Competition regulation Archives | Page 51 of 108

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.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

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.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

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.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

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.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

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.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

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.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

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.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

NVIDIA eyes recovery in China after export deal ahead of Q2 report

NVIDIA is due to report its Q2 2026 financial results after the US market closes on 27 August, and analysts are expecting strong performance.

Consensus forecasts place revenue at around US $45.9 billion, up about 50 percent year-on-year, driven by ongoing demand for Blackwell GPUs, data centre expansion and redistribution of AI infrastructure investments globally.

Export changes are also pivotal. After entering a deal to resume H20 chip sales to China, despite revenue-sharing conditions, NVIDIA could reclaim as much as US$8 billion during Q2, mitigating past losses caused by restrictions.

Beyond geopolitical shifts, the Blackwell Ultra GPU is central to growth. Offering up to 50 times faster AI inference than earlier models, it is increasingly stocked by cloud providers and hyperscalers. Markets view this as a strategic advantage, fueling long-term AI momentum.

Risks remain. Gross margins may recover from prior pressure due to licensing charges, but margin expansion depends on supply and TAM realisation. China’s policy environment is also uncertain, making future guidance cautious for some analysts.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Senior OpenAI executive Julia Villagra departs amid talent war

OpenAI’s chief people officer, Julia Villagra, has left the company, marking the latest leadership change at the AI pioneer. Villagra, who joined the San Francisco firm in early 2024 and was promoted in March, previously led its human resources operations.

Her responsibilities will temporarily be overseen by chief strategy officer Jason Kwon, while chief applications officer Fidji Simo will lead the search for her successor.

Open AI said Villagra is stepping away to pursue her personal interest in art, music and storytelling as tools to help people understand the shift towards artificial general intelligence, a stage when machines surpass human performance in most forms of work.

The departure comes as OpenAI navigates a period of intense competition for AI expertise. Microsoft-backed OpenAI is valued at about $300 billion, with a potential share sale set to raise that figure to $500 billion.

The company faces growing rivalry from Meta, where Mark Zuckerberg has reportedly offered $100 million signing bonuses to attract OpenAI talent.

While OpenAI expands, public concerns over the impact of AI on employment continue. A Reuters/Ipsos poll found 71% of Americans fear AI could permanently displace too many workers, despite the unemployment rate standing at 4.2% in July.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Trump downplays TikTok security concerns as ban stalls

US President Donald Trump has dismissed national security and privacy concerns surrounding TikTok as ‘highly overrated,’ signalling once again that the popular video-sharing platform is unlikely to face a ban anytime soon. Although Congress passed legislation requiring TikTok’s Chinese parent company, ByteDance, to sell its controlling stake or face a nationwide ban, Trump has repeatedly pushed back enforcement deadlines, with the next one set for 17 September.

Trump has already issued three extensions since taking office for his second term. The first came on 20 January, after TikTok briefly went offline when the court-approved ban took effect. Another followed in April, when a potential US buyout collapsed after China objected to Trump’s tariff moves. Trump insists that American buyers remain interested but says the process is ‘complex,’ justifying further delays.

Despite the legal framework for a ban, Trump’s administration has not faced significant legal challenges over his executive orders keeping TikTok active, which contrasts with many of his other directives. The White House even launched its own TikTok account this week, underscoring the platform’s mainstream role in US politics. Trump himself admitted he is a fan, noting its popularity among his children and younger voters.

Public opinion on TikTok remains deeply divided. A Pew Research Center survey found only about one-third of Americans now support a ban, a sharp decline from half of respondents in 2023. Roughly equal shares oppose a ban or remain undecided. Among supporters of restrictions, most cite concerns about user data security. Still, with Trump downplaying risks and signalling a willingness to keep the app alive, TikTok’s future in the US looks increasingly secure.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!