fraud charges

The founder and former CEO of GameOn, an AI startup in San Francisco, has been indicted for orchestrating a six-year-long fraud scheme that allegedly defrauded investors and the company out of over $60 million. Alexander Beckman, 41, faces 23 criminal charges, while his wife, Valerie Lau Beckman, 38, who worked as a lawyer for the company, is charged with 16 counts, including obstruction. Both have pleaded not guilty. The US Securities and Exchange Commission has also filed civil charges against the couple.

Beckman is accused of deceiving investors by inflating the company’s financial status, including fabricating fake customer relationships, overstating revenue, and creating fraudulent bank statements and audit reports. He allegedly went as far as impersonating individuals to share false information. Meanwhile, Lau Beckman allegedly assisted her husband by providing authentic audit reports to help fabricate false documents and delete critical files after an investigation began.

The Beckmans are also accused of misusing investor funds for personal expenses, including purchasing a luxury home, vehicles, and covering costs for their wedding. The fraudulent activities reportedly continued up until Beckman’s resignation as CEO in July 2024. GameOn, which has since been rebranded as On Platform, eventually admitted to the financial discrepancies and laid off most of its employees.

The case underscores the need for integrity in the tech industry, particularly within startups, as federal prosecutors emphasise that fraud cannot fuel innovation.

UK competition regulator welcomes Doug Gurr

The UK‘s Competition and Markets Authority has appointed former Amazon executive Doug Gurr as its interim chairman, signalling the government’s push to boost economic growth and support the tech sector. Gurr, who brings extensive experience at Amazon, including leading the company’s UK and China operations, will guide the CMA as it fosters competition in industries such as cloud services and AI. The move aligns with the UK’s broader strategy to streamline regulations and position itself as a pro-business nation.

Gurr’s appointment comes amid a critical phase in the CMA’s investigation into the domestic cloud services market, which has been scrutinising Amazon’s dominant position. While Gurr will serve in an interim role, the government hopes his commercial background will help drive pro-business decisions that stimulate growth. This marks a shift from the previous chair, Marcus Bokkerink, whose tenure was shorter than expected, possibly due to dissatisfaction among government officials.

Industry experts note that Gurr’s appointment is timely, as the CMA is stepping up its oversight of Big Tech, particularly with the expanded powers under the Digital Markets, Competition, and Consumers Act. Critics and lobby groups like the Open Cloud Coalition closely watch how the CMA will handle its regulatory responsibilities, particularly in the cloud services sector, where Amazon holds a significant market share. They urge the CMA to maintain a strong stance on promoting fairness and competition.

As the CMA navigates its investigations and enforces new rules, stakeholders are keen to see how Gurr’s leadership will shape the future of competition regulation in the UK. The outcome could have far-reaching implications for businesses and consumers, particularly in the rapidly evolving tech landscape.

UK government shakes up CMA leadership

Marcus Bokkerink has been removed from his position as chair of the Competition and Markets Authority (CMA) by the UK government, marking a shift in regulatory practices aimed at boosting economic growth. The CMA, a key agency overseeing mergers and competition, had recently paused the high-profile Microsoft-Activision Blizzard merger, showcasing its regulatory power. Bokkerink, appointed in 2022, was expected to serve a five-year term but will now step down as part of the government’s effort to realign regulatory bodies with its economic priorities.

This decision reflects a broader governmental push to reduce barriers to economic expansion. Prime Minister Keir Starmer, Chancellor Rachel Reeves, and Business Secretary Jonathan Reynolds recently sent a letter to several regulators, including the CMA, urging them to prioritize growth. Government insiders have suggested that the move signals a serious commitment to reshaping the regulatory environment to encourage investment and economic development.

The removal of Bokkerink, a former senior partner at Boston Consulting Group, comes as the government continues to focus on attracting international investment, with key figures like Reeves and Reynolds attending the World Economic Forum in Davos to further this goal. The government’s efforts to reshape regulatory culture align with its broader strategy to make economic growth the country’s top priority.

OpenAI defends itself in ANI copyright lawsuit in India

OpenAI has told an Indian court that removing training data used for its ChatGPT service would conflict with its legal obligations in the United States. The company, backed by Microsoft, is defending a copyright lawsuit filed by Indian news agency ANI, which accuses OpenAI of using its content without permission and demands the deletion of ANI’s data from ChatGPT’s memory.

In a January 10 filing, OpenAI argued that Indian courts lack jurisdiction as the company has no physical presence or data servers in India. It also emphasised its legal obligation in the US to preserve training data while litigation is ongoing. OpenAI denied wrongdoing, asserting its systems make fair use of publicly available data, a stance it has maintained in similar copyright disputes globally.

ANI insists the Delhi court has the authority to rule on the case, citing concerns over unfair competition and alleging that ChatGPT reproduces its content verbatim. OpenAI, however, countered that ANI manipulated prompts to elicit such responses. The court is set to hear the case on January 28, marking a key moment in India’s scrutiny of AI and copyright law.