UK regulator considers remedies for Synopsys-Ansys deal

The UK‘s competition regulator, the Competition and Markets Authority (CMA), announced it may accept remedies proposed by Synopsys and Ansys to address concerns over their $35 billion merger. The deal, announced in January of last year, involves Synopsys acquiring Ansys, a company known for its software used in industries like aerospace and sports equipment manufacturing.

The CMA outlined the proposed remedies, which include the sale of Ansys’ power consumption analysis product for digital chips and Synopsys’ global optics and photonics software business. The regulator has until March 5 to decide whether to accept these remedies, though it can extend the deadline to 6 May.

Synopsys expressed satisfaction with the CMA’s progress and reiterated its commitment to working closely with the authority. The outcome of the regulator’s review could significantly impact the completion of the merger, which aims to enhance the companies’ capabilities in chip design software.

US tech leaders oppose proposed export limits

A prominent technology trade group has urged the Biden administration to reconsider a proposed rule that would restrict global access to US-made AI chips, warning that the measure could undermine America’s leadership in the AI sector. The Information Technology Industry Council (ITI), representing major companies like Amazon, Microsoft, and Meta, expressed concerns that the restrictions could unfairly limit US companies’ ability to compete globally while allowing foreign rivals to dominate the market.

The proposed rule, expected to be released as soon as Friday, is part of the Commerce Department’s broader strategy to regulate AI chip exports and prevent misuse, particularly by adversaries like China. The restrictions aim to curb the potential for AI to enhance China’s military capabilities. However, in a letter to Commerce Secretary Gina Raimondo, ITI CEO Jason Oxman criticised the administration’s urgency in finalising the rule, warning of ‘significant adverse consequences’ if implemented hastily. Oxman called for a more measured approach, such as issuing a proposed rule for public feedback rather than enacting an immediate policy.

Industry leaders have been vocal in their opposition, describing the draft rule as overly broad and damaging. The Semiconductor Industry Association raised similar concerns earlier this week, and Oracle’s Executive Vice President Ken Glueck slammed the measure as one of the most disruptive ever proposed for the US tech sector. Glueck argued the rule would impose sweeping regulations on the global commercial cloud industry, stifling innovation and growth.

While the administration has yet to comment on the matter, the growing pushback highlights the tension between safeguarding national security and maintaining US dominance in the rapidly evolving field of AI.

Apple faces continued iPhone ban in Indonesia

Apple remains unable to sell its iPhone 16 in Indonesia despite agreeing to build a production facility in the country, according to Indonesia’s industry minister, Agus Gumiwang Kartasasmita. The ban stems from regulations requiring smartphones sold domestically to include at least 35% locally-made components—a threshold Apple has not met.

While Apple plans to invest $1 billion in a facility on Batam island to produce its Airtag tracking devices, the industry ministry clarified that this does not qualify as contributing to iPhone production. Kartasasmita emphasised that only phone components would satisfy the local content rules necessary for certification to sell iPhones in Indonesia.

Apple, which lacks manufacturing facilities in the country, has maintained its presence through application developer academies since 2018. Despite two days of discussions between Kartasasmita and Apple’s vice president of global government affairs, Nick Ammann, the company’s proposals for ‘innovative investment’ failed to meet Indonesia’s regulatory standards for smartphone sales.

The planned Batam facility, expected to launch operations next year, underscores Apple’s interest in expanding its footprint in Indonesia, a nation of 280 million people. However, the iPhone 16’s path to market in the region remains uncertain.

Apple launches rare discount campaign in China amid fierce competition with Huawei

Apple has announced rare discounts on its latest iPhone models in China, offering up to 500 yuan ($68.50) off in a bid to counter growing competition from domestic rivals like Huawei. The promotion, running from 4 January to 7, applies to several iPhone models when purchased through specific payment methods, such as WeChat Pay or Alipay.

The flagship iPhone 16 Pro and iPhone 16 Pro Max, priced at 7,999 yuan and 9,999 yuan, respectively, will receive a maximum discount of 500 yuan. Meanwhile, the iPhone 16 and iPhone 16 Plus will see a 400 yuan reduction. The offer extends to older iPhone models and other products, including MacBook laptops and iPad tablets, with discounts ranging from 200 to 300 yuan.

That move comes as Apple faces a challenging environment in China, where economic pressures and intensifying competition have weighed on consumer spending. Huawei has reemerged as a formidable competitor, significantly boosting its market presence with locally-made chipsets and aggressive pricing.

While Apple briefly dropped out of China’s top five smartphone vendors in mid-2024, it regained some ground later in the year despite a slight dip in sales. By offering these discounts, Apple aims to retain its footing in the world’s largest smartphone market amid Huawei’s resurgence and a cautious economic climate.

Instacart and Uber sue Seattle over app-based worker protections

Instacart has joined Uber in a legal challenge against a new Seattle ordinance regulating how app-based workers can be deactivated. The law, set to take effect in January, requires companies to provide gig workers with a 14-day notice of deactivation, base decisions on reasonable policies, and allow human review of all deactivations.

Seattle officials describe the legislation as a landmark move to ensure worker rights in the gig economy. Advocacy groups support the law, arguing that it addresses unfair deactivations and offers greater job security for app-based workers.

Instacart and Uber, however, claim the ordinance infringes on constitutional rights, federal laws, and operational safety. This lawsuit is part of broader disputes between tech companies and cities over labour regulations in the gig economy. Seattle has pledged to defend its policies, emphasising its commitment to protecting workers in modern app-driven industries.

German court fines Signify in patent case

A German court has ordered Signify, the world’s largest lighting maker, to recall and destroy certain products sold since 2017, citing patent infringement claims made by Seoul Semiconductor, a South Korean firm. The Düsseldorf court also ruled that Signify could face fines of up to €250,000 ($259,925) for each violation of the order, according to a statement from Seoul Semiconductor.

Signify, headquartered in the Netherlands and spun off from Philips in 2016, has not yet responded to requests for comment. The court ruling adds to the challenges faced by the company, which has a global reputation in the lighting industry.

Seoul Semiconductor, a leader in light-emitting diode (LED) technology, invests heavily in innovation, allocating about 10% of its revenue to research and development. The company boasts a portfolio of over 18,000 patents and has pursued legal action against multinational corporations to protect its intellectual property rights.

Vietnam enacts strict internet rules targeting social media and gaming

Vietnam’s new internet law, known as ‘Decree 147,’ came into effect Wednesday, requiring platforms like Facebook and TikTok to verify user identities and share data with authorities upon request. Critics view the move as a crackdown on freedom of expression, with activists warning it will stifle dissent and blur the lines between legal and illegal online activity. Under the rules, tech companies must store verified information alongside users’ names and dates of birth and remove government-designated “illegal” content within 24 hours.

The decree also impacts the booming social commerce sector by allowing only verified accounts to livestream. Additionally, it imposes restrictions on gaming for minors, limiting sessions to one hour and a maximum of 180 minutes daily. Vietnam, with over 65 million Facebook users and a growing gaming population, may see significant disruptions in online behaviour and businesses.

Critics liken the law to China’s tight internet controls. Activists and content creators have expressed fear of persecution, citing recent examples like the 12-year prison sentence for a YouTuber critical of the government. Despite the sweeping measures, some local businesses and gamers remain sceptical about enforcement, suggesting a wait-and-see approach to the decree’s real-world impact.

Google counters US push to sell Chrome

Google has proposed a legal alternative to a United States Department of Justice recommendation to dismantle its Chrome browser. Instead, the company suggests barring itself from using app licensing agreements to secure default software positions.

The proposal follows a landmark ruling declaring Google a monopoly. The government seeks stronger measures, including a ban on exclusive deals ensuring Google’s dominance on smartphones and other devices.

Judge Amit Mehta’s decision on antitrust remedies is expected to influence the tech industry. Google plans to appeal any adverse ruling.

Walmart and Branch Messenger sued over alleged illegal payment practices

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart and payroll service Branch Messenger, accusing them of forcing gig workers into unauthorised payment systems with excessive fees. The lawsuit alleges that Walmart opened direct deposit accounts for Spark delivery drivers without consent, using their social security numbers. These accounts imposed transaction fees of at least $2.99 per payment and offered no alternative payment methods, despite repeated promises of same-day payments since 2021.

CFPB Director Rohit Chopra criticised Walmart for allegedly exploiting more than a million delivery drivers, stating that companies cannot compel workers to accept payment methods that reduce their earnings. The lawsuit, filed in the United States District Court for Minnesota, seeks to hold both companies accountable for what the agency calls deceptive and abusive practices. Spark drivers had long raised concerns over being required to use Branch accounts, with Walmart allegedly threatening job termination for non-compliance.

The lawsuit highlights violations of the Consumer Financial Protection Act of 2010, asserting that these practices were unfair and abusive. The CFPB aims to secure redress for affected workers and set a precedent against such corporate behaviour.

Apple seeks role in Google antitrust trial

Apple has requested to participate in the US antitrust trial against Google, arguing it cannot trust Google to safeguard their shared revenue agreements. These agreements make Google the default search engine on Apple’s Safari browser, generating an estimated $20 billion for Apple in 2022. Despite this lucrative partnership, Apple confirmed it has no plans to develop its search engine, regardless of the trial’s outcome.

The Department of Justice’s case against Google is a pivotal effort to curb the tech giant’s dominance in online search. Prosecutors allege that Google’s practices stifle competition and may push for drastic measures such as divesting its Chrome browser or Android operating system. Apple, aiming to protect its financial interests, plans to present witnesses in the April trial.

While Google has proposed easing its default agreements with browser developers and device manufacturers, it has resisted ending its ad revenue-sharing deals. Apple criticised Google’s ability to represent its interests as the trial escalated into a broader challenge to Google’s business model. A Google spokesperson declined to comment on the case.